17 Free New Mexico Accident & Health Insurance Exam Practice Questions (2026)

The accident and health questions in this set draw on five sections of PSI's content outline for the combined Series 18-27 exam, the Life, Accident and Health or Sickness Insurance Producer exam: Disability Income and Related Insurance at 6 scored questions, Medical Plans at 15, Group Health Insurance at 9, Specialized Health Insurance for Qualified Individuals at 8 and Federal Tax Considerations for Life and Health Insurance at 8. On that exam they sit beside the other sections of the thirteen-section outline, including Insurance Regulation (New Mexico law) at 15. The exam is 150 scored questions in 150 minutes (2.5 hours) for $75, with one score for the whole exam and a pass mark of 70 percent.

A candidate who wants only the Accident and Health or Sickness line can book the single-line exam (Series 18-26) instead: 100 questions in 2 hours for $75, with the same 70 percent standard. Either exam is taken at a PSI test center or online proctored, as you choose at registration. New Mexico requires no pre-licensing course, and for resident applicants the national criminal history background check through IdentoGo ($67) comes after you pass the exam and before you apply through NIPR.

The 17 questions are drawn from Chapters 7 and 8 of LanePrep's New Mexico Life & Health quiz bank, and none repeats a question from the free 25-question sample across the whole exam: 10 on disability income and medical plans (Chapter 7) and 7 on group health, specialized health insurance and taxation (Chapter 8). On the combined exam those chapters are worth 21 and 25 of the 150 scored items, and Chapter 8 is the heaviest chapter in the course. The grouping is LanePrep's own, not PSI's: Chapter 7 teaches disability income and medical plans together, and Chapter 8 teaches group health, specialized health insurance and federal tax topics together. The New Mexico law questions and the Chapter 6 questions on accident and health policy provisions are in the free 25-question set. Every question is labeled with its chapter, so each miss points you to the audio lesson to replay.

For context, the NAIC reports first-time pass rates for the combined exam, the exam this course follows, of 33.6 percent in 2024 and 37.0 percent in 2025, counting both testing modes together.

Answer each one before you open the explanation. The explanation is folded underneath every question. A guess you have to defend is worth more than an answer you only agree with.

Chapter 7 opens the Health set with disability income and medical plans. It asks which coverage pays the rent and utilities of a boutique whose owner becomes disabled, what a benefit is called when it pays in proportion to lost income after a part-time return to work, and what two construction partners should buy to fund a buyout if one becomes permanently disabled. It then covers the rider that protects the purchasing power of a monthly benefit, what the Silver level of a plan on the health insurance exchange represents, and what it is called when a group long-term disability plan reduces its benefit by the federal disability benefit the worker receives.

Chapter 7 continues with the expenses a Business Overhead Expense policy pays for a potter who is disabled for a while, when a Cost of Living Adjustment rider starts to raise a disabled insured's benefit, how much an AD&D policy pays when the insured loses both feet in one accident, and what happens to group long-term disability benefits when the definition of total disability changes from own-occupation to any-occupation. Chapter 8 begins with Medicare eligibility for a New Mexico resident with end-stage renal disease and then asks whether an employee has continuation rights under New Mexico's state continuation law when the group coverage ended because the employer did not pay the premium.

Chapter 8 closes the Health set with Medicare, long-term care, continuation and taxes. It asks whether an insurer can cancel a standardized Medicare Supplement policy or single out a policyholder for a rate increase after a serious heart condition, and what penalty follows when a Medicare-eligible resident misses his Initial Enrollment Period for Part B. It then covers the longest look-back and exclusion periods New Mexico lets a long-term care insurer enforce for a pre-existing condition, the maximum federal continuation periods for an employee who resigns and for the ex-spouse of an employee who divorces, and the income tax treatment of an accelerated death benefit paid to a terminally ill insured.

Confusing the business disability products. Business Overhead Expense insurance pays the actual overhead that keeps a business running while the owner is disabled, such as rent, utilities, employee salaries and leased equipment (questions 1 and 7). It does not replace the owner's personal salary, buy inventory or raw materials, or pay down the principal of a mortgage. Disability Buy-Sell insurance funds a buyout: when one of two partners becomes permanently disabled, the healthy partner uses it to purchase the disabled partner's interest (question 3). Key Employee and Key Person Disability insurance pay the business when a key person is disabled, and Group Long-Term Disability protects employees' income, so none of the three fits the boutique owner's rent or the partners' buyout.

Mixing up residual disability and the riders that adjust a benefit. Residual disability pays a benefit in proportion to the income lost when the insured returns to work but cannot earn what she did before (question 2), which is why part-time work after a disability points to it and not to Total, Presumptive or Occupational disability. The Cost-of-Living Adjustment rider protects the purchasing power of a monthly benefit against inflation (question 4); the Future Increase Option and the Guaranteed Insurability rider let the insured buy more coverage, and Waiver of Premium waives premiums. The COLA rider raises the benefit once a claim is under way, typically in line with an index such as the Consumer Price Index. Question 8 adds that the increases come annually after the insured has been disabled for a minimum period, which the explanation gives, and not from the first day, not when unemployment rises and not to match the highest salary ever earned.

Misreading the AD&D benefit and the disability definition. In an AD&D policy the Principal Sum is the full amount, paid for accidental death or for the loss of two limbs or the sight in both eyes (question 9). The Capital Sum is a smaller share of it and is paid for the loss of one limb, so an insured who loses both feet in one accident collects the full Principal Sum. Question 10 tests the change many group long-term disability plans make in the definition of total disability: it is judged by the insured's own occupation for an initial period and by any occupation afterwards. Once the any-occupation test applies, benefits stop if the insurer determines the insured can perform an occupation for which he is reasonably suited by education and experience, such as a sedentary office job. Continuing benefits because he can no longer work as an engineer, paying a residual benefit and converting the benefits to a lump sum are not the outcome.

Mislabeling offsets and metal tiers. When a group long-term disability plan reduces its benefit by the federal disability benefit the worker receives, that is Coordination of Benefits, often called an offset, and it prevents over-insurance (question 6). It is not subrogation, malingering prevention or the indemnity approach. The metal levels in question 5 describe actuarial value, the share of covered expenses a plan is built to pay on average; the tiers rise from Bronze through Silver and Gold to Platinum, and the explanation under question 5 gives the percentage for each, including the Silver figure the question asks for.

Getting Medicare eligibility and the Part B penalty wrong. Medicare eligibility rests mainly on age or disability, but a person with end-stage renal disease qualifies for Medicare Part A and Part B regardless of age (question 11); the answer does not wait for the usual Medicare age, depend on qualifying for Medicaid or impose a waiting period before Part A. A person who skips Part B when first eligible, has no creditable coverage and enrolls later pays a penalty that is added permanently to the monthly Part B premium (question 14). It is not a one-time flat surcharge, it does not stop after a few months, and it is not avoided by enrolling before some later birthday; the explanation under question 14 gives the rate.

Applying the wrong continuation law. New Mexico's state continuation law (NMSA 59A-18-16) lets an employee or member who leaves the group continue the group hospital, surgical and medical coverage for six months and then convert, but the right does not exist when the coverage ended for nonpayment of premium (question 12). The statute carves out no exception for the employer's fault, and it does not grant continuation regardless of why coverage ended. Federal continuation is a separate law with longer maximum periods, and in question 16 the ex-spouse of an employee who divorces gets a longer maximum period than an employee who resigns; the explanation under question 16 gives both periods.

Overlooking what the law guarantees on Medicare supplement and long-term care policies. A standardized Medicare supplement (Medigap) policy is guaranteed renewable: the insurer cannot cancel it or single out the policyholder for a rate increase because his health has worsened (question 13). Cancelling at an annual renewal because claims exceed premiums, re-underwriting the policy every few years and excluding coverage for the new condition are not allowed. Question 15 asks how far back a long-term care insurer may look for a pre-existing condition and how long it may exclude it. Under New Mexico's long-term care standards (NMSA 59A-23A-6 to -8) the answer is at most a six-month look-back and a six-month exclusion, and the other combinations in the options are not the statutory limits. Long-term care and Medicare supplement policies also each carry a 30-day right to return (NMSA 59A-23A-6(E) and NMSA 59A-24A-10), while New Mexico sets no free look for an ordinary life policy.

Taxing the accelerated death benefit the wrong way. When a terminally ill insured receives part of the death benefit early under an accelerated death benefit rider, federal tax law generally treats the payment as income-tax-free if a physician has certified that the illness is expected to result in death within a stated period (question 17). It is not ordinary taxable income just because it was paid while the insured was alive, it carries no early-withdrawal penalty of the kind that applies to retirement accounts, and it is not split between a tax-free part and a capital-gain part. The explanation under question 17 gives the certification period.

How did you score?

13 or more correct: That is a strong result on the accident and health sections. Take the Life insurance exam set next, then read how to pass the New Mexico Life & Health exam on the first try for the full study plan.

9-12 correct: You have a base but not yet a margin. Note which chapter each miss came from and replay that chapter's audio lesson before you retest.

Under 9 correct: Begin with Chapter 7 of the LanePrep New Mexico Life & Health course and work through Chapter 8 before you test yourself again. A free preview is available at /nm/l-and-h/preview.

Want a sample across the whole exam instead? The free practice set has 25 questions.

Exam format, fees and content outline item counts from PSI's New Mexico Office of Superintendent of Insurance Candidate Information Bulletin (footer-dated 6/4/2026) and PSI's Examination Content Outlines effective 7/1/2026 (Series 18-26 and 18-27); passing score from NMSA 59A-11-6; state continuation from NMSA 59A-18-16; long-term care standards from NMSA 59A-23A-6 to -8; right-to-return periods from NMSA 59A-23A-6(E) and NMSA 59A-24A-10; pass rates from the NAIC compiled pass-rate workbooks for 2024 and 2025. Read October 2026.