Final Agency Determination: FAD-030

FAD: 030

Subject: Request dated March 8, 2004, for Final Agency Determination for the 2001 and succeeding crop years, regarding the interpretation of section 25(b) of the Basic Provisions, as published at 7 C.F.R. 457.8. This request is pursuant to 7 C.F.R. part 400, subpart X.

Section 25(b) of the Basic Provisions states:

25. Legal Action Against Us

(b)If you do take legal action against us, you must do so within 12 months of the date of denial of the claim. Suit must be brought in accordance with the provisions of 7 U.S.C. 1508(j).

1. A claim for interest, additional interest or additional indemnity is "denied" within the meaning of paragraph 25(b) of the Basic Provisions when the approved insurance provider pays or tenders an indemnity payment, with or without interest, in an amount different from that claimed or desired by the producer, regardless of whether the producer asked for interest, additional interest, or additional indemnities at that time.
2. All claims for interest, additional interest, or additional indemnity payments must be brought no later than twelve (12) months from the date the approved insurance provider pays or tenders an indemnity payment, with or without interest, in an amount different from that claimed or desired by the producer, regardless of whether the producer asked for interest, additional interest, or additional indemnities at that time.

The Federal Crop Insurance Corporation (FCIC) disagrees with the submitted interpretation. The "date of denial of the claim" within the meaning of paragraph 25(b) of the Basic Provisions is the date the insurance provider notifies the insured producer of the amount of an indemnity payment or a determination that no indemnity payment is due, with or without interest.

Date of Issue: June 4, 2004