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Final Agency Determination: FAD-021


Subject: Interpretation of section 11(b)(2) of the Common Crop Insurance Policy Basic Provisions (Basic Provisions) in the Code of Federal Regulations (C.F.R.) at 7 C.F.R. 457.8, pursuant to 7 C.F.R., part 400, subpart X.


On May 9, 2003, the Risk Management Agency was asked for a Final Agency Determination for the 2000 crop year, regarding the interpretation of section 11(b)(2) of the Basic Provisions, which states:

11. Insurance Period
. . .
(b) Coverage ends at the earliest of:
. . .
(2) Harvest of the unit.
Interpretation Submitted

Section 11(b)(2) is interpreted to mean that coverage under the policy ends at least upon completion of harvest of the insured crop. It is noted that section 11(b) of the Basic Provisions provides a list of other events that end coverage. Section 11(b)(2) clearly provides that one of the events terminating coverage is harvest of the insured crop. Section 11(b)(2) must be interpreted to mean coverage ends as soon as the insured crop is harvested.

Final Agency Determination

The Federal Crop Insurance Corporation (FCIC) agrees insurance coverage on any acreage ends upon the earliest occurrence of any of the events listed in section 11(b) of the Basic Provisions, unless this section is amended by other policy documents that state that they override the Basic Provisions. If harvest is the earliest of the listed events to occur, then the insurance period would end upon harvest of the insured crop on the unit. Only insurable causes of loss that occur after insurance attaches and on or before the end of the insurance period are covered under the policy. Any causes of loss occurring after the end of the insurance period are not covered under the policy.

In accordance with 7 C.F.R. 400.765(c), this Final Agency Determination is binding on all participants in the Federal crop insurance program for crop year 2000.

Date of Issue: August 5, 2003