South Dakota Insurance Exam Guides
Pick the license you're studying for. Each guide covers South Dakota-specific requirements, fees, and official links — plus a free practice exam. Then scroll down to explore the South Dakota exam's state-law material, mapped.
Free study resource
What's actually tested on the South Dakota exam — the state regulations, mapped
Every South Dakota insurance exam reserves a block of questions for South Dakota-specific law — the fees, deadlines, limits, and rules that generic national study guides gloss over. This is that material: 116 facts from the TESTivity South Dakota regulations curriculum, organized the way we teach them. Open a branch, explore, and let the structure do some of the remembering for you.
Every fact below carries its source citation and the date we last verified it (most recently July 2026) — and is re-checked on a schedule. Facts marked tested are ones you should expect to see on the exam.
Life 14 facts
The life insurance rules that differ by state — free look, grace, reinstatement.
- Incontestability period tested2 years — a life policy is incontestable after it has been in force during the insured's lifetime for 2 years (except for nonpayment of premium)
- Grace period for individual life tested30 days (one month) for any premium after the first, during which the policy stays in force
- Window to reinstate a lapsed policy testedWithin 3 years after the date of premium default, with evidence of insurability and payment of overdue premiums (unless the policy was surrendered for cash value)
- Max interest chargeable on reinstatement, if capped testedOverdue premiums are paid with interest at the rate stated in the policy — South Dakota does not fix a statutory reinstatement-interest cap
- Suicide exclusion period testedBy policy provision (commonly one to two years) — if death is by suicide within the stated period, the insurer's liability is typically limited to a refund of the premiums paid
- Free look for individual life tested10 days to return an individual life policy for a full refund
- Free look for annuities testedAt least 10 days for an annuity (longer on a replacement under South Dakota's replacement rules)
- Free look when a policy is being replaced testedSouth Dakota's replacement rules extend the right to return when a life policy or annuity replaces existing coverage (commonly a longer period than a new sale)
- Free look for long-term care tested30 days for long-term care, from policy delivery
- Required nonforfeiture options testedCash surrender value, reduced paid-up insurance, and extended term insurance, under South Dakota's Standard Nonforfeiture Law
- Registrations required to sell variable products testedVariable life and variable annuities require the South Dakota Life line plus a variable contracts qualification and FINRA registration (a Series 6 or 7 with a Series 63) and a CRD number — they are securities
- Does the state regulate viatical/life settlements? testedYes — South Dakota regulates viatical and life settlements under its insurance laws; providers and brokers must be licensed
- Viator's rescission window testedThe owner has a statutory right to rescind a life-settlement contract within the period fixed by South Dakota law (commonly within a set number of days after execution or receipt of proceeds)
- Has the state adopted the NAIC best interest standard? testedYES — South Dakota adopted the NAIC 2020 best interest annuity standard (SDCL 58-33A), with the obligations of care, disclosure, conflict-of-interest, and documentation; the training requirement took effect January 1, 2023
Health 15 facts
Health coverage rules — continuation, prompt pay, mandates, public programs.
- Has the state expanded Medicaid under the ACA? testedYES — South Dakota EXPANDED Medicaid under the ACA, effective July 1, 2023, following a 2022 voter-approved constitutional amendment
- Effective date of expansion, if expanded testedJuly 1, 2023 — the effective date set by the 2022 constitutional amendment
- Agency administering Medicaid testedThe South Dakota Department of Social Services (DSS); the program is the South Dakota Medical Assistance Program (Medicaid)
- Federal marketplace or state-based exchange testedA FEDERALLY-FACILITATED marketplace (HealthCare.gov) — South Dakota did not build a state exchange
- Name of the state CHIP program testedSouth Dakota's CHIP is administered by the Department of Social Services within the state's Medical Assistance (Medicaid) program
- Clean-claim payment deadline, electronic testedSouth Dakota does not set a separate numeric clean-claim deadline by claim medium; insurers must acknowledge and act on claims within 30 days under the Unfair Claims Settlement Practices rules (SDCL 58-33-67)
- Clean-claim payment deadline, paper testedSame standard for paper claims — insurers must acknowledge and act within 30 days; South Dakota does not split electronic from paper deadlines
- Does the state distinguish electronic vs paper claims? testedNo — South Dakota does not use different deadlines for electronic and paper claims (it uses the general 30-day unfair-claims standard)
- Interest / penalty on late claim payment testedSouth Dakota does not fix a statutory prompt-pay interest rate; unfairly delayed claims are addressed as an unfair claims settlement practice
- Is the IRO's external review decision binding on the plan? testedYES — South Dakota provides an independent external review for health coverage denials through the Division of Insurance, and the external review decision is binding on the carrier
- Employer size at which federal COBRA applies testedFederal COBRA applies at 20+ employees; South Dakota's state continuation reaches other situations (notably when an employer ceases operations)
- Employer size range covered by state continuation testedSouth Dakota state continuation applies chiefly when an employer ceases operations and terminates the group policy (or lets it lapse for nonpayment) — a narrower trigger than a general small-employer mini-COBRA
- Duration of state continuation coverage tested12
- Election period for state continuation testedElected within 60 days after being notified of the loss of coverage; whether notice is given or not, the election period may expire 90 days after the group coverage terminates. Requires 6 continuous months of prior coverage.
- Max premium as % of group rate testedThe individual is financially responsible for the premium during continuation
Auto 12 facts
Auto insurance — minimum limits, fault system, required coverages.
- Fault-based (tort) or no-fault testedTORT (at-fault) — the at-fault driver's liability insurance pays the other party's damages. South Dakota is not a no-fault state and does not mandate PIP.
- Minimum bodily injury liability per person tested$25,000 per person
- Minimum bodily injury liability per occurrence tested$50,000 per accident
- Minimum property damage liability tested$25,000 per accident
- The memorizable shorthand (e.g. 30/60/25) tested25/50/25
- Uninsured motorist: mandatory / must be offered & rejectable / not required testedMANDATORY — every South Dakota auto policy must include uninsured motorist coverage at limits no less than the 25/50 minimums
- Underinsured motorist status testedMANDATORY — South Dakota also requires underinsured motorist coverage in every auto liability policy, at a face amount equal to the policy's bodily-injury limits
- Personal injury protection status testedNot required — South Dakota does not mandate PIP; medical payments (MedPay) coverage is optional
- Contributory / pure comparative / modified comparative negligence testedSLIGHT/GROSS COMPARATIVE NEGLIGENCE — South Dakota is the ONLY state using this rule: a plaintiff recovers only if their own contributory negligence was 'slight' in comparison with the defendant's negligence, and damages are then reduced in proportion to that fault
- The bar percentage, if modified comparative testedThere is no fixed percentage bar — a plaintiff whose fault is more than 'slight' relative to the defendant's recovers nothing; South Dakota courts have held roughly 30% fault is more than slight as a matter of law
- Assigned risk / residual market plan for auto testedThe South Dakota Automobile Insurance Plan (the assigned-risk plan) — a producer submits an application on the driver's behalf when voluntary coverage cannot be found
- Any alternative to buying liability insurance (e.g. VA's UMV fee) testedSouth Dakota requires proof of financial responsibility to license or operate a motor vehicle; most people comply by buying auto insurance (there is no 'pay a fee to drive uninsured' option)
CE & Renewal 10 facts
Continuing education and renewal rules — the numbers the exam loves.
- How long a license lasts before renewal testedA South Dakota producer license runs on a two-year (biennial) term
- What the renewal date keys off (flat term / birthday / birth year) testedRenew by the last day of your birth month, biennially — those born in an even year renew in even years, those born in an odd year renew in odd years. The renewal window opens 60 days before the deadline.
- CE hours per renewal period, standard case tested10 CE credit hours every 2 years for a producer holding Life/Health OR Property/Casualty
- CE hours if holding multiple license types (if different) testedA producer holding BOTH Property/Casualty AND Life/Health completes 20 hours total — 10 hours in Property/Casualty and 10 hours in Life/Health. (Crop-only is 4 hours; Crop combinations are prorated.)
- Ethics hours required per period testedNone — South Dakota has NO ethics-hour requirement within its CE
- Limits on who may provide CE credits testedCourses and providers must be state-approved through SBS. No excess-hour carry-forward is allowed, and a producer may not take the same course more than once in a two-year term.
- Initial long-term care training requirement testedLong-term care: producers must complete LTC partnership training before selling LTC partnership policies. Annuities: a one-time 4-hour annuity best-interest training (existing producers needed a 1-hour update by June 30, 2023) under South Dakota's 2020 NAIC best-interest standard.
- What happens if CE is not completed (fine / expiry / cancellation) testedIf required CE and the renewal payment are not completed by the due date (the last day of the producer's birth month), the license lapses and all appointments are terminated
- Late renewal / reinstatement tiers testedA producer who lapses for CE noncompliance may reinstate within ONE year by completing all CE and licensing procedures (plus a fee); after MORE THAN one year, the producer must retake the producer examination
- Any CE exemption (e.g. long-service agents) testedExempt from CE: producers holding only certain limited lines (credit life/health, travel accident and baggage, bail bonds, surety bonds); and, on application to the Division, producers outside the U.S., active military, disabled producers, and producers who practice law in South Dakota
Property 8 facts
Property insurance — rate regulation, residual markets, catastrophe exposure.
- Rate regulation system (file-and-use / prior approval / use-and-file) testedFILE-AND-USE — since July 1, 2004, property & casualty insurers file rates and rules with the Division and may use them; rates may not be excessive, inadequate, or unfairly discriminatory
- Is insurance credit scoring permitted in personal lines? testedPERMITTED with restrictions — insurers may use credit-based insurance scoring in personal-lines rating subject to South Dakota's consumer-protection limits (a credit score may not be the sole basis for an adverse action)
- Does the state have a FAIR Plan? testedNO — South Dakota has no FAIR Plan or state-run property insurer of last resort
- Name of the FAIR Plan, if any testedNone — South Dakota does not operate a FAIR Plan; hard-to-place property risks rely on the surplus-lines/specialty market
- Coastal windstorm pool, if any (e.g. TWIA) testedNone — South Dakota is landlocked and has no coastal wind pool or beach plan
- Dominant catastrophe perils in the state testedHail (a leading loss driver), tornadoes and severe thunderstorms, straight-line wind, and winter storms and blizzards — South Dakota's exposure is severe-convective and winter weather, not coastal hurricane
- What license you must already hold to write surplus lines testedA South Dakota surplus lines license, held on top of property & casualty producer authority
- Is a diligent-effort search of the admitted market required first? testedYes — before placing coverage with a nonadmitted insurer, the surplus lines producer must make a diligent search of the admitted market and document that the risk could not be placed with admitted insurers
Guaranty 10 facts
The safety nets when an insurer fails — and their limits.
- Name of the life & health guaranty association testedThe South Dakota Life and Health Insurance Guaranty Association
- Life death benefit limit tested$300,000 in life insurance death benefits per insured life
- Life cash surrender / withdrawal value limit tested$100,000 in net cash surrender or withdrawal value for life insurance
- Annuity benefit limit tested$250,000 in the present value of annuity benefits (including net cash surrender and withdrawal values)
- Health benefit limit testedUp to $500,000 in the aggregate for basic hospital, medical, and surgical or major medical health insurance; other health coverage carries lower caps
- Aggregate per-individual cap, if any tested$300,000 aggregate per individual life for all coverages ($500,000 where basic hospital/medical/surgical or major medical health insurance is involved)
- Does the state follow the standard NAIC model limits? testedYes — South Dakota uses the standard NAIC model limits: $300,000 death benefit, $100,000 cash value, $250,000 annuity, and a $300,000 aggregate ($500,000 for major-medical health)
- Name of the P&C guaranty association testedThe South Dakota Property and Casualty Insurance Guaranty Association (SDIGA), created in 1970
- Per-claim cap testedUp to $300,000 per covered liability claim (or the policy limit, whichever is less). Workers' compensation claims are paid at 100% (no cap); unearned-premium claims are paid above $100 and up to $25,000.
- Is using the guaranty association as a sales inducement prohibited? testedYes — using the existence of the guaranty association to sell or induce the purchase of insurance is prohibited, and a disclaimer notice is required
Workers Comp 7 facts
Who must carry workers' compensation and what it pays.
- Is workers' compensation mandatory for private employers? testedNO — workers' compensation coverage is ELECTIVE in South Dakota. It is one of only two states (with Texas) where an employer is not legally required to carry workers' comp, regardless of the number of employees.
- Employee count at which coverage is required testedNone — there is no employee count that triggers a coverage requirement, because South Dakota does not require workers' comp at all; an employer that buys coverage gains immunity from employee injury suits
- Agency administering workers' compensation testedThe South Dakota Division of Labor and Management (Department of Labor and Regulation), which administers workers' compensation
- Temporary total disability wage replacement rate testedTwo-thirds (66 2/3%) of the employee's average weekly wage, subject to a statutory maximum (100% of the state average weekly wage) and a statutory minimum
- Maximum TTD duration testedTemporary total disability is paid while the worker remains temporarily and totally disabled; the maximum weekly benefit is 100% of the state average weekly wage, adjusted periodically (South Dakota does not use a flat statewide week cap for TTD)
- Deadline to file a claim tested2
- Ways an employer may comply (insure / self-insure / group) testedBuy a policy from a private carrier, qualify as an approved self-insurer, or (uniquely) elect not to carry coverage at all — South Dakota has no monopolistic state fund and does not require coverage
Regulator 5 facts
Who regulates insurance here and what powers the office holds.
- Name of the state insurance regulator testedThe South Dakota Division of Insurance (a division of the Department of Labor and Regulation)
- Title of the person who heads it testedDirector of Insurance
- How the commissioner is chosen: elected / appointed by governor / appointed by other body testedAPPOINTED — the Director of Insurance is appointed by the Secretary of the Department of Labor and Regulation (who is in turn appointed by the Governor). The Director is NOT elected.
- Where the state's insurance law is codified testedTitle 58 of the South Dakota Codified Laws (Insurance), with producer licensing in Chapter 58-30 and administrative rules in Article 20:06
- Does the regulator sit somewhere unusual (e.g. inside a constitutional commission)? testedSomewhat — insurance is regulated by a DIVISION inside the Department of Labor and Regulation, headed by a Director appointed by that department's Secretary (not a standalone department, not an elected commissioner)
Cancellation 8 facts
When and how policies can be canceled or nonrenewed — heavily tested.
- Initial window during which an insurer may cancel more freely testedAuto: 60 days — an insurer may cancel a new auto policy for any reason within the first 60 days; after that, cancellation is limited to stated grounds. (This does not apply to a renewal.)
- Notice days to cancel a homeowners policy inside the initial window testedProperty: South Dakota requires advance written notice before canceling a homeowners policy (commonly at least 20 days); insurers may nonrenew under most circumstances with notice
- Notice days to cancel a personal auto policy inside the initial window testedAuto: at least 20 days' written notice must be mailed or delivered before the effective date of cancellation
- Notice days for cancellation for nonpayment testedAuto: the 20-day cancellation notice applies; after 60 days a policy may be canceled for nonpayment of premium (among the limited permitted grounds)
- Notice days for cancellation for other permitted causes testedAfter 60 days, a South Dakota auto policy may be canceled only for nonpayment, suspension/revocation of a driver's license or vehicle registration of the insured or a household operator, or noncompliance with the 24/7 sobriety program — on at least 20 days' notice
- Notice days required for nonrenewal testedSouth Dakota requires advance written notice of nonrenewal for auto and property policies; insurers are otherwise generally free to nonrenew
- Must the reason be stated proactively, on request, or not at all? testedYes for auto after the first 60 days — cancellation is limited to the enumerated grounds and the notice identifies the reason; within the first 60 days a new auto policy may be canceled for any reason
- Restrictions on nonrenewing because of claims (e.g. weather claims excluded) testedDistinctive South Dakota rules: a VALUED POLICY LAW requires real property wholly destroyed by fire, lightning, or tornado to be paid at the policy's limits regardless of market value; and noncompliance with the 24/7 sobriety program is a permitted ground for auto cancellation after 60 days
Licensing 27 facts
How you get and keep the license — exams, fees, applications, background checks.
- Is there a standalone life license/exam? testedYes — a standalone Life exam and line of authority (Life includes annuities)
- Is there a standalone health license/exam? testedYes — a standalone Accident and Health exam and line of authority
- Is there a combined life+health license/exam? testedYes — South Dakota offers a combined Life and Accident & Health exam (145 questions) in addition to the standalone Life and Accident & Health exams
- Is there a personal lines license/exam? testedYes — a Personal Lines line and exam, covering property and casualty sold to individuals for personal, noncommercial purposes
- Is P&C one combined license, or split into Property and Casualty? testedBOTH — Property and Casualty may be taken as separate single-line exams OR as a combined Property & Casualty exam (145 questions); a narrower Personal Lines line is also offered
- Does the life license cover annuities? testedYes — the Life line covers life insurance and annuities. VARIABLE life and variable annuities require the Life line plus FINRA registration (they are securities).
- Does the P&C license already include personal lines authority? testedYes — holding the Property and Casualty lines (or the combined P&C exam) covers personal-lines risks; standalone Personal Lines is a narrower, personal-only line
- Full list of exam-based agent license types testedSouth Dakota offers Life · Accident and Health · Property · Casualty · Personal Lines · Crop — with combined Life & Accident/Health and combined Property & Casualty exams available — plus Variable Contracts (with FINRA registration), Surplus Lines, Bail Bonds, Adjuster, and limited lines
- Exam administrator (Prometric / PSI / Pearson VUE) testedPearson VUE administers South Dakota producer exams (since January 1, 2018) under contract with the Division of Insurance
- Exam fee tested$85 per single-line exam (Life, Health, Property, or Casualty); $95 for a combined exam (combined Life & Health, or combined Property & Casualty)
- License application fee tested$25 for a resident producer license (plus a service fee), paid to NIPR/SBS when the application is submitted ($30 for a nonresident)
- Fee per insurer appointment testedAppointments are filed by the insurer through NIPR; South Dakota charges a per-appointment fee paid by the appointing insurer
- Passing score tested70% (South Dakota producer exams are scored; 70% is required to pass)
- Minimum age to be licensed tested18
- Is pre-licensing education required? testedNO — South Dakota has no pre-licensing education requirement; you may take the exam directly for any line
- Pre-licensing hours and any exceptions (e.g. Title, adjusters) testedNone — South Dakota requires no pre-licensing hours for any line. A study course (like this one) is strongly recommended, but not legally required.
- Fingerprints, state police report, or none testedA state and federal criminal history background check. South Dakota does NOT require fingerprinting for a general resident producer license (fingerprinting is required only for specific licenses such as Bail Bonds).
- Who takes the prints / issues the report testedThe Division reviews the applicant's background disclosure answers and criminal history; there is no general IdentoGO fingerprint step for a standard producer license
- How long the background report stays valid testedBackground disclosures are submitted with the initial NIPR application; a producer who stays continuously licensed is not re-screened at each renewal
- Deadline to apply after passing the exam testedApply through NIPR after passing your exam; South Dakota exam results are valid for 12 months
- How long a passed exam remains valid testedExam results are valid for 12 months from the date passed
- Waiting period before retaking a failed exam testedIf you fail, you may reschedule and retake the exam, paying the exam fee ($85 single-line / $95 combined) each attempt
- Limit on number of attempts, if any testedSouth Dakota does not publish a fixed cap on attempts; you pay the exam fee for each attempt
- Notice required to reschedule/cancel without forfeiting the fee testedChange or cancel an appointment in advance under Pearson VUE's standard policy to avoid forfeiting the fee (generally at least one business day / 24 hours ahead)
- Where you apply (Sircon / NIPR / state portal) testedNIPR (nipr.com) — apply online and pay the fees; State Based Systems (SBS) is also available. Exam scheduling is through Pearson VUE.
- Are temporary licenses available? testedYes — South Dakota provides temporary producer licenses in limited business-servicing situations (such as the death or disability of a producer, or to continue an agency's business), not as a general 'work while you study' license
- Temporary license duration and training requirement testedIssued without an exam to service an existing insurance business (for example after a producer's death or disability); the Director may limit its authority and duration