What is a possible consequence for failure to pay errors and omissions insurance premiums in South Dakota?

The consequence for failing to pay errors and omissions insurance premiums in South Dakota can directly affect a real estate licensee's ability to maintain their active status. If a licensee does not keep their insurance premiums current, one of the potential outcomes is that their license may be suspended rather than the requirement to retake the real estate licensing examination.

Licensees are required to maintain active errors and omissions insurance to protect themselves and their clients in the event of legal disputes or claims. If premiums go unpaid and a licensee's coverage lapses, the South Dakota Real Estate Commission may take disciplinary actions, one of which is to suspend the license until the insurance is brought into good standing.

It's important for real estate professionals to stay compliant with all insurance requirements to avoid interruptions in their ability to legally operate within the industry. Keeping insurance updated not only satisfies legal requirements but also safeguards their practice against unforeseen claims or disputes.