-
United States Department of Agriculture Federal Crop Insurance
Corporation
Risk Management Agency
Product Administration & Standards Division FCIC 18010
(06-2011) FCIC 18010-01 (08-2011) FCIC 18010-02 (06-2012) FCIC
18010-03 (02-2013)
2013 CROP INSURANCE HANDBOOK (CIH) Underwriting and Actual
Production History (APH) Standards for FCIC Programs Administered
under the Common Crop Insurance Policy Basic Provisions and APH
Administrative Regulations.
http://www.rma.usda.gov/
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THIS PAGE IS INTENTIONALLY LEFT BLANK
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U.S. DEPARTMENT OF AGRICULTURE WASHINGTON, D.C. 20250
FEDERAL CROP INSURANCE CORPORATION DIRECTIVE
NUMBER: 18010-03 (02-2013) 18010-02 (06-2012) 18010-01 (08-2011)
18010 (06-2011)
SUBJECT: AMENDMENTS TO THE FCIC 18010 CROP INSURANCE HANDBOOK
(CIH) FOR THE 2013 AND SUCCEEDING CROP YEARS
DATE: February 11, 2013 OPI: Product Administration and
Standards Division APPROVED:
/s/ Tim B. Witt
Deputy Administrator, Product Management
THIS HANDBOOK CONTAINS THE OFFICIAL FCIC APPROVED UNDERWRITING
STANDARDS FOR POLICIES ADMINISTERED UNDER THE COMMON CROP INSURANCE
POLICY BASIC PROVISIONS AND THE ACTUAL PRODUCTION HISTORY
ADMINISTRATIVE REGULATION FOR 2013 AND SUCCEEDING CROP YEARS.
Effective Date. Amendment 18010-03 provides procedure incorporating
the 2014 Florida Citrus Crop Provisions, these procedures are in
effect for 2014 and subsequent crop years. Series Replaced. The
FCIC amendments dated February 2013 replaces the following
issuances:
1 Handbooks: FCIC 18010-02 (06-2012); FCIC 18010-1 (08-2011);
FCIC 18010 (06-2011)
2 Valdosta Regional Office Informational Memorandum: Procedures
for Completing the Producers Pre-Acceptance Worksheet for
Florida
Citrus Fruit Crops dated February 24, 2012.
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2 Filing Instructions:
FCIC 18010 Page Control Chart Remove Pages Insert Pages
5-8 June 2011 5-8 June 2012 11-12 June 2011 11-12 June 2012
15-16 June 2011 15-16 June 2012 25-26 June 2011 25-26 June 2012
35-36 June 2011 35-36 June 2012 55-56 June 2011 55-56.2 June 2012
89-90 June 2011 89-90 June 2012
131-138 June 2011 131-138 June 2012 231-236 June 2011 231-236
June 2012 267-268 June 2011 267-268.2 June 2012 273-274 June 2011
273-274 June 2012 279-284 June 2011 279-284 June 2012 293-296 June
2011 293-296.2 June 2012 329-334 June 2011 329-334 June 2012
347-348 June 2011 347-348.2 June 2012 391-400 June 2011 391-400
June 2012 403-404 June 2011 403-404 June 2012 407-408 June 2011
407-408 June 2012 417-418 June 2011 417-418 June 2012 423-424 June
2011 423-424 June 2012 427-436 June 2011 427-436.2 June 2012
455-456 June 2011 455-456 June 2012 545-552 June 2011 545-552 June
2012 607-608 June 2011 607-608 June 2012 683-684 June 2011 683-684
June 2012 757-760 June 2011 757-760.4 June 2012 463-496 June 2011
463-496.13 February 2013
Handbook Distribution. Risk Management Agency Directors, Branch
Chiefs, Washington, D.C., and Kansas City; Regional and Risk
Compliance Field Offices; Approved Insurance Providers, National
Appeals Division, National Crop Insurance Services, Crop Insurance
Research Bureau; and the RMA public website at www.rma.usda.gov
http://www.rma.usda.gov/
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JUNE 2011 TABLE OF CONTENTS FCIC 18010
TC- 1 -
SECTIONS 1 GENERAL INFORMATION
............................................................................................
1
A APPLICABILITY.
.........................................................................................................
1
B APPROVED INSURANCE PROVIDER (AIP) RESPONSIBILITIES.
....................................... 1
C REGULATIONS OR PROCEDURAL CONFLICT.
...............................................................
1
D PROCEDURAL ISSUANCE AUTHORITY.
.........................................................................
2
E PROCEDURAL QUESTIONS
.........................................................................................
2
F FORM STANDARDS.
...................................................................................................
3
G CONTACT INFORMATION.
...........................................................................................
3
2 GENERAL PROGRAM REQUIREMENTS
.....................................................................
5
A INSURANCE AVAILABILITY.
.........................................................................................
5
B ELIGIBLE CROPS.
......................................................................................................
5
C DUPLICATE POLICIES ARE NOT PERMITTED.
...............................................................
7
D OTHER INSURANCE.
..................................................................................................
9
E INSURED CAUSE(S) OF LOSS.
....................................................................................
9
F USDA PROGRAM LINKAGE.
.......................................................................................
9
G USDA PROGRAM BENEFIT LIMITATIONS.
....................................................................
9
H ADMINISTRATIVE FEES.
............................................................................................10
I DEADLINES THAT FALL ON WEEKENDS OR FEDERAL HOLIDAYS.
..................................12
J COPIES OF DOCUMENTS.
..........................................................................................12
3 APPLICATION FOR INSURANCE
................................................................................13
A SALES CLOSING DATES (SCD).
................................................................................13
B TERM OF
POLICY......................................................................................................13
C INSURANCE CHOICES.
..............................................................................................16
D PREMIUM RATES.
.....................................................................................................19
E ADDED COUNTY ELECTION.
......................................................................................19
F APPLICATION ACCEPTANCE.
.....................................................................................21
G REJECTED APPLICATIONS.
........................................................................................21
H TRANSFER OF POLICIES TO ANOTHER AIP.
................................................................21
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JUNE 2011 TABLE OF CONTENTS FCIC 18010
TC- 2 -
I PREVIOUS INSURANCE EXPERIENCE/PREMIUM ADJUSTMENT (GOOD
EXPERIENCE DISCOUNT).
.............................................................................................................23
4 ENDORSEMENTS AND OPTIONS
...............................................................................25
A CATASTROPHIC RISK PROTECTION ENDORSEMENT.
...................................................25
B HIGH-RISK LAND EXCLUSION OPTION.
.......................................................................25
C HAIL AND FIRE EXCLUSION OPTION.
..........................................................................27
D COVERAGE ENHANCEMENT OPTION.
.........................................................................29
E APPLE QUALITY ADJUSTMENT OPTION.
.....................................................................30
F BARLEY OR WHEAT WINTER COVERAGE ENDORSEMENT (WCE).
...............................31
G DRY PEA WINTER COVERAGE OPTION (WCO).
..........................................................32
H FRESH MARKET SWEET CORN MINIMUM VALUE OPTION.
............................................34
I FRESH MARKET PEPPER MINIMUM VALUE OPTIONS.
..................................................35
J FRESH MARKET TOMATO (DOLLAR PLAN) MINIMUM VALUE OPTION.
...........................36
K MALTING BARLEY PRICE AND QUALITY
ENDORSEMENT...............................................37
L MINT WINTER COVERAGE OPTION (WCO).
................................................................50
M NORTHERN POTATO POLICY ENDORSEMENTS.
..........................................................51
N PEAR QUALITY ADJUSTMENT ENDORSEMENT.
...........................................................56
O TABLE GRAPE PROTECTIVE COVER OPTION.
.............................................................56
5 PERSON(S): TYPES, DOCUMENTATION, AND DETERMINATION
..........................57
A ELIGIBILITY.
.............................................................................................................57
B REPORTING REQUIREMENTS AND VERIFICATION.
.......................................................59
C PERSON STATUS CHANGES.
.....................................................................................67
D PERSON TYPE: INDIVIDUALS.
...................................................................................71
E PERSON TYPE: LANDLORD-TENANT (SBI ONLY).
.......................................................75
F PERSON TYPE: PARTNERSHIPS.
...............................................................................76
G PERSON TYPE: CO-OWNERSHIPS, JOINT OPERATIONS, AND JOINT
VENTURES. ...........77
H PERSON TYPE: CORPORATION.
................................................................................78
I PERSON TYPE: LIMITED LIABILITY COMPANIES (LLC).
................................................79
J PERSON TYPE: ESTATES.
........................................................................................80
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JUNE 2011 TABLE OF CONTENTS FCIC 18010
TC- 3 -
K PERSON TYPE: TRUSTS.
..........................................................................................80
L PERSON TYPES: OTHER PERSONS.
..........................................................................83
6 SERVICING AND ADMINISTRATIVE REQUIREMENTS
..............................................85
A POLICY CHANGES.
...................................................................................................85
B ACREAGE REPORT.
..................................................................................................86
C ASSIGNMENT OF INDEMNITY.
.....................................................................................97
D TRANSFER OF COVERAGE AND RIGHT TO AN INDEMNITY.
............................................98
E POWER OF ATTORNEY.
.............................................................................................99
7 UNDERWRITING RESPONSIBILITIES (CATEGORY B & C APH CROPS)
............... 101
A AIP REPRESENTATIVES.
.........................................................................................
101
B INSUREDS.
.............................................................................................................
104
C VERIFIER RESPONSIBILITIES.
..................................................................................
107
D RO RESPONSIBILITIES.
...........................................................................................
110
E APH VERIFICATION AT TIME OF LOSS [SEE FCIC 25010 LOSS
ADJUSTMENT MANUAL].
.............................................................................................................................
113
F AGENT OF RECORD.
...............................................................................................
113
8 MEDIATION, ARBITRATION AND JUDICIAL REVIEWS OF AIP
DETERMINATIONS
....................................................................................................................................
115
A GENERAL INFORMATION.
........................................................................................
115
B MEDIATION.
...........................................................................................................
119
C ARBITRATION.
........................................................................................................
121
D JUDICIAL REVIEW.
..................................................................................................
122
E GFP DISPUTES.
.....................................................................................................
123
9 PLANTING PROVISIONS
...........................................................................................
127
A REPLANTING.
.........................................................................................................
127
B LATE PLANTING.
....................................................................................................
129
C PREVENTED PLANTING.
..........................................................................................
133
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JUNE 2011 TABLE OF CONTENTS FCIC 18010
TC- 4 -
10 UNITS
.........................................................................................................................
149
A BASIC UNIT (BU).
...................................................................................................
149
B OPTIONAL UNIT (OU).
............................................................................................
151
C ENTERPRISE UNIT (EU).
.........................................................................................
159
D WHOLE-FARM UNIT (WU).
......................................................................................
163
E UNIT NUMBERING.
..................................................................................................
166
F SECTIONS, SECTION EQUIVALENTS, AND FSA FNS.
................................................. 170
G COMBINING AND DIVIDING EUS, WUS, BUS AND OUS
............................................ 174
11 ORGANIC UNDERWRITING STANDARDS
...............................................................
189
A CONDITIONS OF INSURANCE.
..................................................................................
189
B REQUIREMENTS.
....................................................................................................
190
C MAINTAINING ORGANIC RECORDS.
..........................................................................
192
D ORGANIC CERTIFICATION AND ACCREDITATION ISSUES.
........................................... 193
E ADDITIONAL POLICY ELEMENTS FOR ORGANIC ACREAGE.
........................................ 194
F APH DATABASE DETERMINATION AND REPORTING INSTRUCTIONS
............................ 197
G DETERMINING APPROVED APH YIELDS FOR ACREAGE WITHOUT AN ORGANIC
PLAN OR WRITTEN DOCUMENTATION FROM A CERTIFYING AGENT.
......................................... 200
12 UNDERWRITING RULES FOR SPECIFIC PRACTICES
............................................ 203
A IRRIGATED (IRR) PRACTICE GUIDELINES
.................................................................
203
B SUMMER FALLOW PRACTICE.
..................................................................................
212
C SKIP-ROW PLANTED CROPS.
..................................................................................
214
13 PRODUCTION REPORTS AND APH DATABASES
.................................................. 225
A PRODUCTION REPORTS.
.........................................................................................
225
B APH DATABASES.
..................................................................................................
241
C APH DATABASES AND YIELD DETERMINATIONS FOR THE INITIAL YEAR
CROP/P/T/TMA/OTHER CHARACTERISTICS ARE COMBINED OR DIVIDED.
................. 254
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JUNE 2011 TABLE OF CONTENTS FCIC 18010
TC- 5 -
14 PRODUCTION EVIDENCE
.........................................................................................
263
A ACCEPTABLE PRODUCTION EVIDENCE.
....................................................................
263
B CERTIFYING PRODUCTION.
.....................................................................................
263
C UNIT OF MEASURE AND PRODUCTION ADJUSTMENTS.
.............................................. 263
D ACCEPTABLE VERIFIABLE RECORDS.
.......................................................................
264
E ACCEPTABLE FARM MANAGEMENT RECORDS.
......................................................... 269
F RECORDS FROM VERTICALLY INTEGRATED PRODUCERS.
......................................... 273
G USE OF ANOTHER PRODUCERS RECORDS.
.............................................................
274
H SUPPORTING EVIDENCE/PRODUCTION REPORTS FOR OUS
...................................... 276
I ENSURING RECORDS ARE NOT DUPLICATION OF PRODUCTION.
................................ 277
J QUESTIONABLE OR UNREASONABLE PRODUCTION OR QUESTIONABLE
PRODUCTION RECORDS
..............................................................................................................
277
K RECORD RETENTION
PERIOD..................................................................................
278
L RIGHT TO REQUEST AND REVIEW RECORDS.
........................................................... 278
15 CATEGORY B CROP PROCEDURES
.......................................................................
279
A APH DATABASE ESTABLISHMENT METHODS.
........................................................... 279
B T-YIELDS.
..............................................................................................................
283
C REPORTING PRODUCTION FOR P/T/TMAS.
..............................................................
284
D YIELD LIMITATIONS
.................................................................................................
286
E NEW PRODUCER.
...................................................................................................
288
F RO DETERMINED YIELDS.
.......................................................................................
293
G MASTER YIELDS.
....................................................................................................
296
H ACREAGE EMERGING FROM CRP AND NEW BREAKING, INITIAL AND
SUBSEQUENT CROP YEARS.
.................................................................................................................
308
I ADDED LAND
.........................................................................................................
312
J DETERMINING YIELDS FOR AN APH DATABASE(S) WHICH DOES NOT
QUALIFY AS ADDED LAND.
....................................................................................................................
336
K ADDITIONAL PROVISIONS FOR CATEGORY B CROPS.
................................................ 338
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JUNE 2011 TABLE OF CONTENTS FCIC 18010
TC- 6 -
16 CATEGORY C CROP PROCEDURES
.......................................................................
381
A INSURED CROP.
.....................................................................................................
381
B ACREAGE.
.............................................................................................................
386
C AGE/LEAF YEAR DETERMINATION
...........................................................................
390
D PRODUCERS PRE-ACCEPTANCE WORKSHEET (PAW).
............................................ 392
E PERENNIAL CROP PRE-ACCEPTANCE INSPECTION REPORT (PAIR).
.......................... 398
F CROP ADDENDUM WORKSHEET(S) (CAW).
.............................................................
407
G APH DATABASE.
....................................................................................................
407
H APH DATABASE ESTABLISHMENT METHODS.
........................................................... 410
I REGIONAL OFFICE UNDERWRITING.
........................................................................
427
J PRODUCTION EVIDENCE BY CROP
...........................................................................
431
K ADDITIONAL CATEGORY C CROP SPECIFIC UNDERWRITING RULES.
.......................... 437
17 APH YIELD ADJUSTMENT
........................................................................................
437
A ELECTION OF APH YIELD ADJUSTMENT.
..................................................................
437
B CANCELING APH YIELD ADJUSTMENTS.
..................................................................
437
C REPORTING REQUIREMENTS.
..................................................................................
438
D CALCULATING APPROVED APH YIELDS UNDER THE ELECTION.
................................ 438
E DETERMINING PREMIUM RATES.
..............................................................................
443
18 YIELD REDUCTIONS
.................................................................................................
445
A GENERAL INFORMATION.
........................................................................................
445
B GENERAL
RULES....................................................................................................
446
C EXCESSIVE ACTUAL YIELDS.
...................................................................................
448
D INCONSISTENT APPROVED APH YIELDS AND INSURED ACREAGE
LIMITATIONS. .......... 451
E DIFFERENT PRODUCTION METHODS.
.......................................................................
457
19 REVIEWING AND CORRECTING APH YIELDS
........................................................ 459
A REVIEW REQUIREMENTS.
.......................................................................................
459
B CORRECTING APH YIELDS
.....................................................................................
459
C TOLERANCES.
........................................................................................................
461
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JUNE 2011 TABLE OF CONTENTS FCIC 18010
TC- 7 -
20 OTHER COVERAGE PLANS
.....................................................................................
463
A DOLLAR PLANS OF INSURANCE, CATEGORY D.
........................................................ 463
B HYBRID SEED CORN OR HYBRID SORGHUM SEED.
................................................... 495
C CATEGORY G, NURSERY CROP.
...........................................................................
496.2
D AREA PLANS OF INSURANCE.
...............................................................................
496.2
E PECAN REVENUE.
...............................................................................................
496.4
EXHIBITS 1 ACRONYMS AND DEFINITIONS
...............................................................................
497
A ACRONYMS
............................................................................................................
497
B DEFINITIONS
..........................................................................................................
499
C RMA OFFICES.
......................................................................................................
518
2 GENERAL REQUIREMENTS
.....................................................................................
525
A CROP POLICY INFORMATION (RESERVED)
...............................................................
525
B ROUNDING RULES PERTAINING TO PROGRAM
ADMINISTRATION................................ 537
3 APPLICATION FOR INSURANCE
..............................................................................
545
A PREMIUM ADJUSTMENT TABLE.
...............................................................................
545
4 ENDORSEMENTS AND OPTIONS
.............................................................................
546
A ENDORSEMENTS AND OPTIONS
CHART....................................................................
546
B MALTING BARLEY OPTION A & B WORKSHEET.
........................................................ 553
C FLOW CHARTWHEAT OR BARLEY WINTER COVERAGE ENDORSEMENT AND DRY
PEA WINTER COVERAGE OPTION
...................................................................................
557
5 PERSONS
...................................................................................................................
558
A PERSON TYPES AND DOCUMENTATION (CHARTS)
.................................................. 558
B QUALIFIED ALIEN STATUS DOCUMENTATION.
........................................................... 560
C SELECTED U.S. TRAVEL AND IDENTITY DOCUMENTS.
............................................... 562
6 SERVICING AND ADMINISTRATIVE REQUIREMENTS (RESERVED)
..................... 565 7 UNDERWRITING RESPONSIBILITIES
(RESERVED) ................................................ 566 8
MEDIATION, ARBITRATION AND JUDICIAL REVIEWS (RESERVED)
.................... 567 9 PLANTING PROVISIONS (RESERVED)
....................................................................
568
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JUNE 2011 TABLE OF CONTENTS FCIC 18010
TC- 8 -
10 UNIT EXAMPLES
.......................................................................................................
569
A EXAMPLES OF UNIT NUMBERING WHEN UNITS CHANGE.
.......................................... 569
B COMBINING UNITS AND APH DATABASES.
...............................................................
570
C COMBINING UNITS AND APH DATABASES.
...............................................................
572
D DIVIDING UNITS EXAMPLES.
....................................................................................
576
E ADDITIONAL BEAN PROCEDURE FOR UNITS AND YIELDS BY TYPE.
............................. 579
11 ORGANIC APH DATABASE EXAMPLES
..................................................................
581
A CATEGORY B CROP APH DATABASE EXAMPLES FOR TRANSITIONING UNDER
AN ORGANIC PLAN
......................................................................................................
581
B EXAMPLE FOR INITIAL YEAR OF CERTIFIED ORGANIC APH DATABASE
....................... 594
C CATEGORY C CROP APH DATABASE EXAMPLES FOR TRANSITIONING UNDER
AN ORGANIC PLAN
......................................................................................................
595
D EXAMPLES OF TRANSITIONING WITHOUT AN ORGANIC PLAN AND OTHER
EXCEPTIONS597
12 UNDERWRITING RULES FOR SPECIFIC PRACTICES
............................................ 606
A SUMMERFALLOW DATABASES.
................................................................................
606
B SKIP-ROW PLANTED COTTON AND ELS COTTON PERCENT PLANTED
FACTORS, PASS SKIP-ROW CODES AND YIELD CONVERSION FACTORS.
............................................ 608
13 PRODUCTION REPORTS AND APH DATABASE
..................................................... 618
A EXAMPLE OF COMPLETED PRODUCTION REPORT FOR PRODUCTION REPORT
REQUIREMENTS.
....................................................................................................
618
B EXAMPLES OF COMPLETED APH DATABASES.
......................................................... 620
C EXAMPLE YIELD DETERMINATIONS FOR COMBINED OR DIVIDED P/T OR
TMAS. .......... 626
D RETAINING 10 CROP YEARS OF APH HISTORY.
....................................................... 649
E DIVIDING PREVIOUSLY ESTABLISHED APH DATABASES FOR P/TS WITH
THE SAME T-YIELD.
...................................................................................................................
651
F YIELD INDICATORS AND DESCRIPTORS.
...................................................................
652
14 PRODUCTION EVIDENCE (RESERVED)
..................................................................
661
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JUNE 2011 TABLE OF CONTENTS FCIC 18010
TC- 9 -
15 CATEGORY B CROPS
...............................................................................................
662
A MULTI-PURPOSE PRODUCTION AND YIELD WORKSHEET.
.......................................... 662
B MASTER YIELDS.
....................................................................................................
665
C CRP AND NEW BREAKING EXAMPLES.
....................................................................
669
D APH YIELD LIMITATIONS/ADJUSTMENTS EXAMPLES.
................................................ 676
E CUP APPLICABILITY CHART.
....................................................................................
680
F RECORDING AND MAINTAINING SA T-YIELDS.
.......................................................... 681
G SPECIAL APH INSTRUCTIONS FOR CONTRACT SEED BEANS AND CONTRACT
SEED PEAS.
.............................................................................................................................
683
H GREEN PEA EXAMPLE.
...........................................................................................
688
I POTATO EXAMPLE.
.................................................................................................
689
J FORAGE PRODUCTION UNDERWRITING REPORT.
..................................................... 690
16 CATEGORY C CROP PROCEDURES `
.....................................................................
693
A APPLE CROP ADDENDUM WORKSHEET
...................................................................
693
B PEACH CROP ADDENDUM WORKSHEET
...................................................................
696
C PEAR CROP ADDENDUM WORKSHEET
.....................................................................
700
D GRAPE/TABLE GRAPE CROP ADDENDUM WORKSHEET
............................................. 703
E CRANBERRY CROP ADDENDUM WORKSHEET.
.......................................................... 706
F BLUEBERRY (HIGH BUSH AND RABBIT EYE) CROP ADDENDUM WORKSHEET.
............. 709
G BLUEBERRY (LOW BUSH) CROP ADDENDUM WORKSHEET.
....................................... 712
H ALMONDS, CITRUS, FIGS, FRESH PLUMS, MACADAMIA NUTS, PECANS,
PRUNES, STONEFRUIT, WALNUTS CROP ADDENDUM WORKSHEET.
......................................... 715
I FLORIDA AVOCADO CROP ADDENDUM WORKSHEET.
................................................ 719
J PAW EXAMPLES
....................................................................................................
722
K SHELLING PERCENTAGE CHART FOR CLEAN UNSHELLED ALMONDS
......................... 743
L APH BLOCK PRODUCTION WORKSHEET
..................................................................
744
M WEIGHTED AVERAGE AGE/DENSITY WORKSHEET
.................................................... 746
N INSTRUCTIONS FOR DETERMINING TREE/VINE/BUSH ACRE
...................................... 748
O DATABASE ADMINISTRATION FOR FRESH AND PROCESSING APPLES
........................ 758
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JUNE 2011 TABLE OF CONTENTS FCIC 18010
TC- 10 -
17 APH YIELD ADJUSTMENTS EXAMPLES
.................................................................
761
A CARRYOVER INSURED WITH ACTUAL YIELDS.
.......................................................... 761
B FOR NON-IRRIGATED COTTON
................................................................................
764
C EXAMPLE.
..............................................................................................................
764
D ELIGIBLE FOR CUPS CHART.
..................................................................................
766
E YIELD ADJUSTMENT
EXAMPLES:..............................................................................
767
18 YIELD REDUCTIONS
.................................................................................................
768
A EXCESSIVE ACTUAL YIELD (WITHOUT VERIFIABLE RECORDS.
................................... 768
B INCONSISTENT APPROVED APH YIELD AND INSURED ACREAGE
LIMITATIONS. ............ 769
19 DETERMINING TOLERANCE AND CORRECTIVE ACTION
..................................... 771
A REVIEW OF THE INSUREDS 2009 CROP RECORDS FOR THE UNIT
0001-0001OU INDICATED:
............................................................................................................
771
B REVIEW OF THE INSUREDS 2009 CROP RECORDS FOR THE UNIT
0001-0002OU INDICATES:
............................................................................................................
772
C REVIEW OF THE INSUREDS 2009 CROP RECORDS FOR THE UNIT
0001-0003OU INDICATES:
............................................................................................................
772
D REVIEW OF THE INSUREDS 2009 CROP RECORDS FOR THE UNIT
0001-0004OU INDICATES:
............................................................................................................
773
20 OTHER COVERAGE PLANS
.....................................................................................
774
A HYBRID SEED CORN OR HYBRID SORGHUM SEED NOTICE OF LOSS
.......................... 774
B RESERVED.
...........................................................................................................
775
C MACADAMIA ORCHARD INSPECTION REPORT.
.......................................................... 776
C RESERVED
.........................................................................................................
777
F FLORIDA CITRUS, DOLLAR PLAN OF INSURANCE, PERCENT STAND
EXAMPLES: .......... 779
G SUMMARY OF REVENUE HISTORY (SRH)
........................................................ 781
H HYBRID SEED YIELD REQUEST
........................................................................
783
I HYBRID SORGHUM SEED YIELD HISTORY REPORT
....................................... 785
J PECAN REVENUE EXAMPLES.
.................................................................................
787
21 MISCELLANEOUS
.....................................................................................................
796
A PRODUCTION REPORT AND APH DATABASE
FLOWCHART......................................... 796
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JUNE 2011 SECTION 1 FCIC 18010
1
1 GENERAL INFORMATION A Applicability.
This handbook provides the official FCIC issued underwriting
standards for policies covered under the Common Crop Insurance
Policy Basic Provisions, 7 CFR Part 457 including the Catastrophic
Risk Protection Endorsement, 7 CFR Part 402, and the Actual
Production History Regulation 7 CFR Part 400 Subpart G. RMA is the
administering USDA agency on behalf of the FCIC. The exhibits in
this handbook include additional charts, examples, maps, and
supporting materials to aid the procedure provided in each section.
Each section has an applicable corresponding exhibit. This handbook
does not cover pilot programs or private insurance products
submitted under the authority of the Federal Crop Insurance Act,
e.g., Section 508(h) or 523(d), unless the underwriting guide
refers to the Crop Insurance Handbook for applicability. [Exh. 2]
provides crop specific plans of insurance, applicable underwriting
guidelines, pilot programs and private insurance product
designations. Procedural administration may also be found in the
following FCIC publications: FCIC-24020 Written Agreement Handbook,
FCIC-24040 Document and Supplemental Standards Handbook, FCIC-24050
Ineligible Tracking System Handbook, FCIC-24090 Nursery Crop
Insurance Underwriting Guide, FCIC-24010 Classification Standards
Handbook, FCIC-25010 Loss Adjustment Manual, and any other RMA
Approved Handbooks. Procedures contained in this handbook must be
administered on a policy basis.
B Approved Insurance Provider (AIP) Responsibilities.
AIPs must use standards, procedures, methods and instructions as
authorized by FCIC in the sale and service of crop insurance
contracts. Each AIP is responsible for using RMA approved
procedure.
C Regulations or Procedural Conflict.
If there is a conflict between any FCIC-issued regulations,
provisions, or procedures, the order of precedence is listed
below:
(1) Federal Crop Insurance Act and any Final Agency
Determination (FAD)
interpreting the Act; (2) The CAT Endorsement, as applicable,
and any FAD interpreting the CAT
Endorsement; (3) Written Agreement, as applicable; (4) The
Special Provisions and actuarial documents; (5) Crop
endorsement/options and any FAD interpreting the crop
endorsement/options if published in 7 C.F.R. part 457;
-
JUNE 2011 SECTION 1 FCIC 18010
2
(6) Crop Provisions and any FAD interpreting the crop
provisions; (7) Basic Provisions and any FAD interpreting the Basic
Provisions; (8) Administrative regulations (7 CFR part 400) and any
FAD interpreting the
administrative regulations; (9) Managers Bulletins; (10)
Prevented Planting Loss Adjustment Standards Handbook and any
interpretation
of these procedures; (11) CIH and other applicable Underwriting
Guides; (12) LAM; (13) Crop Loss Adjustment Standards Handbooks
(LASH); (14) PM Informational Memorandums; (15) Informational
Memorandums.
D Procedural Issuance Authority.
This handbook is written and maintained by: Office of the Deputy
Administrator for Product Management Product Administration and
Standards Division USDA Risk Management Agency Beacon Facility Mail
Stop 0812 P.O. Box 419205 Kansas City, Missouri 64141-6205
E Procedural Questions Questions regarding underwriting
procedures are to be directed first to the AIP, then through
appropriate channels, through the AIP, to RMA. RMA will not attempt
to instruct agents or insureds of the AIP. If a perceived error is
identified, notify RMA in writing at the address contained in the
preceding paragraph or by e-mail at [email protected].
Clearly identify the error and provide the proposed correction. If
RMA agrees with the error identification, RMA will issue a
correction either in the existing crop year through a slipsheet to
the CIH or a memorandum/bulletin. However, if RMA determines the
error to not be significant, correction will be included in the
subsequent issuance of the CIH. Proposed changes should be
submitted in writing through proper organizational channels to the
PASD.
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JUNE 2011 SECTION 1 FCIC 18010
3
F Form Standards.
AIP forms must meet the form standards as provided in the
FCIC-24040 DSSH. The DSSH provides the substantive elements for AIP
form development; whereas, the CIH provides the instructions for
form completion.
G Contact Information. For applicable RMA contact information
referenced throughout this handbook, refer to Exh. 1, Para. C.
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JUNE 2011 SECTION 1 FCIC 18010
4
RESERVED
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JUNE 2012 SECTION 2 FCIC 18010-02
5
2 GENERAL PROGRAM REQUIREMENTS The policy consists of the
applicable actuarial documents, the CEPP, other endorsements or
options, the SP, the CP, the BP and WA, if applicable. The
actuarial documents contain information for the crop year which
shows available crop policies, coverage levels, prices, premium
rates, premium adjustment percentages, practices, or types of the
insurable crop, insurable acreage and other related information
regarding crop insurance in the county.
A Insurance Availability. (1) Actuarial Documents. Insurance is
available when necessary crop information
is included in the actuarial documents. (2) Written Agreements.
When insurance is not available, an insured may request
coverage by WA if authorized by the policy. A WA is a document
designed to provide crop insurance for insurable crops when
coverage or rates are unavailable or to modify existing terms and
conditions in the crop insurance policy when specifically permitted
by the policy. See Exh. 2 for types of WA authorized, deadlines and
supporting documentations. Refer to the FCIC 24020 WAH for
processing of actuarial requests and written agreements.
B Eligible crops.
Eligible crops must be grown on insurable acreage in a county
for which a method of establishing insurance yields/guarantees and
premium rates has been established for the crop in order for
insurance to attach. See [Para. B(4)] of this Section for insurance
limitations concerning multiple crops planted on the same acreage
for harvest during the same crop year.
(1) See [Exh. 2] for a listing of:
(a) Eligible Crops;
(b) Applicable Policies;
(c) Coverage; (d) Plans; (e) APH Tolerances;
(f) Availability of Late and Prevented Planting Coverage;
(g) Availability of Replant Coverage;
(h) Units of Measure;
(i) Unit Availability; and
(j) High-Risk Land Exclusion Availability.
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JUNE 2012 SECTION 2 FCIC 18010-02
6
(2) Insurable Practices/Types (P/T). The policy may provide for
or exclude from
insurability certain P/T. Insurable P/T for a crop are provided
in the actuarial documents. Practice (P) refers collectively to
Irrigation Practice, Cropping Practice, Organic Practice and
Interval when listed in the actuarial documents for a crop. Type
(T) refers collectively to Commodity Type, Class, Subclass, and
Intended Use when listed in the actuarial documents for a crop.
(3) CP with More Than One Insurable Crop. The following CPs
provide coverage
for multiple crops: AZ & CA Citrus, Coarse Grains, Florida
Citrus, Grapes (CA only), Small Grains, Stonefruit, Texas Citrus
Fruit, Texas Citrus Trees, Nursery, and Tobacco. These CPs allow
insureds to designate which of the crop(s) is to be insured and may
indicate which type(s) or variety(ies) (e.g., Fresh Apricots and
Processing Apricots insured under the Stonefruit CP) are separate
insured crops. Refer to the applicable CP [Insured Crop section] or
the SP to determine the separate insurable crops. [See Sec. 2H for
Administrative Fees].
(4) Limitations for First and Subsequent Crops Benefit.
(a) First Insured Crop Limitations. First insured crop
limitations may apply to acreage planted to a first insured crop
which has suffered an insurable loss. This excludes acreage that
qualifies for double cropping. [See Sec. 9C(4) for more information
on double cropping ]. An insured that does not plant, or plants and
does not insure, a second crop on the same acreage for harvest in
the same crop year as a first insured crop may:
1 Collect an indemnity payment that is equal to 100 percent of
the
insurable loss for the first insured crop, and
2 Elect not to insure second crop acreage on the same acreage,
even if the insured has a policy for a second crop. This is
considered uninsured acreage, [see Sec. 6B] for acreage reporting
requirements of such acreage.
(b) Second Crop Limitations. When the person insuring the first
crop, or another person, plants and insures a second crop on the
same acreage for harvest in the same crop year and there is an
insurable loss to the second crop, a full indemnity may be paid on
the second crop. A subsequent crop, such as a third crop, planted
on the same acreage does not limit an indemnity being paid on the
second crop. [See Sec. 9C(5) for more information on second
crop].
1 Indemnity payment is limited to 35 percent of the insurable
loss for
the first insured crop. The person insuring the first crop will
be responsible for 35 percent of the first crops premium, and
2 If the second crop does not suffer an insurable loss, an
indemnity
payment, if applicable, for the other 65 percent of the first
crops insurable loss that was not previously paid will be made and
the remainder of the premium will be due.
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JUNE 2012 SECTION 2 FCIC 18010-02
7
(c) Third or subsequent insured crop limitations. Acreage of a
crop planted following a second crop or acreage of a crop planted
following a prevented planted second insured crop which followed an
insured first crop is not insurable unless:
1 It is generally recognized for the area to plant three or more
crops
for harvest on the same acreage in the same crop year by
agricultural experts or organic agricultural experts;
2 Additional coverage is offered for the third or subsequent
crop; and;
3 The insured provides acceptable records that show:
a The insured has produced and harvested the insured crop
following two other crops harvested on the same acreage in the
same crop year in at least two of the last four years in which they
produced the insured crop; or
b The applicable acreage has had three or more crops
produced and harvested on it in at least two of the last four
years in which the insured crop was grown on it.
The amount of insurable acreage for the third or subsequent crop
will not exceed the greatest number of acres for which the insured
provided the records required in the applicable preceding Para.
3.
(d) [See Sec.15A(11) to determine possible impact to future
years APH.]
C Duplicate Policies Are Not Permitted.
Duplicate policies exist when more than one policy is in force
for the same crop/county and for the same person, or for a spouse,
child or other member of the household who does not have a separate
farming operation or share in the crop. RMA will edit AIP data
submitted to RMA to identify and report potential duplicate
policies to AIPs to assist them with their duplicate policy
resolution. AIPs must use RMAs system to determine if more than one
policy is in force.
(1) If discovered that duplicate policies exist and:
(a) Both are additional coverage policies or both are CAT
policies, the policy
with the earliest application date will be in force. The other
policy will be void, unless both policies are with:
1 The same AIP and the AIP agrees otherwise. However, only
one
policy may remain in force; or
2 Different AIPs, and after consulting with the insured, both
AIPs agree otherwise. However, only one policy may remain in
force.
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JUNE 2012 SECTION 2 FCIC 18010-02
8
(b) One is an additional policy and the other is a CAT
policy:
1 The additional coverage policy will apply if both are insured
with the same AIP, or if insured with different AIPs and both
agree.
2 If both AIPs do not agree, the policy with the earliest
application date will be in force and all other policies for the
crop will be void.
(2) If the AIP determines duplicate coverage exists and was
intentional, the
insured may be subject to fraud provisions stated in the BP. (3)
Duplicate Policy Exceptions: RMA does not consider the following as
a
duplicate policy if [see Sec. 2H for administrative fee
requirements]:
(a) High-Risk Land Exclusion Option is elected. The insured must
exclude high-risk land from an additional coverage policy and
obtain a CAT policy for the high-risk land with the same AIP.
If the additional and CAT coverage policies are not insured with
the same AIP, it is acceptable the first effective crop year for
the policies to remain with the respective AIPs unless the AIPs
involved agree otherwise. For example, an additional coverage
policy written with AIP A, and a CAT policy is written with AIP B,
the CAT policy written with AIP B may remain in effect or may be
canceled and rewritten with AIP A. However, the following crop year
both policies (additional coverage and CAT) must be written with
the same AIP.
(b) Hybrid Seed Corn or Hybrid Sorghum Seed is grown under
contract with
more than one seed company. The CP allow a separate policy for
acreage grown with each different seed company. The policies do not
have to be insured with the same AIP; however, all acreage of the
insured crop in the county must be insured.
(c) Specialty types listed on the SP for barley are excluded
from a revenue
protection policy and insured under the yield protection policy
in order to receive a contract price.
(d) Crops insured under AGR or AGR-Lite policies, are also
insured under
the BP. [See Para. D(2) below].
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JUNE 2011 SECTION 2 FCIC 18010
9
D Other Insurance.
When other:
(1) Fire insurance is carried on insured crops.
(a) When the insured has fire insurance (whether valid or not)
and has not excluded coverage for fire from the policy, liability
for loss under the policy due to fire caused by a naturally
occurring event only for the smaller of:
1 the amount of indemnity determined pursuant to the policy
without
regard to such other insurance; or 2 the amount by which the
loss from fire is determined to exceed the
indemnity paid or payable under such insurance. (b) The amount
of loss from fire will be the difference between the total
value
of the insured crop before the fire and total value of the
insured crop after the fire.
(c) See [Sec. 4C for information regarding Hail and Fire
exclusion.]
(2) Insurance is provided by an AGR/AGR-Lite policy the
individual crop
policy(ies) provide primary coverage and indemnity payments from
those policies are considered income to count under the
AGR/AGR-Lite policy.
E Insured Cause(s) of Loss.
Insurance is provided to protect against unavoidable loss from
naturally occurring events as contained in individual CP. Examples
include: adverse weather conditions, fire (due to natural causes),
wildlife, earthquake and volcanic eruption occurring within the
insurance period. Coverage of insured causes of loss must be due to
drought, flood, or other natural disasters (as determined by the
Secretary of Agriculture).
F USDA Program Linkage. Linkage requirements vary based on USDA
program requirements; therefore, the local USDA office should be
contacted for guidance based on the producers participation in
various USDA programs.
G USDA Program Benefit Limitations.
An insured that is eligible to receive an indemnity and benefit
under any other USDA program for the same loss may receive benefits
under both programs, unless specifically limited by the policy or
by law.
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JUNE 2011 SECTION 2 FCIC 18010
10
H Administrative Fees.
Each insured is required to pay an administrative fee each year
insurable acreage of the crop is planted or a PP acreage report is
filed. An administrative fee is not due when a crop is only used to
establish additional eligible PP acreage. [See Sec. 9C(8)(b)]
(1) Administrative Fee Schedule.
COVERAGE PER CROP/COUNTY TYPE OF CONTRACT FEE ESTABLISHED WHEN
DUE BY THE
Additional $30 (plus premium) New & Carryover Insurance
Attaches Premium
Billing Date
CAT $300 New & Carryover Insurance Attaches Premium Billing
Date
(2) Separate Administrative Fees are Charged For: (a) Each
crop/P/T under the same CP/SP insured separately, is charged a
separate administrative fee. [See Sec. 2B(3)].
Example: An insured selects additional coverage on two AZ &
CA Citrus crops (shown as types in the SP) that are insured
separately. CAT coverage is selected for another insurable crop (as
two policies). The insured is charged two $30 additional coverage
administrative fees and a CAT administrative fee of $300.
(b) High-risk land excluded from additional coverage policy and
insured
under a separate CAT policy must be charged a separate
administrative fee.
(c) Hybrid Seed Corn or Hybrid Sorghum Seed policies for
contracts with
different seed companies must be charged a separate
administrative fee for each separate policy.
(d) Separate administrative fees are due for each added county
per crop
under the Added County Election, [See Sec 3E]. (e) Separate
administrative fees are due for each crop insured under a WU.
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JUNE 2012 SECTION 2 FCIC 18010-02
11
(f) Separate administrative fees are due when the CP/SP
authorize different plans of insurance for crop types and the
insured elects to insure a type(s) under a different plan of
insurance.
Example: An insured has three types of barley: malting, waxy
hulless, and all others. If the insured elects to exclude the
malting type from the revenue protection plan and insures the
malting type under the yield protection plan and insures the
remaining two types under the revenue protection plan, separate
administrative fees are due for the yield protection plan and
revenue protection plan (i.e., two administrative fees are
due).
(3) Third-Party Prohibition Regarding Administrative Fees. AIPs,
agents,
producer associations, grower groups, farm cooperatives, etc.,
may not pay administrative fees for insureds. Only those persons
acting in place of the insured under a power of attorney,
landlord/tenant agreement, or a legal guardianship, may pay the
administrative fee.
Exception: If State law permits a licensing fee to be paid by an
AIP to a
cooperative association or trade association and rebate to an
insured through the payment of CAT administrative fees, a
cooperative association or trade association located in that State
may pay, on behalf of a member of the association in that State or
contiguous State who consents to be insured under such arrangement,
all or a portion of the administrative fee required for CAT.
(4) Waiver of Administrative Fees. The administrative fee for
CAT and additional
coverage may be waived for insureds who qualify as a limited
resource farmer. [See Exh. 1B for definition of a limited resource
farmer].
(a) Request to Waive Administrative Fees. To be exempt from
payment of
administrative fees, a Request to Waive Administrative Fees must
be submitted to the AIP using the Limited Resource Farmer/Rancher
Assessment Tool (www.lrftool.sc.egov.usda.gov).
1 At the time of application, on or before the SCD, for new
insureds. 2 Annually by the crops final ARD, for carryover
insureds.
The insured must provide proof of qualifying income or certify
on the waiver request that he or she qualifies as a limited
resource farmer. [See the DSSH for applicable form development
instructions].
(b) Insureds Certification. If the insured certifies eligibility
and the AIP has reason to question the insured's eligibility, the
AIP may require proof of income (e.g., income tax returns) for the
previous two years prior to allowing the insured to qualify for a
limited resource farmer status.
http://www.lrftool.sc.egov.usda.gov/
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JUNE 2012 SECTION 2 FCIC 18010-02
12
(c) AIP Acceptance. The AIP must approve or reject the Request
to Waive Administrative Fees. 1 If the insured does not qualify as
a limited resource farmer, the
AIP shall:
a Provide notice to the insured the administrative fee must be
paid according to policy terms; and
b Terminate the policy and the person will become ineligible
for insurance coverage, if the administrative fee is not paid
according to policy terms.
2 If adequate proof is not provided and it is found that the
insured
intentionally misrepresented their status, the policy will be
voided. The voidance will be effective at the beginning of the crop
year in which the misrepresentation took place.
(d) If selected for review, eligibility for waiver of
administrative fees must be
verified and the insured will be required to provide proof of
gross income.
I Deadlines that Fall on Weekends or Federal Holidays.
Deadlines, such as the SCD, PRD, and ARD, falling on Saturdays,
Sundays, or Federal legal holidays are extended to the next
business day. However, this extension will not affect any
subsequent deadlines, which will remain based on the original
deadline. For example, the PRD is earlier of 45 days after the
cancellation date or the ARD, if the cancellation date falls on a
Sunday (3/15), the count of 45 days to determine the PRD begins
with the original cancellation date, not on Monday (3/16).
J Copies of Documents.
If original insurance documents are required by RMA but are
unavailable, a photocopy, fax copy, carbon copy or electronic form
with electronic authorized signature of an original insurance
document may be used if certified by the AIP. The copy must be
marked or stamped "Certified True Copy," signed and dated by the
AIP's authorized representative.
A certified true copy may be accompanied by a memorandum
explaining why a copy is being submitted instead of the original
document.
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JUNE 2011 SECTION 3 FCIC 18010
13
3 APPLICATION FOR INSURANCE
Applications are required to request insurance on eligible
crops, to add a crop(s) to an existing policy, and to insure crops
in additional counties. Coverage applies to the crop(s) in the
state for the county(ies) listed in the accepted application,
except as provided by the added county election [in Para. 3E]. If
the added county election does not apply, any additions must be
made on or before the SCD for the crop(s) in the specified
county(ies). A new Application or Policy Change is required to
change coverage level, prices, etc.
A Sales Closing Dates (SCD).
(1) Establishment. SCDs are established for each insurable crop,
and published in the actuarial documents.
(2) Participation. A person must apply for insurance on or
before the applicable
SCD. After the SCD, new applications for insurance for that crop
year will not be accepted, unless a specific CP allows for
application after the SCD (e.g., Nursery).
B Term of Policy.
Policies are continuous and remain in force until canceled,
terminated or voided.
(1) Policy Cancellation. Either the AIP or insured may cancel a
continuous policy for any crop year following the initial crop
year. A signed notice must be given to the other party on or before
the cancellation date which precedes the crop year to be cancelled.
A written request made by the insured to cancel a policy after the
cancellation date will be effective the following crop year.
Cancellation dates are provided in the applicable CP.
Insurance on a crop may not be canceled the first effective
policy year by the insured, except when:
(a) A change is made in the policy or actuarial documents
affecting coverage
or rate that was not filed at the time of application. If an
Application is taken before revisions are published; the applicant
must be advised by the AIP of change(s) affecting the insured crop.
The applicant then has the option to cancel such crop(s)
policy(ies) on or before the cancellation date. This is not
applicable for CAT coverage.
(b) The approved APH yield has been lowered by more than five
percent
compared to the preliminary yield quoted, or the AIP was not
authorized to calculate the preliminary yield and the approved APH
yield is not acceptable to the insured. [See Para. B(4) below for
mutual consent cancellation requirements].
(c) AIPs agree. A policy written with one agent/AIP may not be
canceled for
the purpose of insuring with another agent/AIP the first
effective crop year without the written consent of the AIPs
involved.
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JUNE 2011 SECTION 3 FCIC 18010
14
(d) Changing insurance plans on or before the applicable
cancellation/SCD. For example, an insured purchases revenue
protection for corn in the fall and prior to the corn
cancellation/SCD requests corn coverage under GRIP.
(2) Policy Termination. The AIP will terminate coverage:
(a) Under the CAT Endorsement and the crop policy for which the
insured
fails to pay the CAT administrative fee or other amounts due by
the date due. [See FCIC 24050 ITS Handbook.] In the case of partial
payment of fees involving multiple crops, there may be a question
concerning to which policy(ies) payment should be applied. If so,
contact the insured to make this determination.
CAT coverage is not available to persons whose policies have
been previously terminated for non-payment of premium and any
amount remains unpaid. 1 If the insured purchases additional
coverage from a different AIP,
transfer procedure must be followed. [See Para. H of this
section for transfer procedures].
2 At the end of the crop year if the crop policy is terminated
the CAT
Endorsement also automatically terminates for that crop.
(b) For non-payment of an administrative fee, premium or other
amounts due. For additional coverage policies, the BP provides for
termination of the policy for the next crop year if any of the
amounts due remain unpaid as of the termination date. A policy
issued by a new AIP will be terminated for existing indebtedness.
[See Para. H(2)(f)]. RMA will not provide reinsurance on policies
that should have been terminated for non-payment of administrative
fee, premium, or other amounts due. [See FCIC 24050 ITS
Handbook.]
(3) Policy Voidance. If a policy is void, it is considered not
to have existed for a
crop year. (a) The policy will be void if:
1 The identification number for the insured is reported
incorrectly,
and the requirements in [Sec. 5B] are not met; 2 The
identification number for any person with an SBI is reported
incorrectly or not reported and the requirements in [Sec. 5B]
are not met;
3 It is a duplicate policy [See Sec. 2C]; 4 The insured is
ineligible [See FCIC 24050 ITS handbook]; or
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JUNE 2012 SECTION 3 FCIC 18010-02
15
5 The insured or anyone assisting the insured has falsely and/or
fraudulently concealed either the fact that the insured is
restricted from receiving benefits under the Act or that action is
pending which may restrict eligibility to receive such
benefits.
(b) If a policy is voided in accordance with B(3)(a)1, 2, 4 or 5
above, the
insured must: 1 Repay any indemnity, PP payment or replanting
payment that may
have been paid for all applicable crops and crop years; and 2
Pay an amount equal to 20 percent of the premium that would
have otherwise been required.
a Any previously paid premium or administrative fees in amount
in excess of the amount in 2 above, shall be returned by the AIP to
the insured.
b If the crop has been planted, regardless of whether the
ARD has passed, the insured must pay an amount equal to 20
percent of premium that would have been required on the planted
acres if the policy was not voided; or
c If no acreage of the crop has been planted, no amount is
due.
(4) Mutual consent cancellation for new insureds. (a)
Requirements.
A new insured may, with the consent of the AIP, cancel a crop
policy if either of the following are met: 1 The approved APH yield
computed for any unit of the crop is less
than 95 percent of the preliminary yield computed for the unit;
or 2 A preliminary yield was not calculated for a unit of the crop
and
the approved APH yield is not acceptable to the new insured. An
AIPs consent to cancel the policy is at the discretion of the AIP.
The opportunity to cancel a policy according to this paragraph
applies to new insureds only.
(b) Deadline for requesting cancellation.
Requests to cancel a policy must be filed within 30 calendar
days of the date the approved APH yield was mailed or otherwise
made available to the new insured. A request to cancel a policy
shall be considered filed on the day the request is personally
delivered to the AIP or the postage date on a properly addressed
envelope/package.
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JUNE 2012 SECTION 3 FCIC 18010-02
16
(c) Denial of request for cancellation.
When the AIP denies a request to cancel a policy, the new
insured may request mediation or arbitration of the decision
according to [ Sec. 8].
C Insurance Choices. (1) Basic Information. Coverage is
determined by the insurance plan, level of
coverage, and price. The insurance plan, level of coverage and
price is chosen at the time the Application, or the Policy Change
in subsequent years, is completed. The level of coverage and price
elected may be changed if requested in writing on or before the
applicable SCD for the insured crop. The same plan of insurance,
level of coverage, and percentage of the available price election
or projected price must be selected for the crop for all insurable
acreage in the county unless one or more of the following
exceptions apply:
(a) The applicable CP/SP allows an exception by individual crop
or type (e.g.,
price elections by dry bean type in the actuarial documents,
coverage levels by grape type in the SP, plan election for
specialty types of barley);
(b) High-risk land excluded from an additional coverage policy
and insured
separately under a CAT policy; or
(c) Hybrid Seed Corn or Hybrid Sorghum Seed grown under contract
with more than one Seed Company insured under separate
policies.
If the above requirements are met, separate administrative fees
may be required. [See Sec. 2H(1) for administrative fee
schedule].
(2) Plan of Insurance. The BP provides coverage for multiple
plans of insurance,
which vary by crop and are identified in the actuarial
documents. Plans of insurance include: [See Exh. 2A for a detailed
list of plans of insurance by crop].
(a) Actual Production History Plan provides protection from loss
of production
for crops for which revenue protection is not available.
(b) Revenue Protection Plan provides protection for loss of
revenue and/or production for certain crops with revenue protection
selected. This plan replaced Crop Revenue Coverage, and Revenue
Assurance With Fall Harvest Option Plans.
(c) Revenue Protection with Harvest Price Exclusion provides
protection for
loss of revenue and/or production for certain crops and excludes
the use of the harvest price in the determination of the revenue
protection guarantee. This plan replaced Income Protection, Indexed
Income Protection, and Revenue Assurance Without the Fall Harvest
Price Option.
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JUNE 2011 SECTION 3 FCIC 18010
17
(d) Yield Protection Plan provides protection from loss of
production for crops with revenue protection available but not
selected.
(e) Dollar Amount of Insurance Plan(s) provides protection for
certain crops
against declining value due to damage that causes a yield
shortfall; and (f) Other Plans of Insurance available for specific
crops, i.e., Pecan
Revenue, Nursery, etc. (3) Levels of Coverage. A crop may be
insured at a percentage of the approved
APH yield or amount of insurance. All acreage of the insured
crop within a county must be insured at the same level unless the
exceptions listed in [Para. 3C(1)] and/or if the CP specifies
otherwise. Levels of coverage include:
(a) CAT [see Table in Para. C(4)(d)1]; or
(b) Additional coverage of 50%, 55%, 60%, 65%, 70%, and 75% (80%
and
85% coverage levels are available for some crops if indicated on
the actuarial documents).
(4) Price. The actuarial documents provide pricing information.
Only one price
percentage may be elected per crop, per county, per policy
unless the CP (e.g., Dry Beans) allow for different price
percentages, by P/T. The pricing mechanism varies by plan.
(a) Revenue Protection Plan. The FCIC issued projected price
and
harvest price must be insured at 100%. The projected price is
used to calculate premium, any replanting and any PP payment.
When the harvest price exclusion is:
1 Elected, the projected price is used to compute the
revenue
protection guarantee per acre; or 2 Not elected, the projected
price is used to initially determine
the revenue protection guarantee per acre. If the harvest price
is greater than the projected price, the revenue protection
guarantee per acre will be recomputed using the harvest price.
(b) Yield Protection Plan. The value of the production guarantee
per acre
and the value of production to count are determined by
multiplying the FCIC issued projected price times the percentage of
the projected price selected by the insured.
Once selected, the percentage of the projected price will
continue to apply unless changed on or before the applicable
SCD.
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JUNE 2011 SECTION 3 FCIC 18010
18
(c) All Other Plans (e.g., Actual Production History Plan,
Dollar Amount of
Insurance Plan(s), etc). The amount of insurance will be the
amount of insurance issued by FCIC multiplied by the coverage level
percentage elected. The price election will be the price election
issued by FCIC multiplied by the percentage of price elected. For
example: The actuarial documents for Fresh Market Tomatoes provide
the FCIC issued reference maximum dollar amount of $6,525.
Therefore, an insured who elects 75 percent coverage level would
have an amount of insurance equal to $4,893 (0.75 x $6,525). The
price election is determined by the FCIC issued price election
multiplied by the percentage of price selected.
FCIC may provide additional price elections or amounts of
insurance no later than 15 days prior to the applicable SCD. The
additional price elections or amount of insurance:
1 Will not be less than those available on the CCD.
2 Must be selected on or before the applicable SCD.
3 If elected, will be used to determine the amount of
premium
and any claim settlement.
Once selected, the amount of insurance, percentage of price
election, or the additional price election will continue to apply
unless changed on or before the applicable SCD.
(d) Price Percentage Chart.
1 For the Actual Production History Plan and Yield Protection
Plan only, the insured may select a percentage of the price or the
additional price (when available for the crop), as follows:
CAT ADDITIONAL COVERAGE Coverage Level
Percentage 50 50 55 60 65 70 75 80 85
Price Percentage 55 100
91-100
84-100
77-100
72-100
67-100
63-100
59-100
* Price Percentage may vary by plan.
2 The following table provides price information for other plans
of
insurance when CAT is elected. Coverage level percentage is 50%
unless specified differently.
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JUNE 2011 SECTION 3 FCIC 18010
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PLAN OF INSURANCE PRICE PERCENTAGE
Florida Citrus Trees 55% of the reference maximum price.
Nursery 55% of the Plant Inventory Value Report for the rate
classification.
Other Dollar Plan crops
55% of the dollar amount of insurance (Florida Citrus, Forage
Seeding, Hybrid Seed Corn, Hybrid Sorghum Seed, Macadamia Trees,
Peppers, Raisins, Sweet Corn [Fresh Market] Texas Citrus Trees,
Tomatoes [Fresh Market]).
GRP/GRIP Crops 45% of the maximum protection per acre at 65%
coverage level.
Pecan Revenue 27.5% of the approved average revenue (CAT
only)
D Premium Rates.
The actuarial documents provide the premium rates established
for each county and crop.
E Added County Election.
The AIPs Application and/or Policy Change may provide an
election for Category B crops, including pilot Category B crop
programs, with the exception of forage production, [See Exh. 2 for
a list of Category B crops] to allow the applicant/insured to
insure the listed crop(s) on land in a county that is added after
the applicable SCD for the current crop year. For the election to
be applicable, the crop must be insurable in the county being
added, and the insured must not have an interest in any land in the
added county as of the SCD for the current crop year. Any interest
an insured may have had in land in previous crop years in a county
being added does not impact added county election for the current
crop year. Separate administrative fees are due at premium billing
for each added county per crop [See Sec. 2H].
(1) If the AIP offers the added county election, the AIP must
use one or both of
the added county election statements contained in the DSSH,
which allow for the added county election to apply within a state
or nationwide.
(2) The election must be made by the applicable SCD for the
crop(s) shown on the Application or Policy Change. Any endorsement,
option, exclusion, or election effective for the designated county
will apply to any added county crop, if applicable. For example, if
the insured has elected the high-risk land exclusion option and
insured the excluded high-risk land under a CAT policy in the
designated county, the exclusions and CAT policy for high-risk land
applies to the added county.
(3) Only one added county election is permitted, one for a
crop/state or one for
crop/nationwide (depending on statement used by AIP). If
election is made for a crop on multiple Applications or Policy
Changes, the election with the earliest Application date will
apply. [See Sec. 2C regarding duplicate coverage].
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JUNE 2011 SECTION 3 FCIC 18010
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(4) If more than one county for the crop(s) is listed on the
Application or Policy
Change, the insured must designate on the Application or Policy
Change only one county from which insurance coverage (i.e., plan of
insurance, coverage level, price, coverage options/exclusions,
etc.) will be determined for the crop(s) for all counties added for
the crop year. (a) Insurance coverage will not be provided for an
added county if the
insured does not designate a county for added county purposes,
or designates more than one county per crop or crop state, as
applicable, on a single Application or Policy Change.
(b) If only one county for the crop(s) is listed on the
Application or Policy
Change, that county will be the designated county. (c) A crop
not listed on the added county section of the Application or
Policy
Change cannot be added after the applicable SCD. For example,
the insured has a soybean policy in effect by the SCD and selects
the added county election. The insured rents land, after the SCD,
in another county and plants corn and soybeans. The soybeans
planted in the added county would be insured, however, the corn
would not.
(5) If the designated plan of insurance, level of coverage or
price is not
available in the added county, CAT coverage will be provided if
the crop is insurable in the actuarial documents for an added
county.
(6) An acceptable production report must be provided on or
before the PRD or
appropriate variable T-Yield procedures will apply on land
located in the added county. [See Sec. 15A]. However, the insured
may request the use of New Producer procedures, preferably by the
PRD but no later than the ARD [See Sec. 15E for New Producer
procedures].
(7) The insured must notify the AIP by reporting the acreage of
the crop for the
county that is added no later than the ARD the initial year any
insured crop(s) is subsequently grown in a county(ies) not listed
on the Application or Policy Change. A crop inspection to determine
insurability is not necessary for any applicable crop(s) reported
the initial crop year in an added county.
(8) The coverage provided under the added county election shall
only be
provided in the initial year that the county is added. For
coverage to be provided in subsequent years, a separate Application
or Policy Change must be submitted.
(9) If the insured adds land in a different county after SCD and
the added county
election is elected, then it is insured. It is not an option for
the insured to not add the county if this election was previously
made. If the insured does not report the land, then the unreported
acreage procedures apply. [See Sec. 6B(8)].
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JUNE 2011 SECTION 3 FCIC 18010
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F Application Acceptance.
Applications are subject to acceptance by the AIP. Applications
that do not contain the required information to insure the crop
shall not be accepted by the AIP. Prior to acceptance, the AIP will
determine the application:
(1) Is for a person who has a share in the insured crop with an
insurable interest
as owner, operator, sharecropper, or tenant;
(2) Identifies the correct person and person type (e.g.,
individual, partnership, co-owner, joint venture, corporation,
etc.);
(3) Has been signed by a person(s) having authority/capacity to
enter into a
binding contract; and (4) Contains all the information required
to insure the crop, including, but not
limited to:
(a) All applicable SSNs, EINs and/or RANs; (b) All person(s) who
have a SBI and their respective identification numbers
and person types; (c) Plan of insurance; (d) Coverage level; (e)
Percentage of price election or projected price, as applicable; and
(f) Crop and type, as applicable.
G Rejected Applications.
If rejected by the AIP, the original Application along with a
letter of explanation must be sent to the applicant, with a copy to
the AIP representative within 15 calendar days of the SCD.
H Transfer of Policies to Another AIP.
To be effective, transfer of a policy from one AIP to another
must be requested in writing by the insured by the cancellation
date. (1) Documentation. To transfer a policy:
(a) An insured must complete and submit to the assuming AIP a
Policy Transfer/Application; or
(b) The assuming AIP must complete and sign, and have the
insured
sign, a Request Transfer of Policy with the ceding AIPs policy
number(s) for each crop policy being transferred.
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JUNE 2011 SECTION 3 FCIC 18010
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If a Policy Transfer/Application is not used, an Application
must be completed, indicating the crop was insured in the previous
crop year, and signed by the insured and the AIP.
(2) Requirements.
(a) The policy may not be canceled the first effective crop year
with any
AIP for the purpose of insuring with another AIP without the
written consent of the AIPs involved.
(b) An insured may transfer a policy only once per crop year
between AIPs.
A transfer within an AIP from one policy issuing company to
another is not considered a transfer for this purpose.
(c) Options, elections, endorsements, written agreements, etc.,
do not
transfer and must be specified on the new Application and/or
applicable forms if they are to be in effect for the current crop
year. However, the Agreement to Combine OUs will remain in effect
and must be transferred to the assuming AIP.
(d) When the insured transfers the policy to a different agent
and/or AIP the
APH yield history, including any applicable analysis databases
for acreage transitioning to organic without a plan [See Sec.11G],
must also be transferred.
(e) Premium and any loss experience for those insureds with a
good
experience discount only must be transferred
(f) The policy will be terminated if the insured is indebted to
the ceding AIP [see the ITS handbook for further information].
(g) All AIPs are required to transmit experience (premium and
loss data)
and APH data to RMA. RMA will maintain such information in its
databases. AIPs must request transferred policy information by
submitting an electronic request to RMA through its systems, e.g.,
to verify policy items such as APH history.
(h) The assuming AIP must notify the ceding AIP when it has
accepted
the transfer and issued the new policy within 45 days after the
applicable cancellation date.
(i) The ceding AIP must cancel its policy if a Policy
Transfer/Application
is executed by the insured by the cancellation date, regardless
of whether the assuming AIP timely notified the ceding AIP.
(j) When a transfer within an AIP from one policy issuing
company to another is made, the insured must be notified of such
transfer.
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JUNE 2011 SECTION 3 FCIC 18010
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(3) Review of Underwriting Information. The assuming AIP may
complete and issue policies by requesting the insureds previous
experience and APH data from RMA without requesting insurance
experience and APH history from the ceding AIP. However, if the
information received from RMA appears incomplete or inaccurate, the
assuming AIP must request the insurance experience and APH history
from the ceding AIP.
(a) When requested timely (within 45 days after the cancellation
date),
the ceding AIP will provide the experience and complete APH data
for the applicable crop/county to the assuming AIP no later than 15
days after receiving the request even if the ceding AIP has already
cancelled the policy.
(b) If due to a lag in processing the immediate preceding year's
business,
the cumulative experience factor for the Good Experience
Discount may be used by the assuming AIP to provide an estimated
premium. The actual premium for the current crop year will be
billed after the immediate preceding year's experience is
completed.
I Previous Insurance Experience/Premium Adjustment (Good
Experience Discount).
Insureds may have had favorable insurance experience (base
premiums and loss experience) and earned premium discounts for
specific crops [See Para. I(1)]. Previous insurance experience is
retained by the AIP when the insured has been continuously insuring
the same crop/county. (1) Applicability of Good Experience Discount
when Coverage Plan or Level is
Changed. For insureds who switch coverage plans (e.g., Yield
Protection Plan to GRP or GRIP, Yield to Revenue Protection) or
coverage levels (e.g., additional coverage to CAT coverage), the
AIP must retain previous insurance experience.
(a) The good experience discount factor is not used for
GRP/GRIP, or
revenue plans, or when calculating imputed CAT premium. (b) When
an insured switches back from GRP/GRIP or Revenue Protection
to Yield Protection or Actual Production History Plans at the
additional coverage level, the previous insurance experience and
applicable premium discounts apply.
(c) When an insured switches from CAT back to additional
coverage, the AIP
must update the insurance experience. If the insured is still
eligible for a premium reduction in excess of five percent, based
on the insureds loss ratio and the number of years of continuous
experience through the applicable crop year, the insured will
continue to receive the premium reduction subject to the conditions
listed. [See Para. I(2).]
(d) Insurance experience may be available from RMA systems upon
AIP
request. [See Exh. 3A for chart of percentage adjustments for
favorable continuous insurance experience.]
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JUNE 2011 SECTION 3 FCIC 18010
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(2) Crop Groups for Premium Adjustment Purposes. Premium
reductions (subject to the conditions in [Para. I(2)]) were removed
from the following crop policies for the:
(a) 1985 crop year: Corn, Grain Sorghum, Soybeans, Tobacco,
Raisins,
Peanuts, Tomatoes (Processing), Processing Sweet Corn, and
Potatoes. Premium reductions are based on insuring experience
through the 1983 crop year.
(b) 1986 crop year: Wheat, Barley, Flax, Oats, Rye, Sunflower
Seeds,
Almonds, Apples, Forage Production, Grapes, Peas, Dry Beans,
Peaches, and Sugar Beets in all states except Arizona and
California. Premium reductions are based on insuring experience
through the 1984 crop year.
(c) 1987 crop year: Sugarcane, AZ-CA Citrus and AZ-CA Sugar
Beets.
Premium reductions are based on insuring experience through the
1985 crop year.
(d) 1990 crop year: AUP Cotton and Rice. Premium reductions are
based
on insuring experience through the 1989 crop year. (e) 1990 crop
year: Florida Citrus. Premium reductions are based on
insuring experience through the 1988 crop year. (f) 1998 crop
year: Forage Seeding. Premium reductions are based on
insuring experience through the 1997 crop year and premium
adjustments for unfavorable experience have been discontinued.
No other crops have premium adjustments based on favorable
experience.
(3) Premium Adjustments for Favorable Experience. The insured's
premium is subject to a maximum credit of 50 percent for favorable
experience based on the Premium Adjustment Table. Premium
reductions are subject to the following conditions:
(a) Premium reductions will not increase because of additional
favorable
experience in later crop years.
(b) Premium reductions will decrease according to the Premium
Adjustment Table because of unfavorable experience in later crop
years.
(c) Once the insured's loss ratio exceeds 0.80, no premium
reduction is
applicable.
(d) Participation must be continuous. A break in insurance due
to active duty in the armed services is not considered a break in
participation for premium adjustment purposes.
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JUNE 2012 SECTION 4 FCIC 18010-02
25
4 ENDORSEMENTS AND OPTIONS Endorsements and/or options are
available for some CP that add supplemental coverage, exclude
coverage or otherwise modify coverage. An endorsement or option
generally must be applied for on or before the SCD. Endorsements
and options do not automatically transfer when a
cancellation/transfer is executed by the insured. Endorsements and
options must be specified on the Application or other applicable
forms if they are to be in effect for the current crop year. The
endorsements and/or options are not limited to those discussed in
this section. [Refer to Exh. 4A for a listing of applicable Options
and Endorsements]. The actuarial documents may also provide options
and endorsements that may be selected by the insured.
A Catastrophic Risk Protection Endorsement.
An endorsement that attaches to each crop policy and modifies
its terms and conditions when Catastrophic Risk Protection coverage
is elected. When elected, the endorsement:
(1) Limits the coverage level and price election.
(2) Restricts or changes the unit structure to BUs by share.
(3) Removes replant payment provisions.
(4) Does not allow the exclusion of hail and fire coverage.
(5) Removes the availability of WA.
(6) Excludes options or endorsements, except YA, Frost
Protection Option,
Table Grape Protective Cover Option and Sorghum Silage
Endorsement. B High-Risk Land Exclusion Option.
The BP provides insurance coverage on all insurable acres
planted to a crop in the county. When coverage and rates are
provided in the actuarial documents for high-risk land, insureds
are required to insure the high-risk land at an increased cost
reflective of the associated increase in risk. Insureds who do not
wish to insure high-risk land on an additional coverage policy may
amend the BP by signing and submitting the High-Risk Land Exclusion
Option (by crop(s) and policy) to the AIP.
Insureds are responsible to contact the FSA office for guidance
relating to any FSA programs that may require crop insurance
coverage prior to excluding acreage under the high-risk land
exclusion option.
(1) The High-Risk land Exclusion Option is designed to exclude
from additional
coverage all high-risk land by crop and county:
(a) For exclusion purposes, high-risk land is defined as land
which a high-risk classification is provided