BULLETIN NO.:  MGR-96-018

TO:      All Reinsured Companies
         All Risk Management Field Offices

FROM:    Kenneth D. Ackerman
         Deputy Administrator

SUBJECT: Preliminary Submission of Debtor Lists

ISSUE:

Insured producers who are indebted for prior year multiple peril crop 
insurance coverage.

BACKGROUND:

The Farm Service Agency (FSA) has developed an interim process to identify 
producers indebted under the Federal crop insurance program until such time 
that Ineligible Regulations are approved and the Ineligible Tracking System 
procedures are complete.

ACTION:

The attached Type 60 record format has been developed for the submission of 
debtor data to the Office of Risk Management (RM).  One Type 60 record will 
be needed for all applicable debtors for each policy on which a debt exists.

There have been two changes to the Type 60 record format subsequent to the 
Data Processing Manager's meeting:

--  A Delete/Update Flag has been added beginning in position 1 of the 250 
    byte record.  This flag should be used to delete records that were 
    transmitted incorrectly.  Do not use this flag to remove a debtor from 
    the list.  See the attached record descriptor for the valid values and 
    edits.

--  The Debt Flag has been modified to a Debt/Reconsideration/Mediation 
    Flag.  This will allow for the reporting of informal reconsideration or 
    mediation between the producer and the company.  See the attached record 
    descriptor for the valid values and edits.

Notification letters will be mailed to each producer listed as a debtor. The 
producer will be given 30 days from the date of the letter to take one of the 
following actions:

--  Pay the debt;
--  Establish a payment plan with the company;
--  Establish an informal reconsideration with the company;
--  Request mediation; or 
--  Appeal to the National Appeals Division (NAD).

The company must notify RM of any changes in a producer's debt status by 
transmitting a modified Type 60 record.

The Type 60 debtor records will be edited for valid information before 
loading into the preliminary Ineligible database. The Actuarial Branch will 
send instructions regarding file submission in a separate letter.

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