BULLETIN NO.:  MGR-96-005.1

TO:      All Reinsured Companies
         All Risk Management Field Offices

FROM:    Kenneth D. Ackerman
         Deputy Administrator
 
SUBJECT: Pilot Program for Simplified Claims Processing 


BACKGROUND:

The Federal Crop Insurance Corporation (FCIC) announced a Simplified Claims 
Processing (SCP) pilot program beginning with the 1996 crop year under 
Bulletin MGR-96-005.  This bulletin contained the criteria for claims which 
would qualify under SCP and provided requirements for reinsured companies 
who would be participating.  FCIC has received concerns that certain criteria 
and standards were overly burdensome and administratively difficult.  FCIC 
has considered the concerns and amended MGR-96-005 accordingly.   

ACTION:
                                    
All criteria and standards not explicitly modified herein remain as 
previously announced in Bulletin MGR-96-005.  Reinsured companies 
participating in the SCP pilot must assure that all criteria and standards 
contained in MGR-96-005 and those amended herein are followed.   The 
following items as contained in MGR-96-005 are hereby amended.  

1  The crops and criteria for a claim to qualify for SCP follow:  

   B  All crop policies in all funds are eligible.  
   C  Only crop policies with basic units earning premium are eligible 
      (policies with optional units may not be considered under SCP).  
   G  Claims involving any of the following conditions are not eligible: 
      Item (9) Delayed notices is removed in its entirety.

2  Reinsured company participation in the SCP pilot is as follows:
   
   E  This item as previously contained in MGR-96-005 is removed in its 
      entirety.
   F  This item as previously contained in MGR-96-005 is removed in its 
      entirety.
   G  This item as previously contained in MGR-96-005 is removed in its 
      entirety.