Free Insurance Regulation Practice Questions
South Dakota Personal Lines exam — 135 practice questions.
Subtopics: Producer licensing, Unfair claims practices, Guaranty association, Rebating, Insurance fraud, Director authority, Rate standards, Director examinations, Insurer examinations, Cease and desist orders, Monetary penalties, License suspension, Grounds for discipline, License denial, Record keeping, Domestic, foreign, alien, Certificate of authority, Admission of insurers, Stock and mutual insurers, Fraternal benefit societies, Insurance business defined, Regulator, Producer defined, License qualifications, Licensing exam, Exam exemptions, Lines of authority, License required, License exemptions, Consultants, Nonresident license, Change of address, Temporary license, Business entity license, Continuing education, CE extension, CE exemptions, Reinstatement, Extenuating circumstances, Revocation, Effect of suspension, Appointment, Appointment termination, Agency contract termination, Post-termination rights, Commission sharing, Commingling, Reporting actions, Reporting crimes, Influencing witnesses, Division inquiries, Loans from clients, Misrepresentation, False advertising, Defamation, Twisting, Boycott and coercion, Coercion by lenders, Promotional gifts, Value-added services, Advertising, Illegal inducement, Unfair discrimination, Prohibited charges, False claims, Private remedies, Cease and desist, Aftermarket parts, Fraud prevention unit, Reporting fraud, Policy delivery, Application copy, Representations, Form filing, Rating restrictions, Cancellation notice, Cancellation reasons, Nonrenewal notice, Surplus lines, Fair Credit Reporting Act, Gramm-Leach-Bliley, Fraud and false statements, Do Not Call, Terrorism Risk Insurance Act, McCarran-Ferguson Act, Anti-money laundering, CAN-SPAM Act, FCRA reporting periods, FCRA adverse action, FCRA permissible purpose, FCRA disputes, Claims history databases, GLBA opt-out, GLBA privacy notice, GLBA enforcement, Prohibited persons (1033), Prohibited persons (1034), Telemarketing calling hours, Do-Not-Call exceptions, Do-Not-Call registry, History of regulation, Risk retention groups, Purchasing groups, Mandatory flood purchase, NFIP origin, Federal Insurance Office, NAIC role, Personal lines authority, Nonresident licensing, Misrepresentation and advertising, Fraud warning, Guaranty associations
Read the Insurance Regulation study guide
Sample questions & answers
1. To sell personal lines property and casualty insurance in South Dakota, an individual generally must hold:
A producer license with personal lines or P&C authority
SDCL 58-30-143 bars selling any line without that line of authority; SDCL 58-30-152(6) defines personal lines as P&C coverage for individuals and families for noncommercial purposes.
2. A South Dakota insurer that fails to attempt a prompt, fair settlement of a clear personal auto claim may be committing:
An unfair claims settlement practice
SDCL 58-33-67(4) lists failing to promptly settle claims where liability has become reasonably clear among unfair or deceptive claim practices.
3. If a South Dakota property and casualty insurer becomes insolvent, covered claims may be paid, within statutory limits, by the:
South Dakota Insurance Guaranty Association
The South Dakota Insurance Guaranty Association pays covered claims of insolvent property and casualty insurers, generally up to $300,000 per claim (SDCL 58-29A-56, 58-29A-68).
4. A South Dakota producer gives a client a $400 tablet computer, not stated in the policy, to induce the purchase of a homeowners policy. This is:
Rebating
SDCL 58-33-24 prohibits any valuable consideration or inducement not specified in the policy; only promotional merchandise of $100 or less is allowed (SDCL 58-33-74).
Practice: Insurance Regulation
Answer choices are shuffled every time, and every question comes with an explanation.
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
