Crop Insurance
What is a peril?
A possible cause of loss
What perils does Crop/Hail cover?
Hail, fire, lightning
What determines published Crop/Hail rates?
State, County, Township
Whose signatures are required on the Crop/Hail applica!on?
The applicant and the licensed insurance agent
How many seasons are Crop/Hail policies issued for?
1,3,5 seasons
When does the Crop/Hail policy take effect?
When the crop is clearly visible above ground
How long does the Insurer have to pay a Crop/Hail loss?
30 days a)er reaching an agreement with the Insured
Can the Insurer defer adjustment of a covered Crop/Hail loss?
The Insurer may defer adjustment of a covered loss un!l the actual loss can be determined.
When a Crop/Hail loss is paid, how much is available for future claims?
The amount available for future claims is reduced by the amount paid
If an Insured and an Insurer can't agree on the amount to be paid for a Crop/Hail loss, how is
the claim se-led?
Appraisal
How can an Insured assign their interest in the policy to another person in
a Crop/Hail policy?
Only by wri-en consent from the Insurer
How can an Insured assign their right to an indemnity to another person in
a Crop/Hail policy?
, Only on the Insurer's form and with the Insured's approval
What are the 5 standard exclusions in Crop/Hail policies?
1. Any loss that occurs before the applica!on is signed
2. Loss by any uninsured peril
3. Loss resul!ng from neglect or failure to harvest matured crops
4. Loss of any por!on of a crop recoverable by harves!ng equipment
5. Damage to the vegeta!ve or flowering por!on of a plant except when it results in loss to
the crop itself
What does Transit Coverage cover on a Crop/Hail policy?
the crop is insured against fire, lightning, wind, collision or overturn and collapse of bridges
while the harvested crop is being transported to its first place of storage (up to 50 miles)
How much coverage is there for Fire Department Service Charges on a Crop/Hail policy?
$250.00
In a Crop/Hail policy, if crops are damaged to the point replan!ng is necessary and possible,
how much will the Insurer reimburse?
The actual cost of replan!ng the crop, up to 20% of the insurance on the crop
In a Crop/Hail policy, how long does an Insured have to replant?
Up to 25 days
In a Crop/Hail policy, what is the "excess of loss" clause?
The deduc!ble, which is a % of the value insured instead of a fixed dollar amount
In a Crop/Hail policy, how many days does an Insured have to submit a no!ce of loss to
growing crops by hail to the Insurer?
No longer than 10 days a)er the occurrence
In a Crop/Hail Percentage Plan policy, how is indemnity computed?
The percentage of damage X the amount of coverage in the contract
What en!ty sets MPCI rates?
FCIC
When does MPCI coverage begin?
At plan!ng or seeding of the crop
How many years of produc!on records are considered when determining APH yield
for MPCI?
What is a peril?
A possible cause of loss
What perils does Crop/Hail cover?
Hail, fire, lightning
What determines published Crop/Hail rates?
State, County, Township
Whose signatures are required on the Crop/Hail applica!on?
The applicant and the licensed insurance agent
How many seasons are Crop/Hail policies issued for?
1,3,5 seasons
When does the Crop/Hail policy take effect?
When the crop is clearly visible above ground
How long does the Insurer have to pay a Crop/Hail loss?
30 days a)er reaching an agreement with the Insured
Can the Insurer defer adjustment of a covered Crop/Hail loss?
The Insurer may defer adjustment of a covered loss un!l the actual loss can be determined.
When a Crop/Hail loss is paid, how much is available for future claims?
The amount available for future claims is reduced by the amount paid
If an Insured and an Insurer can't agree on the amount to be paid for a Crop/Hail loss, how is
the claim se-led?
Appraisal
How can an Insured assign their interest in the policy to another person in
a Crop/Hail policy?
Only by wri-en consent from the Insurer
How can an Insured assign their right to an indemnity to another person in
a Crop/Hail policy?
, Only on the Insurer's form and with the Insured's approval
What are the 5 standard exclusions in Crop/Hail policies?
1. Any loss that occurs before the applica!on is signed
2. Loss by any uninsured peril
3. Loss resul!ng from neglect or failure to harvest matured crops
4. Loss of any por!on of a crop recoverable by harves!ng equipment
5. Damage to the vegeta!ve or flowering por!on of a plant except when it results in loss to
the crop itself
What does Transit Coverage cover on a Crop/Hail policy?
the crop is insured against fire, lightning, wind, collision or overturn and collapse of bridges
while the harvested crop is being transported to its first place of storage (up to 50 miles)
How much coverage is there for Fire Department Service Charges on a Crop/Hail policy?
$250.00
In a Crop/Hail policy, if crops are damaged to the point replan!ng is necessary and possible,
how much will the Insurer reimburse?
The actual cost of replan!ng the crop, up to 20% of the insurance on the crop
In a Crop/Hail policy, how long does an Insured have to replant?
Up to 25 days
In a Crop/Hail policy, what is the "excess of loss" clause?
The deduc!ble, which is a % of the value insured instead of a fixed dollar amount
In a Crop/Hail policy, how many days does an Insured have to submit a no!ce of loss to
growing crops by hail to the Insurer?
No longer than 10 days a)er the occurrence
In a Crop/Hail Percentage Plan policy, how is indemnity computed?
The percentage of damage X the amount of coverage in the contract
What en!ty sets MPCI rates?
FCIC
When does MPCI coverage begin?
At plan!ng or seeding of the crop
How many years of produc!on records are considered when determining APH yield
for MPCI?
