Crop Insurance (C) Working Group
March 30, 2008

The Crop Insurance (C) Working Group met jointly with the Producer Licensing (D) Working Group on Sunday, March 30, 2008. During the meeting the Crop Insurance Working Group:

• Received a background paper on the crop adjuster issue that outlines strategic initiatives that would encourage the states to partner with the RMA to address an issue of mutual concern regarding crop adjuster licensing.

• Heard a report on the possible creation of a specific crop adjuster licensing and continuing education program. Craig Witt (Risk Management Agency – RMA) presented information on the RMA and its role in coordination of regulation of crop insurance adjusters. One of the problems with crop adjuster licensing is that most states require a crop adjuster to obtain a P&C license. As a result, there is no proficiency in handling crop claims and there is a lack of uniformity across the states. Additionally, most states do not require the licensing of insurance company personnel. The RMA is concerned about fraud, waste and abuse. If states are not willing to address the issue, RMA is willing to consider a federal preemption of state insurance laws regarding adjuster licensing. Preemption on a state-by-state basis is also possible.

• Listened to a presentation by Dr. Laurence Crane (National Crop Insurance Services - NCIS) regarding its Crop Adjuster Proficiency Program. The objective of the program is to help adjusters who work for NCIS member insurers to comply with individual state licensing requirements for crop adjusters. Upon successful completion of three exams, an individual will receive a certification card from NCIS that they can take to a state insurance department, pay the state licensing fee, and receive a license to adjust crops in that state.

• Received correspondence relating to information sharing concerns between states and the RMA from a recent audit by the Office of Inspector General.

Due to the possible preemption of crop insurance adjuster licensing the Working Group plans to have a conference call shortly and believes it is necessary to meet in San Francisco on its own.

Action Items:

There were no action items of the Working Group.