- Exam Overview: How the Blueprint Works
- Domain 1: Insurance Regulation (5%)
- Domain 2: Insurance Basics (20%)
- Domain 3: Adjusting Losses (20%)
- Domain 4: Dwelling Policy (5%)
- Domain 5: Homeowners Policy (12%)
- Domain 6: Automobile Insurance (15%)
- Domain 7: Commercial Package Policy (5%)
- Domain 8: Businessowners Policy (5%)
- Domain 9: Other Coverages and Options (3%)
- Domain 10: Workers' Compensation Insurance (10%)
- Turning Domain Weights Into a Study Plan
- Who Actually Tests These Domains
- FAQ
- Insurance Basics and Adjusting Losses each carry 20% of the exam - the two biggest domains combined.
- The exam is 50 scored questions in 1 hour, with 5-10 unscored items mixed in.
- You need 70% correct to pass, and there's no prelicensing course requirement.
- The current blueprint takes effect July 1, 2026 - verify which version you're studying.
Exam Overview: How the Blueprint Works
The New Mexico Independent and Staff Adjuster P/C and W/C Insurance Exam - administered through PSI on behalf of the New Mexico Office of Superintendent of Insurance - is built from a formal content outline called the Series 18-40 blueprint. This blueprint splits the exam into ten distinct domains, each weighted by percentage, so candidates know roughly how many questions to expect from each subject area. The current version takes effect July 1, 2026, and it's the version this guide reflects.
Every candidate answers 50 scored multiple-choice questions in a 1-hour window, plus 5 to 10 unscored experimental questions PSI mixes in to test future exam content. You won't know which questions are scored, so treat every item on the screen as if it counts. A 70% score is the passing threshold across the entire exam - there's no requirement to pass each domain individually, which is important to understand as you build your study plan.
If you haven't yet reviewed the mechanics of registration, cost, and scheduling, our NM-ADJ requirements guide and certification cost breakdown cover those details in full. This article focuses exclusively on the ten content domains themselves - what's tested, how heavily, and what that means for your prep sequence.
Domain 1: Insurance Regulation (5%)
Insurance Regulation
This domain tests your understanding of how New Mexico regulates the adjusting profession and the insurance market generally. Expect questions on licensing authority, the role of the Office of Superintendent of Insurance, unfair claims practices, and the legal framework adjusters operate within.
- Licensing structure and the supervising authority's role
- Unfair claims settlement practices and prohibited conduct
- Producer and adjuster license requirements and renewal obligations
At only 5% of the exam, Regulation is a small domain - roughly 2-3 questions out of 50. It's still worth knowing cold because the concepts are discrete and memorizable rather than analytical, making them efficient points to bank early.
Domain 2: Insurance Basics (20%)
Insurance Basics
Tied for the largest domain on the exam, Insurance Basics covers the foundational vocabulary and principles that every other domain builds on. If your grasp of these fundamentals is shaky, it will hurt you across multiple domains, not just this one.
- Core insurance terminology: indemnity, insurable interest, utmost good faith
- Policy structure: declarations, insuring agreement, conditions, exclusions, endorsements
- Contract law principles as applied to insurance policies
- Types of losses and how insurable risk differs from uninsurable risk
Because Insurance Basics represents roughly 10 of the 50 scored questions, mastering it early pays compounding dividends - the same vocabulary reappears in the Homeowners, Dwelling, Automobile, and Commercial Package Policy domains later in the exam.
Key Takeaway
Treat Insurance Basics as your foundation domain, not a standalone topic. Weak fundamentals here will cost you points in nearly every other domain.
Domain 3: Adjusting Losses (20%)
Adjusting Losses
The other half of the exam's largest domain pair, Adjusting Losses tests the practical, procedural side of the job: how a claim actually moves from first notice of loss to settlement. This is where the exam shifts from "know the definitions" to "apply the process."
- Claim investigation steps and documentation requirements
- Loss valuation methods, including actual cash value versus replacement cost
- Coinsurance calculations and how they affect claim payments
- Subrogation, salvage, and proof of loss procedures
- Settlement negotiation and payment authority basics
Because Adjusting Losses is scenario-driven, expect word-problem-style questions rather than pure definition recall. Practicing calculation-based items - especially coinsurance and ACV math - is one of the highest-leverage things you can do, since these question types repeat in similar form across practice materials. Our NM-ADJ cheat sheet collects the formulas most candidates need to have memorized cold before test day.
Domain 4: Dwelling Policy (5%)
Dwelling Policy
This is a narrow but specific domain covering the Dwelling Policy form, which differs meaningfully from the Homeowners Policy tested separately in Domain 5. Don't conflate the two - the exam treats them as distinct content areas.
- Dwelling Policy forms (DP-1, DP-2, DP-3) and their coverage differences
- Named perils versus open perils structures within dwelling forms
- Coverage for dwellings, other structures, and personal property under this form
At 5% weight, this domain likely contributes 2-3 questions. Spend limited but focused time distinguishing DP-3 open-peril coverage from the named-peril structure of DP-1 and DP-2 - that distinction is a frequent testing point.
Domain 5: Homeowners Policy (12%)
Homeowners Policy
The Homeowners Policy domain is the second-largest single-policy domain on the exam, reflecting how frequently homeowners claims come up in real adjusting work.
- HO-2 through HO-6 (and HO-8, if included) form differences
- Coverage A through F structure: dwelling, other structures, personal property, loss of use, liability, medical payments
- Standard exclusions and common endorsements
- Liability and medical payments coverage triggers
With 12% weight, expect roughly 6 questions from this domain. Because homeowners forms share structural DNA with the Dwelling Policy domain, studying them together - while keeping their differences clearly separated in your notes - is more efficient than treating them as unrelated topics.
Domain 6: Automobile Insurance (15%)
Automobile Insurance
The third-largest domain on the exam, Automobile Insurance reflects how common auto claims are in adjusting practice. Expect a mix of coverage-identification questions and scenario-based claims questions.
- Liability, collision, comprehensive, and uninsured/underinsured motorist coverage
- Personal Auto Policy structure and exclusions
- Medical payments and personal injury protection basics
- Total loss valuation and salvage considerations specific to vehicles
At 15% weight - around 7-8 questions - Automobile Insurance deserves a full dedicated study block rather than being folded into general property review. The coverage-trigger logic here (which coverage applies to which scenario) is tested repeatedly in slightly different fact patterns.
Domain 7: Commercial Package Policy (CPP) (5%)
Commercial Package Policy
This domain covers how commercial coverage is bundled into a single package policy, combining property and liability coverage parts under one contract.
- CPP structure: common policy conditions plus individual coverage parts
- Commercial property coverage forms and causes-of-loss forms
- Commercial general liability basics as they fit within a CPP
At 5% weight, this domain is small but distinct from the Businessowners Policy domain that follows - don't assume overlap covers you completely.
Domain 8: Businessowners Policy (5%)
Businessowners Policy (BOP)
The BOP domain tests the packaged policy designed for small to mid-sized businesses, which bundles property and liability coverage without the modular structure of a full CPP.
- Eligibility criteria for a Businessowners Policy versus a CPP
- Standard BOP coverage parts and common exclusions
- Key differences between BOP and CPP structures
Because Domains 7 and 8 together represent only 10% of the exam, many candidates study them as a single comparative unit, focused primarily on knowing when a business qualifies for a BOP versus needing a full CPP.
Domain 9: Other Coverages and Options (3%)
Other Coverages and Options
The smallest domain on the exam at 3% weight - likely just 1-2 questions - this catch-all category covers supplemental coverages and endorsements that don't fit neatly into the major policy domains above.
- Common endorsements and scheduled coverage options
- Miscellaneous coverage add-ons referenced across property and auto lines
Given its minimal weight, this domain is a low-priority review item - worth a pass through your notes, but not worth disproportionate study time.
Domain 10: Workers' Compensation Insurance (10%)
Workers' Compensation Insurance
As the "W/C" half of the exam's official name, this domain carries real weight at 10% - roughly 5 questions - and is frequently underestimated by candidates who focus heavily on property and auto content.
- Workers' compensation coverage structure and covered injuries
- Medical and indemnity benefit types
- Employer liability coverage as it relates to workers' compensation
- Claims handling procedures specific to workers' compensation losses
Don't shortchange this domain because it appears last in the blueprint order. At 10%, it outweighs the Dwelling Policy, CPP, and Businessowners domains individually.
Turning Domain Weights Into a Study Plan
Once you understand the weighting, the study sequence writes itself: prioritize by percentage, not by personal interest or familiarity. Below is one way to sequence a multi-week plan around the blueprint's actual point distribution.
Foundations First
- Master Insurance Basics terminology and policy structure - it underpins every other domain
- Review Insurance Regulation alongside it since both are conceptual, not calculation-heavy
The Heaviest Domain
- Work through Adjusting Losses procedures and calculations in depth
- Practice coinsurance and ACV math problems repeatedly until the formulas are automatic
Property and Auto Lines
- Study Automobile Insurance, then Homeowners Policy, then Dwelling Policy together as a related cluster
- Focus on coverage-trigger logic across all three
Commercial Lines and Final Review
- Cover Workers' Compensation, Commercial Package Policy, Businessowners Policy, and Other Coverages
- Run full-length timed practice sets to build stamina for the 1-hour format
For a step-by-step version of this approach with more detail on pacing and question strategy, see our NM-ADJ study guide. If you want a sense of how difficult candidates generally find each domain in practice, our exam difficulty guide breaks that down further, and the pass rate analysis puts domain difficulty in context.
| Domain | Weight | Approx. Scored Questions |
|---|---|---|
| Insurance Basics | 20% | ~10 |
| Adjusting Losses | 20% | ~10 |
| Automobile Insurance | 15% | ~7-8 |
| Homeowners Policy | 12% | ~6 |
| Workers' Compensation Insurance | 10% | ~5 |
| Insurance Regulation | 5% | ~2-3 |
| Dwelling Policy | 5% | ~2-3 |
| Commercial Package Policy | 5% | ~2-3 |
| Businessowners Policy | 5% | ~2-3 |
| Other Coverages and Options | 3% | ~1-2 |
Who Actually Tests These Domains
These ten domains aren't abstract academic categories - they map directly onto what independent and staff adjusters do once licensed in New Mexico. Insurance carriers, independent adjusting firms, and third-party administrators hire licensed adjusters to handle property, auto, and workers' compensation claims, and the exam's domain weighting mirrors the relative frequency of those claim types in real practice.
Because both resident applicants and those using New Mexico as their designated home state must complete fingerprint-based background checks as part of licensing, passing the exam is only one piece of becoming licensed. If you're still working through eligibility questions, our requirements guide walks through the full licensing path, and the NM-ADJ jobs overview covers what employers typically look for once you're licensed.
It's also worth noting there's no prelicensing course requirement for this exam - candidates are expected to prepare independently, which makes a domain-by-domain study approach like this one especially valuable. Our practice test platform on the main site lets you drill individual domains so you can identify weak spots before test day rather than discovering them during the real exam.
Key Takeaway
Because there's no required prelicensing course, self-directed domain review - not a classroom - is how most candidates prepare. Structure your study time around the weighted domains above rather than a generic outline.
A Few Notes on Format That Affect Domain Prep
The 1-hour time limit means you'll average about 72 seconds per scored question, though the mix of unscored experimental items means your actual pacing per known question is slightly more forgiving than it appears. Since you can't tell scored from unscored items, don't slow down trying to guess which is which - answer every question with equal effort.
You can sit for the exam either at a PSI test center or via online proctoring, but remote sessions do not allow breaks, which matters if you tend to lose focus during longer testing sessions. Knowing your own test-taking habits should factor into which format you choose. For scheduling specifics and registration deadlines, see our exam dates and scheduling guide.
Finally, remember that passing requires 70% overall - there's no minimum score per domain. This means a candidate who is excellent at Adjusting Losses but weaker on Commercial Package Policy can still pass comfortably, provided the strong domains offset the weak ones. That said, given Insurance Basics and Adjusting Losses combine for 40% of the test, weakness there is much harder to offset than weakness in a 3-5% domain. Full details on the scoring threshold are in our passing score guide.
Frequently Asked Questions
Insurance Basics and Adjusting Losses are tied as the largest domains, each worth 20% of the exam - together they represent 40% of your score.
No. The exam uses a single overall passing score of 70% across all 50 scored questions; there's no domain-by-domain minimum.
Yes. Workers' Compensation Insurance carries 10% weight, more than several domains listed earlier in the outline, so it deserves proportionate study time.
Insurance Regulation, Dwelling Policy, Commercial Package Policy, and Businessowners Policy each carry 5% (except Other Coverages at 3%), together making up roughly a fifth of the exam.
The blueprint referenced in this guide is effective July 1, 2026. Always confirm you're studying the current version before your test date, since content outlines can be revised over time.