South Dakota Personal Lines Insurance License Exam — All Questions

Which agency issues resident personal lines insurance producer licenses in South Dakota?

• a.The South Dakota Department of Motor Vehicles
• b.The Division of Insurance within the Department of Labor and Regulation✓
• c.The South Dakota Bureau of Insurance Agents
• d.The federal Department of Insurance

Insurance in South Dakota is regulated by the Division of Insurance, part of the Department of Labor and Regulation. It licenses producers, reviews rates and forms, and enforces the insurance code. There is no federal insurance department. Source: South Dakota Division of Insurance (https://dlr.sd.gov/insurance).

After a producer is licensed in South Dakota, what generally must occur before transacting business for a specific insurer?

• a.Nothing further — the license alone authorizes sales for any insurer
• b.The insurer must appoint the producer, with the appointment on file with the Division of Insurance✓
• c.The producer must post a personal surety bond with the state treasurer
• d.The producer must first sell to at least five clients on a temporary permit

A license lets a person act as a producer, but to represent a particular company that insurer must appoint the producer, with the appointment filed with the South Dakota Division of Insurance. A producer may hold appointments from several insurers at once. This follows the NAIC producer-licensing model South Dakota uses.

Which statement about continuing education (CE) for resident personal lines producers in South Dakota is correct?

• a.Resident producers must complete state-approved CE each renewal cycle to keep the license active; confirm the exact hours and ethics requirement with the Division of Insurance✓
• b.CE is optional and only recommended for new producers
• c.CE is required once, in the first year, and never again
• d.Passing the licensing exam permanently exempts a producer from all CE

Like other states, South Dakota requires resident producers to complete approved continuing education each renewal cycle, typically including an ethics component, before renewing. Because specific hour totals can change, verify the current CE requirement with the South Dakota Division of Insurance (https://dlr.sd.gov/insurance).