Marcia Hultman

Cabinet Secretary

Font Size: A A A

Division of Insurance - Producer Information


Guidance for Producers


Topics of Frequent Inquiry

Agent Recordkeeping
Appointments and Terminations
Assumed Names or Trade Names
Business Entities (Corporations - Partnerships - Legal Entities)
Canceling a License
Change of Contact Information
Commissions, Commission Sharing and Rebating
Consultants
Electronic Exams - Prometric
Federal Crop Insurance
General Agents
Insurance Fraud
Insurance Producers and Business Entity Examinations
License Termination or Lapse
Licensing Exemptions
Limited Lines Credit Insurance
Lines of Authority
National Association of Insurance Commissions (NAIC) Electronic Licensing Initiatives
Pre-licensing Study Materials for Insurance Agents
Residency - Home State
Temporary License

 

 

Agent Recordkeeping

See webpage here.

back to Topics list

 Appointments and Terminations

See webpage here.

back to Topics list

Assumed Names or Trade Names

You must report all assumed names, alias, trade names, or "doing business as" (dba) organizations to the Division of Insurance. Contact the Division of Insurance.

back to Topics list 

Business Entities (Corporations - Partnerships - Legal Entities)

Business entities need to be licensed as producers. A business entity is defined as a corporation, association, partnership, limited liability company, limited liability partnership or other legal entity.

To appy for a business entity licnse, complete the application online through the National Association of Insurance Commissioners (NAIC) National Insurance Producer Registry (NIPR) or Sircon (Vertafore).

The business entity must be appointed with the same insurers as by the producers representing the agency or business entity.

Business entity licenses are continuous. There is no renewal.

A business entity may designate a licensed insurance producer responsible for the entity's compliance with the insurance laws and rules of this state. Also note, any producer representing the business entity in this state must be licensed and appointed with insurers the producer represents. The business entity license does not automatically authorize producers to sell, solicit and negotiate insurnac ein this state without an individual resident or non-resident producer license.

back to Topics list 

Canceling a License

Any licensed producer may contact the Division of Insurance at any time to cancel his or her license. Cancellation of a license does not relieve a producer from any administrative action for violations of law that occurred while that person held a license. Any time a resident producer requests a "letter of clearance" to apply for a license in a new residence state, the current resident license is canceled. No producer may hold a resident producer license in more than one state. Contact the Division of Insurance to request cancellation of a license.

back to Topics list 

Change of Contact Information

South Dakota law requires you to notify the division with any change of address or contact information online through Sircon (Vertafore).

back to Topics list 

Commissions, Commission Sharing and Rebating

See webpage here.

back to Topics list

Consultant

South Dakota does not issue licenses to consultants; although if a person is acting in the capacity of a consultant and providing insurance advice, he or she may obtain a producer license. Whenever a person is acting as an agent or consultant for the insured, the person is not required to obtain an appointment. Please note, South Dakota law does not permit a producer to charge fees in addition to a premium. Therefore, no producer may both act as agent of the insured and charge the consumer consultant fees in addition to commissions earned on policies.

back to Topics list

Electronic Exams - Prometric

Visit Prometric's webpage for information on taking the electronic producer licensing exam.

back to Topics list

Federal Crop Insurance

The Livestock Revenue Coverage introduced by the Federal Crop Insurance Corporation (FCIC) is not a property form of insurance; in other words, it does not insure the livestock against any direct physical loss. This coverage provides protection for loss of revenue or the value of the livestock at the time of sale. The coverage is very similar to multi-peril crop insurance, and the "crop insruance4" l ine of authority is sufficient for the sale of this or similar crop or livestock revenue protection products reinsured or subsidized by the FCIC.

back to Topics list

General Agent

A general agent who receives only a commission override for business produced by persons he or she solicited as producers and has no involvement whatsoever in the sale, solicitation or negotiation of insurance does not have to obtain an appointment with that same insurer. If the general agent has direct contact with the client or receives applications or receives premiums, that general agent must obtain both a license and appointment, as he or she would, in fact, be selling, soliciting or negotiating insurance.

See our Producer Applications, Forms, Reports and Related Fees webpage for information on licensing general agents.

back to Topics list

Insurance Fraud

See webpage here.

back to Topics list

Insurance Producer & Business Entity Examinations

See webpage here.

back to Topics list

License Termination or Lapse

No producer may transact the business of insurance in South Dakota while his or her license is in a state of lapse. Appointments with insurers will be terminated.

If a resident producer loses his or her license due to a lapse or cancellation and they held a valid resident producer license for at least one (1) year before termination or lapse, the producer may re-apply for a new license and will not have to re-test if they apply within one (1) year of the date in which the licensed lapsed or canceled. If the lapse or cancellation is for "failure to renew" the producer has only one year to re-apply before re-testing is required.

If a resident producer license lapses due to non-payment of fees or failing to complete continuing education requirements, that producer may complete an application and pay double the renewal fee to reinstate the license within 12 months. The producer must complete the required continuing education requirements before the license will be reinstated. Continuing Education information is available here.

If a non-resident producer license lapses due to non-payment of fees, that producer may complete an applicaiton and pay double the renewal fee to reinstate the license within 12 months.

back to Topics list

Licensing Exemptions

See webpage here.

back to Topics list

Limited Lines Credit Insurance

See webpage here.

back to Topics list

Lines of Authority

South Dakota has adotped the Major Lines of Authority contained int he National Association of Insurance Commissioners (NAIC) Producer Licensing Model Act. Therefore, we have eliminated many miscellaneous lines of authority and combined them with the Major Lines of Authority. The lines applicable in South Dakota are property, casualty, life, crop, accident and health or sickness, variable, limited line insurance and personal lines.

Under state licensing laws, the Director has authority to issue a line of authority to a non-resident producer that is not currently offered by our state but only if a license is required for that line of authority. For example, if you are a resident producer of Arkansas and currently hold a license to sell mobile home physical damage insurance in your home state and you apply for that same line of authoirty in South Dakota as a non-resident producer, we will either issue you that line of authority or simply issue you the property line of authority.

back to Topics list

National Association of Insurance Commissioners (NAIC) Electronic Licensing Initiatives

See webpage here.

back to Topics list

Pre-licensing Study Materials

See webpage here.

back to Topics list

Residency - Home State

See webpage here.

back to Topics list

Temporary License

The Director may issue a temporary license for a period not to exceed 180 days without requiring an examination, if it is determined that the temporary license is necessary to provide continued service to policyholders. This occurs primarily due to the death, total disability or active military service of a licensed producer. The Director may issue a temporary license to a surviving spouse, a legal representative of the producer, or an employee of the producer. To obtain a temporary license, contact the Division of Insurance

back to Topics list

Contact the Division of Insurance