SDPCP - South Dakota Property and Casualty Producer

Question 21: South Dakota's insurance fraud statute establishes a dedicated unit to investigate and prosecute fraudulent insurance acts, and a candidate assumes the unit is housed inside the Division of Insurance alongside the director. Which office actually employs and houses the insurance fraud prevention unit under South Dakota law?

the Division of Insurance

the Department of Labor and Regulation

the attorney general's office

the governor's office

Question 22: A person is found to have knowingly possessed a fake insurance identification card with intent to defraud, an act that involves no dollar figure at all rather than a claim or application tied to a specific amount of money. Which penalty classification applies to that violation under South Dakota law?

a Class Two misdemeanor

a Class Four felony

no criminal penalty applies

a Class One misdemeanor

Question 23: A managing general agent is found to have violated the statute specifically governing managing general agent conduct, separate from the general producer penalty provision. Under that dedicated statute, what is the maximum civil penalty the director may impose against the managing general agent for each violation?

Twenty-five thousand dollars per violation

Five thousand dollars per violation

Fifty thousand dollars per violation

Ten thousand dollars per violation

Question 24: The director conducts a disciplinary hearing and determines that suspension, rather than revocation, is the appropriate sanction for a producer's violation of the licensing chapter. Under South Dakota's producer discipline statute, what is the longest period for which the director may suspend that producer's license?

Up to six months

Up to twelve months

Up to twenty-four months

Up to eighteen months

Question 25: An insurer organized under the laws of another state applies for a certificate of authority to transact business in South Dakota. Before the director will admit it, what operating history and examination timing must the foreign insurer satisfy under the admission statute governing foreign insurers?

One continuous year, examined within thirty-six months

Three continuous years, examined within twelve months

Two continuous years, examined within sixty months

Five continuous years, no examination required

Question 26: Two applicants for a certificate of authority describe their ownership: one insurer is owned by shareholders who hold capital stock, while the other is owned by its policyholders and issues no capital stock. Which term describes the second insurer's company type?

Stock insurer

Fraternal benefit society

Reciprocal insurer

Mutual insurer

Question 27: A fraternal benefit society operating a lodge system argues it need not comply with most of the general insurance code because fraternals are largely exempt from that title. A producer researching the society's obligations should recognize that this general exemption does NOT extend to which chapter?

The insurance fraud chapter

The rate-filing chapter

The producer-licensing chapter

The cancellation and nonrenewal chapter

Question 28: A first-time applicant for a resident property and casualty producer license in South Dakota contacts the Division about the cost of applying. Under the fee schedule set by statute, what is the fee for issuing an original resident producer license, separate from the examination and appointment fees?

Twenty dollars

Twenty-five dollars

Thirty dollars

Fifty dollars

Question 29: An applicant who let a South Dakota producer license lapse reapplies and asks whether the licensing examination can be waived. Under the exemption, what must the applicant show about the earlier South Dakota license to avoid retesting on the same material?

held anytime within the past five

held a year within the past ten

held a year within the past five

held a month within the past year

Question 30: A producer holds authority in only the crop-hail line and wants to know the minimum continuing education required to renew, since the requirement differs by line combination under South Dakota's continuing education rule. How many hours of continuing education must this crop-hail-only producer complete each two-year period?

Ten hours

Twenty hours

Six hours

Four hours

Question 31: A South Dakota property and casualty producer binds coverage for a new commercial account during a phone call with the client, promising immediate protection while the formal policy is prepared, and the compliance officer later asks whether this binder is even enforceable without any paper.

valid because it may be oral

invalid without a signed written form

valid only if confirmed within days

invalid until the director approves it

Question 32: A homeowner's binder is issued while the underwriting file is still being completed, and three months pass with no policy yet delivered, prompting the agency's compliance staff to review how long a binder may lawfully remain in force under South Dakota law without further action.

a flat one year from binder date

the shorter of ninety days or issuance

however long underwriting review takes

until the insured requests the policy

Question 33: A surplus lines broker knowingly places a false statement of coverage on a binder handed to a lender, and after the falsehood is discovered the director's staff must classify the offense correctly to determine both the applicable penalty and exactly whose conduct the statute reaches.

a Class Two misdemeanor per offense

a civil fine only, no criminal charge

a Class One misdemeanor per offense

a felony if the lender relied

Question 34: An insured wants to know how long South Dakota allows for filing a lawsuit against an insurer after a dispute arises over a property policy, since the insurance code itself sets out no dedicated limitation period specifically written for actions brought against insurers.

two years, a special insurance period

one year from the date of loss

no limitation period applies to insurers

six years, the general contract period

Question 35: A rate filing reviewer at the Division compares a new commercial property rate schedule against the statutory standard every South Dakota filing must meet, checking the numbers against three specific defects the law names as grounds for rejecting or later challenging any filed rate.

excessive, inadequate, or unfairly discriminatory

excessive, untimely, or unfairly discriminatory

inadequate, unfiled, or excessive

discriminatory, undisclosed, or unapproved

Question 36: A private passenger automobile insurer files a new rate schedule, and thirty days pass with no action or objection from the Division on that particular filing, leading the compliance staff to ask what legal effect this silence has under the closer supervision rule for motor vehicle filings.

the filing is automatically rejected

the filing is deemed to comply

the insurer must refile every year

the director must approve it in writing

Question 37: A contractor hands a certificate of insurance to a general contractor as proof of coverage for a job site, and the general contractor later assumes the certificate itself broadens the policy to cover a scope of work never actually endorsed onto the underlying contract.

a certificate automatically endorses new coverage

a certificate replaces the policy once issued

a certificate cannot confer or extend coverage

a certificate extends limits the policy lacks

Question 38: Two producers ask which perils trigger South Dakota's Valued Policy Law when real property is wholly destroyed. The statute conclusively fixes the insured value as the measure of loss for a total loss caused by which set of named perils?

fire or tornado only

fire, wind, or hail

any peril the policy covers

fire, tornado, or lightning

Question 39: A lender reviewing a mortgage application in a river valley community asks the producer to explain what document the federal National Flood Insurance Program relies on to show which zones carry elevated flood risk and what base flood elevation applies to a given parcel.

FEMA's official flood zone map

the county assessor's property valuation map

the insurer's own internal risk map

the state Division of Insurance's rate map

Question 40: A landlocked state's producers sometimes wonder why a line called marine insurance even exists here, and a new producer asks a senior colleague to explain what South Dakota's marine and transportation insurance statute actually covers given that the state borders no ocean at all.

ocean going vessels and offshore cargo only

inland marine covering vehicles and goods transported

aircraft hull coverage exclusively

only goods stored inside a warehouse

SDPCP South Dakota Property and Casualty Producer - Set 1 - Part 2