How Do I Get an Insurance License in South Dakota?

Depending on what type of insurance agent you want to be or what types of policies you need to sell, you will need to choose what type or types of insurance licenses you need to get. After you’ve determined which licenses you need, it’s time to begin studying for the South Dakota insurance exams. The next step after completing all of your pre-exam coursework or self-study is to take the insurance exam. You will take one exam for each combined line of insurance you wish to carry. Once you have completed your exams, you are now ready to apply for your license. If you have more than one line of authority that you have passed the exam for, be sure to apply for all of those lines. Once you have submitted your application and have filled all the other requirements, your license application will be reviewed by the state. Your background check initiated by the application will also be reviewed.

How Do I Get a State Adjuster License in South Dakota?

The state of South Dakota does not offer a Resident Insurance Adjuster License and does not require a license to practice insurance claims adjusting within the state.

How do I renew my nonresident insurance license in South Dakota?

To obtain a nonresident producer license you must be licensed and in good standing in your home state as a resident producer. The South Dakota Division of Insurance will verify your licensing status, lines of authority, continuing education (CE) compliance, and any prior administrative actions via NIPR prior to issuing any nonresident producer license or renewal document therein. South Dakota does not accept paper filings and no longer sends out a paper license. <a href="https://agentsync.io">AgentSync</a> can help with the renewal process. South Dakota does not charge a fee to amend an existing license. However, reinstatement fees range from $30 – $50. The cost to print a license is $5.50.

How Do I renew My Non-Resident Adjuster License in South Dakota?

South Dakota nonresident adjuster license renewal is required of all license-holders every two (2) years before the expiration date. Residents of states that award nonresident adjuster licenses to residents of Oregon are eligible to apply for nonresident adjuster licenses in Oregon on reciprocal basis. There are no continuing education requirements in South Dakota. In turn, nonresident applicants must be licensed for the same license type and lines of authority to be eligible for online submission. Additionally, Non-Resident Adjusters in South Dakota are only required to complete the Continuing Education (CE) requirements of their DHS. For more information, contact the South Dakota Division of Insurance.

How Do I Renew My Adjuster License In South Dakota?

South Dakota is one of 16 states that do not license insurance adjusters. This means you can legally adjust claims in your state without a license, but only in said state. To adjust in the state of South Dakota, you will need to obtain a Designated Home State (DHS) license. You will go through that state’s (South Dakota or otherwise) licensing process, testing, and compliance regulations and their license will act as your resident, or home state license. If youre looking to become an insurance adjuster in a non-licensing state like South Dakota, the Florida 70-20 DHS License is the next best thing for the following reasons: The state offers the quickest turnaround time after you submit your documents. The Florida 70-20 license is reciprocal with most states. A Florida DHS license is good for 4 years. This is not to say this is the only way to obtain a DHS license, it is simply the easiest. Many of the licensing states offer DHS licenses. So be sure to do additional research to find the best fit. For more information, contact the South Dakota Division of Insurance.

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

Address

124 S. Euclid Avenue

2nd Floor

Pierre, South Dakota, 57501

Visit State Website

Appointments & Terminations

Required to report appointments?

Yes

Permits Just-in-time (JIT) appointments?

Yes

Appointment exemptions and notes

A property and casualty producer doesn't require a carrier appointment to sell, solicit, or negotiate travel insurance.

Initial appointment deadlines

Within 15 days of contract execution or first business submission

Initial appointment deadline rule

SD ST § 58-2-29 To appoint a producer or business entity as its agent, the insurer must file a Notice of Appointment within 15 days from the date the agency contract is executed or the first insurance application is submitted.

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?

Appointment effective date can be specified?

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

Resident: $10 Nonresident: $20

Licenses require appointment or affiliation?

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?

Can a not-for-cause termination notice be emailed?

Email notices are permitted

If email is allowed, can notice be in body text?

Within the email body text

Licensing

Initial individual new license fee

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

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

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?

Prelicense education requirement

Fingerprints Required?

Not Required

Fingerprint Submission Details

Only required for Bail Bond licensing

State Pre-Licensing Exam Website

Pearson VUE

How Long are State Pre-Licensing Exams Active?

180 Days

Where to apply for resident license?

NIPR Gateway

What Transactions are Retaliatory Fees Applied to?

Nonresident 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.

Name Change Form

- Individual
- Business Entity

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

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?

Offers designated home state?

Reciprocity states

None

Independent adjuster fees

DHS Exam Required?

N/A

Address change request through NIPR?

Yes

Continuing Education

Total hours per renewal period

Renewal period

2 years

CE due before license renewal date?

Yes

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

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.

CE instructors get credit for teaching courses?

Yes, once per course per compliance period.

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 every renewal period.

Annuity-specific CE requirements

One-time, 4-hour course

Adjusters

Check CE transcripts

https://dlr.sd.gov/insurance/

Additional line of business requirements

Crop only requires 4 hours specific to crop

For more from agentsync

https://agentsync.io/blog/individual-producers/insurance-continuing-education-south-dakota

Regulatory Updates

South Dakota Continuing Education Changes

Effective January 1, 2025, South Dakota adjusted two rules affecting continuing education: Please see the attachment for more information.

South Dakota Is Having A Public Hearing About CE’s

September 30, 2024, South Dakota is having a public hearing to consider the adoption and amendment of rules to clean up for overall improved clarity regarding continuing education. Please click the URL below for more information about signing up. Please see the attachment for more information about what rules are being reviewed.

South Dakota Announces Proposed Rule Changes for Broker Dealers Agents, Investment Advisers and Investment Adviser Reps

On July 3, 2024, South Dakota announced proposed rules regarding examination validity program and maintaining qualifications program for broker-dealer agents, investment advisers, and investment adviser reps, and to update the examination requirement. See attachment for full details.

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 nonresident producers. Those that complete an annuity training by January 1, 2023, must also complete a new Annuity Best Interest four credit class or an additional 1-time, 1-credit course prior to July 1, 2023. New producers after January 1, 2023 must take the four 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 July 1, 2022, South Dakota 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

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

FAQs

How Do I Get an Insurance License in South Dakota?

Depending on what type of insurance agent you want to be or what types of policies you need to sell, you will need to choose what type or types of insurance licenses you need to get. After you’ve determined which licenses you need, it’s time to begin studying for the South Dakota insurance exams. The next step after completing all of your pre-exam coursework or self-study is to take the insurance exam. You will take one exam for each combined line of insurance you wish to carry.

Once you have completed your exams, you are now ready to apply for your license. If you have more than one line of authority that you have passed the exam for, be sure to apply for all of those lines. Once you have submitted your application and have filled all the other requirements, your license application will be reviewed by the state. Your background check initiated by the application will also be reviewed.
How Do I Get a State Adjuster License in South Dakota?
How do I renew my insurance license in South Dakota?

In South Dakota, insurance licenses expire every two years, or “biennially on the last day of your birth month. The state requires that most resident individual licensees complete ten (10) credit hours of continuing education per license qualification every two-year licensing period.

For instance, 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.

After you have completed your continuing education and you are within 90 days of your license expiration, you may renew your South Dakota license online via the National Insurance Producer Registry. AgentSync can also help with the renewal process.

There is a fee of $25 to renew your license in South Dakota.
How do I renew my nonresident insurance license in South Dakota?

To obtain a nonresident producer license you must be licensed and in good standing in your home state as a resident producer. The South Dakota Division of Insurance will verify your licensing status, lines of authority, continuing education (CE) compliance, and any prior administrative actions via NIPR prior to issuing any nonresident producer license or renewal document therein.

South Dakota does not accept paper filings and no longer sends out a paper license. AgentSync can help with the renewal process.

South Dakota does not charge a fee to amend an existing license. However, reinstatement fees range from $30 – $50. The cost to print a license is $5.50.
How Do I renew My Non-Resident Adjuster License in South Dakota?

South Dakota nonresident adjuster license renewal is required of all license-holders every two (2) years before the expiration date. Residents of states that award nonresident adjuster licenses to residents of Oregon are eligible to apply for nonresident adjuster licenses in Oregon on reciprocal basis.

There are no continuing education requirements in South Dakota. In turn, nonresident applicants must be licensed for the same license type and lines of authority to be eligible for online submission. Additionally, Non-Resident Adjusters in South Dakota are only required to complete the Continuing Education (CE) requirements of their DHS.

For more information, contact the South Dakota Division of Insurance.
How Do I Renew My Adjuster License In South Dakota?

South Dakota is one of 16 states that do not license insurance adjusters. This means you can legally adjust claims in your state without a license, but only in said state.

To adjust in the state of South Dakota, you will need to obtain a Designated Home State (DHS) license. You will go through that state’s (South Dakota or otherwise) licensing process, testing, and compliance regulations and their license will act as your resident, or home state license.

If youre looking to become an insurance adjuster in a non-licensing state like South Dakota, the Florida 70-20 DHS License is the next best thing for the following reasons:
The state offers the quickest turnaround time after you submit your documents.
The Florida 70-20 license is reciprocal with most states.
A Florida DHS license is good for 4 years.

This is not to say this is the only way to obtain a DHS license, it is simply the easiest. Many of the licensing states offer DHS licenses. So be sure to do additional research to find the best fit.

For more information, contact the South Dakota Division of Insurance.