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Nebraska Issues Order of Rehabilitation for American Growers

On December 27, 2002, the Nebraska Department of Insurance confirmed to PIA that they have been granted in Lancaster County District Court in Nebraska an...
December 30, 2002

On December 27, 2002, the Nebraska Department of Insurance confirmed to PIA that they have been granted in Lancaster County District Court in Nebraska an approved rehabilitation plan submitted by Insurance Director L. Tim Wagner, including an order of supervision, which would allow Wagner to control the business activities of American Growers, a specialty crop insurer. American Growers, a unit of Iowa-based Acceptance Insurance Companies, will continue to service all existing insureds and will process policies accepted or renewed prior to November 23, as permitted by the Nebraska order. The notice of the Order is available here.

PIA is working with the Nebraska DOI and the RMA to identify any further issues. PIA has formally advised both the Nebraska DOI and the RMA that RMA may need to consider lifting the current assigned risk caps in certain states where we know there is already a market capacity problem. Therefore, it is important that PIA affiliates/members who are having statewide/regional crop insurance market problems advise us of these ASAP.

What It Means to Agents:  At this time the instructions provided in the NE DOI letter of understanding with RMA, and the specific RMA instructions PIA provided in last week's Newsline, continue. If your current American Growers agency agreement permits you to return premium on a net-of-earned commissions basis, the agency may do so for crop years that are closing.

We note again that RMA is instructing that American Growers crop contracts currently in force for the winter season that runs into 2003 need to be transferred to another federal crop insurance provider no later than January 31, 2003. Naturally, all other crop business that would come up for renewal in 2003 for American Growers needs to move to another provider as well.

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