INFORMATIONAL MEMORANDUM: R&D-95-043  

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

FROM:    Tim B. Witt
         Director
         Research and Development Division                  

SUBJECT: Quality of FCI-74, Claim for Indemnity


Numerous errors or omissions have been discovered during the audit and review 
process of Claims for Indemnity received from the FSA county offices and 
Regional Service Offices (RSO). Attached is a synopsis of the types of 
problems that we have found and the recommended solution in each instance.

Since the county offices and RSO s are responsible for reviewing claims for 
sufficiency and accuracy of information, we recommend that this check list be 
distributed to all personnel involved in this type of review.

These errors slow down processing of the claims once they reach the Kansas 
City Office for key entry.  Although the Kansas City Management Office can 
correct some of the obvious errors (e.g., line acres do not add up to total 
acres), in many cases they must call county offices to determine the 
appropriate entries.  In addition, omissions in certain fields can cause the 
insured to be paid incorrectly.  For instance, interest is calculated from 
the insured's signature date or the loss adjuster's signature date to the 
date of payment, based on whether or not there is an entry in item 24 of the 
claim form.  If there is no entry, interest will be paid from the insured's 
signature date.  If there is a  C  in item 24, interest will be calculated 
from the date the loss adjuster signs the form.

Please review the attached sample list of recurring problems that have been 
identified during the claims review process and provide instructions to all 
personnel involved in completion or review of the forms.

We want to stress that the overall quality of the claims that are being 
received is poor at best, and that every attempt should be made to provide 
further education and training to loss adjusters and reviewers.

Attachment