BULLETIN NO.: MGR-96-067.1

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

FROM:          Kenneth D. Ackerman
               Acting Administrator

SUBJECT:       Retention of Original Documents by Local
               Agencies


BACKGROUND:

Bulletin No.: MGR-96-067, issued November 13, 1996, required reinsured 
companies to retain original insurance documents at the company's 
headquarters, branch office, or other location under the direct control of 
the reinsured company.  The Federal Crop Insurance Corporation (FCIC) has 
been contacted by numerous reinsured companies requesting reconsideration of 
our position.  FCIC agrees that allowing local agencies to retain original 
insurance documents will reduce the companies' administrative expense but is 
concerned about the loss of underwriting control when original insurance 
documents are not retained at a location which is under the direct control of 
the company.

ACTION:

As an interim measure, FCIC agrees to rescind MGR-96-067.  The bulletin will 
not be in effect until FCIC, in conjunction with the crop insurance industry, 
has explored possible options for the retention of original insurance 
documents.