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Published Violations and Sanctions

May 29, 2015

An agent co-sponsored tickets and arranged transportation to a professional football game and held Customer Appreciation Dinners for hundreds of crop insurance customers. These activities did not constitute promotional or marketing items of minimal value that are provided all persons in the normal course of business. Therefore, the benefits provided were in violation of section 508(a)(9) of the Federal Crop Insurance Act.

Agency Action

The Risk Management Agency (RMA) issued a Notice of Proposed Debarment to the individual. Subsequently, RMA entered into a Compliance Agreement with the agent who agreed to:

(a) Pay a fine of $30,000.

(b) Report to RMA any and all benefits, meals, gifts and funds provided to or spent on any policyholders or prospective policyholders regardless of its value.

(c) Submit to a voluntary exclusion from Federal Crop Insurance Program for a defined period of time if the agent violates any provision of the Compliance agreement, the Federal Crop Insurance Act, or the Standard Reinsurance Agreement.

Contact Information

For more information, contact RMA Public Affairs.