[Federal Register Volume 63, Number 206 (Monday, October 26, 1998)]
[Rules and Regulations]
[Pages 57046-57047]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-28541]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 457
RIN 0563-AB65
Common Crop Insurance Regulations, Nursery Crop Insurance
Provisions; Correction
AGENCY: Federal Crop Insurance Corporation, USDA.
ACTION: Final rule; correction.
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SUMMARY: This document contains corrections to the final rule that was
published in the Federal Register on Thursday, September 24, 1998 (63
FR 50965-50979). The rule pertains to the insurance of nursery crops.
EFFECTIVE DATE: October 23, 1998.
FOR FURTHER INFORMATION CONTACT: Vondie O'Conner, Director, Research
and Evaluation Division, Federal Crop Insurance Corporation, United
States Department of Agriculture, 9435 Holmes Road, Kansas City, MO
64131, telephone (816) 926-6343.
SUPPLEMENTARY INFORMATION:
Background
The final rule that is the subject of this correction was intended
to provide policy changes to better meet the needs of the insured.
Need For Correction
As published, the final regulation contains errors which may prove
misleading.
Section 6(h) indicates that an insured electing catastrophic
insurance coverage may obtain a written agreement, but such agreements
are prohibited by section 11 of the Catastrophic Risk Protection
Endorsement. Even though the Catastrophic Risk Protection Endorsement
would govern the crop provisions, FCIC does not want to mislead growers
into believing such an agreement would be obtainable. Instead, FCIC may
provide a waiver on a case-by-case basis if the insured presents
acceptable records to prove actual inventory value if the section 6(h)
restrictions cause the insured to undervalue inventory.
Section 7(a) of the Nursery Crop Provisions concerning premium
calculation states that it is in lieu of section 7(a) of the Basic
Provisions when the correct citation is section 7(c).
In section 15, the single unit example had the wrong mathematical
symbol in two locations. In step one the multiplication symbol should
have been the symbol for division. In step two, the multiplication
symbol should have been the symbol for subtraction. In the multiple
unit multiple loss example, the numbers in the second step one are
incorrect. $66,400 should be divided by $83,000 to equal .80.
Section 5(a) of the Nursery Peak Inventory Endorsement contained in
Sec. 457.163 refers to the ``coverage term.'' This is a clerical error
that should refer to ``premium rate.'' Section 5(a) also refers to a
``proration factor'' but should refer to ``a premium adjustment
factor.''
Correction of Publication
Accordingly, the publication on September 24, 1998, of the final
regulation at 63 FR 50965-50979 is corrected as follows:
PART 457--[CORRECTED]
Sec. 457.162 [Corrected]
On page 50977, in the first column, in Sec. 457.162, section 6(h)
of the crop provisions is corrected to read as follows:
For catastrophic insurance coverage only: (1) Your plant
inventory value report for container grown nursery plants cannot
exceed the lesser of the actual value from section 6(e) or 150
percent of your previous year's sales of container grown nursery
plants; (2) Your plant inventory value report for field grown
nursery plants cannot exceed the lesser of the actual value from
section 6(e) or 250 percent of your previous years' sale of field
grown nursery plants, and if the above restrictions cause you to
under report the value of your inventory, you must present records
acceptable to us to prove your actual inventory value to receive a
waiver of these restrictions.
On page 50977, in the first column, in Sec. 457.162, section 7(a)
is corrected to read as follows:
[[Page 57047]]
In lieu of section 7(c) of the Basic Provisions, we will
determine your premium by multiplying the amount of insurance by the
appropriate premium rate and by the premium adjustment factors
listed on the actuarial documents that may apply.
On page 50978, in the first and second columns, in Sec. 457.162,
section 15 of the crop provisions, the single unit example, steps one
and two, are corrected to read as follows:
``Step (1) Determine the under report factor
$100,000 $125,000 =.80;
Step (2) Field market value A minus field market value B
$125,000 - $80,000 = $45,000;
On page 50978, in the third column, in Sec. 457.162, section 15,
the multiple unit multiple loss example, the second step one, is
corrected to read as follows:
Step (1) Determine the under report factor
$66,400 $83,000 =.80;''
Sec. 457.163 [Corrected]
On page 50979, in the second column, in Sec. 457.163, section 5(a)
of the endorsement is corrected to read as follows:
The premium for this endorsement is determined by multiplying
the peak amount of insurance by the appropriate premium rate and by
any premium adjustment factors listed on the actuarial documents
that may apply.
Signed in Washington DC, on October 19, 1998.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 98-28541 Filed 10-23-98; 8:45 am]
BILLING CODE 3410-08-P
