[Federal Register Volume 60, Number 18 (Friday, January 27, 1995)]
[Proposed Rules]
[Pages 5339-5343]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-2057]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 60, No. 18 / Friday, January 27, 1995 /
Proposed Rules
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[[Page 5339]]
DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Part 457
RIN 0563-AA96
Common Crop Insurance Regulations; Nursery Crop Insurance
Provisions
AGENCY: Federal Crop Insurance Corporation.
ACTION: Proposed rule.
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SUMMARY: The Federal Crop Insurance Corporation (FCIC) hereby proposes
specific crop provisions for the insurance of nursery to be contained
in an endorsement to the Common Crop Insurance Policy which contains
standard terms and conditions common to most crops. The intended effect
of this action is to add a nursery frost, freeze, and cold damage
exclusion option to better meet the needs of the insured.
DATES: Written comments, data, and opinions on this proposed rule must
be submitted no later than February 27, 1995 to be sure of
consideration.
ADDRESSES: Written comments, data, and opinion on this proposed rule
should be sent to Diana Moslak, Regulatory and Procedural Development
Staff, Federal Crop Insurance Corporation, USDA, Washington, D.C.
20250. Hand or messenger delivery should be made to 2101 L Street,
N.W., suite 500, Washington, D.C. Written comments will be available
for public inspection and copying in the Office of the Manager, 2101 L
Street, N.W., 5th Floor, Washington, D.C., during regular business
hours, Monday through Friday.
FOR FURTHER INFORMATION CONTACT: Diana Moslak, Federal Crop Insurance
Corporation, U.S. Department of Agriculture, Washington, D.C. 20250.
Telephone (202) 254-8314.
SUPPLEMENTARY INFORMATION: This action has been reviewed under United
States Department of Agriculture (``USDA'') procedures established by
Executive Order 12866 and Departmental Regulation 1512-1. This action
constitutes a review as to the need, currency, clarity, and
effectiveness of these regulations under those procedures. The sunset
review date established for these regulations is January 1, 2000.
This rule has been determined to be ``not significant'' for the
purposes of Executive Order 12866, and therefore, has not been reviewed
by the Office of Management and Budget (``OMB'').
The information collection or record-keeping requirements contained
in these regulations (7 CFR part 457) have been submitted to the OMB in
accordance with the provisions of 44 U.S.C. Sec. 35 and will be
assigned an OMB control number.
It has been determined under section 6(a) of Executive Order 12612,
Federalism, that this proposed rule does not have sufficient federalism
implications to warrant the preparation of a Federalism Assessment. The
policies and procedures contained in this rule will not have a
substantial direct effect on states or their political subdivisions, or
on the distribution of power and responsibilities among the various
levels of government.
Under the Regulatory Flexibility Act (5 U.S.C. Sec. 605), this
regulation will not have a significant impact on a substantial number
of small entities. This action reduces the paperwork burden on the
insured farmer and the reinsured company. Therefore, this action is
determined to be exempt from the provisions of the Regulatory
Flexibility Act and no Regulatory Flexibility Analysis was prepared.
This program is listed in the Catalog of Federal Domestic
Assistance under No. 10.450.
This program is not subject to the provisions of Executive Order
12372 which require intergovernmental consultation with state and local
officials. See the Notice related to 7 CFR part 3015, subpart V,
published at 48 FR 29115, June 24, 1983.
The Office of the General Counsel has determined that these
regulations meet the applicable standards provided in subsections
(2)(a) and 2(b)(2) of Executive Order 12778. The provisions of this
rule will preempt state and local laws to the extent such state and
local laws are inconsistent herewith. The administrative appeal
provisions located at 7 CFR part 400, subpart J or promulgated by the
National Appeals Division must be exhausted before judicial action may
be brought.
This action is not expected to have any significant impact on the
quality of the human environment, health, and safety. Therefore,
neither an Environmental Assessment nor an Environmental Impact
Statement is needed.
Background
FCIC proposes to add to the Common Crop Insurance Regulations (7
CFR Part 457), two new sections to be known as 7 CFR 457.114, the
Nursery Crop Insurance Provisions and 7 CFR 457.115, the Nursery Frost,
Freeze, and Cold Damage Exclusion Option. The provisions and option
will be effective for the 1996 and succeeding crop years.
The proposed Nursery Crop Insurance Provisions will replace the
provisions found at 7 CFR part 406. By separate rule, FCIC will amend
these regulations to restrict the crop years of application to those
prior to the crop year for which this rule will be effective and later
remove the nursery crop insurance regulations contained in 7 CFR part
406.
This rule makes minor editorial and format changes to improve its
compatibility with the Common Crop Insurance Policy. In addition, FCIC
is proposing other changes in the provisions for insuring nursery
crops:
1. Subsection 1.(a)--Revises the definition of ``amount of
insurance'' to allow a maximum amount of insurance based on the highest
reported monthly market value of inventory plus any additional
inventory added during the year, or which is restocked, if approved by
the insurer. Presently, the maximum amount of insurance is based on 90
percent of the average monthly market value of inventory reported at
the beginning of the crop year. The 10 percent reduced valuation in the
current regulations is eliminated to recognize the abnormal expenses
incurred in disposing of damaged inventory.
2. Subsection 1.(b)--Revises the definition of ``annual loss
deductible'' by replacing the term ``field market value'' with the term
``highest reported monthly market value.''
3. Subsection 1.(e)--Revises the definition, ``field market value
A'' to no longer contain the 10 percent reduced valuation contained in
the current regulations due to the change stated in item 1. above.
Language specifies that the insurer reserves the right to review the
insured's wholesale price list taking into consideration maximum
discounts [[Page 5340]] granted to any buyer as contained in the
definition of ``wholesale market value.''
4. Subsection 1.(f)--Revises the definition, ``field market value
B'' to no longer contain the 10 percent reduced valuation contained in
the current regulations due to the change stated in item 1. above.
Maximum pricing discounts will also be considered in this determination
as specified in the definition of ``wholesale market value.''
5. Subsection 1.(h)--Add a definition for ``monthly loss
deductible.''
6. Subsection 1.(i)--Add a definition for ``monthly market value.''
7. Subsection 1.(n)--Add a definition for ``standard nursery
containers.''
8. Section 2--Clarify that locations outside a five mile radius of
the named locations, but within the same county, may be designated as a
separate basic unit or be included in the closest unit listed on the
insured's nursery plant inventory summary.
9. Subsection 6.(c )--Clarify that whenever inventory is expected
to change within a specific month, the highest value for the month will
be recorded on the nursery plant inventory summary.
10. Subsection 6.(d)--Require the insured to give notice in writing
at least 14 days before making a change in inventory value, if a
request for a revised nursery plant inventory summary is planned. This
provision allows the insurer to inspect the inventory if necessary.
11. Paragraphs 6.(d)(1) and 6.(d)(2)--Specify that insurance will
not attach on any increase in inventory until the insurer completes an
inspection and accepts such increase.
12. Subsection 6.(e)--Specify that any plants added to the
inventory that are not reported for insurance will not be insured, but
the value of these plants, after a loss, will be considered production
to count for purposes of loss determination and claim settlement.
13. Subsection 7.(b)--Allow the insured to pay the annual premium
in three installments. The first payment (40 percent of the annual
premium) is due and payable on the later of September 30 preceding the
crop year or the date the insurer accepts the inventory for insurance;
the second payment (30 percent of the annual premium) is due and
payable on January 1 of the crop year; and the third payment (30
percent of the annual premium) is due and payable on April 1 of the
crop year. Current provisions state that the annual premium is earned
and payable on or before September 30 preceding each crop year, but
allow a six month delay in the payment of premiums, until March 31 of
the crop year.
14. Subsection 7.(c)--Specify that additional premium resulting
from an increase in a nursery plant inventory summary is due and
payable when the revised summary is approved.
15. Subsection 7.(d)--Clarify that premium will not be reduced due
to a decrease in plant inventory, unless such decrease results from
deleting uninsurable inventory which was incorrectly reported.
16. Paragraph 8.(a)(1)--Require that the nursery plants be grown
under an irrigated practice.
17. Paragraph 8.(a)(3)--Clarify that the insured nursery plant
inventory will not include plants that produce edible berries, fruits,
or nuts.
18. Paragraph 8.(a)(4)--Clarify that nursery plants grown in
standard nursery containers less than three inches across at the
smallest dimension are not insured unless the insurer enters into a
written agreement to insure such plants.
19. Paragraph 8.(a)(6)--Allow plants not listed in the Nursery
Eligible Plant Listing to be insurable if the insured submits a written
request and the insurer agrees in writing to insure such plants.
20. Paragraph 8.(a)(7)--Clarify that stock plants will not be
insured.
21. Section 9--Specify that insurance attaches on the later of
October 1 or the date the insurer accepts the inventory for insurance,
and in either case upon payment of 40 percent of the annual premium.
This change allows the insurer to complete any necessary inspection
before insurance attaches. This paragraph also states that when the
nursery plant inventory summary is revised to add additional plant
inventory, coverage for the additional inventory will not attach until
the additional premium for that inventory is paid in full.
22. Subsection 9.(a)--Clarify that insurance coverage ends when
inventory is sold or removed unless that inventory is replaced and
additional premium is paid. Previous provisions did not permit
insurance to attach to restocked inventory.
23. Paragraph 10.(a)(9)--Add as an insurable cause of loss, failure
or breakdown of frost/freeze protection equipment or facilities
provided: 1) such failure or breakdown is caused by a named insurable
cause of loss, 2) the insured nursery plants are damaged by freezing
temperatures within 72 hours of such failure or breakdown, and 3) the
equipment or facilities could not be repaired or replaced between the
time of failure or breakdown and the time the freezing temperatures
occur.
24. Paragraph 10.(b)(1)--Clarify that brownout is not an insured
cause of loss.
25. Paragraph 10.(b)(2)--Clarify that failure of the power supply
is not an insured cause of loss, unless such failure is a direct result
of an insured cause of loss.
26. Paragraph 10.(b)(5)--Clarify that collapse or failure of
buildings or structures are not insured causes of loss unless due to an
insured cause of loss.
27. Subsection 12(a)--Allow use of the highest reported monthly
market value for the unit and the monthly loss deductible (not to
exceed the remaining annual loss deductible) to calculate an indemnity.
References to the 10 percent reduced valuation have been deleted. These
changes were necessary due to the change in the definition of ``amount
of insurance'' as stated in item 1. above.
28. Add a nursery frost, freeze, and cold damage exclusion option.
This option excludes losses due to frost, freeze, and cold weather for
plants that have specific over-wintering requirements when those over-
wintering requirements will not be met.
List of Subjects in 7 CFR Part 457
Crop insurance, nursery crop.
Proposed Rule
Pursuant to the authority contained in the Federal Crop Insurance
Act, as amended (7 U.S.C. 1501 et seq.), the Federal Crop Insurance
Corporation hereby proposes to amend the Common Crop Insurance
Regulations (7 CFR part 457), effective for the 1996 and succeeding
crop years, to read as follows:
PART 457--COMMON CROP INSURANCE REGULATIONS; REGULATIONS FOR THE
1996 AND SUBSEQUENT CONTRACT YEARS
1. The authority citation for 7 CFR part 457 is revised to read as
follows:
Authority: 7 U.S.C. 1506(1).
2. The heading for part 457 is revised as set forth above.
3. 7 CFR part 457 is amended by adding Secs. 457.114 and 457.115 to
read as follows:
Sec. 457.114 Nursery Crop Insurance Provisions.
The Nursery Crop Insurance Provisions for the 1996 and succeeding
crop years are as follows: [[Page 5341]]
DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
Nursery Crop Provisions
If a conflict exists among the Basic Provisions (Sec. 457.8),
these crop provisions, and the Special Provisions, the Special
Provisions will control these crop provisions and the Basic
Provisions; and these crop provisions will control the Basic
Provisions.
1. Definitions
(a) Amount of insurance--The result of multiplying the highest
monthly market value reported on the nursery plant inventory summary
(which will include inventory reported by you and accepted by us on
a revised nursery plant inventory summary or restocked), multiplied
by the percentage for the coverage level you elect.
(b) Annual loss deductible--The value calculated by subtracting
the amount of insurance from the highest monthly market value
reported on the nursery plant inventory summary. The annual loss
deductible will be revised if an inventory addition is approved.
(c) Brownout--A cutback or reduction in electric power, as a
result of a shortage.
(d) Crop year--The 12 month period which begins October 1 and
extends through September 30 of the next calendar year, designated
by the year in which it ends. (The 1996 crop year begins October 1,
1995, and ends September 30, 1996).
(e) Field market value A--The wholesale market value for the
unit immediately prior to the occurrence of the loss.
(f) Field market value B--The wholesale market value remaining
for the unit immediately following the occurrence of the loss.
(g) Irrigated practice--A method of producing a crop by which
water is artificially applied during the growing season by
appropriate systems and at the proper times, with the intention of
providing the quantity of water needed to maintain the amount of
insurance on the nursery plant inventory.
(h) Monthly loss deductible--The result of multiplying the
smaller of field market value A or the highest monthly market value
reported on the nursery plant inventory summary by 100 percent
(100%) less the percentage for the coverage level you elect, not to
exceed the annual loss deductible. When inventory is added or
restocked by a revised nursery plant inventory summary, the monthly
loss deductible will be calculated based on the revised monthly
market value, not to exceed the annual loss deductible.
(i) Monthly market value--The sum of the wholesale market value
of all insurable plants in the unit for a month based on your
wholesale price list less the maximum discount granted to any buyer.
(j) Nursery--A business enterprise that produces ornamental
plant types in standard nursery containers for the wholesale market.
(k) Nursery eligible plant listing--A listing contained in the
Actuarial Table which specifies the plants eligible for insurance
and any mandatory or recommended storage required for such plants in
each hardiness zone defined by the United States Department of
Agriculture.
(l) Nursery plant inventory summary--A report that specifies
numbers and prices of plants included in the nursery inventory.
(m) Smallest dimension--For a round container, the diameter; for
any other container, the distance measured from one side directly
across to the opposite side at the narrowest point.
(n) Standard nursery containers--Rigid containers not less than
three (3) inches across the smallest dimension which are
commercially sold to nurseries. Grow bags, trays, cellpacks, and
burlap are not considered standard nursery containers.
(o) Stock plants--Plants being used for reproduction, for
growing cuttings, for air layers or for propagating.
(p) Wholesale market value--The dollar valuation of the numbers
of insurable plants actually contained within the unit at any time.
The values used will be based on your wholesale price list less the
maximum discount granted to any buyer.
(q) Written agreement--Designated terms of this policy may be
altered by written agreement. Each agreement must be applied for by
the insured in writing no later than the sales closing date and is
valid for one year only. If not specifically renewed the following
year, continuous insurance will be in accordance with the printed
policy. All variable terms including, but not limited to, plant type
and premium rate must be contained in the written agreement.
Notwithstanding the sales closing date restriction contained herein,
in specific instances, a written agreement may be applied for after
the sales closing date and approved if, after a physical inspection
of the nursery plant inventory, there is a determination that the
inventory has the expectancy of meeting the amount of insurance. All
applications for written agreements as submitted by the insured must
contain all variable terms of the contract between the company and
the insured that will be in effect if the written agreement is
disapproved.
2. Unit Division
In lieu of the definition of unit contained in subsection 1.(tt)
of the Basic Provisions (Sec. 457.8), a unit consists of all growing
locations in the county within a five mile radius of the named
insured locations designated on your nursery plant inventory
summary. Any growing location more than five miles from any other
growing location, but within the county, may be designated as a
separate basic unit or be included in the closest unit listed on
your nursery plant inventory summary.
3. Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities
Subsection 3.(c) of the Basic Provisions (Sec. 457.8) is not
applicable to the Nursery Crop Provisions.
4. Contract Changes
The contract change date is June 30 preceding the crop year (see
the provisions of section 4 (Contract Changes) of the Basic
Provisions (Sec. 457.8)).
5. Cancellation and Termination Dates
In accordance with subsection 2.(f) of the Basic Provisions
(Sec. 457.8), the cancellation and termination dates are September
30 preceding the crop year.
6. Nursery Plant Inventory Summary
(a) For the purposes of the provisions of section 6 (Report of
Acreage) of the Basic Provisions (Sec. 457.8), the term ``acreage''
means ``nursery plant inventory.''
(b) Your annual nursery plant inventory summary will be used to
determine your premium and the amount of insurance for each unit. If
you do not submit the summary by the reporting date, we may elect to
determine the nursery plant inventory for each unit or we may deny
liability on any unit. Errors in reporting units may be corrected by
us at the time of loss adjustment.
(c) You must submit a nursery plant inventory summary to us on
or before September 30 preceding the crop year. This summary must
include, by unit and by month for each type of plant in the
inventory, the:
(1) Container sizes;
(2) Number of plants;
(3) Wholesale price for each month of the crop year; and
(4) Your share.
If your inventory will change within a specific month, report
the largest inventory that you will have for that month.
(d) With our consent, you may revise your nursery plant
inventory summary to correct or change the value of the insurable
inventory caused by a quantity change if the amount of the revision
is at least 10 percent of the highest monthly market value reported
on the nursery plant inventory summary or $25,000, whichever is
smaller. You may not revise your nursery plant inventory summary
after the sales closing date to add plants not listed on the Nursery
Eligible Plant Listing. If you wish to revise the nursery plant
inventory summary, you must notify us in writing at least 14 days
before a change in inventory value. We must inspect and accept the
nursery before insurance attaches on any proposed increase in
inventory if:
(1) The storage facilities have changed in any way since our
previous inspection; or
(2) The revision includes plants that have specific over-
wintering storage requirements and that were not previously reported
on your nursery plant inventory summary.
(e) Insurable plants that are not reported on your nursery plant
inventory summary will not be insured, but the value of such plants
after a loss will be included as production to count. Such
unreported inventory may reduce the amount of any indemnity payable
to you.
(f) You must designate separately any plant inventory that is
not insurable.
(g) Subsection 6.(f) of the Basic Provisions (Sec. 457.8) is not
applicable to the Nursery Crop Provisions.
7. Annual Premium
We will determine your premium as follows:
(a) The annual premium for each unit will be calculated by:
(1) Multiplying the number of each type of plant and size
container designated on your nursery plant inventory summary for
each month by prices for that type and container [[Page 5342]] size
shown on your wholesale price list, less the maximum discount
granted to any buyer;
(2) Adding the results of step 1, for each month;
(3) Multiplying the highest monthly market value for the crop
year by the percentage for the coverage level you have elected;
(4) Multiplying the product obtained in (3) above by the
appropriate premium rate for each appropriate plant classification
listed on the actuarial table; and
(5) Multiplying the product obtained in (4) above by your share.
(b) The annual premium will be earned in full when insurance
attaches. It is due and payable as follows:
(1) Forty percent (40%) on the later of September 30 preceding
each crop year or the date we accept the inventory for insurance;
(2) Thirty percent (30%) on January 1 of the crop year; and
(3) Thirty percent (30%) on April 1 of the crop year.
(c) Additional premium earned from an increase in the nursery
plant inventory summary is due and payable when the revised nursery
plant inventory summary is approved by us.
(d) Premium will not be reduced due to a decrease in the nursery
plant inventory summary, unless such decrease results from the
deletion of uninsurable inventory from the summary that was
erroneously reported as insurable.
8. Insured Plants
(a) In lieu of the provisions of section 8 (Insured Crop) of the
Basic Provisions (Sec. 457.8), the insured nursery plant inventory
will be all nursery plants in the county reported by you or
determined by us for which an application is accepted, for which a
premium rate is provided by the actuarial table, and that:
(1) Are grown under an irrigated practice for which you have
adequate facilities and water at the time coverage begins in order
to carry out a good irrigation practice;
(2) Are classified as woody, herbaceous, or foliage landscape
plants;
(3) Do not include plants that produce edible berries, fruits or
nuts;
(4) Are grown in standard nursery containers (not planted in the
ground), at least three (3) inches across the smallest dimension
unless a written agreement is extended allowing a smaller container;
(5) Are initially inspected by us and determined to be
acceptable;
(6) Are listed on the Nursery Eligible Plant Listing unless a
written agreement provides otherwise;
(7) Are not stock plants;
(8) Are grown in accordance with the production practices for
which premium rates have been established; and
(9) Meet the ``mandatory'' or ``recommended'' storage
requirements unless you have signed the Frost, Freeze, and Cold
Damage Exclusion Option for those nursery plants.
(b) The provisions of section 9 of the Basic Provisions
(Sec. 457.8) are not applicable to the Nursery Crop Provisions.
9. Insurance Period
In lieu of the provisions of section 11 (Insurance Period) of
the Basic Provisions (Sec. 457.8), coverage begins on each unit or
part of a unit the later of October 1 or the date we accept the
inventory for insurance, provided at least 40 percent (40%) of the
annual premium is paid by the date specified in paragraph 7.(b)(1).
Coverage will not attach for plant inventory added due to a revised
nursery plant inventory summary until any additional premium is paid
in full. Insurance ends for each unit at the earliest of:
(a) The date all plant inventory within the unit is sold or
otherwise removed unless that inventory is replaced and additional
earned premium is paid. (If a portion of the plants are sold or
otherwise removed from inventory and are not replaced, insurance
ends only on that part of the unit.);
(b) The date of final adjustment of the loss on the unit; or
(c) September 30 of the crop year.
10. Causes of Loss
(a) In accordance with the provisions of section 12 (Causes of
Loss) of the Basic Provisions (Sec. 457.8), insurance is provided
for unavoidable damage caused only by the following causes of loss
which occur within the insurance period:
(1) Adverse weather conditions;
(2) Fire;
(3) Insects, but not damage due to insufficient or improper
application of pest control measures;
(4) Plant disease, but not damage due to insufficient or
improper application of disease control measures;
(5) Wildlife;
(6) Earthquake;
(7) Volcanic eruption;
(8) Failure of the irrigation water supply, due to an
unavoidable cause of loss occurring within the insurance period; or
(9) Failure or breakdown of frost/freeze protection equipment or
facilities due to direct damage to such equipment or facilities from
an insurable cause of loss, provided the insured nursery plants are
damaged by freezing temperatures within 72 hours after the failure
of such equipment or facilities and repair or replacement was not
possible between the time of failure or breakdown and the time the
freezing temperatures occurred.
(b) In addition to the causes of loss not insured against under
section 12 (Causes of Loss) of the Basic Provisions (Sec. 457.8), we
do not insure against any loss caused by:
(1) Brownout;
(2) Failure of the power supply unless such failure is due to an
insurable cause of loss;
(3) The inability to market the nursery plants as a direct
result of quarantine, boycott, or refusal of a buyer to accept
production;
(4) Fire, where weeds and other forms of undergrowth in the
vicinity of the building and on your property have not been
controlled; or
(5) Collapse or failure of buildings or structures unless due to
an insured cause of loss.
11. Duties in the Event of Damage or Loss
(a) In addition to your duties contained under section 14
(Duties in the Event of Damage or Loss) of the Basic Provisions
(Sec. 457.8), you must:
(1) Obtain our written consent prior to:
(i) Destroying, selling or otherwise disposing of any plant
inventory that is damaged; or
(ii) Changing or discontinuing your normal growing practices
with respect to care and maintenance of the insured plant inventory.
(2) Upon our request, provide complete copies of your nursery
plant inventory wholesale price list for the 12 month period
immediately preceding the loss and your marketing records including
plant shipping invoices for the same period.
(b) In addition to subsection 14.(c) of the Basic Provisions
(Sec. 457.8), you must submit a claim for indemnity to us on our
form, not later than 60 days after the earliest of:
(1) Your loss; or
(2) The end of the insurance period.
12. Settlement of Claim
(a) The indemnity will be the amount calculated by us for each
unit as follows:
(1) Subtracting field market value B from the lesser of field
market value A or the highest monthly market value for the unit
reported on the nursery plant inventory summary to determine the
total amount of loss;
(2) Subtracting therefrom the monthly loss deductible (not to
exceed the remaining annual loss deductible); and
(3) Multiplying the result of (2) above by your share.
(b) Individual insured losses occurring on the same unit during
the crop year may be accumulated if each loss is reported and valued
by us to satisfy the annual loss deductible. Paragraph 12.(a)(2)
will not apply to any subsequent individual loss determinations when
the total amount of accumulated monthly loss deductibles is equal to
or greater than the annual loss deductible. Total indemnities for a
unit will not exceed the amount of insurance for the unit.
(c) The value of any insured plant inventory may be determined
on the basis of our appraisals conducted after the end of the
insurance period.
Sec. 457.115 Nursery Frost, Freeze, and Cold Damage Exclusion Option.
This is not a continuous option. Application for this option must
be made on or before the sales closing date for each crop year this
Option is to be in effect (see exception in item 2 below).
Insured's Name---------------------------------------------------------
Address----------------------------------------------------------------
Contract Number--------------------------------------------------------
Identification Number--------------------------------------------------
SSN/EIN ________ Tax I.D. ________
Crop Year ________ Unit Number ________ Hardiness Zone ________
For the crop year designated above, the Nursery Crop Provisions
(Sec. 457.114) are amended in accordance with the following terms and
conditions:
1. You must have the Common Crop Insurance Policy Basic Provisions
and Nursery Crop Provisions in force.
2. This option must be submitted to us on or before the final date
for [[Page 5343]] accepting applications for the crop year in which you
wish to insure your nursery plant inventory under this option. If the
provisions of paragraph 6.(d)(2) of the Nursery Crop Provisions apply,
we may accept this option after the sales closing date, or we may allow
additional plants to be added to this option after such date.
3. Executing this option does not reduce the premium rate for
nursery crop insurance.
4. All provisions of the Basic Provisions (Sec. 457.8) and Nursery
Crop Provisions (Sec. 457.114) not in conflict with this option are
applicable.
5. Upon execution of this option, the following plant varieties
will not have frost, freeze, or cold damage coverage on this unit
because the mandatory (Risk Group A) or recommended (Risk Group B)
over-wintering requirements will not be met.
------------------------------------------------------------------------
Over-wintering
Scientific name Common name requirements to be
excluded
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Insured's Signature
Date-------------------------------------------------------------------
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Insurance Company Representative's Signature and Code Number
Date-------------------------------------------------------------------
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Done in Washington, DC, on January 23, 1995.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 95-2057 Filed 1-26-95; 8:45 am]
BILLING CODE 3410-08-P