South Dakota Seal

South Dakota

state commissioner

Larry D. Deiter

STATE email

insurance@state.sd.us

STATE phone
(605) 773-3513
STATE LICENSE DIVISION ADDRESS

South Dakota Division of Insurance

Appointments & Terminations

Required to report appointments?

Yes

Permits Just-in-time (JIT) appointments?

Yes

Initial appointment deadlines

Within 15 days of contract execution or first business submission

Initial appointment deadline rule

JIT appointments permitted. Appointments must be submitted within 15 days of the date the agent/agency contract is executed or the first piece of business is submitted to the carrier

Can be processed via nipr?

Yes

Fees for appointing a resident agency or individual?

$10

Fees for appointing a nonresident agency or individual?

$20

Appoint agencies?

Yes

Adjuster appointments via NIPR?

No

Appointment effective date can be specified?

No

Appointment effective date rule

Required (but ignored) and is the date transaction is processed by the state. Must not precede effective date of appointee and appointer license.

State requires appointment renewal?

Yes

Appointment renewals via

Appointment renewals billed annually and paid via state portal.

Appointment renewal fee

$20

Terminations processed via NIPR?

Yes

Termination reasons

Voluntary termination; death; appointed in error; cancelled; cancelled for cause

Termination date can be specified by carrier?

Yes

Termination Effective date rule

Required and is the date supplied on transaction. Must not precede effective date of appointee license, appointer license, or effective date of appointment. Must be less than 30 days old

Termination fee

No fee

Allows carriers to terminate the appointment if license has expired?

No

Licensing

Initial individual new license fee

Resident New License Insurance Producer: $25 Resident New License Surplus Lines Broker: $50 Non Resident New License Insurance Producer: $30 Non Resident New License Surplus Lines Broker: $50

License renewal fee

Resident Insurance Producer Renewal Fee: $20 Late Renewal Fee: $40 Surplus Lines Broker Renewal Fee: $100 Late Renewal Fee: $200 Bail Bonds Producer Renewal Fee: $0 Managing General Agent Renewal Fee: $25 Insurance Producer Fee Disclaimers: See Retaliatory Fee: Surplus Lines Broker Renewal Fee: $100 Late Renewal Fee: $200 Managing General Agent Renewal Fee: $25

When does the resident individual producer license renewal period begin?

90 days before expiration

What is the resident individual producer license renewal date?

Last day of birth month every 2 years based on year of first state license issue

Late renewal or reinstatement period for resident individual producer license?

Reinstatement allowed up to a year after expiration

When does the nonresident individual producer license renewal period begin?

90 days before expiration

What is the nonresident individual producer license renewal date?

Last day of birth month every 2 years based on year of first state license issue

Late renewal or reinstatement period for nonresident individual producer license?

Reinstatement allowed up to a year after expiration

Can a producer use a P.O. Box in their resident or business address?

No

Are individuals required to list their county as part of the address?

No

What addresses are required for individual license maintenance?

Residence, Business, and Mailing

State individual licenses include

Managing General Agent, Surplus Lines Broker, Life and Health, Property and Casualty, Mutual, Rental Car, Stock, Bail Bonds Producer, Discount Medical Plan, Pharmacy Benefits Manager, Third Party Administrator License, Third Party Administrator Registration, Utilization Review Organization, Rating Bureau, Insurance Producer, Travel Retailer, Temporary Insurance Producer

State recognizes a licensing exemption for nonresident commercial lines producers with multistate contracts?

Yes

State broker license rule

Included in Producer License Class. Insurers are not required to appoint Brokers per NAIC PLMA

Requires pre licensing courses?

No

Prelicense education requirement

Fingerprints Required?

Not Required

Where to apply for resident license?

NIPR Gateway

What Transactions are Retaliatory Fees Applied to?

Non Resident Renewals

What Determines the Retaliatory Fee?

Producer Home State

Submit Partial License Renewals through NIPR?

Yes

Has Personal Lines LOA?

Yes

Deadline to report personal data changes (address, name change, phone number, etc.)

A licensee must inform the Director of a change in address within 30 days of the change. Contact Change Request supported via NIPR Gateway.

Agency

Can a sole proprietor be licensed as an entity?

If commissions connected to SSN, then individual license will work. If have FEIN number set up and receiving commissions with FEIN, must have entity license.

DRLP must have active state license

Yes

DRLPs must cumulatively cover all LOAs in application

No

Agency Licensing renewals

90 days prior to license expiration date until expiration date. Reinstatement period begins four days after expiration and ends one year after expiration date.

Agency License required?

Yes if receiving commissions

Affiliations: Indicates if producers selling on behalf of/through an entity must be formally affiliated with that entity and if the entity must notify the department of changes

Only DRLP has to be on record, but if ever audited, need to provide record that agent was with agency.

Branch office

If the branch is operating under the same name as the licensed Business Entity, then the branch may be added to the existing license.

Deadline to report key business entity changes (address, dba, phone, email, etc.)

A licensee must inform the Director of a change in address within 30 days of the change. Business Entities must use "South Dakota Producer and Agency Portal" which can be found on the state's website.

Adjuster

Requires adjuster license?

No

Offers designated home state?

No

DHS exam required?

N/A

Reciprocity states

None

Independent adjuster fees

Address change request through NIPR?

Yes

Continuing Education

Total hours per renewal period

10 per LOA

Renewal period

2 years

License renewal date is

Last day of birth month

License renewal year based on...

Year of first license issuance

When is the CE due?

Prior to license expiration. Depending on when you first obtain your license, your first licensing period may range from 24 to 35 months.

How long before expiration does state send CE reminder?

90 days prior to expiration date

Exemptions to CE

Licensees who hold a limited license to sell only credit life and credit health insurance; Licensees outside of the U.S. and territories; Licensees who are resident attorneys licensed to practice law in South Dakota; Licensees who are transportation ticket producers or common carriers who hold a limited license to sell travel accident and baggage insurance; Licensees who are employees of trade associations and who hold a limited license to sell only surety bonds to association members; Licensees licensed to sell only bail bonds. Exempt individuals may have to notify the department in writing of relevant exemption.

What if a producer missed the renewal date?

Producer may reinstate their license within a year of expiration. In order to reinstate the license, the producer must have completed the CECs required for the two-year licensing period prior to his license cancellation. These CE's must be completed before the producer may be reinstated. A producer will need to pay $40 in order to reinstate the license.

Credits must be specific to major LOAs?

Yes

Major lines requirements

10 CE hours per LOA If you carry a qualification of Life & Health only, you must complete ten (10) credit hours, but if you hold qualifications in both Life & Health and Property & Casualty, you must complete a total of twenty (20) credit hours during your licensing period. If you have a crop license and any major LOA, 2 hours of crop training may count toward your 10 yours of major LOA. Only half of your required CE can come from any one sponsoring carrier's training.

Flood-specific CE requirements

3 hours of NFIP course

LTC-specific CE requirements

8-hour initial certification, with 4 hours of LTC-specific additional training by July 1 of every other even-numbered year.

Annuity-specific CE requirements

One-time, 4-hour course

Additional line of business requirements

Crop only requires 4 hours specific to crop

Regulatory Updates

South Dakota Now Allows Reinstatement After Expiration Date

Effective May 13, 2024, South Dakota Division has implemented a new business rule that will allow all applicants to reinstate on the first of the month. If a Producer fails to renew by May 31, they will be able to reinstate on June 1. 

South Dakota has Made Changes to Procedure for Revoking a Nonresponsive Producer’s License

On February 5, 2024, South Dakota enacted a bill to make changes to the procedure for revoking a nonresponsive producer's license. See attachment.

South Dakota Posted its Spring 2023 Newsletter.

South Dakota Division of Insurance posted its Spring 2023 Newsletter. See attachment.

South Dakota Changes Annuity CE Requirements

This change impacts both existing resident and non resident producers. Those that complete an annuity training by 1/1/2023 must also complete a new Annuity Best Interest 4 credit class or an additional 1-time, 1-credit course prior to 7/1/2023. New producers after 1/1/2023 must take the 4 credit course.

South Dakota Releases Annuity Best Interest Standards

The Annuity Best Interest will be effective Jan. 1, 2023. The purpose is to place the duty of annuity recommendations to consumers upon insurance producers.

SD to Allow Producers Holding Other LOAs to Sell Travel

Effective 7/1/2022 SD has added language to allow producers holding other lines of authority to sell travel and does not require a P&C producer to be appointed.

South Dakota Makes CE Requirement Changes

SD announces CE change that impacts both Resident and Non-Resident License holders. For producers that have a life insurance Line of Authority cannot sell annuities unless the required training courses are completed.

FAQs