South Dakota Property & Casualty Insurance License Exam Overview
The South Dakota Property & Casualty Insurance License Exam is administered by Prometric on behalf of the South Dakota Division of Insurance. South Dakota offers a business-friendly environment with no state income tax and a growing economy, while severe weather including hail, tornadoes, and harsh winters creates specialized insurance needs.
Passing this exam qualifies you to sell property insurance, auto insurance, liability coverage, and related products throughout South Dakota—a state with nearly 900,000 residents, significant agricultural operations, and weather patterns that drive consistent demand for P&C coverage.
Exam Format at a Glance
| Component | Details |
|---|---|
| Total Questions | 100 multiple-choice |
| Scored Questions | 100 |
| Time Limit | 2 hours |
| Passing Score | 70% (70 correct answers) |
| Testing Vendor | Prometric |
| Exam Fee | $42 |
| Pre-licensing Education | 20 hours required |
Why Get P&C Licensed in South Dakota?
- Business-friendly state — No state income tax
- Growing economy — Sioux Falls and Rapid City expansion
- Agricultural market — Significant farm and ranch coverage needs
- Severe weather — Hail and tornado create specialized demand
- Lower barriers — Only 20 hours pre-licensing required
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Ready to begin studying? Our comprehensive, completely free South Dakota P&C exam prep covers everything you need to pass.
Key Topics Covered on the Exam
1. Property Insurance (30%)
Homeowners Insurance:
- HO-2, HO-3, HO-4, HO-5, HO-6, HO-8 policy forms
- Coverage A (Dwelling), B (Other Structures), C (Personal Property)
- Coverage D (Loss of Use), E (Personal Liability)
- Dwelling fire policies
South Dakota-Specific Property Topics:
- Hail damage coverage (major SD exposure)
- Tornado coverage considerations
- Severe winter weather coverage
- Farm and ranch property coverage
- Crop hail insurance
- Wind deductibles
Commercial Property:
- Building and personal property coverage forms
- Business income coverage
- Equipment breakdown
- Inland marine coverage
2. Liability Insurance (30%)
Personal Liability:
- Homeowners liability (Coverage E)
- Personal umbrella policies
- Medical payments coverage
Commercial Liability:
- Commercial General Liability (CGL)
- Products and completed operations
- Professional liability (E&O)
- Workers' compensation requirements
South Dakota Workers' Compensation:
- Required for most employers with employees
- South Dakota Department of Labor oversight
- Private market and self-insurance options
- Agricultural exemptions may apply
3. Auto Insurance (25%)
South Dakota Auto Insurance Requirements:
| Coverage | Minimum Limit |
|---|---|
| Bodily Injury (per person) | $25,000 |
| Bodily Injury (per accident) | $50,000 |
| Property Damage | $25,000 |
Additional Auto Topics:
- Personal Auto Policy (PAP) coverage parts
- South Dakota financial responsibility law
- Uninsured motorist coverage (required)
- Underinsured motorist coverage
- SR-22 requirements
- Commercial auto insurance
4. South Dakota Insurance Code and Regulations (10%)
Title 58 Key Provisions:
- Producer licensing requirements
- Unfair trade practices
- Unfair claims settlement practices
- Policy cancellation and nonrenewal rules
- Advertising guidelines
Licensing Requirements:
- Pre-licensing education: 20 hours (lower than most states)
- Continuing education: 24 hours every 2 years
- Ethics requirement included in CE
- Background check required
5. Ethics and Professional Conduct (5%)
- Fiduciary duties to insureds
- Premium handling requirements
- Claims reporting obligations
- Privacy and confidentiality
Study Timeline for Success
| Week | Focus Area | Hours |
|---|---|---|
| Week 1 | Property insurance fundamentals | 10-12 |
| Week 2 | Liability insurance | 10-12 |
| Week 3 | Auto insurance and SD requirements | 10-12 |
| Week 3-4 | South Dakota regulations (Title 58) | 6-8 |
| Week 4 | Practice exams and review | 10-12 |
Total recommended study time: 45-55 hours
Free Practice Questions Available
Test your knowledge with hundreds of free practice questions designed specifically for the South Dakota P&C exam.
South Dakota-Specific Exam Tips
1. Know South Dakota Auto Minimums
South Dakota requires 25/50/25 liability coverage:
- $25,000 per person bodily injury
- $50,000 per accident bodily injury
- $25,000 property damage
2. Master Severe Weather Coverage
South Dakota's severe weather exposure is significant:
- Hail storms — Major property damage risk
- Tornadoes — Tornado Alley exposure
- Winter storms — Ice, snow, and freezing damage
- Wind deductibles — Common in policies
3. Understand Agricultural Coverage
South Dakota agricultural market considerations:
- Farm and ranch property coverage
- Crop hail insurance
- Livestock coverage
- Equipment and machinery coverage
- Agricultural liability
4. Key Numbers to Remember
| Topic | South Dakota Requirement |
|---|---|
| Auto minimums | 25/50/25 |
| WC threshold | Most employers |
| Pre-licensing | 20 hours |
| CE requirement | 24 hours/2 years |
| Passing score | 70% |
Common Mistakes to Avoid
- Ignoring severe weather — South Dakota has significant hail and tornado risk
- Skipping agricultural coverage — Major market segment
- Underestimating winter weather — Freezing damage is common
- Not knowing auto minimums — South Dakota is 25/50/25
- Not practicing timed exams — 2 hours for 100 questions
- Cramming last minute — Spread study over 3-4 weeks
After Passing Your Exam
- Apply for license through South Dakota Division of Insurance
- Complete background check — Required for all applicants
- Pay license fee — Application fee required
- Affiliate with insurer — Get appointed by carrier
- Maintain CE compliance — 24 hours every 2 years
- Begin selling — Your license is valid for 2 years
2026 South Dakota Updates
For 2026, be aware of:
- Severe weather coverage rate changes
- Agricultural insurance updates
- Auto insurance rate adjustments
- Enhanced consumer protection regulations
Start Your South Dakota P&C Insurance Career Today
The South Dakota P&C license opens doors to a business-friendly market with significant agricultural and severe weather coverage needs. With proper preparation, you can pass the exam on your first attempt.
Our free study materials include:
- Complete topic coverage
- Practice questions with explanations
- South Dakota-specific regulations (Title 58)
- Study guides and summaries
- AI-powered study assistance
Don't pay for expensive prep courses when everything you need is available FREE.