BULLETIN NO.: MGR-96-002

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

FROM:    Kenneth D. Ackerman
         Deputy Administrator

SUBJECT: Transfer of Contracts Between FSA and Reinsured Companies


BACKGROUND:

The Farm Service Agency (FSA) anticipates that many producers who purchased 
catastrophic risk protection (CAT) policies from FSA in 1995 will purchase 
buy-up coverage from reinsured companies in 1996.  In some cases, 
policyholders may transfer their coverage from a reinsured company to FSA.

ACTION:

Reinsured companies should send requests for cancellation of FSA contracts 
to the appropriate FSA local offices.  Reinsured companies and FSA offices 
should follow the procedures outlined in the 1996 Federal Crop Insurance 
Corporation (FCIC) 18100 Catastrophic Risk Protection Handbook, Section 4.L, 
pages 31 and 32, to transfer coverage between FSA and the reinsured companies.

The FCIC automated policyholder tracking system should be used to establish 
prior year experience including the experience of a CAT policy written by 
FSA.  Reinsured companies should transmit the Record Type 14 with the 
experience flag turned on.  The data that was used to establish experience 
for the prior year will be available to the reinsured company.

Refer to the FCIC 18010 Crop Insurance Handbook and FCIC Manual 13, Data 
Acceptance Handbook for additional detail and instructions in the transfer 
of experience.