- NM-ADJ is the New Mexico Independent and Staff Adjuster P/C and W/C exam, Series 18-40, run by PSI.
- The exam has 50 scored questions in 1 hour plus 5-10 unscored items; passing requires 70%.
- Insurance Basics and Adjusting Losses each make up 20% of the exam, the two largest domains.
- Cost is $75 per attempt, and no prelicensing course is required before sitting for it.
What Is NM-ADJ, Exactly?
NM-ADJ stands for the New Mexico Independent and Staff Adjuster P/C and W/C Insurance Exam. It's the licensing test that property and casualty (P/C) and workers' compensation (W/C) claims adjusters must pass before they can legally handle claims in New Mexico as an independent or staff adjuster. The exam is officially designated Series 18-40, it's governed by the New Mexico Office of Superintendent of Insurance, and it's administered on that office's behalf by PSI, a national testing vendor.
If you've searched other sites and found conflicting details about "NM-ADJ," that's because the same three letters get reused for unrelated credentials in other industries. This article, and this entire site, is about the New Mexico adjuster licensing exam specifically - nothing else. For a deeper dive into terminology and naming confusion, see our companion piece on NM-ADJ Meaning.
Who Needs This License
Anyone who wants to work as an independent or staff adjuster handling property, casualty, or workers' compensation claims in New Mexico generally needs to hold this license. That includes:
- Independent adjusters contracted by multiple insurance carriers to investigate and settle claims
- Staff adjusters employed directly by a single insurance company
- Catastrophe (CAT) adjusters who travel to New Mexico after major weather events and need a New Mexico license or reciprocity through a designated home state
- Public adjusters and claims professionals transitioning into New Mexico's market from another state
Insurance carriers, third-party administrators (TPAs), independent adjusting firms, and CAT staffing companies are the typical employers looking for licensed adjusters. If you're curious about where a passed exam can actually lead in terms of employment, our NM-ADJ Jobs guide breaks down the kinds of roles and employers that require this license. For a plain breakdown of eligibility rules before you even schedule a test date, check NM-ADJ Requirements 2026: Eligibility, Prerequisites & How to Qualify.
Exam Format and Registration Mechanics
The NM-ADJ exam is a computer-based test with a fixed, well-documented structure. Knowing the mechanics before test day removes a lot of unnecessary anxiety.
- Question count: 50 scored multiple-choice questions
- Time limit: 1 hour
- Unscored items: 5-10 additional experimental questions mixed in, which don't count toward your score but are indistinguishable from scored questions
- Cost: $75 per attempt
- Passing score: 70%
- Prelicensing course: Not required
You can take the exam either at a physical PSI testing center or through online proctoring from home or your office. One detail candidates frequently overlook: remote online-proctored sessions do not allow breaks. If you choose the online option, plan to sit through the entire hour without stepping away, so hydrate and use the restroom beforehand. For a full pricing walkthrough - including how the $75 fee fits into the bigger financial picture of getting licensed - see NM-ADJ Certification Cost 2026: Complete Pricing Breakdown.
Key Takeaway
Because there's no mandatory prelicensing course, your entire preparation is self-directed. Treat the exam blueprint as your syllabus and build your study plan around the domain weights below.
What's Actually Tested: The 10 Domains
The NM-ADJ blueprint is organized into 10 domains with different weightings. Two domains - Insurance Basics and Adjusting Losses - tie for the largest share of the exam at 20% each, meaning 40% of your scored questions come from just those two areas combined. That's a critical planning detail: master those two domains first.
Domain 2: Insurance Basics (20%)
Covers the foundational vocabulary and mechanics of insurance contracts, including how policies are formed, insurable interest, and general principles that carry through every other domain on the exam.
- Expect terminology-heavy questions that other domains assume you already know
Domain 3: Adjusting Losses (20%)
Focuses on the actual claims-handling process: investigation, evaluation, negotiation, and settlement practices an adjuster applies in the field regardless of policy type.
- Scenario-based questions are common here since it tests applied judgment, not just definitions
Domain 6: Automobile Insurance (15%)
The third-largest domain, covering auto policy structure, liability coverage, and how claims are adjusted for vehicle-related losses.
- Don't underweight this domain just because it isn't tied for first - it's still a major scoring opportunity
Domain 5: Homeowners Policy (12%)
Covers homeowners policy forms, covered perils, and exclusions - closely related to, but distinct from, the smaller Dwelling Policy domain.
Domain 10: Workers' Compensation Insurance (10%)
Since the exam certifies you for both P/C and W/C claims, this domain tests workers' comp coverage triggers, benefits, and claims handling separately from property/casualty concepts.
The remaining domains carry smaller but still testable weights: Insurance Regulation (5%), Dwelling Policy (5%), Commercial Package Policy or CPP (5%), Businessowners Policy (5%), and Other Coverages and Options (3%). Even at low weights, these domains can appear on your specific test form, so skipping them entirely is risky. For a domain-by-domain breakdown with study priorities for each, read NM-ADJ Exam Domains 2026: Complete Guide to All 10 Content Areas.
| Domain | Weight |
|---|---|
| Insurance Basics | 20% |
| Adjusting Losses | 20% |
| Automobile Insurance | 15% |
| Homeowners Policy | 12% |
| Workers' Compensation Insurance | 10% |
| Insurance Regulation | 5% |
| Dwelling Policy | 5% |
| Commercial Package Policy (CPP) | 5% |
| Businessowners Policy | 5% |
| Other Coverages and Options | 3% |
Scoring, Attempts, and the Application Clock
Passing requires a raw score of 70% on the 50 scored questions - the unscored experimental items don't factor into that calculation, so don't waste mental energy trying to guess which questions "don't count." For the exact mechanics of how points are calculated and what a passing score looks like in practice, see NM-ADJ Passing Score 2026: Exactly What You Need to Pass.
If you don't pass, you can retake the exam, but there's a limit built into the system: after four unsuccessful attempts, candidates must wait six months before trying again. That's a meaningful setback if you're trying to start a job, so it's worth treating your first attempt seriously rather than viewing the exam as low-stakes practice.
There's also a clock on the other side of success. Once you pass, you must complete your license application within one year. Passing the exam and then sitting on the paperwork past that window means starting the process over. If you want a realistic sense of how challenging the exam tends to be for candidates before you commit to a testing date, our guide on How Hard Is the NM-ADJ Exam? Complete Difficulty Guide 2026 walks through what makes it harder or easier depending on your background, and NM-ADJ Pass Rate 2026: What the Data Shows looks at what's publicly known about outcomes.
Background Checks and License Renewal
Resident applicants, along with applicants who designate New Mexico as their home state, must complete a fingerprint-based background check as part of the licensing process. This is separate from the exam itself but runs in parallel with your application timeline, so it's worth starting early rather than waiting until after you've passed.
Once licensed, NM-ADJ adjusters don't test again on a recurring basis - instead, the license renews on a biennial cycle tied to your birth month. To renew, you'll need 24 continuing education (CE) hours, including 3 hours specifically in ethics. Building CE tracking into your calendar early avoids a scramble near your renewal deadline.
Key Takeaway
The exam is a one-time hurdle (per licensing cycle), but ongoing compliance - fingerprinting, application deadlines, and CE hours - is just as important as passing the test itself.
How to Approach Preparation
Since there's no required prelicensing course, most candidates build a self-guided study plan anchored to the domain weights. A simple, NM-ADJ-specific approach looks like this: spend your first study block on Insurance Basics and Adjusting Losses, since together they're 40% of the exam and Adjusting Losses questions often assume you already understand Insurance Basics terminology. From there, move to Automobile Insurance and Homeowners Policy, which combined make up more than a quarter of the test. Save the smaller domains - Insurance Regulation, Dwelling Policy, CPP, Businessowners Policy, and Other Coverages and Options - for a final review pass, since they're each worth 5% or less individually but still add up to nearly a quarter of the exam when combined.
Insurance Basics + Adjusting Losses
- Build core vocabulary and claims-handling process knowledge before touching policy-specific domains
Automobile Insurance + Homeowners Policy
- Focus on coverage triggers, exclusions, and how claims differ between the two lines
Workers' Compensation + smaller domains
- Cover W/C benefits and triggers, then sweep through Regulation, Dwelling, CPP, Businessowners, and Other Coverages
Timed practice
- Run full-length timed practice sets to simulate the 1-hour, 50-question pace before test day
For a more detailed week-by-week plan built specifically around this blueprint, see NM-ADJ Study Guide 2026: How to Pass on Your First Attempt. And if you'd like a condensed reference to review the night before your exam, the NM-ADJ Cheat Sheet 2026: One-Page Review of Must-Know Facts summarizes the highest-value facts in one place. You can also start practicing with realistic timed questions right now on our practice test platform, which mirrors the domain weighting of the actual exam so your study time maps directly to how heavily each topic is tested.
Before locking in a test date, it's worth checking NM-ADJ Exam Dates 2026: Testing Windows, Deadlines & Scheduling so your prep schedule and your actual appointment line up. And if you're still weighing whether pursuing this license makes sense for your career goals, Is the NM-ADJ Certification Worth It? Complete ROI Analysis 2026 and NM-ADJ Salary Guide 2026: Complete Earnings Analysis are worth reading before you register and pay the $75 fee.
Frequently Asked Questions
It's a licensing exam. Passing Series 18-40 is a legal requirement, administered by PSI on behalf of the New Mexico Office of Superintendent of Insurance, for anyone working as an independent or staff adjuster on P/C and W/C claims in New Mexico.
No. There is no required prelicensing course for NM-ADJ, which means your preparation is entirely self-directed and should be built around the official domain blueprint.
There are 50 scored multiple-choice questions to complete in 1 hour, plus 5-10 additional unscored experimental questions mixed in that don't count toward your result.
Only if you test at a physical PSI testing center policy permits it under standard rules. If you choose online proctoring, breaks are not allowed during the session, so plan accordingly before you start.
You can retake it, but after four unsuccessful attempts you must wait six months before trying again. If you pass, remember you also have only one year to complete your license application.