INFORMATIONAL MEMORANDUM: R&D-96-061    
     
TO:       All Reinsured Companies
          All Risk Management Field Offices
          FSA Headquarters, Program Delivery and Field Operations
     
FROM:     Tim B. Witt
          Director
          Research and Development Division
     
SUBJECT:  Issuance of the 1997 FCIC 24080 Nursery Crop Insurance         
          Underwriting Guide
     
     
BACKGROUND:
     
For the 1997 crop year, changes have been made to the Nursery Crop
Insurance Underwriting Guide (NURS).  The Federal Crop Insurance
Corporation (FCIC) is issuing these changes for limited, additional and
Catastrophic Risk Protection (CAT) coverages.
     
Summary of Changes:
     
Section 5
     
* Establishes that Insurance Providers will verify CAT                   
applicants/insureds have records supporting the nursery inventory      
values used to establish liability.
     
Section 6
     
* Simplifies inventory reporting by permitting applicants/insureds to    
substitute computerized inventory listings or similar FCIC approved    
documents for the FCI-545, Nursery Container Report.
     
Sections 8 and 9
     
* Updates current language used in the Nursery Crop Provisions 96-056 in 
regard to Insured Plants, Causes of Loss, and Uninsured Causes of      
Loss.
     
Section 11
     
* Outlines a new set of criteria that will trigger Nursery inspections.
     
Section 13
     
* Clarifies the premium due dates and when interest will be added to    
premium past due.
     
Exhibit 7
     
* Has been updated with the 1997 Actuarial Tables and includes the    
Producer Premium Percentage Tables.
     
Exhibit 8
     
* Provides the new Nursery Underwriting Inspection Report, FCI-544.
     
ACTION:
     
Attached is the approved 1997 FCIC 24080 Nursery Crop Insurance
Underwriting Guide.  It replaces the Nursery Crop Insurance Guide issued
August 11, 1989.  If you have any questions about the Guide, please
contact the Product Development Branch at (816) 926-7743.
     
Attachment - Hard copy and attachments will be mailed.