Crop Insurance (C) Working Group
Crop Insurance (C) Working Group Page
Joint Executive (EX) / Plenary Committee Summary Report
Summer 2009 Meeting Summaries Index
The Crop Insurance (C) Working Group met on Sunday, June 13,
2009.
During this meeting, the Working Group:
- Received an update on states avoiding federal preemption
for adjuster licensing. In an attempt to avoid any preemption
of federally insured multi-peril crop insurance (MPCI) adjuster
licensing, two separate letters were sent out this past quarter.
The first letter pertained to states that had indicated, on
the survey regarding compliance with Risk Management Agency
(RMA), that they would not be able to accept RMA’s adjuster
licensing proposal. The second letter was sent to states that
responded they would not accept the RMA proposal, but have
expressed to the Working Group that they are either in the
middle of legislation or considering changes in legislation
in order to move toward the NAIC’s goal. Out of the 14
states to receive letters, only three have not responded. Some
of the options being reviewed or pursued by these 11 states
are:
- Amending or expanding current statues or licensure to include
MPCI-specific requirements. (Georgia and West Virginia).
- Creating or adding a new crop-specific license, training
and testing program (Georgia, Hawaii, Maine, Mississippi,
Nevada, New York and Washington).
- Exempting MPCI adjusters from licensure with a statute
change (North Carolina).
- Setting up a new class of insurance by rule to accept RMA
and NCIS certifications (Oregon and Texas).
- Received an update from RMA about the 2008 farm bill regarding
controlled business. They concluded that RMA would enforce
this bill with its 30% rule that applies to federal crop insurance
or a lesser percentage if a state has a lower trigger amount.
RMA also reported that they were successful in receiving signatures
on the Standard Reinsurance Agreement (SRA) Amendment from
all companies writing MPCI. With these signatures, all states
without crop-specific requirements stand to be preempted in
July 2011. According to RMA, crop-specific includes two categories:
1) states recognize crop as a special line of business; and
2) the majority of the material in education and testing on
adjuster licensing is crop-related. RMA has also completed
the development of acceptance criteria for entities to be a
provider of proficiency training and examination programs.
National Crop Insurance Services (NCIS) has submitted their
program for approval, and RMA hopes to have a result on the
proposal by July 1.
- Received a report from NCIS on their Crop Adjuster Proficiency
Program (CAPP). They reported that their online examinations
are up and running, and adjusters have already begun making
profiles and taking the examinations.
Action Items:
There were no actions of the Working Group. |
