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South Dakota Casualty Practice Exam

20 exam-style questions drawn from the same bank as our full South Dakota Casualty course (South Dakota Insurance Producer - Casualty - Exam Prep). Answer all 20, then grade yourself — most state exams require 70% to pass. Explanations for every question are part of the full course.

1. Which of the following is an INTENTIONAL tort rather than negligence?
Punching another person in a bar fight.Failing to salt an icy sidewalk before customers arrive.A bartender over-serving a patron who then injures a bystander.Running a stop sign and colliding with another car.
2. A delivery driver for an insured business strikes a pedestrian with the company's box truck. The pedestrian suffers a broken leg and sues for $75,000. Where does coverage lie?
CGL Coverage A, Bodily Injury, because pedestrian injuries from delivery vehicles are covered under the standard formWorkers compensation, the driver was on the job and the WC carrier picks up third-party pedestrian injuries occurring during the routeCoverage C, Medical Payments only, under the no-fault rule that handles all third-party medical billsBusiness Auto Policy, the CGL auto exclusion removes liability arising from owned autos
3. The four elements a plaintiff must prove to establish NEGLIGENCE are:
Duty, breach of duty, proximate cause, and damagesIntent, motive, act, and damagesWarranty, representation, reliance, and harmAgreement, consideration, performance, and breach
4. An insured is stopped at a red light when a hit-and-run driver rear-ends her. She suffers $18,000 in medical bills and $6,000 in damage to her vehicle. Her PAP has Part A 30/60/25, Part B Medical Payments $5,000, Part C UM 30/60, and Part D collision with a $500 deductible. Which parts of her PAP respond to her medical bills?
Part B (Medical Payments) and Part C (Uninsured Motorists), Part B pays first-dollar regardless of fault up to its limit, and Part C responds because the at-fault driver is uninsured.Part D (Damage to Your Auto) and Part B, because Part D extends to occupant injuries in a collision once the $500 deductible has been satisfied by the insured.Part C (Uninsured Motorists) only, because Part B Medical Payments is excluded whenever another driver is at fault and UM coverage is available to pay the full loss.Part A (Liability) only, because liability coverage pays the insured's own injuries whenever another driver causes the accident and cannot be found afterward.
5. An insured has a $1,000,000 CGL and a $5,000,000 umbrella with a $10,000 self-insured retention (SIR) that applies to losses not covered by the underlying. A claim NOT covered by the CGL (but covered by the umbrella's broader wording) settles for $260,000. How is the loss paid?
CGL pays $250,000; umbrella pays the $10,000 SIR on the insured's behalf.Insured pays $10,000 SIR; CGL pays $250,000; umbrella pays nothing.Insured pays $10,000 SIR; umbrella pays $250,000; CGL pays nothing.Umbrella pays the full $260,000; the insured pays nothing at all.
6. On a CGL, 'supplementary payments' (e.g., interest on judgments, bond premiums, expenses incurred at the insurer's request, lost-wage reimbursement up to a daily cap) are paid:
In ADDITION to the limitOnly if insured pays a separate premiumOut of the per-occurrence limitOnly after the deductible is paid
7. Part Two of a Workers' Compensation and Employers Liability policy (WC 00 00 00 A) provides:
Workers' compensation statutory benefits payable to injured employees under the state act, an exposure addressed by Part One, not Part Two, of WC 00 00 00 AFirst-party short-term and long-term disability income benefits payable directly to the employee, an unrelated coverage line not provided under any part of WC 00 00 00 AFirst-party group or individual health insurance benefits payable directly to the employee, an unrelated coverage line not provided under any part of WC 00 00 00 AEmployers Liability, coverage for the employer's tort liability for workplace injuries that fall outside the workers' comp system
8. Why does the form of business shown on a liability declarations page matter?
It determines the state whose law governs the policy contractIt determines the premium discount applied to the whole policyIt determines whether the policy is occurrence or claims madeIt determines who qualifies as an insured under the policy
9. Under SDCL 58-11-45, how is a policy written for a term of less than six months treated?
As outside the article entirely, with no notice requirementAs if it had been written for a policy term of six monthsAs if it had been written for a policy term of one full yearAs a binder, subject to the ninety day limit on binders
10. An endorsement is best described as:
A premium-discount document that lowers the premium but has no other effect on the policyA separate stand-alone policy issued in addition to the underlying policy for the same riskAn advertising or marketing brochure distributed by the appointed agent to describe coverageA written amendment that adds, removes, or modifies coverage on the existing policy
11. Under SDCL 58-30-182, when must the insurer send the terminated producer a copy of the notification?
Within thirty days after making notification to the directorAt the same moment the notification goes to the directorWithin fifteen days after making the notification to the directorOnly if the producer files a written request for a copy
12. Under the CGL's 'limits of insurance' section, which limit is the MOST the insurer will pay for ALL damages because of BI and PD included in the products-completed operations hazard during the policy year?
The products-completed operations aggregate limit.The general aggregate limit.The personal and advertising injury limit.The each occurrence limit.
13. An injury is compensable under workers' compensation if it 'arises out of and occurs in the course of' employment. This abbreviation is commonly known as:
DOL/DORTPA/MGAAOE/COEALE/COL
14. Hired autos on a Business Auto policy means:
Autos titled to and owned by the named insured and listed on the scheduleAutos owned by employees and used in the employer's business with permissionAutos leased, hired, rented, or borrowed by the insured (other than from employees)Personal vehicles of customers that are parked on the insured's premises
15. A personal UMBRELLA policy may DROP DOWN and pay a loss if:
The insured refused to buy underlying insurance.The underlying policy's coverage trigger never occurred.The underlying auto/homeowners liability limits are exhausted for a covered loss.The underlying policy has a lapse and the insured did not reinstate it.
16. The CGL 'products-completed operations aggregate' is a separate aggregate limit that applies to:
Medical payments made under Coverage C to persons injured on the insured's premises, regardless of whether the insured is legally liable to them.All bodily injury and property damage claims arising from the insured's premises and ongoing operations, which are then excluded from the general aggregate.Losses arising from the insured's products after they leave the insured's control AND from work completed away from the insured's premises.Personal and advertising injury claims arising from the insured's products, which are then subject to a separate per offense limit of liability.
17. Which of the following BEST explains why a large personal auto insurer can confidently charge a filed rate for liability coverage on a given territory and vehicle class?
Because the law of large numbers makes aggregate loss outcomes across a huge, homogeneous pool of drivers statistically predictableBecause liability losses are spread evenly across every territory, so the insurer can charge the same rate to all drivers statewideBecause each individual driver's losses can be predicted with certainty once the insurer reviews that driver's motor vehicle recordBecause the insurer's filed rate is guaranteed by the state, which reimburses the insurer for any losses that exceed the rate it charged
18. An insurer charges more in a territory with a worse hail loss history. Is this unfair discrimination?
No, because rating territories are exempt from chapter 58-33Yes, because geography is not a permitted rating variableNo, provided the distinction reflects expected losses equitablyYes, because insureds of the same class must pay the same rate
19. Does South Dakota publish a statute regulating the form and content of certificates of insurance?
Yes, ARSD 20:06:29 regulates certificate form and contentYes, SDCL chapter 58-32 regulates certificate form and contentYes, SDCL 58-11-30 sets the required certificate wordingNo such South Dakota certificate statute could be located
20. Which is NOT eligible for a standard BOP?
A neighborhood clothing boutique occupying about 5,000 square feet of retail space.An auto repair garage specializing in engine rebuilds (auto service operation).A small apartment building with 20 units owned and managed by a local landlord.A small dental office located in a multi-tenant professional office building.

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