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Division of Insurance - Producer Information

Insurance Producer & Business Entity Examinations

This guide provides information regarding insurance producer and business entity examinations. Examinations are conducted to review compliance with South Dakota insurance laws and regulations.

• Examination Phases

  Generally an examination consists of an onsite phase and an offsite phase. Typically examiners will be onsite one to three business days. During the onsite phase the examiners collect information and learn about the licensee's business processes. In the offsite phase, the examiners complete their review of collected information and may follow-up with the licensee with additional information requests.

• Initial Meeting

  At the beginning of the onsite examination, an examiner will meet with the producer being examined or the principal in the case of a business entity. During the meeting the examiner will discuss the process and logistics of the examination.

• Information Reviewed

  The examiners will provide the licensee with an information request. The Division often requests general information about business practices as well as documents such as client files and bank records. The examiners may also interview the licensee and other personnel.

• Access

  The examiners need access to original documents. In instances where documents are stored electronically, the examiner will need access to the licensee's computer(s) or network files.

• Cooperation

  Examinations require cooperation between the examiners and the licensee. A licensee is expected to provide requested information and, in general, facilitate the examination process. In the unlikely event a licensee chooses to not cooperate the Division may pursue administrative action against their license.

• Examiners

  The role of an examiner is to request, obtain and review information.

• Resolution

  The examiners may conclude there are no known compliance issues. If this is the case, the licensee will be notified and the examination will be closed. In instances where compliance issues are noted, the Division may attempt to reach a settlement agreement with the licensee or call an administrative hearing.

If you have any questions or concerns with the examination or the manner in which it is being conducted you may contact the Division of Insurance.

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