[Federal Register Volume 88, Number 200 (Wednesday, October 18, 2023)]
[Rules and Regulations]
[Pages 71731-71733]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-22964]


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DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Parts 407 and 457

[Docket ID FCIC-23-0006]
RIN 0563-AC83


Transparency in Policy Cancellations

AGENCY: Federal Crop Insurance Corporation, U.S. Department of 
Agriculture (USDA).

ACTION: Final rule; technical amendment; request for comments.

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SUMMARY: The Federal Crop Insurance Corporation (FCIC) is making a 
technical amendment to its regulations by clarifying that an Approved 
Insurance Provider (AIP) may only cancel a crop insurance policy 
(policy) with express written consent from FCIC. This requirement is 
already binding in the Standard Reinsurance Agreement (SRA), which 
establishes the terms under which FCIC provides reinsurance and 
subsidies on eligible crop insurance policies sold by AIPs. By adding 
the same conditions to the regulation as are in the policy between the 
AIP and the producer, it provides greater transparency to producers 
about the existing rights in their policy. The changes to the crop 
insurance policies resulting from the amendments in this rule are 
applicable for the 2024 and succeeding crop years for crops with a 
contract change date on or after November 30, 2023. For all other 
crops, the changes to the crop insurance policies made in this rule are 
applicable for the 2025 and succeeding crop years.

DATES: 
    Effective date: This final rule is effective November 30, 2023.
    Comment date: We will consider comments that we receive by the 
close of business December 18, 2023. FCIC will consider the comments 
received and may conduct additional rulemaking in the future based on 
the comments.

ADDRESSES: We invite you to submit comments on this rule. You may 
submit comments by going through the Federal eRulemaking Portal as 
follows:
     Federal eRulemaking Portal: Go to http://www.regulations.gov and search for Docket ID FCIC-23-0006. Follow the 
instructions for submitting comments.
    All comments will be posted without change and will be publicly 
available on www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Francie Tolle; telephone (816) 926-
7829; or email [email protected]. Persons with disabilities who 
require alternative means for communication should contact the USDA 
Target Center at (202) 720-2600 (voice) or (844) 433-2774 (toll-free 
nationwide).

SUPPLEMENTARY INFORMATION: 

Background

    The Risk Management Agency (RMA) administers the FCIC regulations. 
FCIC serves America's agricultural producers through effective, market-
based risk management tools to strengthen the economic stability of 
agricultural producers and rural communities. The AIPs sell and service 
Federal crop insurance policies in every State through a public-private 
partnership.

[[Page 71732]]

    SRA is a cooperative financial assistance agreement between FCIC 
and an AIP. AIPs are bound by the SRA terms in administering Federal 
crop insurance policies with insured producers. FCIC is making a 
technical amendment for a conforming change in the regulations for 
consistency with an SRA requirement.
    In this rule, FCIC amends the Area Risk Protection Insurance (ARPI) 
Basic Provisions (7 CFR part 407) and the Common Crop Insurance Policy 
(CCIP) Basic Provisions (7 CFR 457.8). The technical amendments made by 
this rule are applicable for the 2024 and succeeding crop years for 
crops with a contract change date on or after November 30, 2023. For 
all other crops, the changes to the policy made in this rule are 
applicable for the 2025 and succeeding crop years.
    FCIC is clarifying that an AIP may only cancel a policy with 
express written consent from FCIC in the CCIP and ARPI Basic 
Provisions. The SRA prohibits any AIP from cancelling an eligible crop 
insurance policy held by a producer so long as the producer remains 
eligible and the AIP continues to write eligible crop insurance 
contracts within the State, except as authorized by FCIC. However, 
language in the regulations for ARPI and CCIP Basic Provisions requires 
a conforming change to be clear so that insured producers will be fully 
aware of their protection from unauthorized AIP cancellations, which 
already exists in the SRA terms.
    The language in the ARPI and CCIP Basic Provisions only specified 
the deadline for cancellations (that is, by the cancellation date), but 
did not specify any allowable conditions for cancellation.
    FCIC is making conforming changes in the regulations for ARPI and 
CCIP Basic Provisions to be consistent with existing SRA terms 
regarding the policy cancellation requirements to be transparent for 
the producer.

Clarity of the Regulation

    Executive Order 12866, as supplemented by Executive Order 13563, 
requires each agency to write all rules in plain language. In addition 
to your substantive comments on this rule, we invite your comments on 
how to make the rule easier to understand. For example:
     Are the requirements in the rule clearly stated? Are the 
scope and intent of the rule clear?
     Does the rule contain technical language or jargon that is 
not clear?
     Is the material logically organized?
     Would changing the grouping or order of sections or adding 
headings make the rule easier to understand?
     Could we improve clarity by adding tables, lists, or 
diagrams?
     Would more, but shorter, sections be better? Are there 
specific sections that are too long or confusing?
     What else could we do to make the rule easier to 
understand?

USDA Non-Discrimination Policy

    In accordance with Federal civil rights law and USDA civil rights 
regulations and policies, USDA, its Agencies, offices, and employees, 
and institutions participating in or administering USDA programs are 
prohibited from discriminating based on race, color, national origin, 
religion, sex, gender identity (including gender expression), sexual 
orientation, disability, age, marital status, family or parental 
status, income derived from a public assistance program, political 
beliefs, or reprisal or retaliation for prior civil rights activity, in 
any program or activity conducted or funded by USDA (not all bases 
apply to all programs). Remedies and complaint filing deadlines vary by 
program or incident.
    Individuals who require alternative means of communication for 
program information (for example, braille, large print, audiotape, 
American Sign Language, etc.) should contact the responsible Agency or 
the USDA TARGET Center at (202) 720-2600 (voice and text telephone 
(TTY)) or dial 711 for Telecommunications Relay Service (both voice and 
text telephone users can initiate this call from any telephone). 
Additionally, program information may be made available in languages 
other than English.
    To file a program discrimination complaint, complete the USDA 
Program Discrimination Complaint Form, AD-3027, found online at https://www.usda.gov/oascr/how-to-file-a-program-discrimination-complaint and 
at any USDA office or write a letter addressed to USDA and provide in 
the letter all the information requested in the form. To request a copy 
of the complaint form, call (866) 632-9992. Submit your completed form 
or letter to USDA by: (1) mail to: U.S. Department of Agriculture, 
Office of the Assistant Secretary for Civil Rights, 1400 Independence 
Avenue SW, Washington, DC 20250-9410; (2) fax: (202) 690-7442; or (3) 
email: [email protected].
    USDA is an equal opportunity provider, employer, and lender.

List of Subjects

7 CFR Part 407

    Acreage allotments, Administrative practice and procedure, Barley, 
Corn, Cotton, Crop insurance, Peanuts, Reporting and recordkeeping 
requirements, Sorghum, Soybeans, Wheat.

7 CFR Part 457

    Acreage allotments, Crop insurance, Reporting and recordkeeping 
requirements.

    For the reasons discussed in the preamble, FCIC amends 7 CFR parts 
407 and 457, effective for the 2024 and succeeding crop years for crops 
with a contract change date on or after November 30, 2023, and for the 
2025 and succeeding crop years for all other crops, as follows:

PART 407--AREA RISK PROTECTION INSURANCE REGULATIONS

0
1. The authority citation for part 407 continues to read as follows:

    Authority: 7 U.S.C. 1506(l) and 1506(o).


0
2. In Sec.  407.9, section 2, revise paragraph (i) to read as follows:


Sec.  407.9  Area Risk Protection Insurance Regulations.

* * * * *
2. Life of Policy, Cancellation, and Termination
* * * * *
    (i) You may cancel this policy after the initial crop year by 
providing written notice to us on or before the cancellation date shown 
in the Crop Provisions. We may cancel this policy with express written 
consent from FCIC.
* * * * *

PART 457--COMMON CROP INSURANCE REGULATIONS

0
3. The authority citation for part 457 is revised to read as follows:

    Authority: 7 U.S.C. 1506(l) and 1506(o).


0
4. In Sec.  457.8, section 2, revise paragraph (d) to read as follows:


Sec.  457.8  The application and policy.

* * * * *
    2. Life of Policy, Cancellation, and Termination
* * * * *
    (d) You may cancel this policy after the initial crop year by 
providing written notice to us on or before the cancellation date shown 
in the Crop

[[Page 71733]]

Provisions. We may cancel this policy with express written consent from 
FCIC.
* * * * *

Marcia Bunger,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 2023-22964 Filed 10-17-23; 8:45 am]
BILLING CODE 3410-08-P