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Reminder to PIA Crop Insurance Agents on Burley Tobacco

PIA members and insurers writing crop insurance for burley tobacco are encountering problems in being able to properly quote 2005 crop insurance contracts for this...
June 1, 2005

PIA members and insurers writing crop insurance for burley tobacco are encountering problems in being able to properly quote 2005 crop insurance contracts for this crop.

The federal crop insurance program requires all participating farmers to keep accurate and up-to-date production records on each of the crops they intend to cover as the documented basis to calculate the insurance value options under this insurance program.  As insurance agents, you must use those numbers to help develop those coverage-value-claims payout-cost options for farmers to consider when finally selecting the specifics for your crop insurance contracts. It is likewise in your best interest to retain a copy of such information in the client's file to show the basis for E&O and the claims/loss information as well.

Agents should remind their farmers of this annually, perhaps included in the preparatory communications sent out at the beginning cycle for each new crop contract period. For further protection of the agent, we also suggest you secure sign-off from the farmer after the actual production history is provided.

What It Means to Agents:  PIA National strongly advises all PIA members who have burley tobacco farmer clients to once again advise them in a written follow-up that it is their responsibility (not the agent's) to pursue securing their converted past production records with FSA as soon as possible.

If you have any questions, please contact Pat Borowski patbo@pianet.org or Kellie Bray kelliebr@pianet.org.

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