[Federal Register Volume 59, Number 96 (Thursday, May 19, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-12198]
[[Page Unknown]]
[Federal Register: May 19, 1994]
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DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
Approval of American Agrisurance, Inc.'s Market Value Protection
Supplemental Crop Insurance Program
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SUMMARY: The Food, Agriculture, Conservation, and Trade Act of 1990,
(Pub. L. 101-624) (the 1990 Farm Bill) authorizes The Federal Crop
Insurance Corporation (FCIC) to develop new products for reinsurance.
In accordance with the 1990 Farm Bill, FCIC has approved a Market Value
Protection (MVP) supplemental crop insurance policy submitted by
American Agrisurance, a managing general agency for Redland Insurance
Company. FCIC herewith gives notice of the terms and conditions for MVP
which will be available for use by private sector insurance companies.
FOR FURTHER INFORMATION CONTACT:
Mari L. Dunleavy, Regulatory and Procedural Development Staff, Federal
Crop Insurance Corporation, Washington, DC 20250, telephone (202) 254-
8319.
SUPPLEMENTARY INFORMATION: Pursuant to section 508(b)(4) of the Federal
Crop Insurance Act (7 U.S.C. 1508), as amended, FCIC is required to
publish or make available to all persons contracting with or reinsured
by FCIC any rates and provisions of policies approved by the
Corporation for reinsurance in the same manner as FCIC's standard
policies of insurance are published and made available.
FCIC has available upon written request, MVP underwriting rules,
and rate factors. Also available are the terms and conditions of the
reinsurance agreement with American Agrisurance. Requests for such
information should be sent to Mari L. Dunleavy, Regulatory and
Procedural Development Staff, Federal Crop Insurance Corporation,
Washington, DC 20250, telephone (202) 254-8319.
Notice: The terms and provisions for the MVP policy of American
Agrisurance, mandatory state endorsements, and crop endorsements are as
follows:
Market Value Protection Policy
Article I--Insuring Agreement
In return for the premium and compliance with all the terms and
conditions set forth in this Policy, We will, on acceptance of Your
application and receipt of Your premium payment by Us, provide the
insurance described in this Policy for Your Crop(s).
Article II--Companion Coverage
This Market Value Protection Policy provides coverage in
conjunction with the Multiple Peril Crop Insurance Policy specified in
the Summary of Coverage (``MPCI Policy'') and provides the coverage
described herein on the Crop(s) only in the event that a MPCI Policy
Indemnity Payment is made to You in regard to such Crop(s).
Article III--Terms and Conditions
Cause of Loss
A. Losses Insured Against.
Subject to any and all other exceptions, exclusions, and
limitations contained in this Policy, the insurance provided is against
such losses as specifically set forth in the endorsements to this
policy
B. Losses Not Insured Against.
We do not cover any loss, as determined by Us, resulting from the
following:
1. Your neglect, mismanagement, malfeasance, or wrongdoing, including
any member of Your household, Your tenants, Your agents, any
independent contractor retained by You, or Your employees.
2. Any dishonest or fraudulent act by You or by any partner, joint
venture, officer, director or trustee, agent, or employee of Yours,
whether acting alone or with others.
3. Any Cause of Loss not specified as a Cause of Loss Insured Against
under this Policy.
Crop and Acreage Insured
You must purchase coverage for all eligible acreage in the county
of the Crop(s) insured. The insurance provided by this Policy shall not
attach or be effective and no indemnity shall be payable if all the
eligible acreage of the Crop(s) in the county is not insured under this
Policy.
Premium
The premium for this Policy shall be calculated in accordance with
Our rates, rules and underwriting guidelines with the applicable rate
being the rate in effect for Us for the current growing season as a
percentage of the MPCI Policy rate. In no event shall the premium be
less than $100.00 which is the minimum premium payable by You.
The premium is earned at the time Your application is accepted by
Us.
Total actual premium due will be calculated based upon the acreage
report submitted by You to Us. We will invoice you for the total actual
premium and the total actual premium owing under this policy shall be
payable within 15 days after the due date for Your MPCI policy (October
1 for spring seeded crops; July 1 for fall seeded crops).
Any amount owed to Us under this Policy may be deducted from any
payments to You under the provisions of this Policy.
Insurance Period
Coverage under this Policy shall become effective on the happening
of all of the following:
A. The MPCI Policy being issued and being in full force and effect;
B. Your application for coverage under this Policy being accepted
by Us. Your application shall be deemed accepted by Us upon Our mailing
You a written Notice of Acceptance; and
Coverage under this Policy shall terminate as to each Farm Unit of
an insured Crop on the earlier of:
A. Termination or cancellation of coverage under the MPCI Policy in
which event coverage under this Policy shall terminate immediately and
automatically;
B. The date on which the insurance period ends and coverage expires
on such Farm Unit under your MPCI policy as set forth in the special
provisions of Your MPCI Policy.
The ``Insurance Period'' shall be the period during which the
insurance coverage under this Policy is in effect.
Although your MPCI policy is a continuous policy. This policy is
not a continuous policy. This policy does not provide continuous
coverage. The coverages provided for each crop must be renewed each
crop year. You must renew the coverage for each crop insured hereunder
no later than the date set forth in the endorsement for each such crop.
Article IV--Duties After Loss
Your Duties
A. In the event of an occurrence causing a loss to the Crop(s) for
which You make a claim for a MPCI Policy Indemnity Payment, You must:
1. Give Us written notice of such loss within fifteen (15) days
after such loss;
2. Upon Our request, submit to an examination under oath; and
3. Within thirty (30) days after the loss, unless We extend such
time in writing, submit to Us a written statement in proof of loss
signed by You declaring the loss and Your share in the Crop(s).
B. It shall be a condition precedent to the payment of any
indemnity that You make available to Us or authorize Us, in writing, to
obtain any and all records, documents, and information requested by Us
to permit Us to verify and substantiate the loss to the Crop(s) as well
as any proof of loss submitted by You under the MPCI Policy and the
handling, adjustment, and payment to You of any loss under the MPCI
Policy.
C. We may reject any claim for indemnity submitted and no indemnity
payment will be made if any of the requirements of this section are not
met.
Our Duties
A. We will adjust all losses that are timely reported to Us in
writing;
B. We will adjust any loss in regard to any Crop when You receive a
MPCI Policy Indemnity Payment in regard to a loss to that Crop under
the MPCI Policy, and the amount of the indemnity, if any, under this
Policy can be determined.
C. We will pay Your loss within thirty (30) days after:
1. We reach agreement with You;
2. The entry of a final court judgment; or
3. The filing of any appraisal award with Us.
Article V--Claim for Indemnity
Claim
In regard to any claim for indemnity as to any Crop insured under
this Policy, You shall establish:
A. That You sustained a Crop production loss to such Crop caused by
an insured peril under the MPCI Policy;
B. That You received a MPCI Policy Indemnity Payment in regard to
the production loss to such Crop; and
C. The amount of the MPCI Policy Indemnity Payment You received. No
indemnity shall be payable under this Policy as to a Crop unless and
until You receive a MPCI Policy Indemnity Payment, as a result of a
loss to that Crop under the MPCI Policy.
Indemnity Payment
A. The indemnity payable to You, if any, under this Policy shall be
determined separately for each Crop, as specifically provided in the
endorsements to this Policy.
B. All loss adjustments are subject to inspection, revision and/or
recalculation by Us and shall be finally accepted by Us only after the
content of the relevant adjustment forms have been found complete and
correct by Us. We will be entitled to correct any erroneously paid
claims and recover any amount paid to You in excess of the correct
indemnity payable hereunder.
C. Notwithstanding any other provision in this policy to the
contrary, the maximum indemnity to be paid hereunder as to any one crop
is limited to and shall not in any event exceed 100% of the total
maximum coverage as stated in the summary of coverage.
Article VI--Appraisal
If You and We fail to agree on the total indemnity payable to You
for any Crop, either one can ask that the Indemnity be set by
appraisal. The appraisal process is as follows:
A. To start appraisal either You or We must make the request in
writing to the other.
B. You and We must choose an independent appraiser and give the
name and address of that appraiser to the other. This must be done
within ten (10) days after the request for appraisal is received.
C. The two appraisers must select an impartial umpire. If they do
not agree on an umpire within five (5) days, either You or We may have
an umpire appointed by a Court located in the same state as the Crop.
D. The appraisers will then determine the total indemnity payable
and give Us a written report of their agreement. You will also get a
copy of the report. The Indemnity they agree on will constitute the
appraisal award which will be the total indemnity payable to You.
E. If the appraisers fail to agree within a reasonable time, they
will give the umpire a statement of their differences. Then the umpire
will join in the procedure. A written agreement signed by any two of
the three will constitute the appraisal award which will be the total
indemnity payable to You.
You will pay Your appraiser and We will pay Ours. The unpire's fee
and any other appraisal expenses will be shared equally by You and Us.
Article VII--Subrogation
Because You may be able to recover all or part of Your loss from
someone other than Us, You must do all You can to preserve any such
rights. If We pay for a loss, then any right to recovery will belong to
Us. If We recover more than We paid, plus Our expenses, the excess will
be paid to You.
Article VII--Prorata Liability
We will not be liable for a greater proportion of any loss than the
amount hereby insured shall bear to the whole insurance covering the
Crop insured against the peril involved, whether collectible or not.
Article IX--Assignment
Assignment of any interest under this policy shall not bind Us
until our consent is endorsed hereon.
Article X--Waiver or Change of Policy Provisions
A waiver or change of any provision must be in writing and approved
by Us. Our request for an appraisal or examination will not waive any
of Our rights.
Article XI--Concealment or Fraud
We do not provide coverage for any insured who has intentionally
concealed or mispresented any material fact or circumstances relating
to this insurance, either before or after a loss.
Article XII--Conformity to Statutes
If any terms of this Policy are in conflict with statutes of the
state in which this Policy is issued, the Policy will conform to such
statutes.
Article XIII--Suit Against Us
You cannot bring suit or action against Us unless You have complied
with all of the Policy provisions. If You do enter suit against Us, You
must do so within twelve (12) months of the occurrence causing loss or
damage. (State law exceptions to the twelve (12) months limitation, if
any, are contained in Mandatory Endorsement.)
Throughout this Policy ``You'' and ``Your'' refer to the ``Named
Insured'' shown in the Application of Summary of Coverage, and ``We'',
``Us'' and ``Our'' refer to the Company providing this insurance.
A. ``Insured'' means You.
B. ``Summary of Coverage'' means the Summary provided by Us to You
which summarizes Your coverage under this Policy based on information
provided by You to Us.
C. ``MPCI Policy'' means the Multiple Peril Crop Insurance policy
specifically designated by policy number and issuing company as the
MPCI Policy in the Summary of Coverage.
D. ``Crop(s)'' means the Crop(s) insured under Your MPCI Policy
which you have elected, by specific endorsement, to have insured under
this policy as shown in the Summary of Coverage.
E. ``MPCI Policy Indemnity Payment'' means the indemnity payment
made to You under the MPCI Policy as the result of a Crop production
loss resulting from peril(s) insured against under the MPCI Policy
which has been properly issued and is in full force and effect at the
time of such production loss, all as determined by Us. MPCI Policy
Indemnity Payment does not include any payment, made under the MPCI
Policy, for replanting the Crop(s).
If a dispute arises between You and the Company issuing the MPCI
Policy as to the payment of any indemnity to be made to You under the
MPCI Policy and You receive a payment under the MPCI Policy as the
result of an appraisal award, the entry of a final court judgment, or a
settlement agreement between You and the Company issuing the MPCI
Policy, the payment received by You will be deemed to be an MPCI Policy
Indemnity Payment to the extent that it is directly related to the
contract indemnity to be paid to You under the terms of the MPCI
Policy. Any award or payment in the nature of punitive damages,
incidental or consequential damages, interest, court costs, or
attorney's fees shall not be characterized as or included in the
determination of the MPCI Policy Indemnity Payment.
F. ``MPCI Policy Crop Price Election'' means the price election
chosen by You for the Crop(s) under the terms of the MPCI Policy.
G. ``Notice of Acceptance'' means written notice by Us to You that
the insurance coverage applied for has been accepted by Us and is in
effect.
H. ``Farm Unit'' shall have the same meaning as that term is
defined in the MPCI Policy.
MVP Mandatory State Endorsements
Arkansas Mandatory Endorsement
Name Insured:
Policy Period:
Insured by (Insurance Company):
Endorsement Number:
Policy Number:
Effective Date of Endorsement:
The above needs to be completed only when this endorsement is
issued subsequent to preparation and issuance of the Market Value
Protection Policy.
In compliance with the insurance laws of the State of Arkansas, the
following provisions are added to the Policy. In the event that similar
provisions are already contained in the Policy, which are inconsistent
with the provisions of this endorsement, the provisions of this
endorsement shall take precedence over such similar provisions.
How this endorsement affects your coverage.
Article XIII--SUIT AGAINST US is deleted in its entirety and the
following new Article XIII--SUIT AGAINST US is substituted in lieu
thereof:
Article XIII--SUIT AGAINST US
You cannot bring suit against Us unless You have complied with all
of the Policy provisions. If You do enter suit against Us, You must do
so within ten (10) years of the occurrence causing loss or damage.
Article VI--APPRAISAL is amended by adding a paragraph ``F''
immediately following paragraph ``E'' of Article VI, as follows:
F. This appraisal process is voluntary and any appraisal award will
not be binding on either You or Us.
All other terms and conditions of the Policy and all other
endorsements to the Policy remain unchanged.
Kansas Mandatory Endorsement
Name Insured:
Policy Period:
Insured by (Insurance Company):
Endorsement Number:
Policy Number:
Effective Date of Endorsement:
The above needs to be completed only when this endorsement is
issued subsequent to preparation and issuance of the Market Value
Protection Policy.
In compliance with the insurance laws of the State of Kansas, the
following provisions are added to the Policy. In the event that similar
provisions are already contained in the Policy, which are inconsistent
with the provisions of this endorsement, the provisions of this
endorsement shall take precedence over such similar provisions.
How this endorsement affects your coverage:
Article XIII--SUIT AGAINST US is deleted in its entirety and the
following new Article XIII--SUIT AGAINST US is substituted in lieu
thereof:
Article XIII--SUIT AGAINST US
You cannot bring suit or action against Us unless You have complied
with all of the Policy provisions. If You do enter suit against Us, You
must do so within sixty (60) months of the occurrence causing loss or
damage.
Article III--TERMS AND CONDITIONS is amended by adding the
following new unnumbered paragraph at the end thereof:
If coverage under this Policy is terminated due to termination or
cancellation of coverage under the MPCI Policy, and prior to such
termination You sustained a loss under the MPCI Policy, We will adjust
the loss under this Policy when You receive Your MPCI Policy Indemnity
Payment and the amount of the indemnity under this Policy can be
determined.
Article III--TERMS AND CONDITIONS, Premium section, is amended by
deleting the last sentence from the second paragraph which states as
follows:
``In no event shall the premium be less than $100.00 which is the
minimum premium payable by You.''
All other terms and conditions of the Policy and all other
endorsements to the Policy remain unchanged.
Michigan Mandatory Endorsement
Name Insured:
Policy Period:
Insured by (Insurance Company):
Endorsement Number:
Policy Number:
Effective Date of Endorsement:
The above needs to be completed only when this endorsement is
issued subsequent to preparation and issuance of the Market Value
Protection Policy.
In compliance with the insurance laws of the State of Michigan, the
following provisions are added to the Policy. In the event that similar
provisions are already contained in the Policy, which are inconsistent
with the provisions of this endorsement, the provisions of this
endorsement shall take precedence over such similar provisions.
Cancellation and Premium Refund
You may cancel this Policy at any time by giving Us written notice
and returning the policy to Us.
If You cancel, We will refund the premium You have paid for the
current season, if any, according to the following tables:
For Spring Seeded Crops:
------------------------------------------------------------------------
Percent
of paid
For policies canceled during period of premium
to be
returned
------------------------------------------------------------------------
January, February, March, April............................... 75
May 1 through May 14.......................................... 50
May 15 through May 31......................................... 25
After May 31.................................................. 0
------------------------------------------------------------------------
For Fall Seeded Crops:
------------------------------------------------------------------------
Percent
of paid
For policies canceled during period of premium
to be
returned
------------------------------------------------------------------------
July, August, September....................................... 75
October 1 through October 14.................................. 50
October 15 through October 31................................. 25
After November 1.............................................. 0
------------------------------------------------------------------------
All other terms and conditions of the Policy and any endorsements
to the Policy remain unchanged.
Minnesota Mandatory Endorsement
Name Insured:
Policy Period:
Insured by (Insurance Company):
Endorsement Number:
Policy Number:
Effective Date of Endorsement:
The above needs to be completed only when this endorsement is
issued subsequent to preparation and issuance of the Market Value
Protection Policy.
In compliance with the insurance laws of the State of Minnesota,
the following provisions are added to the Policy. In the event that
similar provisions are already contained in the Policy or in any other
endorsements to the Policy, which are inconsistent with the provisions
of this endorsement, the provisions of this endorsement shall take
precedence over such similar provisions.
How this endorsement affects your coverage:
Paragraph ``C'' of the ``Our Duties'' section of Article IV--
``Duties After Loss'' is deleted in its entirety and the following new
paragraph ``C'' is substituted in lieu thereof:
C. We will pay Your loss within five (5) days after:
1. We reach agreement with You; or
2. The entry of a final court judgement; or
3. The filing of an appraisal award with Us; and
4. The company has completed the audit process on the loss.
Under Paragraph ``A'' of the Indemnity Payment'' section of Article
V of the Policy and all specific Crop Loss Endorsements to the Policy,
the following shall apply:
A. In calculating the indemnity payable to You, if any, for any
loss to any Wheat Crop the ``Average Daily Settlement Price'' shall
mean the average derived by totalling the Minneapolis Grain Exchange
commodity futures daily final closing settlement price for wheat for
each full active trading day during the month and dividing this sum by
the number of full active trading days during the month. For purposes
of determining the Average Daily Settlement Price, there must be
fifteen (15) or more full active trading days during the applicable
month. If there are fourteen (14) or less full active trading days
during the applicable month, such immediately preceding consecutive
full active trading days from the previous month(s) as are necessary
will be added to the applicable months' trading days until fifteen (15)
full active trading days are available to determine the Average Daily
Settlement Price.
A full active trading day is any trading day on the Minneapolis
Grain Exchange commodity futures market during which more than fifty
(50) wheat futures contracts are traded.
In the event that trading on the Minneapolis Grain Exchange
commodity futures market for wheat is suspended or terminated so that
for purposes of determining the Average Daily Settlement Price there
are fourteen (14) or less full active trading days during the
applicable month, such immediately preceding consecutive full active
trading days from the previous month(s) as are necessary will be added
to the applicable months' trading days until fifteen (15) full active
trading days are available to determine the Average Daily Settlement
Price.
B. In calculating the indemnity payable to You, if any, for any
loss to any Crop other than Wheat, the ``Average Daily Settlement
Price'' for such Crop shall mean the average derived by totalling the
Chicago Board of Trade commodity futures daily final closing settlement
price for such Crop for each full active trading day during the month
and dividing this sum by the number of full active trading days during
the month. For purposes of determining the Average Daily Settlement
Price for any such Crop, there must be fifteen (15) or more full active
trading days during the applicable month. If there are fourteen (14) or
less full active trading days during the applicable month for such
Crop, such immediately preceding consecutive full active trading days
from the previous month(s) as are necessary will be added to the
applicable months' trading days until fifteen (15) full active trading
days are available to determine the Average Daily Settlement Price for
such Crop. A full active trading day is any trading day on the Chicago
Board of Trade commodity futures market during which more than fifty
(50) futures contracts are traded for such Crop.
In the event that trading on the Chicago Board of Trade commodity
futures market for any such Crop is suspended or terminated so that for
purposes of determining the Average Daily Settlement Price there are
fourteen (14) or less full active trading days during the applicable
month, such immediately preceding consecutive full active trading days
from the previous month(s) as are necessary will be added to the
applicable months' trading days until fifteen (15) full active trading
days are available to determine the Average Daily Settlement Price for
such Crop.
Article VII--SUBROGATION is amended by adding the following new
paragraph at the end thereof:
We may not proceed against You in a subrogation action where the
loss was caused by Your nonintentional acts. Additionally, We may not
subrogate to Your rights to proceed against another person if that
person is insured by Us for the same loss, if the loss was caused by
the nonintentional acts of the person against whom subrogation is
sought. This provision shall not prevent Us from allocating losses
internally to the at-fault insured for purposes of underwriting,
agency, and claims information.
Article XIII--SUIT AGAINST US is deleted in its entirety and the
following new Article XIII--SUIT AGAINST US is substituted in lieu
thereof:
Article XIII--Suit Against US
You cannot bring suit against Us unless You have complied with all
of the Policy provisions. If You do enter suit against Us, You must do
so within twenty-four (24) months of the occurrence causing loss or
damage.
All other terms and conditions of the Policy and all other
endorsements to the Policy remain unchanged.
Missouri Mandatory Endorsement
Name Insured:
Policy Period:
Insured by (Insurance Company):
Endorsement Number:
Policy Number:
Effective Date of Endorsement:
The above needs to be completed only when this endorsement is
issued subsequent to preparation and issuance of the Market Value
Protection Policy.
In compliance with the insurance laws of the State of Missouri, the
following provisions are added to the Policy. In the event that similar
provisions are already contained in the Policy, which are inconsistent
with the provisions of this endorsement, the provisions of this
endorsement shall take precedence over such similar provisions.
How this endorsement affects your coverage:
Article XIII--SUIT AGAINST US is deleted in its entirety and the
following new Article XIII--SUIT AGAINST US is substituted in lieu
thereof:
Article XIII--SUIT AGAINST US
You cannot bring suit against Us unless You have complied with all
of the Policy provisions. If You do enter suit against Us, You must do
so within ten (10) years of the occurrence causing loss or damage.
All other terms and conditions of the Policy and any endorsements
to the Policy remain unchanged.
Montana Mandatory Endorsement
Name Insured:
Policy Period:
Insured by (Insurance Company):
Endorsement Number:
Policy Number:
Effective Date of Endorsement:
The above needs to be completed only when this endorsement is
issued subsequent to preparation and issuance of the Market Value
Protection Policy.
In compliance with the insurance laws of the State of Montana, the
following provisions are added to the Policy. In the event that similar
provisions are already contained in the Policy or any other endorsement
to the Policy, which are inconsistent with the provisions of this
endorsement, the provisions of this endorsement shall take precedence
over such similar provisions.
How this endorsement affects your coverage:
Under Paragraph ``A'' of the ``Indemnity Payment'' section of the
Policy, and for all specific Crop Endorsements to the Policy, in
calculating the indemnity payable to You for any loss to any Crop, the
following shall apply:
A. The ``Average Daily Settlement Price'' for each Crop shall mean
the average derived by totaling the Chicago Board of Trade commodity
futures daily final closing settlement price for such Crop for each
full active trading day during the month and dividing this sum by the
number of full active trading days during the month. For purposes of
determining the average Daily Settlement Price, there must be fifteen
(15) or more full active trading days during the applicable month. If
there are fourteen (14) or less full active trading days during the
applicable month, such immediately preceding consecutive full active
trading days from the previous month(s) as are necessary will be added
to the applicable months' trading days until 15 full active trading
days are available to determine the Average Daily Settlement Price. A
full active trading day for determining the Average Settlement Price
for any Crop is any trading day on the Chicago Board of Trade commodity
futures market during which more than 50 wheat futures contracts are
traded.
In the event that trading on the Chicago Board of Trade futures
market for any such Crop is suspended or terminated so that for
purposes of determining the Average Daily Settlement Price there are
fourteen (14) or less full active trading days during the applicable
month, such immediately preceding consecutive full active trading days
from the previous month(s) as are necessary will be added to the
applicable months' trading days until 15 full active trading days are
available to determine the Average Daily Settlement Price.
B. To the extent that the provisions already contained in the
Policy or in any of the specific Crop Endorsements are inconsistent
with the provisions of Paragraph ``A'' above, the provisions of
Paragraph ``A'' above shall supersede and take precedence over such
inconsistent provisions.
All other terms and conditions of the Policy and all other
endorsements to the Policy remain unchanged.
Nebraska Mandatory Endorsement
Name Insured:
Policy Period:
Insured By (Insurance Company:)
Endorsement Number:
Policy Number:
Effective Date of Endorsement:
The above needs to completed only when this endorsement is
issued subsequent to preparation and issuance of the Market Value
Protection Policy.
In compliance with insurance laws of the State of Nebraska, the
following provisions are added to the Policy. In the event that similar
provisions are already contained in the Policy, which are inconsistent
with the provisions of this endorsement, the provisions of this
endorsement shall take precedence over such similar provisions.
How this endorsement affects your coverage:
Article VI--APPRAISAL is amended by deleting paragraphs ``A'' and
``B'' thereof in their entirety and substituting in lieu thereof the
following:
A. To start appraisal either You or We must make the request in
writing to the other. The party to whom the request is made must agree
in writing to the appraisal process.
B. Within ten (10) days after the party to whom the request is made
agrees to the appraisal process, You and We must choose an independent
appraiser and give the name and address of that appraiser to the other.
Article XI--CONCEALMENT OR FRAUD is deleted in its entirety and the
following new Article XI--CONCEALMENT OR FRAUD is substituted in lieu
thereof:
Article XI-Concealment or Fraud
Any misrepresentation or warranty made by You or on Your behalf in
the negotiation or application of this Policy or contract of insurance
shall defeat or void the Policy or contract or affect Our obligation
under the Policy or contract if such misrepresentation or warranty:
(1) Was material;
(2) Was made knowingly with the intent to deceive;
(3) Was relied and acted upon by Us; and
(4) Deceived Us to Our injury.
The breach of a warranty or condition in any contract or policy of
insurance shall not void the Policy or allow Us to avoid liability
unless such breach exists at the time of the loss and contributes to
the loss.
All other terms and conditions of the Policy and any other
endorsements to the policy remain unchanged.
North Carolina Mandatory Endorsement
Name Insured:
Policy Period:
Insured by (Insured Company):
Endorsement Number:
Policy Number:
Effective Date of Endorsement:
The above needs to be completed only when this endorsement is
issued subsequent to preparation and issuance of the Market Value
Protection Policy.
In compliance with the insurance laws of the State of North
Carolina, the following provisions are added to the Policy. In the
event that similar provisions are already contained in the Policy,
which are inconsistent with the provisions of this endorsement, the
provisions of this endorsement shall take precedence over such similar
provisions.
How this endorsement affects you coverage:
Article XII--SUIT AGAINST US is deleted in its entirety and the
following new Article XII--SUIT AGAINST US IS substituted in lieu
thereof:
Article XII-SUIT AGAINST US
You cannot bring suit against Us unless You have complied with all
the Policy provisions. If You do enter suit against Us, You must do so
within ten (10) years of the occurrence causing loss or damage.
All other terms and conditions of the Policy and any endorsements
of the Policy remain unchanged.
Washington Mandatory Endorsement
Name Insured:
Policy Period:
Insured By (Insurance Company):
Endorsement Number:
Policy Number:
Effective Date of Endorsement:
The above needs to be completed only when this endorsement is
issued subsequent to preparation and issuance of the Market Value
Protection Policy.
In compliance with the insurance of laws of the State of
Washington, the following provisions are added to the Policy. In the
event that similar provisions are already contained in the Policy,
which are inconsistent with the provisions of this endorsement, the
provisions of this endorsement shall take precedence over such similar
provisions.
How this endorsement affects your coverage:
Article III--TERMS AND CONDITIONS, Insured Period section, second
paragraph ``A'' is amended to read as follows:
A. Termination or cancellation of coverage under the MPCI Policy in
which event coverage under this Policy shall terminate as dictated by
the following rules: In the event that:
(a) You fail to pay the premium, We may cancel this Policy with ten
(10) days written notice of cancellation to the insured and also to any
person shown by the policy to have an interest in any loss which may
occur thereunder.
(b) You have perpetrated a fraud or material misrepresentation upon
Us, We may cancel this Policy with twenty (20) days written notice of
cancellation.
Article X--WAIVER OR CHANGE OF POLICY PROVISIONS is deleted in its
entirety and the following new Article X--WAIVER OR CHANGE OF POLICY
PROVISIONS is substituted in lieu thereof:
Article X--Waiver or Change of Policy Provisions
A waiver or change of any provision must be in writing and approved
by Us. Our request for an appraisal or examination will not result in a
waiver of any of Our rights or any of Your rights.
All other terms and conditions of the Policy and any other
endorsements to the Policy remain unchanged.
Wisconsin Mandatory Endorsement
Name Insured:
Policy Period:
Insured By (Insurance Company):
Endorsement Number:
Policy Number:
Effective Date of Endorsement:
The above needs to be completed only when this endorsement is
issued subsequent to preparation and issuance of the Market Value
Protection Policy.
In compliance with the insurance laws of the State of Wisconsin,
the following provisions are added to the Policy. In the event that
similar provisions are already contained in the Policy, which are
inconsistent with the provisions of this endorsement, the provisions of
this endorsement shall take precedence over such similar provisions.
Notice of Loss
You must provide to Us written notice of loss within fifteen (15)
days and proof of loss within thirty (30) days, or as soon as is
reasonably possible, after such loss. Failure by You to give us such
notice does not invalidate or reduce Your claim unless We are
prejudiced by Your failure to give Us such notice.
Subrogation
We shall be entitled to seek subrogation as to any recovery made by
You from a third party only to the extent that the total amount
recovered by You from such third party together with any indemnity paid
to You by Us hereunder exceeds all damages sustained by You.
Knowledge of Agent
Knowledgeable by Our agent of any fact which breaches a condition
of this Policy shall be knowledge by Us if such fact is known to the
agent at the time this Policy is issued or an application made or
thereafter becomes known to the agent in the course of his dealings as
an agent with you. Any fact which breaches a condition of this Policy
and is known to the agency shall not void this Policy or defeat a
recovery thereon in the event of loss.
Misrepresentation and Breach of Warranty
No misrepresentation or breach of affirmative warranty made by You
or on Your behalf in the negotiation of this Policy affects Our
obligation under this Policy unless We rely on it and it is either
material or made with intent to deceive, or unless the facts
misrepresented or falsely warranted contribute to the loss. No failure
of a condition prior to the loss and no breach of a promissory warrant
affects Our obligation under this Policy unless it exists at the time
of the loss and either increases the risk at the time of loss or
contributes to the loss. The provisions of this condition do not apply
to failure to tender payment of premium.
All other terms and conditions of the Policy and any other
endorsements to the Policy remain unchanged.
Wyoming Mandatory Endorsement
Name Insured:
Policy Period:
Insured By (Insurance Company):
Endorsement Number:
Policy Number:
Effective Date of Endorsement:
The above needs to be completed only when this endorsement is
issued subsequent to preparation and issuance of the Market Value
Protection Policy.
In compliance with the insurance of laws of the State of Wyoming,
the following provisions are added to the Policy. In the event that
similar provisions are already contained in the Policy, which are
inconsistent with the provisions of this endorsement, the provisions of
this endorsement shall take precedence over such similar provisions.
How this endorsement affects your coverage:
Article IV--DUTIES AFTER LOSS, Our Duties section, Paragraph ``C'',
is deleted in its entirety and the following new Paragraph ``C'' is
substituted in lieu thereof:
C. We will pay Your loss within forty-five (45) days after You
receive an MPCI Policy Indemnity Payment in regard to a loss under the
MPCI Policy and the amount of the indemnity under this Policy can be
determined.
Article XIII--SUIT AGAINST US is deleted in its entirety and the
following new Article XIII--SUIT AGAINST US is substituted in lieu
thereof:
Article XIII--Suit Against Us
You cannot bring suit against Us unless You have complied with all
of the policy provisions. If You do enter suit against Us, You must do
so within four (4) years from the date of discovery of the loss.
All other terms and conditions of the Policy and all other
endorsements to the Policy remain unchanged.
MVP Crop Endorsements
Corn Endorsement
Name Insured:
Policy Period:
Insured by (Insurance Company):
Endorsement Number:
Policy Number:
Effective Date of Endorsement:
The above needs to be completed only when this endorsement is
issued subsequent to preparation and issuance of the market Value
Protection Policy.
How this endorsement effects your coverage:
The Losses Insured Against under the ``Cause of Loss'' Section of
Article III of the Policy shall include:
Unavoidable financial loss resulting directly from an increase in
the Chicago Board of Trade futures settlement prices for Corn, as
specifically set forth in this endorsement and the Policy, and provided
that You sustain a Corn production loss, during the Insurance Period,
caused by an insured peril(s) under the MPCI Policy and an MPCI Policy
Indemnity Payment is made to You.
Under paragraph ``A'' of the ``Indemnity Payment'' Section of
Article V of the Policy, the indemnity payable to You for loss to Your
corn Crop shall be calculated as follows:
A. As to any loss under the MPCI Policy, during the Insurance
Period, to any Corn Crop:
1. Ninety-five percent (95%) of the November Average Daily
Settlement Price for corn to be delivered during the month of December,
of the then current crop year, shall be established (hereinafter the
``Corn Futures Price'');
2. The ``Corn Base Price'' shall be established as the highest MPCI
Policy Crop Price Election for corn available under the MPCI Policy for
the then current crop year.
3. The Corn Base Price shall be subtracted from the Corn Futures
Price to determine the ``Corn Price Change''.
4. The ``Maximum Price Change'' per bushel shall be that amount
selected by You ($0.75, $1.00, or $1.50 per bushel) on Your application
for coverage and shown on the Summary of Coverage provided by Us to
You.
5. The ``Indemnity Per Bushel'' shall be the lesser of: a. The Corn
Price Change; and b. The Maximum Price Change.
6. The MPCI Policy Indemnity Payment shall be divided by Your MPCI
Policy Crop Price Election for corn to determine the ``Corn Production
Loss'' in bushels;
7. The Indemnity Per Bushel shall be multiplied by the Corn
Production Loss to determine the total indemnity to be paid to You.
B. ``Average Daily Settlement Price'' means the average derived by
totaling the Chicago Board of Trade commodity futures daily final
closing settlement price for corn for each full active trading day
during the month and dividing this sum by the number of full active
trading days during the month. For purposes of determining the Average
Daily Settlement Price, there must be fifteen (15) or more full active
trading days during the applicable month. If there are fourteen (14) or
less full active trading days during the applicable month as to corn,
no indemnity shall be payable as to Your Corn Crop. A full active
trading day is any trading day on the Chicago Board of Trade commodity
futures market during which more than 50 corn futures contracts are
traded.
C. In the event that trading on the Chicago Board of Trade
commodity futures market for corn is suspended or terminated so that
for purposes of determining the Average Daily Settlement Price for corn
there are fourteen (14) or less active trading days during the
applicable month, no indemnity shall be payable under this Policy as to
Your Corn Crop, and that portion of the Premium paid by You which is
applicable to Your Corn Crop shall be refunded by Us.
Pursuant to the ``Insurance Period'' Section of Article III of the
Policy:
THE COVERAGE PROVIDED BY THE POLICY AND THIS ENDORSEMENT FOR YOUR
CORN CROP IS NOT CONTINUOUS. YOU MUST RENEW THE COVERAGE PROVIDED BY
THE POLICY AND THIS ENDORSEMENT ON YOUR CORN CROP NO LATER THAN APRIL
15 OF EACH YEAR FOR COVERAGE TO BE EFFECTIVE FOR THE SUCCEEDING YEAR.
COTTON ENDORSEMENT
Name Insured:
Policy Period:
Insured by (Insurance Company):
Endorsement Number:
Policy Number:
Effective Date of Endorsement:
The above needs to be completed only when this endorsement is
issued subsequent to preparation and issuance of the market Value
Protection Policy.
How this endorsement effects your coverage:
The Losses Insured Against under the ``Cause of Loss'' Section of
Article III of the Policy shall include:
Unavoidable financial loss resulting directly from an increase in
the New York Cotton Exchange commodity futures settlement prices for
Cotton as specifically set forth in this endorsement and the Policy,
and provided that You sustain a Cotton production loss, during the
Insurance Period, caused by an insured peril(s) under the MPCI Policy
and an MPCI Policy Indemnity Payment is made to You.
Under paragraph ``A'' of the ``Indemnity Payment'' Section of
Article V of the Policy, the indemnity payable to You for loss to Your
Cotton Crop shall be calculated as follows:
A. As to any loss under the MPCI Policy, during the Insurance
Period, to any Cotton Crop:
1. Ninety-five percent (95%) of the November Average Daily
Settlement Price for Cotton to be delivered during the month of
December, of the then current crop year, shall be established
(hereinafter the ``Cotton Futures Price'');
2. The ``Cotton Base Price'' shall be established as the highest
MPCI Policy price election for Cotton available under the MPCI Policy,
for the then current crop year, for the Farm Unit on which the Cotton
Crop suffering the loss is located.
3. The Cotton Base Price shall be subtracted from the Cotton
Futures Price to determine the ``Cotton Price Change''.
4. The ``Maximum Price Change'' per pound shall be that amount
selected by You ($0.30, $0.50, or $0.70 per pound) on Your application
for coverage and shown on the Summary of Coverage provided by Us to
You.
5. The ``Indemnity Per Pound'' shall be the lesser of:
a. The Cotton Price Change; and
b. The Maximum Price Change.
6. The MPCI Policy Indemnity Payment shall be divided by Your MPCI
Policy Crop Price Election for Cotton to determine the ``Cotton
Production Loss'' in pounds;
7. The Indemnity Per Pound shall be multiplied by the Cotton
Production Loss to determine the total indemnity to be paid to You.
B. ``Average Daily Settlement Price'' means the average derived by
totaling the New York Cotton Exchange commodity futures daily final
closing settlement price for Cotton for each full active trading day
during the month and dividing this sum by the number of full active
trading days during the month. For purposes of determining the Average
Daily Settlement Price, there must be fifteen (15) or more full active
trading days during the applicable month. If there are fourteen (14) or
less full active trading days during the applicable month as to Cotton,
no indemnity shall be payable as to Your Cotton Crop.
C. In the event that trading on the New York Cotton Exchange
commodity futures market for Cotton is suspended or terminated so that
for purposes of determining the Average Daily Settlement Price for
Cotton there are fourteen (14) or less full active trading days during
the applicable month, no indemnity shall be payable under this Policy
as to Your Cotton Crop, and that portion of the Premium paid by You
which is applicable to Your Cotton Crop shall be refunded by Us.
Article XIV--Definitions is amended by adding the following new
paragraph:
``Cotton'' is defined as only American Upland Lint Cotton and
specifically excludes, without limitation, Extra Long Staple Cotton
(also known as Pima Cotton and American-Egyptican Cotton).
The Coverage provided by the Policy and this Endorsement does not
extend to and no Coverage exists under this Endorsement as to any
cotton crop grown on acreage located in South Texas. Coverage under the
policy for any cotton crop grown on acreage located in South Texas is
provided, if at all, only under a separate endorsement to this policy
entitled ``Cotton Endorsement (South Texas)''. ``South Texas'' is
defined as including only the following Counties in Texas: Aransas,
Atascosa, Bee, Bexar, Brooks, Calhoun, Cameron, Dimmit, Duval, Frio,
Goliad, Hidalgo, Jackson, Jim Hogg, Jim Wells, Karnes, Kenedy, Kinney,
Kleberg, La Salle, Live Oak, McMullen, Maverick, Medina, Nueces,
Refugio, San Patricio, Starr, Uvalde, Victoria, Webb, Willacy, Wilson,
Zapata, and Zavala.
Pursuant to the ``Insurance Period'' Section of Article III of the
Policy:
The coverage provided by the Policy and this Endorsement for your
cotton crop is not continuous. You must renew the coverage provided by
the Policy and this Endorsement on your cotton crop No Later Than April
15 of each year for coverage to be effective for the succeeding year.
Cotton Endorsement (South Texas)
Name Insured:
Policy Period:
Insured by (Insurance Company):
Endorsement Number:
Policy Number:
Effective Date of Endorsement:
The above needs to be completed only when this endorsement is
issued subsequent to preparation and issuance of the Market Value
Protection Policy.
How this endorsement effects your coverage:
The Losses Insured Against under the ``Cause of Loss'' Section of
Article III of the Policy shall include:
Unavoidable financial loss resulting directly from an increase in
the New York Cotton Exchange commodity futures settlement prices for
Cotton as specifically set forth in this endorsement and the Policy,
and provided that You sustain a production loss on Cotton grown in
South Texas, during the Insurance Period, caused by an insured peril(s)
under the MPCI Policy and an MPCI Policy Indemnity Payment is made to
You.
Under Paragraph ``A'' of the ``Indemnity Payment'' Section of
Article V of the Policy, the indemnity payable to You for loss to Your
Cotton Crop grown in South Texas shall be calculated as follows:
A. As to any loss under the MPCI Policy, during the Insurance
Period, to any Cotton Crop grown in South Texas:
1. Ninety-five percent (95%) of the September Average Daily
Settlement Prince for Cotton to be delivered during the month of
October, of the then current crop year, shall be established
(hereinafter the ``Cotton Futures Price'');
2. The ``Cotton Base Price'' shall be established as the highest
MPCI Policy price election for Cotton available under the MPCI Policy,
for the then current crop year, for the Farm Unit on which the Cotton
Crop suffering the loss is located.
3. The Cotton Base Price shall be subtracted from the Cotton
Futures Price to determine the ``Cotton Price Change''.
4. The ``Maximum Price Change'' per pound shall be that amount
selected by You ($0.30, $0.50, or $0.70 per pound) on Your application
for coverage and shown on the Summary of Coverage provided by Us to
You.
5. The ``Indemnity Per Pound'' shall be the lesser of:
a. The Cotton Price Change; and
b. The Maximum Price Change.
6. The MPCI Policy Indemnity Payment shall be divided by Your MPCI
Policy Crop Price Election for Cotton to determine the ``Cotton
Production Loss'' in pounds;
7. The Indemnity Per Pound shall be multiplied by the Cotton
Production Loss to determine the total indemnity to paid to You.
B. ``Average Daily Settlement Price'' means the average derived by
totaling the New York Cotton Exchange commodity futures daily final
closing settlement price for Cotton for each full active trading day
during the month and dividing this sum by the number of full active
trading days during the month. For purposes of determining the Average
Daily Settlement Price, there must be fifteen (15) or more full active
trading days during the applicable month. If there are fourteen (14) or
less full active trading dates during the applicable month as to
Cotton, no indemnity shall be payable as to Your Cotton Crop.
C. In the event that trading on the New York Cotton Exchange
commodity futures market for Cotton is suspended or terminated so that
for purposes of determining the Average Daily Settlement Price for
Cotton there are fourteen (14) or less full active trading days during
the applicable month, no indemnity shall be payable under this Policy
as to Your Cotton Crop, and that portion of the Premium paid by You
which is applicable to Your Cotton Crop shall be refunded by Us.
Article XIV--Definitions is amended by adding the following new
paragraph:
``Cotton'' as defined as only American Upland Lint Cotton and
specifically excludes, without limitation Extra Long Staple Cotton
(also known as Pima Cotton and American-Egyptian Cotton).
The coverage provided by the Policy and this Endorsement does not
extend to and no coverage exists under this endorsement as to any
cotton crop grown on any acreage other than acreage location in South
Texas. Coverage under the policy for any cotton crop grown on acreage
located other than in South Texas is provided, if at all, only under a
separate endorsement to this policy entitled ``Cotton Endorsement''.
``South Texas'' is defined as including only the following counties in
Texas: Aransas, Atascosa, Bee, Bexar, Brooks, Calhoun, Cameron, Dimmit,
Duval, Frio, Goliad Hidalgo, Jackson, Jim Hogg, Jim Wells, Karnes,
Kenedy, Kinney, Kleberg, La Salle, Live Oak, McMullen, Maverick,
Medina, Nueces, Refugio, San Patricio, Starr, Uvalde, Victoria, Webb,
Willacy, Wilson, Zapata, and Zavala.
Pursuant to the ``Insurance Period'' Section of Article III of the
Policy:
The coverage provided by the policy and this endorsement for your
cotton crop is not continuous. You must renew the coverage provided by
this policy and this endorsement on your cotton crop no later than
February 15 of each year for coverage to be effective for the
succeeding year.
Extra Long Staple Cotton Endorsement
Name Insured:
Policy Period:
Insured by (Insurance Company):
Endorsement Number:
Policy Number:
Effective Dated of Endorsement:
The above needs to be completed only when this endorsement is
issued subsequent to preparation and issuance of Market Value
Protection Policy.
How this endorsement effects your coverage:
The Losses Insured Against under the ``Cause of Loss'' Section of
Article III of the Policy shall include:
Unavoidable financial loss resulting directly from an increase in
the New York Cotton Exchange commodity futures settlement prices for
Cotton as specifically set forth in this endorsement and the Policy,
and provided that You sustain an ELS Cotton production loss, during the
Insurance Period, caused by an insured peril(s) under the MPCI Policy
and an MPCI Policy Indemnity Payment is made to You.
Under Paragraph ``A'' of the ``Indemnity Payment'' Section of
Article V of the Policy, the indemnity payable to You for loss Your ELS
Cotton Crop shall be calculated as follows:
A. As to any loss under the MPCI Policy, during the Insurance
Period, to any ELS Cotton Crop:
1. Ninety-five percent (95%) of the November Average Daily
Settlement Price for Cotton to be delivered during the month of
December, of the then current crop year, shall be established
(hereinafter the ``Cotton Price'');
2. The Cotton Price shall be multiplied by 160% (1.60) to determine
the ``ELS Cotton Futures Price''.
3. The ``ELS Cotton Base Price'' shall be established as the
highest MPCI Policy price election for ELS Cotton available under the
MPCI Policy, for the then current crop year, for the Farm Unit on which
the ELS Cotton Crop suffering the loss is located.
4. The ELS Cotton Base Price shall be subtracted from the ELS
Cotton Futures Price to determine the ``ELS Cotton Price Change''.
5. The ``Maximum Price Change'' per pound shall be that amount
selected by You ($0.30, $0.50, or $0.70 per pound) on Your application
for coverage and shown on the Summary of Coverage provided by Us to
You.
6. The ``Indemnity Per Pound'' shall be the lesser of:
a. The ELS Cotton Price Change; and
b. The Maximum Price change.
7. The MPCI Policy Indemnity Payment shall be provided by Your MPCI
Policy Crop Price Election for ELS Cotton to determine the ``ELS Cotton
Production Loss'' in pounds;
8. The Indemnity Per Pound shall be multiplied by the ELS Cotton
Production Loss to determine the total indemnity to be paid to You.
B. ``Average Daily Settlement Price'' means the average derived by
totaling the New York Cotton Exchange commodity futures daily final
closing settlement price for Cotton for each full active trading day
during the month and dividing this sum by the number of full active
trading days during the month. For purposes of determining the Average
Daily Settlement Price, there must be fifteen (15) or more full active
trading days during the applicable month. If there are fourteen (14) or
less full active trading days during the applicable month as to Cotton,
no indemnity shall be payable as to Your ELS Cotton Crop.
C. In the event that trading on the New York Cotton Exchange
commodity futures market for Cotton is suspended or terminated so that
for purposes of determining the Average Daily Settlement Price for
Cotton there are fourteen (14) or less full active trading days during
the applicable month, no indemnity shall be payable under this Policy
as to Your ELS Cotton Crop, and that portion of the Premium paid by You
which is applicable to Your ELS Cotton Crop shall be refunded by Us.
Article XIV--Definitions is amended by adding the following new
paragraphs:
A. ``ELS Cotton'' is defined as only Extra Long Staple Cotton (also
known as Pima Cotton and American-Egyptian Cotton) and specifically
excludes, without limitation, American Upland Lint Cotton.
B. ``Cotton'' is defined as only American Upland Lint Cotton and
specifically excludes, without limitation, Extra Long Staple Cotton
(also known as Pima Cotton and American-Egyptian Cotton).
The coverage provided by the Policy and this endorsement does not
extend to and no coverage exists under this endorsement as to any ELS
cotton crop grown on acreage located in South Texas. Coverage under the
policy for any ELS cotton crop grown on acreage located in South Texas
is provided, if at all, only under a separate endorsement to this
policy entitled ``Extra Long Staple Cotton Endorsement (South Texas)''.
``South Texas'' is defined as including only the following counties in
Texas: Aranansas, Atacosa, Bee, Bexar, Brooks, Calhoun, Cameron,
Dimmit, Duval, Frio, Goliad, Hidalgo, Jackson, Jim Hogg, Jim Wells,
Karnes, Kenedy, Kinney, Kleberg, La Salle, Live Oak, McMullen,
Maverick, Medina, Nueces, Refugio, San Patricio, Starr, Uvalde,
Victoria, Webb, Willacy, Wilson, Zapata, and Zavala.
Pursuant to the ``Insurance Period'' Section of Article III of the
Policy:
The coverage provided by the Policy and this endorsement for your
cotton crop is not continuous. You must renew the coverage provided by
the Policy and this endorsement on your cotton crop no later than April
15 of each year for coverage to be effective for the succeeding year.
Extra Long Staple Cotton Endorsement (South Texas)
Name Insured:
Policy Period:
Insured by (Insurance Company):
Endorsement Number:
Policy Number:
Effective Date of Endorsement:
The above needs to be completed only when this endorsement is
issued subsequent to preparation and issuance of the Market Value
Protection Policy.
How this endorsement effects your coverage:
The Losses Insured Against under the ``Cause of Loss'' Section of
Article III of the Policy shall include:
Unavoidable financial loss resulting directly from an increase in
the New York Cotton Exchange commodity futures settlement prices for
Cotton as specifically set forth in this endorsement and the Policy,
and provided that You sustain a production loss on ELS Cotton grown in
South Texas, during the Insurance Period, caused by an insured peril(s)
under the MPCI Policy and an MPCI Policy Indemnity Payment is made to
You.
Under Paragraph ``A'' of the ``Indemnity Payment'' Section of
Article V of the Policy, the indemnity payable to You for loss to Your
ELS Cotton Crop grown in South Texas shall be calculated as follows:
A. As to any loss under the MPCI Policy, during the Insurance
Period, to any ELS Cotton Crop grown in South Texas:
1. Ninety-five percent (95%) of the September Average Daily
Settlement Price for Cotton to be delivered during the month of
October, of the then current crop year, shall be established
(hereinafter the ``Cotton Price'');
2. The Cotton Price shall be multiplied by 160% (1.60) to determine
the ``ELS Cotton Futures Price''.
3. The ``ELS Cotton Base Price'' shall be established as the
highest MPCI Policy price election for ELS Cotton available under the
MPCI Policy, for the then current crop year, for the Farm Unit on which
the ELS Cotton Crop suffering the loss is located.
4. The ELS Cotton Base Price shall be subtracted from the ELS
Cotton Futures Price to determine the ``ELS Cotton Price Change''.
5. The ``Maximum Price Change'' per pound shall be that amount
selected by You ($0.30, $0.50, or $0.70 per pound) on Your application
for coverage and shown on the Summary of Coverage provided by Us to
You.
6. The ``Indemnity Per Pound'' shall be the lesser of:
a. The ELS Cotton Price Change; and
b. The Maximum Price Change.
7. The MPCI Policy Indemnity Payment shall be divided by Your MPCI
Policy Crop Price Election for ELS Cotton to determine the ``ELS Cotton
Production Loss'' in pounds;
8. The Indemnity Per Pound shall be multiplied by the ELS Cotton
Production Loss to determine the total indemnity to be paid to You.
B. ``Average Daily Settlement Price'' means the average derived by
totaling the New York Cotton Exchange commodity futures daily final
closing settlement price for Cotton for each full active trading day
during the month and dividing this sum by the number of full active
trading days during the month. For purposes of determining the Average
Daily Settlement Price, there must be fifteen (15) or more full active
trading days during the applicable month. If there are fourteen (14) or
less full active trading days during the applicable month as to Cotton,
no indemnity shall be payable as to Your ELS Cotton Crop.
C. In the event that trading on the New York Cotton Exchange
commodity futures market for Cotton is suspended or terminated so that
for purposes of determining the Average Daily Settlement Price for
Cotton there are fourteen (14) or less full active trading days during
the applicable month, no indemnity shall be payable under this Policy
as to Your ELS Cotton Crop, and that portion of the Premium paid by You
which is applicable to Your ELS Cotton Crop shall be refunded by Us.
Article XIV--Definitions is amended by adding the following new
paragraphs:
A. ``ELS Cotton'' is defined as only Extra Long Staple Cotton (also
known as Pima Cotton and American-Egyptian Cotton) and specifically
excludes, without limitation American Upland Lint Cotton.
B. ``Cotton'' is defined as only American Upland Lint Cotton and
specifically excludes, without limitation Extra Long Staple Cotton
(also known as Pima Cotton and American-Egyptian Cotton).
The coverage provided by the policy and this endorsement does not
extend to and no coverage exists under this endorsement as to any ELS
cotton crop grown on any acreage other than acreage located in South
Texas. Coverage under the policy for any ELS cotton crop grown on
acreage located other than in South Texas is provided, if at all, only
under a separate endorsement to this policy entitled ``extra long
staple cotton endorsement''. ``South Texas'' is defined as including
only the following counties in Texas: Aranansas, Atacosa, Bee, Bexar,
Brooks, Calhoun, Cameron, Dimmit, Duval, Frio, Goliad, Hidalgo,
Jackson, Jim Hogg, Jim Wells, Karnes, Kenedy, Kinney, Kleberg, La
Salle, Live Oak, McMullen, Maverick, Medina, Nueces, Refugio, San
Patricio, Starr, Uvalde, Victoria, Webb, Willacy, Wilson, Zapata, and
Zavala.
Pursuant to the ``Insurance Period'' Section of Article III of the
Policy:
The coverage provided by the policy and this endorsement for your
cotton crop is not continuous. You must renew the coverage provided by
the policy and this endorsement on your cotton crop no later than
February 15 of each year for coverage to be effective for the
succeeding year.
Fall Wheat Endorsement (CBOT)
Name Insured:
Policy Period:
Insured by (Insurance Company):
Endorsement Number:
Policy Number:
Effective Date of Endorsement:
The above needs to be completed only when this endorsement is
issued subsequent to preparation and issuance of the Market Value
Protection Policy.
How this endorsement effects your coverage:
The Losses Insured Against under the ``Cause of Loss'' Section of
Article III of the Policy shall include:
Unavoidable financial loss resulting directly from an increase in
the Chicago Board of Trade futures settlement prices for Wheat, as
specifically set forth in this endorsement and the Policy, and provided
that You sustain a Fall Wheat production loss, during the Insurance
Period, caused by an insured peril(s) under the MPCI Policy and an MPCI
Policy Indemnity Payment is made to You.
Under paragraph ``A'' of the ``Indemnity Payment'' Section of
Article V of the Policy, the indemnity payable to You for loss to Your
Fall Wheat Crop shall be calculated as follows:
A. As to any loss under the MPCI Policy, during the Insurance
Period, to any Fall Wheat Crop:
1. Ninety-five percent (95%) of the June Average Daily Settlement
Price for wheat to be delivered during the month of July, of the then
current crop year, shall be established (hereinafter the ``Wheat
Futures Price'');
2. The ``Wheat Base Price'' shall be established as the highest
MPCI Policy Crop Price Election for Wheat available under the MPCI
Policy for the then current crop year.
3. The Wheat Base Price shall be subtracted from the Wheat Futures
Price to determine the ``Wheat Price Change''.
4. The ``Maximum Price Change'' per bushel shall be that amount
selected by You ($1.00, $1.50, or $2.00 per bushel) on Your application
for coverage and shown on the Summary of Coverage Provided by Us to
You.
5. The ``Indemnity Per Bushel'' shall be the lesser of:
a. The Wheat Price Change; and
b. The Maximum Price Change.
6. The MPCI Policy Indemnity Payment shall be divided by Your MPCI
Policy Crop Price Election for wheat to determine the ``Wheat
Production Loss'' in bushels.
7. The Indemnity Per Bushel shall be multiplied by the Wheat
Production Loss to determine the total indemnity to be paid to You.
B. ``Average Daily Settlement Price'' means the average derived by
totaling the Chicago Board of Trade commodity futures daily final
closing settlement price for wheat for each full active trading day
during the month and dividing this sum by the number of full active
trading days during the month. For purposes of determining the Average
Daily Settlement Price, there must be fifteen (15) or more full active
trading days during the applicable month. If there are fourteen (14) or
less full active trading days during the applicable month, no indemnity
shall be payable as to Your wheat Crop. A full active trading day is
any trading day on the Chicago Board of Trade commodity futures market
during which more than 50 wheat futures contracts are traded.
C. In the event that trading on the Chicago Board of Trade
commodity futures market for wheat is suspended or terminated so that
for purposes of determining the Average Daily Settlement Price there
are fourteen (14) or less active trading days during the applicable
month, no indemnity shall be payable under this Policy as to such wheat
Crop, and that portion of the Premium paid by You which is applicable
to such wheat Crop shall be refunded by Us.
Article XIV--Definitions is amended by adding, after paragraph H,
the following new paragraph I:
I. ``Fall Wheat'' is defined as a wheat crop seeded during the fall
months of the year, overwintered in the field and harvested the
following season.
Pursuant to the ``Insurance Period'' Section of Article III of the
Policy:
The coverage provided by the Policy and this endorsement for your
fall wheat crop is not continuous. You must renew the coverage provided
by the policy and this endorsement on your fall wheat crop no later
than September 30 of each year for coverage to be effective for the
succeeding year.
Fall Wheat Endorsement (KCBOT)
Name Insured:
Policy Period:
Insured by (Insurance Company):
Endorsement Number:
Policy Number:
Effective Date of Endorsement:
The above needs to be completed only when this endorsement is
issued subsequent to preparation and issuance of the Market Value
Protection Policy.
How this endorsement affects your coverage:
The Losses Insured Against under the ``Cause of Loss'' Section of
Article III of the Policy shall include:
Unavoidable financial loss resulting directly from an increase in
the Kansas City Board of Trade futures settlement prices for Wheat, as
specifically set forth in this endorsement and the Policy, and provided
that You sustain a Fall Wheat production loss, during the Insurance
Period, caused by an insured peril(s) under the MPCI Policy and an MPCI
Policy Indemnity Payment is made to You.
Under paragraph ``A'' of the ``Indemnity Payment'' Section of
Article V of the Policy, the indemnity payable to you for loss to Your
Fall Wheat Crop shall be calculated as follows:
A. As to any loss under the MPCI Policy, during the Insurance
Period, to any Fall Wheat Crop:
1. Ninety-five percent (95%) of the June Average Daily Settlement
Price for wheat to be delivered during the month of July, of the then
current crop year, shall be established (hereinafter the ``Wheat
Futures Price'');
2. The ``Wheat Base Price'' shall be established as the highest
MPCI Policy Crop Price Election for Wheat available under the MPCI
Policy for the then current crop year.
3. The Wheat Base Price shall be subtracted from the Wheat Futures
Price to determine the ``Wheat Price Change''.
4. The ``Maximum Price Change'' per bushel shall be that amount
selected by You ($1.00, $1.50, or $2.00 per bushel) on Your application
for coverage and shown on the Summary of Coverage provided by Us to
You.
5. The ``Indemnity Per Bushel'' shall be the lesser of:
a. The Wheat Price Change; and
b. The Maximum Price Change.
6. The MPCI Policy Indemnity Payment shall be divided by Your MPCI
Policy Crop Price Election for wheat to determine the ``Wheat
Production Loss'' in bushels.
7. The Indemnity Per Bushel shall be multiplied by the Wheat
Production Loss to determine the total indemnity to be paid to You.
B. ``Average Daily Settlement Price'' means the average derived by
totaling the Kansas City Board of Trade commodity futures daily final
closing settlement price for wheat for each full active trading day
during the month and dividing this sum by the number of full active
trading days during the month. For purposes of determining the Average
Daily Settlement Price, there must be fifteen (15) or more full active
trading days during the applicable month. If there are fourteen (14) or
less full active trading days during the applicable month, no indemnity
shall be payable as to Your wheat Crop. A full active trading day is
any trading day on the Kansas City Board of Trade commodity futures
market during which more than 50 wheat futures contracts are traded.
C. In the event that trading on the Kansas City Board of Trade
commodity futures market for wheat is suspended or terminated so that
for purposes of determining the Average Daily Settlement Price there
are fourteen (14) or less active trading days during the applicable
month, no indemnity shall be payable under this Policy as to such wheat
Crop, and that portion of the Premium paid by You which is applicable
to such wheat Crop shall be refunded by Us.
Article XIV--Definitions is amended by adding, after paragraph H,
the following new paragraph I:
I. ``Fall Wheat'' is defined as a wheat crop seeding during the
fall months of the year, overwintered in the field and harvested the
following season:
Pursuant to the ``Insurance Period'' Section of Article III of the
Policy:
The coverage provided by the policy and this endorsement for your
fall wheat crop is not continuous. You must renew the coverage provided
by the Policy and this endorsement on you fall wheat crop no later than
September 30 of each year for coverage to be effective for the
succeeding year.
Fall Wheat Endorsement (MGE)
Name Insured:
Policy Period:
Insured by (Insurance Company):
Endorsement Number:
Policy Number:
Effective Date of Endorsement:
The above needs to be completed only when this endorsement is
issued subsequent to preparation and issuance of the Market Value
Protection Policy.
How this endorsement effects your coverage:
The Losses Insured Against under the ``Cause of Loss'' Section of
Article III of the Policy shall include:
Unavoidable financial loss resulting directly from an increase in
the Minneapolis Grain Exchange futures settlement prices for Wheat, as
specifically set forth in this endorsement and the Policy, and provided
that Your sustain a Fall Wheat production loss, during the Insurance
Period, caused by an insured peril(s) under the MPCI Policy and an MPCI
Policy Indemnity Payment is made to You.
Under paragraph ``A'' of the ``Indemnity Payment'' Section of
Article V of the Policy, the indemnity payable to You for loss to Your
Fall Wheat Crop shall be calculated as follows:
A. As to any loss under the MPCI Policy, during the Insurance
Period, to any Fall Wheat Crop:
1. Ninety-five percent (95%) of the June Average Daily Settlement
Price for wheat to be delivered during the month of July, of the then
current crop year, shall be established (hereinafter the ``Wheat
Futures Price'');
2. The ``Wheat Base Price'' shall be established as the highest
MPCI Policy Crop Price Election for Wheat available under the MPCI
Policy for the then current crop year.
3. The Wheat Base Price shall be subtracted from the Wheat Futures
Price to determine the ``Wheat Price Change''.
4. The ``Maximum Price Change'' per bushel shall be that amount
selected by You ($1.00, $1.50, or $2.00 per bushel) on Your application
for coverage and shown on the Summary of Coverage provided by Us to
You.
5. The ``Indemnity Per Bushel'' shall be the lesser of:
a. The Wheat Price Change; and
b. The Maximum Price Change.
6. The MPCI Policy Indemnity Payment shall be divided by Your MPCI
Policy Crop Price Election for wheat to determine the ``Wheat
Production Loss'' in bushels.
7. The Indemnity Per Bushel shall be multiplied by the Wheat
Production Loss to determine the total indemnity to be paid to You.
B. ``Average Daily Settlement Price'' means the average derived by
totaling the Minneapolis Grain Exchange commodity futures daily final
closing settlement price for wheat for each full active trading day
during the month and dividing this sum by the number of full active
trading days during the month. For purposes of determining the Average
Daily Settlement Price, there must be fifteen (15) or more full active
trading days during the applicable month. If there are fourteen (14) or
less full active trading days during the applicable month, in indemnity
shall be payable as to Your wheat Crop. A full active trading day is
any trading day on the Minneapolis Grain Exchange commodity futures
market during which more than 50 wheat futures contracts are traded.
C. In the event that trading on the Minneapolis Grain Exchange
commodity futures market for wheat is suspended or terminated so that
for purposes of determining the Average Daily Settlement Price there
are fourteen (14) or less active trading days during the applicable
month, no indemnity shall be payable under this Policy as to such wheat
Crop, and that portion of the Premium paid by You which is applicable
to such wheat Crop shall be refunded by Us.
Article XIV--Definitions is amended by adding, after paragraph H,
the following new paragraph I:
I. ``Fall Wheat'' is defined as a wheat crop seeded during the fall
months of the year, overwintered in the field and harvested the
following season.
Pursuant to the ``Insurance Period'' Section of Article III of the
Policy:
The coverage provided by the Policy and this endorsement for your
fall wheat crop is not continuous. You must renew the coverage provided
by the Policy and this endorsement on your fall what crop no later than
September 30 of each year for coverage to be effective for the
succeeding year.
Grain Sorghum (MILO) Endorsement
Name Insured:
Policy Period:
Insured By (Insurance Company):
Endorsement Number:
Policy Number:
Effective Date of Endorsement:
The above needs to be completed only when this endorsement is
issued subsequent to preparation and issuance of the Market Value
Protection Policy.
How this endorsement effects your coverage:
The Losses Insured Against under the ``Cause of Loss'' Section of
Article III of the Policy shall include:
Unavoidable financial loss resulting directly from an increase in
the Chicago Board of Trade futures settlement prices for Corn, as
specifically set forth in this endorsement and the Policy, and provided
that You sustain a Grain Sorghum (Milo) production loss, during the
Insurance Period, caused by an insured peril(s) under the MPCI Policy
and an MPCI Policy Indemnity Payment is made to You.
Under Paragraph ``A'' of the ``Indemnity Payment'' Section of
Article V of the Policy, the indemnity payable to You for loss to Your
Grain Sorghum (Milo) Crop shall be calculated as follows:
A. As to any loss under the MPCI Policy, during the Insurance
Period, to any Grain Sorghum (Milo) Crop:
1. Ninety-five percent (95%) of the November Average Daily
Settlement Price for Corn to be delivered during the month of December,
of the then current crop year, shall be established (hereinafter the
``Corn Price'');
2. The Corn Price shall be multiplied by 95% (.95) to determine the
``Grain Sorghum Futures Price''.
3. The ``Grain Sorghum Base Price'' shall be established as the
highest MPCI Policy Crop Price Election for Grain Sorghum (milo)
available under the MPCI Policy for the then current crop year.
4. The Grain Sorghum Base Price shall be subtracted from the Grain
Sorghum Futures Price to determine the ``Grain Sorghum Price Change''.
5. The ``Maximum Price Change'' per bushel shall be that amount
selected by You ($0.75, $1.00, or $1.50 per bushel) on Your application
for coverage and shown on the Summary of Coverage provided by Us to
You.
6. The ``Indemnity Per Bushel'' shall be the lesser of:
a. The Grain Sorghum Price Change; and
b. The Maximum Price Change.
7. The MPCI Policy Indemnity Payment shall be divided by Your MPCI
Policy Crop Price Election for Grain Sorghum (milo) to determine the
``Grain Sorghum Production Loss'' in bushels.
8. The Indemnity Per Bushel shall be multiplied by the Grain
Sorghum Production Loss to determine the total indemnity to be paid to
You.
B. ``Average Daily Settlement Price'' means the average derived by
totaling the Chicago Board of Trade Commodity futures daily final
closing settlement price for corn for each full active trading day
during the month and dividing this sum by the number of full active
trading days during the month. For purposes of determining the average
Daily Settlement Price, there must be fifteen (15) or more full active
trade days during the applicable month. If there are fourteen (14) or
less full active trading days during the applicable month as to corn,
no indemnity shall be payable as to Your Grain Sorghum (Milo) Crop. A
full active trading day is any trading day on the Chicago Board of
Trade commodity futures market during which more than 50 corn futures
contracts are traded.
C. In the event that trading on the Chicago Board of Trade
commodity futures market for corn is suspended or terminated so that
for purposes of determining the Average Daily Settlement Price for corn
there are fourteen (14) or less active trading days during the
applicable month, no indemnity shall be payable under this Policy as to
Your Grain Sorghum (Milo) Crop, and that portion of the Premium paid by
You which is applicable to Your Grain Sorghum (Milo) Crop shall be
refunded by Us.
Pursuant to the ``Insurance Period'' Section of Article III of the
Policy:
The Coverage Provided by the Policy and this endorsement for your
grain Sorghum (MILO) crop is not continuous. You must renew the
coverage provided by the policy and this endorsement on your grain
sorghum (MILO) crop no later than April 15 of each year for coverage to
be effective for the succeeding year.
Soybean Endorsement
Name Insured:
Policy Period:
Insured by (Insurance Company):
Endorsement Number:
Policy Number:
Effective Date of Endorsement:
The above needs to be completed only when this endorsement is
issued subsequent to preparation and issuance of the Market Value
Protection Policy.
How this endorsement effects your coverage:
The Losses Insured Against under the ``Cause of Loss'' Section of
Article III of the Policy shall include:
Unavoidable financial loss resulting directly from an increase in
the Chicago Board of Trade futures settlement prices for Soybeans, as
specifically set forth in this endorsement and the Policy, and provided
that You sustain a Soybean production loss, during the Insurance
Period, caused by an insured peril(s) under the MPCI Policy and an MPCI
Policy Indemnity Payment is made to You.
Under paragraph ``A'' of the ``Indemnity Payment'' Section of
Article V of the Policy, the indemnity payable to You for loss to Your
Soybean Crop shall be calculated as follows:
A. As to any loss under the MPCI Policy, during the Insurance
Period, to any Soybean Crop:
1. Ninety-five percent (95%) of the October Average Daily
Settlement Price for soybeans to be delivered during the month of
November, of the then current crop year, shall be established
(hereinafter the ``Soybean Futures Price'');
2. The ``Soybean Base Price'' shall be established as the highest
MPCI Policy Crop Price Election for soybeans available under the MPCI
Policy for the then current crop year.
3. The Soybean Base Price shall be subtracted from the Soybean
Futures Price to determine the ``Soybean Price Change''.
4. The ``Maximum Price Change'' per bushel shall be that amount
selected by You ($1.00, $2.00, or $3.00 per bushel) on Your application
for coverage and shown on the Summary of Coverage provided by Us to
You.
5. The ``Indemnity Per Bushel'' shall be the lesser of:
a. The Soybean Price Change; and
b. Maximum Price Change.
6. The MPCI Indemnity Payment shall be divided by Your MPCI Policy
Crop Price Election for soybeans to determine the ``Soybean Production
Loss'' in bushels;
7. The Indemnity Per Bushel shall be multiplied by the Soybean
Production Loss to determine the total indemnity to be paid to You.
B. ``Average Daily Settlement Price'' means the average derived by
totaling the Chicago Board of Trade commodity futures daily final
closing settlement price for soybeans for each full active day during
the month and dividing this sum by the number of full active trading
days during the month. For purposes of determining the Average Daily
Settlement Price, there must be fifteen (15) or more full active
trading days during the applicable month. If there are fourteen (14) or
less full active trading days during the applicable month as to
soybeans, no indemnity shall be payable as to Your Soybean Corp. A full
active trading day is any trading day on the Chicago Board of Trade
commodity futures market during which more than 50 soybean futures
contracts are traded.
C. In the event that trading on the Chicago Board of Trade
commodity futures market for soybeans is suspended or terminated so
that for purposes of determining the Average Daily Settlement Price for
soybeans there are fourteen (14) or less active trading days during the
applicable month, no indemnity shall be payable under this Policy as to
Your Soybean Corp, and that portion of the Premium paid by You which is
applicable to Your Soybean Corp shall be refunded by Us.
Pursuant to the ``Insurance Period'' Section of Article III of the
Policy:
The coverage provided by the policy and this endorsement for your
soybean crop is not continuous. You must renew the coverage provided by
the policy and this endorsement on your soybean crop no later than
April 15 of each year for coverage to be effective for the succeeding
year.
SPRING WHEAT ENDORSEMENT
Name Insured:
Policy Period:
Insured by (Insurance Company);
Endorsement Number:
Policy Number:
Effective Date of Endorsement:
The above needs to be completed only when this endorsement is
issued subsequent to preparation and issuance of the Market Value
Protection Policy.
How this endorsement effects your coverage:
The Losses Insured Against under the ``Cause of Loss'' Section of
Article III of the Policy shall include:
A. Unavoidable financial loss resulting directly from an increase
in the Minneapolis Grain Exchange futures settlement prices for wheat,
as specifically set forth in this endorsement and the Policy, and
provided that You sustain a Wheat production loss, during the Insurance
Period, caused by an insured peril(s) under the MPCI Policy and MPCI
Policy Indemnity Payment is made to you.
Under paragraph ``A'' of the ``Indemnity Payment'' Section of
Article V of the Policy, the indemnity payable to Your for loss to Your
Wheat Crop shall be calculated as follows:
A. As to any under the MPCI Policy, during the Insurance Period, to
any Wheat Crop:
1. Ninety-five percent (95%) of the August Average Daily Settlement
Price for wheat to be delivered during the month of September, of the
then current crop year, shall be established (hereinafter the ``Wheat
futures Price'');
2. The ``Wheat Base Price'' shall be established as the highest
MPCI Policy Crop Price Election for wheat available under the MPCI
Policy for the then current crop year.
3. The Wheat Base Price shall be subtracted from the Wheat Futures
Price to determine the ``Wheat Price Change''.
4. The ``Maximum Price Change'' per bushel shall be that amount
selected by You ($1.00, $1.50, or $2.00 per bushel) on Your application
for coverage and shown on the Summary of Coverage provided by Us to
You.
5. The ``Indemnity Per Bushel'' shall be the lesser of:
a. The Wheat Price Change; and
b. The Maximum Price Change.
6. The MPCI Policy Indemnity Payment shall be divided by Your MPCI
Policy Crop Price Election for wheat to determine the ``Wheat
Production Loss'' in bushels.
7. The Indemnity Per Bushel shall be multiplied by the Wheat
Production Loss to determine the total indemnity to be paid to You.
B. ``Average Daily Settlement Price'' means the average derived by
totaling the Minneapolis Grain Exchange commodity futures daily final
closing settlement price for wheat for each full active trading day
during the month and dividing this sum by the number of full active
trading days during the month. For purposes of determining the Average
Daily Settlement Price, there must be fifteen (15) or more full active
trading days during the applicable month. If there are fourteen (14) or
less full active trading days during the applicable month, no indemnity
shall be payable as to Your Wheat Crop. A full active trading day is
any trading day of the Minneapolis Grain Exchange commodity futures
market during which more than 50 wheat futures contracts are traded.
C. In the event that trading on the Minneapolis Grain Exchange
commodity futures market for Wheat is suspended or terminated so that
for purposes of determining the Average Daily Settlement Price there
are fourteen (14) or less active trading days during the applicable
month, no indemnity shall be payable under this Policy as to Your Wheat
Crop, and that portion of the Premium paid by You which is applicable
to Your Wheat Crop shall be refunded by Us.
Pursuant to the ``Insurance Period'' Section of Article III of the
Policy:
The coverage provided by the policy and this endorsement for your
wheat crop is not continuous. You must review the coverage provided by
the policy and this endorsement on your wheat crop no later than April
15 of each year for coverage to be effective for the succeeding year.
Wheat Endorsement
Name Insured:
Policy Period:
Insured by (Insurance company):
Endorsement Number:
Policy Number:
Effective Date of Endorsement:
The above needs to completed only when this endorsement is
issued subsequent to preparation and issuance of the Market Value
Protection Policy.
How this endorsement effects your coverage:
The Losses Insured Against under the ``Cause of Loss'' Section of
Article III of the Policy shall include:
Unavoidable financial loss resulting directly from an increase in
the Chicago Board of Trade futures settlement prices for Wheat, as
specifically set forth in this endorsement and the Policy, and provided
that You sustain a Wheat production loss, during the Insurance Period,
caused by an insured peril(s) under the MPCI Policy and an MPCI Policy
Indemnity Payment is made to You.
Under paragraph ``A'' of the ``Indemnity Payment'' Section of
Article V of the Policy, the indemnity payable to You for loss to Your
Wheat Crop shall be calculated as follows:
A. As to any loss under the MPCI Policy, during the Insurance
Period, to any Wheat Crop:
1. Ninety-five percent (95%) of the June Average Daily Settlement
Price for wheat to be delivered during the month of July, of the then
current crop year, shall be established (hereinafter the ``Wheat
Futures Price'');
2. The ``Wheat Base Price'' shall be established as the highest
MPCI Policy Crop Price Election for Wheat available under the MPCI
Policy for the then current crop year.
3. The Wheat Base Price shall be subtracted from the Wheat Futures
Price to determine the ``Wheat Price Change''.
4. The ``Maximum Price Change'' per bushel shall be that amount
selected by You ($1.00, $1.50, or $2.00 per bushel) on Your application
for coverage and shown on the Summary of Coverage provided by Us to
You.
5. The ``Indemnity Per Bushel'' shall be the lesser of:
a. The Wheat Price Change; and
b. The Maximum Price Change.
6. The MPCI Policy Indemnity Payment shall be divided by Your MPCI
Policy Crop Price Election for wheat to determine the ``Wheat
Production Loss'' in bushels.
7. The Indemnity Per Bushel shall be multiplied by the Wheat
Production Loss to determine the total indemnity to be paid to You.
B. ``Average Daily Settlement Price'' means the average derived by
totaling the Chicago Board of Trade commodity futures daily final
closing settlement price for Wheat for each full active trading day
during the month and dividing this sum by the number of full active
trading days during the month. For purposes of determining the Average
Daily Settlement Price, there must be fifteen (15) or more full active
trading days during the applicable month. If there are fourteen (14) or
less full active trading days during the applicable month, no indemnity
shall be payable as to Your Wheat Crop. A full active trading day is
any trading day on the Chicago Board of Trade commodity futures market
during which more than 50 Wheat futures contracts are traded.
C. In the event that trading on the Chicago Board of Trade
commodity futures market for Wheat is suspended or terminated so that
for purposes of determining the Average Daily Settlement Price there
are fourteen (14) or less active trading days during the applicable
month, no indemnity shall be payable under this Policy as to such Wheat
Crop, and that portion of the Premium paid by You which is applicable
to such Wheat Crop shall be refunded by Us.
Article XIV--Definitions is amended by adding, after paragraph H,
the following new paragraph I:
I. ``Wheat'' is defined to include both a Wheat crop seeded during
the fall months of the year, over wintered in the field and harvested
the following season, as well as Wheat planted in the spring months of
the year and harvested that same year.
Pursuant to the ``Insurance Period'' Section of Article III of the
Policy:
The coverage provided by the policy and this endorsement for your
wheat crop is not continuous. You must renew the coverage provided by
the policy and this endorsement on your fall wheat crop no later than
September 30 of each year for coverage to be effective for the
succeeding year.
Wheat Endorsement (Northwest)
Name Insured:
Policy Period:
Insured by (Insurance Company):
Endorsement Number:
Policy Number:
Effective Date of Endorsement:
The above needs to be completed only when this endorsement is
issued subsequent to preparation and issuance of the Market Value
Protection Policy.
How this endorsement effects your coverage:
The Losses Insured Against under the ``Cause of Loss'' Section of
Article III of the Policy shall included:
Unavoidable financial loss resulting directly from an increase in
the Portland Grain Exchange reported bid prices for soft white Wheat
arriving at Portland, Oregon by rail, truck, or barge, as specifically
set forth in this endorsement and the Policy, and provided that You
sustain a Wheat production loss, during the Insurance Period, caused by
an insured peril(s) under the MPCI Policy and an MPCI Policy Indemnity
Payment is made to You.
Under paragraph ``A'' of the ``Indemnity Payment'' Section of
Article V of the Policy, the indemnity payable to You for loss to Your
Wheat Crop shall be calculated as follows:
A. As to any loss under the MPCI Policy, during the Insurance
Period, to any Wheat Crop:
1. Ninety-five percent (95% of the August Average Daily Settlement
Price for Wheat, of the then current crop year, shall be established
(hereinafter the ``Wheat Futures Price'');
2. The ``Wheat Base Price'' shall be established as the highest
MPCI Policy Crop Price Election for Wheat available under the MPCI
Policy for the then current crop year.
3. The Wheat Base Price shall be subtracted from the Wheat Futures
Price to determine the ``Wheat Price Change''.
4. The ``Maximum Price Change'' per bushel shall be that amount
selected by You ($1.00, $1.50, or $2.00 per bushel) on Your application
for coverage and shown on the Summary of Coverage provided by Us to
You.
5. The ``Indemnity Per Bushel'' shall be the lesser of:
a. The Wheat Price Change; and
b. The Maximum Price Change.
6. The MPCI Policy Indemnity Payment shall be divided by Your MPCI
Policy Crop Price Election for Wheat to determine the ``Wheat
Production Loss'' in bushels.
7. The Indemnity Per Bushel shall be multiplied by the Wheat
Production Loss to determine the total indemnity to be paid to You.
B. ``Average Daily Settlement Price'' means the average derived by
totaling midpoint of the bids for soft white Wheat arriving at
Portland, Oregon by rail, truck, or barge as reported by the Portland
Grain Exchange for each price reporting day during the month and
dividing this sum by the number of price reporting days during the
month. For purposes of determining the Average Daily Settlement Price,
there must be fifteen (15) or more price reporting days during the
applicable month. A price reporting day is any normal weekday that
price bids for soft white Wheat are reported by the Portland Grain
Exchange.
C. In the event that price reporting by the Portland Grain Exchange
for soft white Wheat is suspended or terminated so that for purposes of
determining the Average Daily Settlement Price there are fourteen (14)
or less price reporting days from the Portland Grain Exchange, the
Average Daily Settlement Price shall be derived by adding a Chicago-
Portland basis adjustment of thirty-five cents (35 cents) per bushel to
the Chicago Board of Trade commodity futures daily final closing
settlement price for Wheat for each full active trading day during the
month, totaling these basis-adjusted daily final closing settlement
prices for Wheat for each full active trading day during the month, and
dividing this sum by the number of full active trading days during the
month. For purposes of determining the Average Daily Settlement Price
for Wheat, there must be fifteen (15) or more full active trading days
during the applicable month. If there are fourteen (14) or less full
active trading days during the applicable month, no indemnity shall be
payable as to Your Wheat Crop and that portion of the Premium paid by
You which is applicable to such Wheat Crop shall be refunded by Us. A
full active trading day is any trading day on the Chicago Board of
Trade commodity futures market during which more than 50 Wheat futures
contracts are traded.
Article XIV--DEFINITIONS is amended by adding, after paragraph H,
the following new paragraph I:
I. ``Wheat'' is defined to include both a wheat crop seeded during
the fall months of the year, overwintered in the field and harvested
the following seasons, as well as wheat planted in the spring months of
the year and harvested that same year.
Pursuant to the ``Insurance Period'' Section of Article II of the
Policy:
The coverage provided by the policy and this endorsement for your
fall wheat crop is not continuous. You must renew the coverage provided
by the policy and this endorsement on your fall wheat crop no later
than October 31 of each year for coverage to be effective for the
succeeding year.
Done in Washington, DC on May 4, 1994.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 94-12198 Filed 5-18-94; 8:45 am]
BILLING CODE 3410-08-M