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Free SD Casualty Producer Practice Questions

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Sample Practice Questions

Try these 10 sample questions from the SD Casualty Producer practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

  1. 1A contractor finishes wiring a shop. A customer is injured a week later by a defect in the completed work, away from the contractor's premises. Which CGL exposure fits the claim?

    1. A. Premises and ongoing operations exposure
    2. B. Products and completed operations exposure
    3. C. Personal and advertising injury exposure
    4. D. Damage to rented premises liability exposure

    Answer: B

    Explanation: "liability of contractors, plumbers, electricians, repair shops, and similar firms to persons who have incurred bodily injury or property damage from defective work or operations completed or abandoned by or for the insured, away from the insured's premises." The contractor had finished the work before the away-from-premises injury, making this a completed-operations exposure. A concerns work in progress, C reputational or advertising harm, and D damage to rented premises.

    Reference: NAIC Glossary of Insurance Terms — Glossary, Completed Operations Liability

  2. 2An insured becomes careless about routine loss prevention, without intending a loss or seeking a gain. What type of hazard does this disregard illustrate?

    1. A. Morale hazard
    2. B. Moral hazard
    3. C. Physical hazard
    4. D. Legal hazard

    Answer: A

    Explanation: "Morale Hazard - negligence or disregard on the part of the insured which could lead to probable loss." Careless disregard without deliberate gain is a morale hazard. Moral involves dishonesty or incentive, physical a tangible condition, and legal the liability environment.

    Reference: NAIC Glossary of Insurance Terms — Glossary, Morale Hazard

  3. 3A producer needs to verify the insured vehicle, policy term, and coverage limit on a customer's auto policy. Which part of the policy supplies those identifying facts?

    1. A. The insuring agreement setting covered risks
    2. B. The declarations listing policy particulars
    3. C. The conditions stating parties' obligations
    4. D. The exclusions limiting particular losses

    Answer: B

    Explanation: "information including the policy term, coverage limits, and information about the insured." The declarations list identifying policy particulars, including term and limits, and describe vehicles. The other parts address grant, duties, or excluded risks.

    Reference: NAIC Auto Insurance — Understanding Your Auto Insurance Policy, Declarations Page

  4. 4Which official has primary responsibility for enforcing South Dakota's Insurance Code?

    1. A. The Director of the Division of Insurance
    2. B. The Secretary of State
    3. C. The state treasurer
    4. D. The attorney general acting alone

    Answer: A

    Explanation: The statute states, "The director shall enforce the provisions of this title." Therefore enforcement is assigned to the Director of the Division of Insurance.

    Reference: Codified Law 58-2 | South Dakota Legislature — SDCL 58-2-21

  5. 5Unless a binder states otherwise, which terms govern temporary casualty insurance in South Dakota?

    1. A. The usual terms of the policy for which the binder was given, including applicable endorsements
    2. B. Only terms orally selected by the producer
    3. C. The insured's prior policy regardless of insurer
    4. D. Only the binder's premium amount

    Answer: A

    Explanation: A binder is deemed to include "all the usual terms of the policy as to which the binder was given together with such applicable endorsements as are designated in the binder." Those policy terms govern unless superseded.

    Reference: Codified Law 58-11-29 | South Dakota Legislature — SDCL 58-11-29

  6. 6An occurrence-form CGL policy runs from January through December. Which injury meets its occurrence timing requirement, regardless of when a claim is later filed?

    1. A. Injury in prior December; claim filed in current March
    2. B. Injury in current March; claim filed the next January
    3. C. Injury the next January; claim filed in that January
    4. D. Injury in prior March; claim filed the next January

    Answer: B

    Explanation: "an accident, including injurious exposure to conditions, which results, during the policy period, in bodily injury or property damage neither expected nor intended from the standpoint of the insured." Only B places the accidental injury during the January–December policy period. A and D put injury before the period; C puts it after. Filing date does not move the injury into the period.

    Reference: NAIC Glossary of Insurance Terms — Glossary, Occurrence

  7. 7After a covered casualty loss, an insured asks for an amount that would leave the business financially better off than immediately before the loss. Which principle limits recovery to restoration of its approximate prior position?

    1. A. Subrogation
    2. B. Insurable interest
    3. C. Indemnity
    4. D. Contribution

    Answer: C

    Explanation: "the individual recovering under an insurance policy should be restored to the approximate financial position he or she was in prior to the loss." Indemnity aims to return the insured to approximately the prior financial position. Subrogation concerns recovery from a wrongdoer, insurable interest concerns exposure to loss, and contribution shares a covered loss among insurers.

    Reference: NAIC Glossary of Insurance Terms — Glossary, Indemnity, Principle of

  8. 8A claims examiner must identify the policy's broad promise about covered perils and risks before applying any exclusion. Which provision contains that promise?

    1. A. The declarations page listing policy particulars
    2. B. The conditions defining parties' claim duties
    3. C. The insuring agreement stating covered risks
    4. D. The endorsement recording a policy change

    Answer: C

    Explanation: "a broad statement listing the perils and risks covered under the contract." The insuring agreement states the initial coverage promise. Declarations identify particulars, conditions set duties, and endorsements change terms.

    Reference: NAIC Auto Insurance — Understanding Your Auto Insurance Policy, Insuring Agreement

  9. 9During an insurance examination, which material may the South Dakota director examine?

    1. A. Only annual financial statements
    2. B. Affairs, transactions, accounts, records, and assets
    3. C. Only consumer complaint files
    4. D. Only records created in the preceding year

    Answer: B

    Explanation: South Dakota law says the director shall examine "the affairs, transactions, accounts, records, and assets" of covered entities. The authority is not limited to annual statements or complaints.

    Reference: Sdcl 58 3 — SDCL 58-3-1

  10. 10When must a driver of a South Dakota-registered vehicle furnish evidence of financial responsibility to a requesting law-enforcement officer?

    1. A. When cited for a traffic-law violation or involved in a reportable accident
    2. B. Whenever the vehicle registration is renewed
    3. C. Only after a civil judgment is entered
    4. D. Only when applying for a producer license

    Answer: A

    Explanation: SDCL 32-35-116 applies if the driver "is cited for a violation of Title 32 or is involved in a reportable motor vehicle accident" and requires evidence upon the officer's request.

    Reference: SDLRC - Codified Law 32-35 - FINANCIAL RESPONSIBILITY OF VEHICLE OWNERS AND OPERATORS — SDCL 32-35-116

Topics in this practice bank

These topics describe the available practice for SD Casualty Producer. Review the examination outline and its sources for scope and allocation details.

  • CASUALTY-GENERAL KNOWLEDGE / I. TYPES OF POLICIES, BONDS, AND RELATED TERMS.........................................................23
    • A. Commercial general liability
    • A. Commercial general liability / 1. Exposures
    • A. Commercial general liability / 1. Exposures / a. Premises and Operations
    • A. Commercial general liability / 1. Exposures / b. Products and Completed Operations
    • A. Commercial general liability / 2. Coverage
    • A. Commercial general liability / 2. Coverage / a. Coverage A: Bodily Injury and Property Damage Liability (Occurrence, Claims made including Retroactive Date)
    • A. Commercial general liability / 2. Coverage / b. Coverage B: Personal Injury and Advertising Injury
    • A. Commercial general liability / 2. Coverage / c. Coverage C: Medical Payments
    • A. Commercial general liability / 2. Coverage / d. Supplemental Payments
    • A. Commercial general liability / 2. Coverage / e. Who is an insured
    • A. Commercial general liability / 2. Coverage / f. Frist named insured
    • A. Commercial general liability / 2. Coverage / g. Limits (Per occurrence, Annual Aggregate)
    • A. Commercial general liability / 2. Coverage / h. Damage to Property of Others
    • B. Automobile: personal auto and business auto
    • B. Automobile: personal auto and business auto / 1. Liability
    • B. Automobile: personal auto and business auto / 1. Liability / a. Bodily Injury
    • B. Automobile: personal auto and business auto / 1. Liability / b. Property Damage
    • B. Automobile: personal auto and business auto / 1. Liability / c. Split Limits
    • B. Automobile: personal auto and business auto / 1. Liability / d. Combined Single Limit
    • B. Automobile: personal auto and business auto / 2. Medical Payments
    • B. Automobile: personal auto and business auto / 3. Physical Damage (collision; other than collision; specified perils)
    • B. Automobile: personal auto and business auto / 4. Uninsured motorists
    • B. Automobile: personal auto and business auto / 5. Underinsured motorists
    • B. Automobile: personal auto and business auto / 6. Who is an insured
    • B. Automobile: personal auto and business auto / 7. Types of Auto
    • B. Automobile: personal auto and business auto / 7. Types of Auto / a. Owned
    • B. Automobile: personal auto and business auto / 7. Types of Auto / b. Non-owned
    • B. Automobile: personal auto and business auto / 7. Types of Auto / c. Hired
    • B. Automobile: personal auto and business auto / 7. Types of Auto / d. Temporary Substitute
    • B. Automobile: personal auto and business auto / 7. Types of Auto / e. Newly Acquired Autos
    • B. Automobile: personal auto and business auto / 7. Types of Auto / f. Transportation Expense and Rental Reimbursement Expense
    • B. Automobile: personal auto and business auto / 8. Garage Coverage Form, including Garagekeepers Insurance
    • B. Automobile: personal auto and business auto / 9. Exclusions
    • B. Automobile: personal auto and business auto / 10. Individual Insured and Drive Other Car (DOC)
    • B. Automobile: personal auto and business auto / 11. Mobile equipment
    • C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues
    • C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues / 1. Standard policy concepts
    • C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues / 1. Standard policy concepts / a. Who is an employee/employer
    • C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues / 1. Standard policy concepts / b. Compensation
    • C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues / 2. Work-related vs. non-work-related
    • C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues / 3. Other states’ insurance
    • C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues / 4. Employers Liability
    • C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues / 5. Exclusive remedy
    • C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues / 6. Premium Determination
    • D. Crime
    • D. Crime / 1. Employee Dishonesty
    • D. Crime / 2. Theft
    • D. Crime / 3. Robbery
    • D. Crime / 4. Burglary
    • D. Crime / 5. Forgery and Alteration
    • D. Crime / 6. Mysterious disappearance
    • E. Bonds
    • E. Bonds / 1. Surety
    • E. Bonds / 2. Fidelity
    • F. Professional liability
    • F. Professional liability / 1. Errors and Omissions
    • F. Professional liability / 2. Medical Malpractice
    • F. Professional liability / 3. Directors and Officers (D&O)
    • F. Professional liability / 4. Employment Practices Liability (EPLI)
    • F. Professional liability / 5. Cyber liability and data breach
    • F. Professional liability / 6. Liquor liability
    • G. Umbrella/Excess Liability
    • H. Business Owners Policy (BOP)
  • CASUALTY-GENERAL KNOWLEDGE / II. INSURANCE TERMS AND RELATED CONCEPTS......... 15
    • A. Risk
    • B. Hazards
    • B. Hazards / 1. Moral
    • B. Hazards / 2. Morale
    • B. Hazards / 3. Physical
    • C. Indemnity
    • D. Insurable interest
    • E. Loss valuation
    • E. Loss valuation / 1. Actual cash value
    • E. Loss valuation / 2. Replacement cost
    • E. Loss valuation / 3. Market value
    • E. Loss valuation / 4. Stated/agreed value
    • E. Loss valuation / 5. Salvage value
    • F. Negligence
    • G. Liability
    • H. Occurrence
    • I. Binders
    • J. Warranties
    • K. Representations
    • L. Concealment
    • M. Deposit Premium/Audit
    • N. Certificate of Insurance
    • O. Law of Large Numbers
    • P. Pure vs. Speculative Risk
    • Q. Endorsements
    • R. Damages
    • R. Damages / 1. Compensatory
    • R. Damages / 1. Compensatory / a. General
    • R. Damages / 1. Compensatory / b. Special
    • R. Damages / 2. Punitive
    • S. Compliance with provisions of Fair Credit Reporting Act
  • CASUALTY-GENERAL KNOWLEDGE / III. POLICY PROVISIONS ................................................. 12
    • A. Declarations
    • B. Insuring agreement
    • C. Conditions
    • D. Exclusions and Limitations
    • E. Definition of the insured
    • F. Duties of the insured after a loss
    • G. Cancellation and nonrenewal provisions
    • H. Supplementary payments
    • I. Proof of loss
    • J. Notice of claim
    • K. Other insurance
    • L. Subrogation
    • M. Loss settlement provisions including consent to settle a loss
    • N. Terrorism Risk Insurance Act (TRIA)
  • CASUALTY SOUTH DAKOTA SPECIFIC / I. SD STATUTES, RULES, AND REGULATIONS COMMON TO LIFE, ACCIDENT AND HEALTH, PROPERTY, AND CASUALTY INSURANCE………….17
    • A. Director of Insurance
    • A. Director of Insurance / 1. Duties and powers
    • A. Director of Insurance / 2. Examination of records
    • A. Director of Insurance / 3. Hearings/notice of hearings
    • A. Director of Insurance / 4. Penalties (and fines)
    • A. Director of Insurance / 5. Cease and desist orders
    • B. Insurance Definitions
    • B. Insurance Definitions / 1. Acts constituting an insurance transaction
    • B. Insurance Definitions / 2. Domestic, foreign and alien company
    • B. Insurance Definitions / 3. Fraternals
    • B. Insurance Definitions / 4. Authorized and unauthorized companies insurer
    • B. Insurance Definitions / 5. Stock and mutual companies
    • B. Insurance Definitions / 6. Certificate of authority
    • C. Licensing
    • C. Licensing / 1. Types of licenses
    • C. Licensing / 1. Types of licenses / a. Producer
    • C. Licensing / 1. Types of licenses / b. Resident/Nonresident
    • C. Licensing / 1. Types of licenses / c. Temporary license
    • C. Licensing / 1. Types of licenses / d. Business entity
    • C. Licensing / 2. Qualifications for obtaining a license
    • C. Licensing / 2. Qualifications for obtaining a license / a. Exemptions/Exceptions
    • C. Licensing / 2. Qualifications for obtaining a license / b. License denial
    • C. Licensing / 3. Maintaining a license
    • C. Licensing / 3. Maintaining a license / a. Continuing education
    • C. Licensing / 3. Maintaining a license / b. Change of address
    • C. Licensing / 3. Maintaining a license / c. Renewal/Nonrenewal
    • C. Licensing / 3. Maintaining a license / d. Record maintenance
    • C. Licensing / 3. Maintaining a license / e. License suspension/ revocation/refusalto issue or renew
    • C. Licensing / 3. Maintaining a license / f. Reporting actions
    • C. Licensing / 3. Maintaining a license / g. Assumed business name
    • C. Licensing / 3. Maintaining a license / h. Inactivity due to military service
    • C. Licensing / 3. Maintaining a license / i. Inactivity due to extenuating circumstances
    • C. Licensing / 3. Maintaining a license / j. Reinstatement, continuation, termination
    • C. Licensing / 4. Producer appointment
    • C. Licensing / 4. Producer appointment / a. Termination of contract
    • D. Producer responsibilities
    • D. Producer responsibilities / 1. Fiduciary responsibilities
    • D. Producer responsibilities / 2. Commissions, compensation, fees
    • D. Producer responsibilities / 3. Reporting of felonies and crimes of moral turpitude
    • D. Producer responsibilities / 4. Influence of witnesses
    • D. Producer responsibilities / 5. Response to Division inquires
    • E. Insurance Guaranty Association
    • E. Insurance Guaranty Association / 1. Purpose and disclaimer
    • F. Marketing practices
    • F. Marketing practices / 13. 1, 14, 15, 24, 25, 26, 32, 35, 36, 37, 56, 76, 77, 78, 125; ARSD 20:08:07:27; Bulletin 13-04
    • F. Marketing practices / 1. Unfair practices
    • F. Marketing practices / 1. Unfair practices / a. Boycott, coercion, intimidation
    • F. Marketing practices / 1. Unfair practices / b. Commingling
    • F. Marketing practices / 1. Unfair practices / c. Controlled business
    • F. Marketing practices / 1. Unfair practices / d. Defamation
    • F. Marketing practices / 1. Unfair practices / e. False advertising
    • F. Marketing practices / 1. Unfair practices / g. Illegal inducement
    • F. Marketing practices / 1. Unfair practices / h. Misrepresentation
    • F. Marketing practices / 1. Unfair practices / i. Rebating
    • F. Marketing practices / 1. Unfair practices / j. Twisting
    • F. Marketing practices / 1. Unfair practices / k. Unfair discrimination
    • F. Marketing practices / 1. Unfair practices / l. Acting without a license
    • F. Marketing practices / 1. Unfair practices / m. Larceny
    • F. Marketing practices / 1. Unfair practices / n. Prohibited fees/ premiums/ extra charges
    • F. Marketing practices / 1. Unfair practices / o. Loans
    • F. Marketing practices / 1. Unfair practices / p. Notification of suspected fraud
    • F. Marketing practices / 2. Unfair claims settlement practices
    • G. Policy delivery and receipt
    • H. Insurance Fraud Regulation
  • CASUALTY SOUTH DAKOTA SPECIFIC / II. SD STATUTES PERTINENT TO CASUALTY INSURANCE…8
    • A. Binders
    • A. Binders / 1. Evidence of insurance
    • B. Suit against insurer
    • C. Rating
    • D. Certificate of Insurance
    • E. South Dakota Automobile Insurance Plan (Assigned Risk)
    • F. Private-passenger automobile insurance
    • F. Private-passenger automobile insurance / 1. Uninsured/Underinsured motorists coverage
    • F. Private-passenger automobile insurance / 2. Proof of financial responsibility
    • F. Private-passenger automobile insurance / 3. Cancellation and nonrenewal
    • G. Workers Compensation
    • G. Workers Compensation / 1. Exclusive remedy
    • G. Workers Compensation / 2. Employments covered
    • G. Workers Compensation / 3. Covered injuries
    • G. Workers Compensation / 4. Occupational disease
    • G. Workers Compensation / 5. Benefits provided
    • G. Workers Compensation / 6. Second/ subsequent injury fund
    • G. Workers Compensation / 7. Self-insurance
    • G. Workers Compensation / 8. Cancellation

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