March 26, 1999


TO:          All Reinsured Companies
             All Risk Management Field Offices
             All Other Interested Parties

FROM:        Kenneth D. Ackerman     /s/ Ken Ackerman

SUBJECT:     Crop Insurance Options for Producers Who Applied for 
             1999 Crop Revenue Coverage Plus (CRCPlus)


President Clinton will soon sign legislation authorizing the Federal Crop Insurance Corporation (FCIC) to extend in limited circumstances the 1999 sales closing deadline to assist Crop Revenue Coverage (CRC) and other crop insurance policyholders who may have made insurance coverage choices based, in part, on the purchase of a private insurance supplemental policy known as CropRevenue Coverage Plus™ (CRCPlus™).


1. Producers who signed a 1999 crop year application for CRCPlus™ supplemental crop insurance coverage on at least one crop for which such supplemental coverage was available, for the 1999 crop year, have 14 days from the date of enactment, but not later than April 12, 1999, to:

a. maintain or lower the CRC coverage level and/or price election previously chosen for the 1999 crop year; or

b. change to another plan of insurance reinsured by the FCIC to an equivalent or lower coverage level (i.e. 75/100 CRC to 70/100 APH, etc.)

2. Producers meeting the requirements under item 1 above may also make application for such crop coverage with or transfer such coverage to any other approved insurance provider.

3. The extended sales closing/cancellation date applies only to crop insurance policies with a published sales closing date occurring on or after January 15, 1999.

4. For producers who qualify as specified in item 1 above, the production reporting date will be based on April 12. All other existing procedures will be followed for obtaining and updating actual production history.

5. All policyholders will be required to provide documentation, such as a copy of an application, not later than the acreage reporting date, that they timely signed an application for CRCPlus™ on at least one of their insured crops (as specified in Item 3) and documentation that the coverage level and/or price election they are requesting is equal to or less than the coverage for which they previously made application for. Reinsured companies may use the certification form in Attachment A for securing a commitment from policyholders that such documentation will be provided.

The Risk Management Agency (RMA) reminds all agents that they have an affirmative obligation to provide the documentation necessary for the producer to meet the documentation requirements as defined above, regardless of which agent the producer ultimately chooses to carry their policy.

For crop insurance coverage purchased under the extended period, the following conditions shall apply only for the 1999 reinsurance year to requirements for reinsurance fund designations and the reporting of acreage reporting dates under the Standard Reinsurance Agreement.

1. For policies sold or transferred during the extended sales period, insurance providers are required to make fund designations on all eligible crop insurance contracts not later than May 15, 1999.

2. Acreage reporting dates are not extended. Therefore, reporting requirements for acreage report data contained in section III.G. of the Standard Reinsurance Agreement in effect for the 1999 reinsurance year will continue to apply.

RMA will be provided an electronic listing of all CRCPlus™ applicants received in the sponsoring company's office by the deadlines established for insurance agents to submit such policies to the company. RMA will utilize this listing for audit purposes to assure that producers who modified or transferred coverage during this extended period did so within the parameters established in this bulletin.

Attachment A

Company Name:_______________________________________

Applicant Name:_______________________________________

State:___________ County:_____________

Crop(s): _________________






I hereby certify that I have previously made application for the private supplemental crop insurance policy called CRCPlus™ on at least one of the crops listed above for the 1999 crop year, and that I had in effect or made application for insurance coverage on all of the crops listed above.

I agree to provide by the acreage report deadline, documented evidence of my CRCPlus™ application and documented evidence that the coverage level and price election I am requesting on the application that I am submitting today is equal to or lower than the coverage I had previously requested.

Applicant Signature: _________________________ Date: _________

Applicant Name (Print)_________________________

Witness Signature: __________________________ Date: _________

Witness Name (Print) __________________________