South Dakota Property & Casualty Insurance License Exam — All Questions
3 questions
Which agency regulates insurance and licenses resident property and casualty producers in South Dakota?
- a.The South Dakota Secretary of State
- b.The South Dakota Department of Public Safety
- c.The South Dakota Division of Insurance (Department of Labor and Regulation)✓
- d.The South Dakota Public Utilities Commission
South Dakota regulates insurance through the Division of Insurance within the Department of Labor and Regulation (DLR), led by the Director of Insurance (confirmed at dlr.sd.gov/insurance). The division licenses producers, reviews forms and rates, and enforces the insurance laws. On the exam, remember it is the Division of Insurance, not the Secretary of State or the Department of Public Safety, that licenses producers.
A South Dakota producer offers to rebate part of the commission to a client as an inducement to buy a policy. Under South Dakota law this is:
- a.Permitted if the insurer approves
- b.Permitted for commercial clients only
- c.Prohibited rebating✓
- d.Required to be reported but otherwise lawful
Giving any part of the premium or commission, or other valuable consideration not stated in the policy, as an inducement to buy is prohibited rebating under South Dakota's unfair trade practices law and can bring fines and license action by the South Dakota Division of Insurance.
After a South Dakota personal auto or homeowners policy is past its initial underwriting period, an insurer's mid-term cancellation is generally allowed only:
- a.For specific statutory grounds such as nonpayment of premium or fraud, with required advance written notice✓
- b.For any reason, with no notice
- c.Only during the first 24 hours of the policy
- d.Never, once the policy is issued
South Dakota limits mid-term cancellation of seasoned personal-lines policies to defined grounds such as nonpayment or fraud and requires advance written notice so the insured can replace coverage. The exact notice day-counts are set by statute and can change; verify current figures with the South Dakota Division of Insurance.