South Dakota Crop Insurance Practice Exam

What must the crop-hail application designate?

1. The insured location

2. The licensed producer who solicited the policy

3. The crop type being insured

4. The estimated value of the crop

The correct answer is: The licensed producer who solicited the policy

The crop-hail application must designate the licensed producer who solicited the policy because this ensures that there is a certified individual responsible for managing the sale and the terms of the insurance. This designation provides a point of contact for the insuring company and allows for accountability in the selling process. By specifying the licensed producer, it helps maintain regulatory compliance and makes sure that the insurance policy is appropriately handled in accordance with state regulations and industry standards. In contrast, while the insured location, crop type, and estimated value of the crop are important components of a crop-hail application, they are not the primary designation requirement on the application itself. These elements provide critical context and specifics to the insurance policy but do not serve the same regulatory role as identifying the licensed producer involved in the transaction.