BULLETIN NO.: MGR-95-010.1

TO:      All Reinsured Companies
         CFSA Headquarters, Program Delivery, Field Operations
         All Risk Management Field Offices

FROM:    Kenneth D. Ackerman
         Acting Deputy Administrator

SUBJECT: Insured's Signature on Acreage Reports - Revised


BACKGROUND:

On October 12, 1994, the Federal Crop Insurance Corporation (FCIC) issued an
INFORMATIONAL MEMORANDUM requiring all acreage reports for the 1995 crop year 
to be signed by the insured or the insured's authorized representative.  The 
General Administrative Regulations, Subpart T, 400.653(d) published January 6, 
1995, requires the insured to file a signed acreage report on or before the 
acreage reporting date.  On April 4, 1995, FCIC issued Bulletin No.: 
MGR-95-010 which stated that acreage reports must be signed by the insured in
order to have a fully executed contract of insurance.  This bulletin also 
stated that if litigation was filed against the insurance provider due to 
information contained in or derived from an unsigned acreage report, FCIC 
would not reimburse litigation expenses and would not reinsure indemnities 
resulting from the disputed information.  Bulletin No.: MGR-95-010 also 
provided that operators may sign acreage reports for catastrophic risk 
protection policies only.

The crop insurance industry has requested clarification regarding the 
reinsuring of indemnities involved in disputes arising from the information 
contained in or derived from an unsigned acreage report. The industry has 
also requested that operators be allowed to sign acreage reports for limited 
and additional coverage policies.

ACTION:

Paragraph 2 under "Action" of Bulletin No.: MGR-95-010 is revised by inserting 
the following after the last sentence of paragraph 2 as follows:

For limited and additional coverage policies, an operator (or any other 
competent party)  may sign the application, acreage report, or any other 
document relative to crop insurance coverage where he or she has a properly 
executed power of attorney authorizing the operator to sign.  For the 1995 
crop year only, if the application was signed by the operator without a 
properly executed power of attorney, the power of attorney must be obtained 
and submitted to the insurance provider by the final acreage reporting date 
for the crop insurance contract for which acreage is being reported.

Paragraph 5 under "Action" of Bulletin No.: MGR-95-010 is also revised by 
striking the last sentence of the fifth paragraph and inserting the following:

If the dispute results in a threat of litigation, litigation, settlement of 
the claim through the administrative appeals process, or any other payment, 
FCIC will not reimburse litigation or administrative expenses resulting from 
such claim, and will not reinsure any claim resulting from the disputed 
information under ultimate net loss.  For example: 

    1) The insured claims he reported 20 acres over the telephone to the crop 
       insurance agent.  The insurance provider processed the acreage report 
       based on 15 acres. The amount of acres in dispute, subject to the 
       litigation brought by the insured is 5 acres, not the 15 acres actually 
       processed.  Therefore, FCIC would not pay an ultimate net loss 
       resulting from a claim brought by the insured for the disputed 5 acres.

    2) The insured reports a 75 percent share to his or her crop insurance 
       agent.  The insurance provider processes the acreage report based on a 
       75 percent share.  A dispute arises based on a subsequent 
       representation or determination  (cross-compliance) that the share was 
       actually 100 percent.  The premium and liability associated with the 25
       percent share is the amount in dispute.  Therefore, FCIC would not pay 
       an ultimate net loss resulting from the payment to the insured for the 
       disputed 25 percent share.

If the insured fails to submit a signed acreage report, the insurance 
provider in accordance with policy provisions may:  1) determine the 
insurable acreage, share, type, or practice, etc.; or 2) determine zero 
acreage.  The insurance provider may attempt to verify unsigned acreage report 
information through a verification letter to the insured that advises the 
insured that the reported information will be binding if it is not modified 
within a specified amount of time.  If no response is received from the 
insured, the insurance provider may accept and process the unsigned, reported 
information or declare the acreage to be zero as provided under FCIC-approved 
procedure applicable to the situation.