Where an applicant for a license is required to take and pass an examination prior to issuance of a license, the examination shall be subject to the following provisions:

A. the examination shall be made available to applicants for particular licenses at least once each month at places within New Mexico designated by the superintendent;

B. the examination shall require answers of the applicant to questions asked. If the applicant requests, the examination shall be administered in the Spanish language;

C. all examinations shall be conducted and graded in a fair and impartial manner and without unfair discrimination as between individuals examined;

D. a grade of not less than seventy is a passing grade;

E. an individual who has failed to pass an examination may take another examination at any subsequent scheduled examination date, except that an individual who has taken and failed to pass four of the same examinations shall not be entitled to take another examination until after six months after the date of the last examination failed;

F. an examination application fee, in the amount stated in Section 59A-6-1 NMSA 1978, or as provided for under Subsection H of this section, shall be paid for each examination;

G. the superintendent may cause to be prepared and made available to applicants a manual showing the general type and scope of the examination for any license for which examination is required;

H. the superintendent may make arrangements, including contracting with an outside testing service, for administering examinations and collecting the nonrefundable fee set forth in Section 59A-6-1 NMSA 1978;

I. examinations shall be developed and conducted under rules promulgated by the superintendent;

J. each individual applying for an examination shall submit a nonrefundable fee as prescribed by the superintendent as set forth in Section 59A-6-1 NMSA 1978;

K. an individual who fails to appear for the examination as scheduled or fails to pass the examination shall reapply for an examination and remit all required fees and forms before being rescheduled for another examination; and

L. a resident individual applying for an insurance producer license shall pass a written examination unless exempt pursuant to Section 59A-12-16 NMSA 1978. The examination shall test the knowledge of the individual concerning the lines of authority for which application is made, the duties and responsibilities of an insurance producer and the insurance laws and rules of this state.

History: Laws 1984, ch. 127, § 185; 2016, ch. 89, § 13.

The 2016 amendment, effective July 1, 2017, clarified provisions relating to examinations required for the issuance of an insurance producer license; in the introductory sentence, after "Where", deleted "the" and added "an", after "issuance of", added "a", after "license", deleted "applied for such examinations" and added "the examination"; in Subsection A, after "once each month at", deleted "place or", and after "within New Mexico", deleted "of convenience"; deleted Subsection B and redesignated former Subsections C and D as Subsections B and C, respectively; in Subsection B, after "shall require", deleted "written", and after "If the applicant", deleted "so"; in Subsection C, after "examinations shall be", deleted "given"; deleted the subsection designation "E", deleted "an applicant shall not be deemed to have passed the examination unless receiving" from former Subsection E, designated the remaining language from former Subsection E as Subsection D, and designated former Subsections F through H as Subsections E through G, respectively; in Subsection D, after "a grade", deleted "thereon", after "seventy", deleted "(70)" and added "is a passing grade"; in Subsection E, deleted "any" and added "an", after "take another", deleted "such", after "taken and failed to pass", deleted "two (2) such" and added "four of the same", after "entitled to take another", deleted "such", after the next "examination", deleted "within thirty (30) days" and added "until after six months", after "after", added "the", after "date of", added "the", and after "last examination failed", deleted the remainder of the subsection, which related to time frames for taking an examination after subsequent failed examinations; in Subsection F, after "application fee, in", added "the", after "stated in Section", deleted "101 (fee schedule) of the Insurance Code" and added "59A-6-1 NMSA 1978", after "provided for under", deleted "Paragraph I below" and added "Subsection H of this section", after "shall be paid", deleted "as to" and added "for", and after "each", deleted "instance of"; in Subsection G, after "the superintendent may", deleted "at discretion", after "manual showing", deleted "the", after "scope of", added "the", after "examination", deleted "as to" and added "for", and after the semicolon, deleted "and"; deleted the subsection designation "I", deleted "in lieu of preparing, conducting and grading examinations through insurance department personnel" from former Subsection I, and designated the remaining language from former Subsection I as Subsection H; after "the superintendent may", deleted "contract with an established independent agency experienced therein for preparation, conduct and grading of" and added "make arrangements, including contracting with an outside testing service, for administering", and after "examinations and", deleted "in such case the examination fee shall be in reasonable amount as fixed by the superintendent and payable to the examination agency. The examination in such instance shall be prepared, conducted and graded subject to the same requirements and standards as would apply to examination by the superintendent direct" and added "collecting the nonrefundable fee set forth in Section 59A-6-1 NMSA 1978"; and added new Subsections I, J, K and L.

Severability. — Laws 2016, ch. 89, § 71 provided that if any part or application of Laws 2016, ch. 89 is held invalid, the remainder or its application to other situations or persons shall not be affected.