BULLETIN NO.:  MGR-95-050

TO:       All Reinsured Companies
          All Risk Management Field Offices
          All Others Interested in MPCI

FROM:     Kenneth D. Ackerman
          Deputy Administrator

SUBJECT:  Draft Amendment to the 1995 Standard Reinsurance Agreement


BACKGROUND:

On June 27, 1995, the Federal Crop Insurance Corporation (FCIC) issued 
Bulletin No. MGR-95-035 to announce changes in the prevented planting 
provisions for the 1995 crop year.  These changes to crop insurance policies 
occurred after private insurance providers executed the Standard Reinsurance 
Agreement with FCIC.  As a result, the private insurance providers' 
underwriting results may have been affected.  FCIC is issuing this amendment 
to shift additional losses incurred as a result of the prevented planting 
changes.  

ACTION:

FCIC proposes this amendment to the 1995 Standard Reinsurance Agreement to 
address additional prevented planting losses. This amendment provides the 
following:

1)   Section II.B. incorporates language for determining a reinsured 
     company's retention of prevented planting ultimate net losses;

2)   Section IV.B. was amended to include additional expense reimbursement 
     payable to a reinsured company;

3)   Section V.B.5. was amended to extend the due date of any uncollected 
     premiums with the October 1 billing date from November 30, 1995 to 
     December 29, 1995.

This draft amendment is being issued for comment. FCIC requests comments be 
submitted by November 28, 1995 and sent to:


REGULAR MAIL                       
Federal Crop Insurance Corporation
Office of the Deputy Administrator           
for Risk Management                     
Attn:  E. Heyward Baker                 
14th & Independence Ave. S.W.           
Washington, D.C.  20250                 


OVERNIGHT
Federal Crop Insurance Corporation
Office of the Deputy Administrator
for Risk Management
Attn: E. Heyward Baker
2101 L Street, 5th Floor
Washington, D.C.  20037


If you should have any questions, please contact your Reinsurance Services 
Liaison Branch Account Executive.

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