Free Casualty Insurance Basics Practice Questions
New Mexico Casualty exam (series 18-29) — 146 practice questions.
Subtopics: Cancellation for nonpayment, New policy cancellation, Midterm cancellation, Cancellation law scope, Binders, Certificates of insurance, Guaranty association, Surplus lines, Rate standards, Adverse action notice, Credit inquiries, Comparative negligence, Several liability, Joint and several exceptions, Notice of claim, Compensatory damages, Special damages, General damages, Punitive damages, Strict liability, Vicarious liability, Absolute liability, Negligence elements, Proximate cause, Assumption of risk, Accident vs occurrence, Split limits, Combined single limit, Aggregate limit, Duty to defend, Supplementary payments, First named insured, Duties after loss, Other insurance, Underwriting purpose, Rate development, Subrogation condition, Liberalization, Policy territory, Hazard types, Claim settlement options, Cancellation pro rata, Loss payable, No benefit to bailee, Duties assignment, Negligence per se, Res ipsa loquitur, Intervening cause, Terrorism program, Bodily injury defined, Property damage defined, Insured contract, Self-insured retention, Tort defined, Battery, Libel, Nuisance, Trespass, Contributory negligence, Last clear chance, Joint and several liability, Respondeat superior, Attractive nuisance, Reasonable person standard, Burden of proof, Statute of limitations, Duty to mitigate, Nominal damages, Bailment, Hold harmless agreement, Named insured, Additional insured, Sublimit, Erosion of aggregate, Deductible, Loss reserve, IBNR reserve, Loss adjustment expense, Proof of loss, Appraisal clause, Arbitration, Short-rate cancellation, Notice of cancellation, Nonrenewal, Coverage trigger, Defense within limits, Severability of insureds, Premium audit, Retrospective rating, Schedule rating, Earned premium, Certificate of insurance, Split limits application, Intentional torts, Slander, Conversion, Invasion of privacy, Modified comparative negligence, Pure comparative negligence, Comparative negligence calculation, Legal liability sources, Criminal vs civil, Duty of care to entrants, Dram shop laws, Products liability, Occurrence vs claims-made, Claims-made tail, Common policy conditions, Legal action against insurer, Bankruptcy condition, Supplementary payments limits, Cancellation calculation, Limits calculation, Deductible types, Primary and excess, Contribution by equal shares, Contribution by limits, Duty to defend scope, Reservation of rights, Medical payments vs liability, Personal injury vs bodily injury, Claim vs suit, Negligence defenses, Extended reporting period, Retroactive date
Read the Casualty Insurance Basics study guide
Sample questions & answers
1. A New Mexico business auto policy is financed through a premium finance plan and the insured stops paying. The insurer may cancel for nonpayment with at least how much written notice?
10 days
Nonpayment cancellation applies whether premium is paid directly or through a premium financing plan, with at least ten days' written notice.
2. A New Mexico insurer discovers on day 40 that it does not want a newly issued policy. Under New Mexico law, it may:
Cancel without cause on 10 days' notice
Within the first sixty days the insurer may cancel without cause, giving at least ten days' notice with an effective date inside the sixty-day period.
3. Once a New Mexico personal auto or homeowners policy has been in force beyond 60 days, the insurer's right to cancel midterm (other than for nonpayment) is:
Limited to reasonable cause set by rule
Past sixty days, cancellation requires reasonable cause and the advance notice specified by the superintendent's rules; nonpayment cancellation remains available at any time.
4. New Mexico's statutory cancellation restrictions in 59A-18-29 do NOT apply to:
Inland marine insurance contracts
The section excludes life, annuity, health, title, inland marine and noncancellable policies.
Practice: Casualty Insurance Basics
Answer choices are shuffled every time, and every question comes with an explanation.
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
