2017 Crop Insurance Handbook (CIH) - USDA's Risk ... INSURANCE HANDBOOK Underwriting and Actual...

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Transcript of 2017 Crop Insurance Handbook (CIH) - USDA's Risk ... INSURANCE HANDBOOK Underwriting and Actual...

  • United States

    Department of

    Agriculture

    Federal Crop

    Insurance

    Corporation

    Risk

    Management

    Agency

    Product

    Administration

    and Standards

    Division

    FCIC 18010

    (06-2016)

    2017

    CROP INSURANCE

    HANDBOOK

    Underwriting and Actual Production History Standards for

    FCIC Programs Administered under the APH

    Administrative Regulations and the Basic Provisions for

    the Common Crop Insurance and Area Risk Protection

    Policies for 2017 and Succeeding Crop Years.

  • June 2016 FCIC 18010 TP-1

    UNDITED STATES DEPARTMENT OF AGRICULITURE

    RISK MANAGEMENT AGENCY

    KANSAS CITY, MO 64133

    TITLE: 2017 Crop Insurance Handbook NUMBER: FCIC 18010

    EFFECTIVE DATE: 2017 and

    Succeeding Crop Years

    ISSUE DATE: June 30, 2016

    SUBJECT:

    2017 Crop Insurance Handbook

    OPI: Product Administration and Standards Division

    APPROVED:

    /s/ Thomas W. Worth

    Acting Deputy Administrator for Product Management

    REASON FOR ISSUANCE

    This handbook provides the official FCIC approved underwriting standards for policies administered

    by AIPs for the General Administrative Regulations, 7 CFR Part 400, Subpart G; Common Crop

    Insurance Policy Basic Provisions, 7 CFR Part 457, and Area Risk Protection Regulations, 7 CFR Part

    407 for the 2017 and succeeding crop years for crops with a contract change date on or after the issue

    date.

  • June 2016 FCIC 18010 TP-2

    2017 CROP INSURANCE HANDBOOK

    CONTROL CHART

    TP

    Page(s)

    TC

    Page(s)

    Text

    Page(s)

    Exhibit

    Page(s) Date

    Directive

    Number

    Remove - - - - - -

    Insert - - - - - -

    Current

    Index 1-2 1-20 1-512 513-777 June 2016 18010

  • TABLE OF CONTENTS

    June 2016 FCIC 18010 TC-1

    PART 1 GENERAL INFORMATION

    1 General Information ......................................................................................................................... 1

    2 Responsibilities ................................................................................................................................ 3

    3 Title VI of the Civil Rights Act of 1964 .......................................................................................... 4

    4-200 (Reserved) ...................................................................................................................................... 4

    PARTS 2-8

    201-300 (Reserved) .................................................................................................................................. 5

    301-400 (Reserved) .................................................................................................................................. 7

    401-500 (Reserved) .................................................................................................................................. 9

    501-600 (Reserved) ................................................................................................................................ 11

    601-700 (Reserved) ................................................................................................................................ 13

    701-800 (Reserved) ................................................................................................................................ 15

    801-900 (Reserved) ................................................................................................................................ 17

    PART 9 ENDORSEMENTS AND OPTIONS

    901 General Information ....................................................................................................................... 19

    902 Catastrophic Risk Protection Endorsement ................................................................................... 19

    903 High-Risk Land Exclusion Option ................................................................................................ 20

    904 Hail and Fire Exclusion Option ..................................................................................................... 22

    905 Apple Fresh Fruit Quality Adjustment Option .............................................................................. 24

    906 Wheat or Barley Winter Coverage Endorsement .......................................................................... 25

    907 Dry Pea WCO ................................................................................................................................ 26

    908 Fresh Market Sweet Corn Minimum Value Option ...................................................................... 28

    909 Fresh Market Pepper Minimum Value Option .............................................................................. 29

    910 Fresh Market Tomato (Dollar Plan) Minimum Value Option ....................................................... 30

    911 Mint Winter Coverage Option ....................................................................................................... 31

    912 Northern Potato Policy Endorsements ........................................................................................... 32

    913 Fresh Pear Quality Adjustment Endorsement ................................................................................ 37

    914 Table Grape Protective Cover Option ........................................................................................... 37

    915 Contract Price Addendum (CPA) .................................................................................................. 38

    916 SCO Endorsement General Information and Requirements .......................................................... 43

    917 SCO Endorsement Acreage Reporting .......................................................................................... 47

    918 SCO Endorsement Determining Supplemental Protection and Indemnity .................................... 48

    919-1000 (Reserved) .............................................................................................................................. 50

    PART 10 UNITS

    Section 1 Basic Units

    1001 Availability .................................................................................................................................... 51

    1002 Premium Discount ......................................................................................................................... 51

    1003 CAT Endorsement ......................................................................................................................... 52

  • TABLE OF CONTENTS

    June 2016 FCIC 18010 TC-2

    PART 10 UNITS (Continued)

    Section 1 Basic Units (Continued)

    1004 APH Database Establishment ........................................................................................................ 52

    1005 APH Databases Below BU Level .................................................................................................. 52

    1006 Commingled Acres and Production ............................................................................................... 52

    1007-1020 (Reserved) ............................................................................................................................ 53

    Section 2 Optional Units

    1021 Availability .................................................................................................................................... 54

    1022 APH Database Below OU Level ................................................................................................... 58

    1023 Combination of OUs ...................................................................................................................... 58

    1024 OU Qualifications .......................................................................................................................... 58

    1025 Production Evidence ...................................................................................................................... 60

    1026 Assigned Yields ............................................................................................................................. 61

    1027 Determining OUs ........................................................................................................................... 62

    1028-1030 (Reserved) ............................................................................................................................ 62

    Section 3 Enterprise Units

    1031 Availability .................................................................................................................................... 63

    1032 EU Election .................................................................................................................................... 63

    1033 EU Qualifications .......................................................................................................................... 63

    1034 Reporting Requirements ................................................................................................................ 67

    1035 Discounts ....................................................................................................................................... 68

    1036 Added Land and New Crop P/T .................................................................................................... 68

    1037 Assigned Uni