BULLETIN NO.: MGR-96-011

TO:       All Reinsured Companies
          FSA Headquarters, State, and County Offices
          All Risk Management Field Offices
          All Others Interested in Multiple Peril Crop Insurance

FROM:     Kenneth D. Ackerman
          Deputy Administrator

SUBJECT:  Submission of 1997 Plan of Operations


The Farm Service Agency (FSA), Office of Risk Management (ORM) wishes to 
express our appreciation for the contribution all reinsured companies made 
to successfully bring the 1996 Multiple Peril Crop Insurance (MPCI) program 
to the America's farm industry. 

As you are aware, April 1, 1996, is the deadline for receipt of 1997 Plans 
of Operation (Plan). The term of the 1995 Standard Reinsurance Agreement 
(Agreement) has been extended to include the 1997 reinsurance year, thus 
submissions for the 1997 reinsurance year require only a submission of the 
1997 Plan.

Exhibits 9 through 15, 19 and 20 must be updated and submitted.  Any 
revisions to 1996 Plan exhibits 1 through 8, 16 , 17, 18, and 21 through 29 
must also be submitted.  Enclosed is a diskette containing LOTUS 1-2-3 files 
of Exhibit 11, 12, 13, 14, and 20.  The exhibit 20 file is the Part 1 form 
where a reinsured company is to enter MPCI expenses.  To meet the 
documentation requirements of exhibit 20 Parts II and III, you must also 
submit a copy of the 1995 Insurance Expense Exhibit that was sent to the 
state insurance department.

One of the regulatory standards to approve 1997 Plans is the Maximum Possible 
Underwriting Loss (MPUL) requirement.  To assist reinsured companies in 
determining whether their Plan meets this requirement, the diskette has a 
file to calculate the MPUL.  If private market reinsurance is necessary to 
meet the MPUL requirement, the reinsured company must submit copies of the 
secured reinsurance and a spreadsheet showing the impact on retained 
liability.  A reinsured company should not submit a 1997 Plan which does not 
meet the MPUL requirement.  Such Plans will not be approved.  However, 
Exhibits 11 and 12 may be revised anytime during the reinsurance year to 
request an increase in approved premium volume when a reinsured company 
obtains additional private market reinsurance and/or an increase to surplus.

The attached diskette, two copies of the other 1997 Plan exhibits required or 
revised, and a letter signed by the person with signatory authority to sign 
the Agreement must be received by close of business May 3,1996. The Plan must 
be submitted to:


                 REGULAR MAIL and OVERNIGHT/UPS
               Federal Crop Insurance Corporation
               Office of the Deputy Administrator
                      for Risk Management
                Attn: E. Heyward Baker, Rm 6727
              Reinsurance Services Liaison Branch
                 14th & Independence Ave. S.W.
                    Washington, D.C.  20250


If you should have any questions please contact your Reinsurance Services 
Liaison Branch Account Executive at (202) 720-4232.

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