10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
The SDLH exam has 145 questions and runs 2 hours 30 minutes.
These 10 free SDLH questions are organized by exam domain, so you can see how each part of the South Dakota Life & Health Insurance Producer Exam blueprint is tested. Reveal the answer and explanation under each question.
An indexed universal life policy credits 80% of a positive index change, caps the annual credit at 6%, and has a 0% floor. The index rises 9% for the segment. Which result should be reflected before monthly policy charges?
Correct answer: C - 6%, with policy charges deducted separately
A client wants flexible premiums, an adjustable death benefit, and separate-account investment choices. The client accepts both market-loss risk and lapse risk if values become insufficient. The best match is:
Correct answer: A - Variable universal life
After 18 years, a whole life policyowner wants to stop all future premium payments and avoid creating a policy loan. The owner prefers the original face amount for as long as the current cash value can purchase it, rather than a smaller permanent benefit. The owner should select:
Correct answer: D - Extended term insurance
Five years after a life policy is issued, the insured dies. The claim investigation shows that the insured understated age by four years, but made no other misrepresentation. Under the standard misstatement-of-age provision, the insurer should:
Correct answer: B - Adjust the death benefit to the correct-age purchase amount
An applicant pays the first premium and receives a conditional receipt stating that coverage takes effect on the application date only if the applicant is insurable as applied for on that date. The applicant dies two days later, and completed underwriting establishes that the applicant met the standard-class requirements on the application date. No policy was delivered. What is the best conclusion?
Correct answer: B - The conditional receipt makes coverage effective as stated
An investment group approaches a healthy 76-year-old stranger, offers to finance premiums on a large life policy, and has a prearranged agreement to receive ownership after the contestability period. This arrangement is:
Correct answer: D - Stranger-originated life insurance
Four equal shareholders want each surviving owner, rather than the corporation, to receive the proceeds needed to buy a deceased owner's shares. Each owner will be insured by every other owner. The required funding structure is:
Correct answer: A - Cross-purchase plan with 12 policies
A self-employed orthopedic surgeon wants disability coverage to reimburse office rent, staff salaries, utilities, and equipment leases during the surgeon's disability. Personal living expenses will be covered separately. The appropriate contract is:
Correct answer: C - Business overhead expense insurance
For 2026, an otherwise HSA-eligible person has self-only coverage with a $1,800 deductible, an $8,300 in-network out-of-pocket maximum, and no nonpreventive first-dollar benefits. Based on these figures, the plan:
Correct answer: D - Meets every stated requirement for a 2026 self-only HDHP
An insurer receives timely written notice of an individual health claim but does not furnish its claim forms within 15 days. Under the uniform claim-forms provision, the claimant may:
Correct answer: A - Submit written proof describing the occurrence, character, and extent of loss
The SDLH exam also covers these domains. Drill them in the full free practice test:
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