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PIA Applauds FCIC Decision to Suspend Crop PRPs Pending Review

The Federal Crop Insurance Corporation (FCIC) has put the brakes on Premium Reduction Plans (PRPs) pending further review. At a meeting of the FCIC board...
November 24, 2004

The Federal Crop Insurance Corporation (FCIC) has put the brakes on Premium Reduction Plans (PRPs) pending further review. At a meeting of the FCIC board on Friday November 19, all pending PRP applications for the 2005 reinsurance year were denied. The board also mandated that no new PRP applications will be approved until the U.S. Department of Agriculture's Risk Management Agency (RMA) completes a rulemaking procedure.

In taking the actions, FCIC has recognized that a mechanism must be in place to ensure that RMA, together with state Departments of Insurance, can continue to deliver quality insurance to America's farmers - and that this process includes considering suggestions from PIA National and other insurance interests participating in crop insurance at the federal and state level. This is a positive development for the marketplace and a prudent move.

What It Means to Agents:  PIA applauds the decision by the FCIC board to conduct a comprehensive review of Premium Reduction Plans (PRPs), and suspend new applications pending further review. We are especially pleased that in addition to seeking comments from companies and farmers, RMA will be seeking comments from agents as part of the rulemaking process.

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