July 30, 1998

BULLETIN NO.: MGR-98-020

TO:      	All Reinsured Companies; OVERNIGHT MAIL
    		All Risk Management Field Offices
    		All Other Interested Parties
    
FROM:    	Kenneth D. Ackerman    /s/ Kenneth D. Ackerman
    		Administrator

SUBJECT: Revised Amendment No.1 to the 1998 SRA to Implement the 1998 Research Act

BACKGROUND:

On June 30, 1998, the Federal Crop Insurance Corporation (FCIC) issued MGR-98-018 and
Amendment No. 1 to the 1998 Standard Reinsurance Agreement (1998 SRA) to implement
changes required by Subtitle C of the Agricultural Research, Extension, and Education Reform
Act of 1998 (1998 Research Act).  The crop insurance industry requested additional time to sign
and submit the amendment so that several issues regarding the administration of changes under
the 1998 Research Act could be clarified.  On July 22, 1998, FCIC officials met with the Industry
Steering Committee to discuss the outstanding issues and the following was decided:
1)  FCIC will collect administrative fees after it is notified that policyholders are indebted for
non-payment of administrative fees and declared as such through the Ineligible Tracking System;
and 2)  Eligible crop insurance contracts for which fees are due shall be terminated due to
indebtedness effective for the crop year following the termination date used to determine the
policyholder's ineligibility.

ACTION:

Attached are two copies of the revised Amendment No. 1 to the 1998 SRA which must be
executed for FCIC to provide reinsurance and subsidy in the 1999 and subsequent reinsurance
years.  Each copy must be signed as an original and returned to FCIC at the address shown below
via overnight mail within 10 business days after receipt.  The amendment should be signed by the
person authorized by the reinsured company's Board of Directors to enter into the SRA.

OVERNIGHT MAIL:    USDA/Risk Management Agency
                  Reinsurance Services Division
                    E. Heyward Baker, Director
                   1400 Independence Avenue, SW
                   Stop Code: 0804; Room 6727-S
                       Washington, DC 20250
                   Phone: (202) 720-4232
Failure to execute the amendment will terminate your Standard Reinsurance Agreement as of the
end of the 1998 reinsurance year (June 30, 1998).

Attachments (2) - will follow in overnight mail








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