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Life and Health Insurance Producer Exam

Annuities (SD): practice questions

Our Life & Health Insurance bank has 4 questions on this topic. Here are 3 of them with answers; the full mock exam draws from every topic, like the real one.

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Question 1 · South Dakota

Taken alone, which of these is NOT a material conflict of interest under South Dakota's annuity best-interest law?

  1. A secret profit-share in a recommended product
  2. A personal loan from the insurer contingent on sales
  3. A minority ownership in an insurer
  4. An undisclosed majority stake in the selling agency
Show the answer

C. A minority ownership in an insurer — SDCL 58-33A-16.7(1).

Question 2 · South Dakota

When considering an annuity replacement, a South Dakota producer must consider whether the consumer had another exchange or replacement within the preceding:

  1. Ten years
  2. Twelve months
  3. Ninety days
  4. Sixty months
Show the answer

D. Sixty months — SDCL 58-33A-16.3(3).

Question 3 · South Dakota

What standard must a South Dakota producer meet when recommending an annuity?

  1. Recommend only annuities issued by insurers domiciled in South Dakota
  2. Recommend the product that pays the highest commission available to the producer
  3. Act in the consumer's best interest without putting the producer's or insurer's financial interest first
  4. Act as a fiduciary under federal securities law in every sale
Show the answer

C. Act in the consumer's best interest without putting the producer's or insurer's financial interest first — SDCL 58-33A-16.

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