South Dakota Personal Lines Insurance License Exam — All Questions

What minimum auto liability limits must a South Dakota personal auto policy carry?

• a.$15,000 per person / $30,000 per accident bodily injury and $10,000 property damage
• b.$25,000 per person / $50,000 per accident bodily injury and $25,000 property damage✓
• c.$20,000 per person / $40,000 per accident bodily injury and $15,000 property damage
• d.$50,000 per person / $100,000 per accident bodily injury and $50,000 property damage

South Dakota requires minimum auto liability limits of 25/50/25 — $25,000 bodily injury per person, $50,000 bodily injury per accident, and $25,000 property damage. These are minimums; producers should offer higher limits. Source: South Dakota Codified Law 32-35-70.

How does South Dakota treat uninsured/underinsured motorist (UM/UIM) coverage on a personal auto policy?

• a.UM/UIM is prohibited in South Dakota
• b.UM/UIM is available only to commercial fleets
• c.UM coverage is required on auto policies at minimum limits matching the state liability minimums; confirm current UM/UIM requirements with the Division of Insurance✓
• d.UM/UIM automatically replaces liability coverage

South Dakota law requires uninsured motorist coverage on personal auto policies, generally at minimum limits matching the 25/50 liability figures, and underinsured motorist coverage must be offered. UM/UIM protects the insured against at-fault drivers with no or insufficient coverage. Verify the current UM/UIM requirement with the South Dakota Division of Insurance (https://dlr.sd.gov/insurance).

How does South Dakota generally handle liability for auto accidents?

• a.It is a pure no-fault state; each driver's own insurer pays regardless of fault
• b.It bars all lawsuits between drivers and routes claims through a state fund
• c.It is a traditional at-fault (tort) state; the at-fault driver is responsible for the other party's injuries and damage✓
• d.It requires mandatory PIP on every policy in place of liability coverage

South Dakota is a traditional at-fault (tort) state: the driver who causes a crash is responsible for the other party's injuries and property damage, which is why liability and UM limits matter. South Dakota does not use a no-fault/PIP system. Confirm current rules with the South Dakota Division of Insurance (https://dlr.sd.gov/insurance).

How are cancellation and nonrenewal of a personal auto or homeowners policy regulated in South Dakota?

• a.An insurer may cancel any personal policy at any time for any reason with no notice
• b.Only the policyholder may ever cancel; insurers can never cancel mid-term
• c.There are no notice rules; cancellation is governed solely by the contract
• d.State law limits the reasons an insurer may cancel or nonrenew and requires advance written notice to the insured; confirm the exact notice period with the Division of Insurance✓

South Dakota restricts mid-term cancellation of personal auto and homeowners policies to specified reasons (such as nonpayment or material misrepresentation) and requires advance written notice of cancellation or nonrenewal. The exact number of days varies by reason and line — verify current South Dakota notice periods with the South Dakota Division of Insurance.

Which best describes the body that writes and enforces South Dakota's insurance regulations affecting personal lines policies?

• a.The Division of Insurance within the Department of Labor and Regulation, a state agency✓
• b.A private trade association of insurers with no government authority
• c.The federal Department of Insurance in Washington, D.C.
• d.The county register of deeds where the policy is issued

Insurance in South Dakota is regulated at the state level by the Division of Insurance within the Department of Labor and Regulation. There is no federal department of insurance; each state supervises its own market, licenses producers, and enforces cancellation, rating, and coverage rules. Source: South Dakota Division of Insurance (https://dlr.sd.gov/insurance).