Key Takeaways
- South Dakota producers have fiduciary duties to clients
- Producers must disclose compensation and conflicts of interest
- Premium funds must be handled according to strict requirements
- Records must be maintained for regulatory examination
- Continuing education includes ethics requirements
Last updated: January 2026
Producer Conduct and Fiduciary Duties
South Dakota insurance producers have legal and ethical obligations to their clients and the public.
Fiduciary Duties
Producers owe fiduciary duties to their clients:
Key Duties
| Duty | Description |
|---|---|
| Loyalty | Put client's interests first |
| Disclosure | Reveal all material information |
| Competence | Maintain professional knowledge |
| Confidentiality | Protect client information |
| Good Faith | Act honestly in all dealings |
Disclosure Requirements
South Dakota producers must disclose:
- Method of compensation
- Material conflicts of interest
- All material terms and conditions
- Limitations and exclusions
Handling of Funds
Producers must handle premiums according to strict rules:
Premium Collection
| Requirement | Rule |
|---|---|
| Deposit | Promptly to insurer or trust account |
| Commingling | Cannot mix with personal funds |
| Trust Account | Required for holding premiums |
| Records | Must maintain detailed records |
Consequences of Mishandling
- License suspension or revocation
- Required restitution
- Civil liability
- Potential criminal charges
Continuing Education
South Dakota requires ongoing education for producers:
- Completion of required hours each renewal period
- Ethics training component required
- Must be completed before license renewal
Test Your Knowledge
What happens if a South Dakota producer commingles client premium funds with personal funds?
A
B
C
D