SDPCP South Dakota Property and Casualty Producer - Set 1 - Part 3

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 41: An insurer decides to cancel a homeowner's policy mid term for a reason unrelated to nonpayment, and the compliance department reviews how many days of advance written notice South Dakota's non-auto cancellation statute requires before that cancellation can actually take effect against the policyholder.

ten days, no explanation required

thirty days, only for nonpayment

twenty days, with a written explanation

twenty days, but only for nonpayment

Question 42: A non-auto policy has been in force for only six weeks when the underwriting department decides the risk no longer fits its appetite, and the compliance officer checks whether South Dakota law still requires one of the statute's specific listed grounds this early in the policy term.

yes, a listed ground is required

no, but notice drops to ten days

no, only nonpayment is allowed this early

no, any reason is allowed this early

Question 43: An insurer plans to nonrenew a homeowner's policy at the upcoming expiration date, and separately plans to nonrenew a private passenger automobile policy for a different insured, and the compliance staff must confirm the correct advance notice period South Dakota requires for each of these two lines.

thirty days homeowner's, sixty days auto

sixty days homeowner's, thirty days auto

thirty days for both lines

sixty days for both lines

Question 44: After a policy is canceled, the insured's file sits with the insurer for several weeks before anyone processes the return of unearned premium, and the compliance officer looks to the refund rules chapter to determine what deadline, if any, governs how quickly that refund must go out.

the same notice period as cancellation itself

a twenty day deadline for the refund

no deadline at all for any refund

a ten day deadline for the refund

Question 45: A commercial property owner cannot find any authorized insurer willing to write a specialty risk, so the producer turns to the surplus lines market and works with a licensed surplus lines broker to place the coverage with a nonadmitted insurer instead.

three written declinations from admitted insurers

prior written approval from the director

a diligent effort to place coverage

a signed waiver from the insured

Question 46: Drivers who cannot obtain automobile liability coverage in the voluntary market may be placed through South Dakota's automobile assigned risk plan, and before that plan may take effect state law requires a specific action from the director of the Division of Insurance.

personally administer the plan's daily operations

fix the plan's rates and eligibility

submit the plan for legislative enactment

approve the plan after consulting insurers

Question 47: A driver causes an accident that injures one person, damages property, and could easily have injured more than one person at once, and the claims adjuster checks the policy against the minimum liability limits South Dakota law requires every automobile owner to carry on the road.

twenty five, fifty, and twenty five thousand

fifteen, thirty, and ten thousand

fifty, one hundred, and twenty five thousand

twenty five, fifty, and fifty thousand

Question 48: An insurer and a policyholder agree to add a named driver exclusion endorsement for a household member with a poor driving record, and the policyholder asks the agent what happens afterward to the liability limits that remain on the rest of the policy.

they may be reduced to any level

they cannot fall below the compulsory minimum

they must double to offset the exclusion

they become void until the policy renews

Question 49: A workers compensation examiner reviews four categories of workers to decide which single one falls outside South Dakota's compulsory coverage scheme, comparing a general farm laborer against a full time domestic servant, a threshing crew member, and a worker enrolled in a work activity program.

a domestic servant employed year round

a laborer in a threshing operation

a general farm or agricultural laborer

a participant in a work program

Question 50: An injured employee collects workers compensation benefits from the employer's carrier and then also files a negligence lawsuit against the employer over the very same workplace accident, prompting the employer to move for dismissal under South Dakota's exclusive remedy doctrine.

a claim alleging simple negligence

a claim alleging an unsafe condition

a claim alleging a defective tool

a claim alleging an intentional tort

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