BULLETIN NO.:  MGR-95-014

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

FROM:     Kenneth D. Ackerman
          Acting Deputy Administrator

SUBJECT:  Liberalization of the Florida Citrus Crop Insurance Coverage Change
          Date for the 1996 Crop Year 

ISSUE:

Concerns have been raised regarding differences in the final date by which 
Florida citrus insureds may change policy coverage.   

DISCUSSION:

Federal Crop Insurance Corporation's (FCIC's) General Crop Insurance Policy 
(88-G Rev. 3-91) provides that insureds "... may change the amount of 
insurance or coverage level and price election on or before the sales closing 
date for the crop year."  In contrast, the General Provisions used by several 
reinsured companies (1988-CHIAA 700 A) provide that insureds "... may change 
the coverage level and/or price election for the following crop year on or 
before the cancellation date shown on the State Endorsement for each insured 
crop which is shown on the Schedule of Insurance.  For Florida citrus the 
cancellation date is April 30 and the sales closing date is August 15."  This 
allows an insured who has the FCIC policy to change the amount of insurance 
through August 15, while other insureds must make the same decision by April 
30.  The situation is further complicated by companies who use the FCIC 
endorsement but still require carryover insureds to make coverage changes by 
April 30.  To provide equal opportunity for all Florida citrus insureds to 
make policy coverage changes up to the sales closing date, the CHIAA 700 A or 
equivalent General Provisions may be liberalized to allow insureds covered 
under these policies to change their policy coverage up to the August 15, 
1995, sales closing date.  

ACTION:

Effective immediately, companies may accept requests for changes in coverage 
for the 1996 crop year from carryover policyholders until August 15, 1995, 
as long as no loss has occurred.