South Dakota

South Dakota Insurance Licensing Requirements

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On this page, you’ll find a comprehensive guide for becoming a licensed insurance agent in South Dakota and the state requirements. We’ll walk you through the process, and we’ll be here to answer any questions you have along the way.

The South Dakota Department of Labor & Regulation (DLR) requires each person selling insurance in the state to hold an insurance producer license. You will choose which line of authority you want to be licensed in: health insurance, life insurance, property and casualty insurance, or any combination of those lines.

Once you know which license you need, you’re ready to begin. In this state, there are 4 steps to getting your insurance license.

Step 1: Complete a Prelicensing Course

If you’d like to sell insurance in the State of South Dakota, you must pass a licensing exam. Because the exam tests your knowledge of industry information, insurance products, and specific state insurance laws, the best way to prepare for the exam is to take a prelicensing exam prep course.

A.D. Banker offers prelicensing courses that will prepare you to successfully pass the state exam on your first attempt. Our online courses can be supplemented with web classes and learning tools like flashcards and study manuals.

Step 2: Pass a Licensing Exam

After you finish your prelicensing course, you are now ready to take the state licensing exam. You must score 70% or higher to pass your state licensing exam. You will be required to pay another examination fee to retake the test, so it is important to pass the first time.

Step 3: Apply for License

After passing the exam, you are ready to submit your license application and pay the application fee through Sircon. You can check the status of your application through Sircon.

Step 4: Plan for Continuing Education

The South Dakota Division of Insurance requires each resident insurance agent and adjuster to complete continuing education (CE) prior to license renewal. The CE requirements vary based on your license type and line of authority and must be completed every 2 years. The specific requirements are as follows:

  • 10 hours for agents that hold a Life/Health or Property/Casualty license
  • 20 hours for agents that hold both Life/Health and Property/Casualty licenses
  • 4 hours for agents that hold a Crop only license
  • 10 hours for agents that hold both Crop and Life/Health licenses
  • 10 hours for agents that hold both Crop and Property/Casualty licenses
  • 20 hours for agents that hold Crop, Life/Health, and Property/Casualty licenses

There may be additional requirements to sell certain products, such as annuities, long-term care, or flood insurance. Nonresident producers are currently required to adhere to their home state continuing education requirements.

It’s important to stay on top of any changes to state insurance statutes and continuing education requirements, which can be found on the South Dakota Division of Insurance’s webpage.

South Dakota Licensing Exam FAQ

Where will I take the state exam?

  • Remote exams are available to ensure accessibility and safety. These exams require you to have a computer or laptop that is compatible with OnVUE, Pearson VUE’s remote testing platform. If you do not have a compatible computer, you must schedule an in-person exam.
  • Exams may also be taken in-person at a Pearson VUE testing site. Exams taken at a Pearson VUE location may include an additional provider fee.

How do I schedule my state exam?

  • Every insurance licensing exam is accompanied by an exam fee that must be paid by a credit or debit card, voucher, or electronic check. This fee must be paid at the time of reservation and will not be accepted at a testing center. You can schedule your state exam through Pearson VUE or by calling (888) 873-6205.

How should I prepare for my remote state exam?

  • Test the compatibility of your computer, webcam, and microphone before scheduling your exam.
  • Download OnVUE ahead of time to prevent last-minute technical problems.
  • Log in 30 minutes before your scheduled exam.
  • Ensure your room is private and free of prohibited items such as phones, headphones, and wristwatches.
  • Exams are monitored by a third party via live chat.

How should I prepare for my in-person state exam?

  • Arrive 30 minutes before your exam for check-in.
  • Bring a valid government-issued ID.
  • Personal items, including cell phones and watches, are not allowed in the testing center.
  • Stay in the testing center for the entire exam duration (no breaks allowed).

What is the format of the state exam?

  • All licensing exams are taken on a computer and are multiple choice. The exam will cover both a general section with basic insurance product knowledge, and a state section with specific insurance laws, rules, regulations, and practices unique to South Dakota. A good prelicensing training course will feature practice exams that simulate the format of the state exams.

How long is the state exam?

Exam times and the number of questions vary by line of authority:

  • Life Producer: 2 hours with 85 questions
  • Accident & Health or Sickness Producer: 2 hours with 85 questions
  • Property Producer: 2 hours with 85 questions
  • Casualty Producer: 2 hours with 85 questions
  • Life, Accident & Health or Sickness Producer: 2.5 hours with 145 questions
  • Property & Casualty Producer: 2.5 hours with 90 questions
  • Personal Lines Producer: 2 hours with 105 questions
  • Crop Producer: 1 hour with 60 questions

What score do I need to pass?

  • For all insurance exams, you need to score 70% or higher to pass. Immediately after your exam, you will receive a pass or fail notification.

What happens if I fail my exam?

  • You are able to immediately reschedule a new exam without a waiting period. If you have questions about the exam process, please visit Pearson VUE’s website.

Disclaimer

This guide is intended for informational purposes only and should not be considered legal or regulatory advice. Licensing requirements are subject to change, and it is the responsibility of the applicant to verify all details with the South Dakota Division of Insurance. For the most current information, visit the official website of the South Dakota Division of Insurance.