SD Life & Health study guide
SD Life & Health · Work through your exam, one topic at a time.
The South Dakota Life & Health Insurance Producer license is a state credential that allows a producer to solicit, negotiate, and sell life insurance and health insurance products in South Dakota. It suits career changers entering insurance sales, agents adding a line of authority, agency staff who advise clients on life and health coverage, and advisors who want a formal compliance credential recognized by regulators and carriers. The SD Life & Health study guide has 8 sections and about 2,557 words.
01Insurance Regulation and State Requirements
Insurance is regulated chiefly by the states under the McCarran-Ferguson Act. In South Dakota the Division of Insurance, headed by a Commissioner appointed by the Governor, enforces the insurance code.
312 words, about 2 min02General Insurance Concepts
Insurable risk is pure (loss only: fire, death, liability), not speculative (gain or loss: investing). People handle risk by retention, transfer (insurance), avoidance, and sharing.
343 words, about 2 min03Life Insurance Basics
Field underwriting starts the file: the producer collects complete, honest information. Part I covers general data and the agent's report; Part II covers medical history.
330 words, about 2 min04Life Insurance Policies
Term is pure protection with no cash value. Varieties: level, decreasing (mortgage protection), increasing, renewable (no new evidence, higher premium), convertible (to permanent without evidence of insurability), and return-of-premium.
319 words, about 2 min05Life Policy Provisions, Options, and Riders
The entire contract clause limits the agreement to the policy, application, and attached riders. Incontestability bars the insurer from voiding for misrepresentation after two years.
312 words, about 2 min06Annuities and Retirement Products
An annuity liquidates a sum into income and shifts longevity risk to the insurer. There is an accumulation phase and then annuitization.
325 words, about 2 min07Health Insurance Basics and Medical Expense Policies
Know the order: deductible first, then coinsurance (classically 80/20), then the out-of-pocket maximum , which counts deductibles and coinsurance but not premiums. A copay is a flat fee, often not subject to the deductible.
297 words, about 1 min08Health Policy Provisions, Disability Income, and Government Programs
Policies must include: entire contract; time limit on certain defenses (two years); grace period (7 days weekly, 10 days monthly, 31 days otherwise); reinstatement; notice of claim (20 days); claim forms (15 days); proof of loss (90 days); time of payment of claims (immediately, or 45 days); payment of claims; physical exam and autopsy; legal actions (three years); change of beneficiary. Optional provisions cover change of occupation, misstatement of age, other insurance with this insurer, unpaid premium, and cancellation on five days' notice.
319 words, about 2 min