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PIA Attends Special RMA Crop Meeting in Kansas City on Agent Compensation

A special meeting of the USDA Risk Management Agency (RMA), industry leaders and crop agent representatives was held last week in Kansas City to discuss...
September 8, 2010

A special meeting of the USDA Risk Management Agency (RMA), industry leaders and crop agent representatives was held last week in Kansas City to discuss the definitions of "agent compensation" in the new five-year Standard Reinsurance Agreement (SRA). PIA crop lobbyist Kent Olson of North Dakota along with other members of the PIA National Crop Insurance Working Group from Nebraska and Kansas attended.

The purpose of the meeting was to categorize the elements of agent compensation within the SRA so there can be no dispute regarding the categories and practices for paying agents for the sale and service of crop insurance. The new SRA is very restrictive in defining "compensation" due to the 80 percent A&O caps. Compensation can include coop advertising, loans, trips, promotions and other forms of direct or indirect compensation, in addition to the normal commission rate.  An RMA Bulletin will follow setting out the guidelines to all players in the crop insurance arena.

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