PRODUCT MANAGEMENT BULLETIN: PM17-068




1400 Independence Avenue, SW
Stop 0801
Washington, DC  20250-0801

Date

December 04, 2017

To:

All Approved Insurance Providers
All Risk Management Agency Field Offices
All Other Interested Parties

From:

Richard H. Flournoy Deputy Administrator /s/ Richard H. Flournoy    12/4/2017

Subject:

Prevented planting optional coverage level changes for the 2018 and succeeding crop years
Background

The Risk Management Agency (RMA) has removed the Prevented Planting +10 Percent Option (PT) for the 2018 and succeeding crop years for all crops with a contract change date on or after November 30, 2017, and for the 2019 and succeeding crop years for all crops with a contract change date prior to November 30, 2017. Previously, there has been an option for policyholders of some crops to increase prevented planting coverage by five or ten percent (+5 percent option and +10 percent option, respectively). While RMA has removed the +10 percent option, the +5 percent option is still available.

Action

Insurance providers should advise existing policyholders to consult with their crop insurance agent prior to the sales closing date so they can elect whether or not they want the +5 percent option.

Insurance providers may choose to advise policyholders who elected the +10 percent option for the 2017 crop year, in writing, that their policy will automatically be converted to the +5 percent option, unless policyholders specifically elect that the option not apply by the sales closing/cancellation date shown in the actuarial documents. Insurance providers must notify policyholders of these changes at least 30 days prior to the cancellation date as required by the contract change section of the policy.

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