§ 400.252 - Implementation and expense reimbursement.

Crop insurance coverage, required by various disaster acts or disaster provisions to be made available to any producer identified by the Agricultural Stabilization and Conservation Service (ASCS) as having suffered a crop loss of 65 percent or more, unless the requirement for such crop insurance coverage is waived under the provisions of various disaster acts or disaster provisions, may be made available through any agent or company under the terms and conditions of the contract or agreement such agent or company may have with FCIC. Agents under an Agency Sales and Service Contract and companies under a Reinsurance Agreement with FCIC are required to sign an amendment to the contract or agreement agreeing to a reduction in expense reimbursement for evidence of a policy of crop insurance issued under the requirements of various disaster acts or disaster provisions. Such expense reimbursement:

(a) Will not be reduced if the producer:

(1) Had crop insurance under the Federal Crop Insurance Act during the crop year for which the payment or other benefit is being sought under the various disaster acts or disaster provisions and said insurance has been continued into the next crop year;

(2) Furnishes evidence of insurance coverage (copy of the completed, filed application or policy confirmation) for the next crop year for the crop for which the payment or other benefit under various disaster acts or disaster provisions is being requested, to the ASCS county office at the time of application for the disaster payment or other benefit under various disaster acts or disaster provisions; or

(3) Has, under the provisions of various disaster acts or disaster provisions, received a waiver of the requirement to obtain crop insurance coverage.

(b) Will be reduced in the amount of 11/2 percent of base premium when the producer, applying for disaster payment at the ASCS Office without evidence of the required crop insurance coverage, is required by the ASCS or the Farmer's Home Administration (FmHA) county committee to obtain such crop insurance coverage for next crop year in order to receive the payment or other benefit sought under various disaster acts or disaster provisions.