INFORMATIONAL MEMORANDUM:  R&D-95-041

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

FROM:    Tim B. Witt
         Acting Director
         Research and Development Division

SUBJECT: Clarification of 1995 Crop Year Prevented Planting Coverage and 
         Claims Processing


ISSUE 1:

Some producers in counties having only a fall final planting date, acting in 
good faith at the time, did not purchase crop insurance for their 1995 winter 
wheat because they were informed that their winter wheat acreage was not 
eligible for prevented planting coverage if it was subsequently planted to a 
1995 spring crop.  Manager's Bulletin MGR-95-028 issued on June 27, 1995, 
announced changes in prevented planting coverage for the 1995 crop year. These
changes applied to all crops with prevented planting coverage including 1995 
wheat.

ACTION:

Producers who did not purchase crop insurance for their 1995 winter wheat 
because they were informed prevented planting coverage was not available may 
sign up for CAT coverage at this time.  Insurance providers are authorized to 
accept CAT applications for 1995 winter wheat and are encouraged to complete 
this process by September 30, 1995.  Acreage reports and claims can be 
completed and processed in accordance with MGR-95-028 and R&D-95-033.

ISSUE 2:

For claims where the insured crop was prevented from being planted on the 
entire unit, there have been concerns that claims may be completed with 
lapses of time that will result in many delayed claims.  (A delayed claim is 
when the insured signs the final claim more than 60 days after the end of the 
insurance period for the unit, as defined in the policy.)  The Loss Adjustment
Manual states that the insurance period for prevented planting ends when the 
per-unit insured crop coverage ends, as specified in the crop 
policy/endorsement; however, crop handbook instructions for "Date Harvest 
Completed" and "Lapse of Time" do not specifically address this situation.  
The following instructions will eliminate any timely-submitted claims from 
being considered delayed claims.  

ACTION:

Use the following instructions ONLY when the insured crop was prevented from 
being planted, and NO acreage of the insured crop was planted on the unit:

(1)      "Date Harvest Completed"  (For the CFSA, Item 22 on the FCI-74 and
         FCI- 74 T-P-C).

         Enter "PP".

(2)      "Lapse of Time"  (For the CFSA, Item 23 on the FCI-74 and FCI-74 
          T-P-C)

         Note to reinsured companies:  Although an entry for "lapse of time"
         may not be on your claim forms, use the following instructions to
         determine and handle delayed claims for this type of situation.

    Begin counting the day after the calendar date for the end of the 
    insurance period IF the claim was signed after the calendar date for the 
    end of the insurance period for the unit.  If the number of days is 61 or 
    more, handle as a delayed claim in accordance with the Loss Adjustment 
    Manual, modifying the required delayed claim report as appropriate for
    prevented planting.  There should be very few delayed claims since the 
    insured's signature will generally be prior to the calendar date for the 
    end of the insurance period for the unit.

NOTE:  For claims having acreage planted to the insured crop (including 
       having both prevented planting acreage and acreage planted to the 
       insured crop), determine the entry for "Date Harvest Completed" and 
       "Lapse of Time" (for reinsured companies without this entry, whether 
       there is a delayed claim) as instructed in the appropriate crop 
       handbook and/or Loss Adjustment Manual.