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Division of Insurance
Business Entities
Apply for a New Business Entity License
Business entities may apply online for a new business entity producer license in South Dakota via Compliance Express (Sircon) or NIPR. A license fee of $25 for resident and $30 for non-resident will apply. A processing fee may be assessed by the vendor.
The business entity will be required to name an actively licensed producer as their Designated Responsible Licensed Producer (DRLP) responsible for the entity's compliance with South Dakota insurance law.
License Renewals
Effective July 1, 2018, all business entity producer licenses in South Dakota are subject to a biennial renewal requirement. This is applicable to business entities licensed under South Dakota Codified Law (SDCL) 58-30.
Online business entity license renewal should be completed via Compliance Express (Sircon) or NIPR. There is no fee due to the State for a business entity license renewal, but a processing fee may be assessed by the vendor.
Business entities licensed prior to April 1, 2018, had until September 28, 2018 to complete their first license renewal. The renewal is effective as of July 1, 2018. Subsequent renewals will need to be completed every two years, on or before July 1.
Business entity licenses issued on April 1, 2018 or after have a license expiration date exactly two years from the license effective date. Subsequent renewals will need to be completed every two years, on or before the license renewal deadline.
As part of the renewal process, the entity will be required to name an actively licensed producer as their DRLP responsible for the entity's compliance with South Dakota insurance law.
The renewal period will open 90 days prior to the license renewal deadline.
If an entity does not renew their license before the deadline, the license will lapse. License reinstatement will follow the same procedures as individual producer license reinstatement.
General FAQs
- Will business entities always be allowed 90 days after the license expiration date to renew?
- Will business entities be required to name a Designated Responsible Licensed Producer (DRLP)?
- Will the DRLP be required to have an appointment with the business entity?
- Will the DRLP be required to have the sames Lines of Authority (LOA) as the business entity?
- Will license fees be prorated in accordance with the time that the license had been in place for those newer business entity licenses?
- Is this a one-time licensing effective July 1, 2018 to get all of the agencies updated?
- Will the new business entity licenses have an expiration date we can view?
- If a business entity license lapses is there a reinstatement process?
- If a business entity license lapses, will these lapses be reported to carriers on the same file as the producers with licenses expiring for the month?
- These lapse reports typically come to carriers around the 5th of the month to allow for reinstatements during the 5 day data transition period. Will the same process apply to business entity license expirations?
- If a business entity license lapses, will the company appointment automatically be removed with the individual carriers as it does with individual producers?
Will all business entity licenses renew on July 1st, or will other renewal dates apply based on when a business entity license is obtained?
Business entities existing prior to April 1, 2018, had until Sept. 28, 2018 to complete their first license renewal. The first license renewal for these entities has an effective date of July 1, 2018. Subsequent renewals will need to be completed every two years, on or before July 1.
Business entities licensed on or after April 1, 2018 will need to renew every two years after their original license date.
Will business entities have 90 days after the expiration date to renew?
No, for future renewals there will be a 90-day window PRIOR to the license expiration date in which which a business entity can complete its license renewal.
Will business entities be required to name a Designated Responsible Licensed Producer (DRLP)?
Yes, a DRLP must be named when completing a new business entity license application as well as the entity's biennial license renewal. The individual licensed producer named DRLP must be have an active status individual producer license for South Dakota.
Will the DRLP be required to have an appointment with the business entity?
No, but they do need to be affiliated.
Will the DRLP be required to have the same Lines of Authority (LOA) as the business entity?
Business entities in South Dakota do not get assigned LOAs. If the DRLP is soliciting or selling insurance, they will need the appropriate LOAs on their individual producer license.
Will license fees be prorated in accordance with the time that the license had been in place for those new business entity licenses?
There are no business entity license renewal fees due to the State. A processing fee may be assessed by the vendor of choice, Compliance Express (Sircon) or NIPR, to complete the online license renewal.
Is this a one-time licensing requirement effective July 1, 2018, in an effort to get all agency information updated?
No, this is an ongoing, biennial business entity license renewal requirement and process.
Will the new business entity licenses have an expiration date we can view?
Licensees will be able to view the expirations dates in Compliance Express (Sircon) or NIPR.
If a business entity license lapses is there a reinstatement process?
Yes, the reinstatement process is the same as that for individual producers whereby the entity will have 12 months in which to be reinstated. If the lapse extends over 12 months, a new business entity license application must be completed.
If a business entity license lapses, will these lapses be reported to carriers in the same file as the producers with licenses expiring for the month?
Yes.
These lapse reports typically come to carriers around the 5th of the month to allow for reinstatements during the 5-day data transition period. Will the same process apply to business entity license expirations?
Yes.
If a business entity license lapses, will the company appointment automatically be removed with the individual carriers, as it does with individual producers today?
Yes. If the business entity license lapses, the appointments that the business entity has will be canceled. If a business entity reinstates its license, they will need the company to reappoint them.