BULLETIN NO.: MGR-96-008 TO: All Reinsured Companies All Risk Management Field Offices FSA Headquarters, State, and County Offices All Others Interested in MPCI FROM: Kenneth D. Ackerman Deputy Administrator for Risk Management SUBJECT: Revisions to 1996 Plans of Operation BACKGROUND: Several reinsured companies have requested that the Federal Crop Insurance Corporation (FCIC) allow revisions to their 1996 Plan of Operation (Plan) permitting increases to state retention percentages in the Developmental fund. FCIC has determined that Plan revisions which increase reinsured company risk retention are consistent with Section 508.k.3 "Reinsurance - Share of Risk" of the Federal Crop Insurance Act, as amended. These revisions will be made during a late period of the 1996 reinsurance year; therefore, FCIC will limit allowable revisions to prevent adverse selection against FCIC. ACTION: FCIC will allow reinsured companies the opportunity to revise their 1996 Plans to increase retention percentages in the Developmental fund. FCIC will conduct an analysis of each revised Plan to determine if any revision adversely impacts FCIC in accordance with Section V.F.1.c. of the 1995 Standard Reinsurance Agreement. If FCIC determines that revisions to 1996 Plans adversely select against FCIC, such revisions will not be approved. The attached Plan revision form must be used for the purposes of revising 1996 Plans under this bulletin. All approvals of revised Plans will be in writing. The attached form must be received by FCIC by March 15, 1996, at the following address: REGULAR MAIL and OVERNIGHT/UPS Federal Crop Insurance Corporation Office of the Deputy Administrator for Risk Management Attn: E. Heyward Baker, Rm 6727 14th & Independence Ave. S.W. Washington, D.C. 20250 If you should have any questions, please contact your Reinsurance Services Liaison Branch Account Executive. Attachment -------------------------------------------------------------------------- (NOTE: Attachment unavailable in text format.)