Crop Insurance (C) Working Group
Crop Insurance (C) Working Group Page
Joint Executive (EX) / Plenary Committee Summary Report
Winter 2009 Meeting Summaries Index

The Crop Insurance (C) Working Group met Dec. 5, 2009. During this meeting, the Working Group:

• Heard an updated report from NAIC staff on states' efforts to avoid federal preemption of crop adjuster licensing. One of the problems with crop adjuster licensing is that most states require a crop adjuster to obtain a property/casualty license. As a result, there is no proficiency in handling crop insurance claims, and there is a lack of uniformity across the states. In addition, most states do not require the licensing of insurance company personnel. The U.S. Congress, through the federal Risk Management Agency (RMA), could preempt the states' licensing authority for adjusters handling Multi-Peril Crop Insurance (MPCI), on a state-by-state basis, beginning as early as July 1, 2011. The NAIC previously surveyed all of the states to assess whether they could allow a third party to test crop adjusters to obtain a crop insurance license. These results appear to indicate that as many as 14 states could be preempted. NAIC staff and the Crop Insurance (C) Working Group continue to work with the states to assist those that have questions or problems. All 14 states plan to implement changes so that federal preemption will not occur. To avoid preemption, some states are considering the following actions: exempt MPCI adjusters from licensure; exempt MPCI adjusters from examination if they provide proof of completing an RMA-certified program; allow for acceptance of an RMA-certified training and testing program; create a separate license for MPCI adjusters; and develop their own training and testing programs for MPCI licenses.

• Heard a report from David Miller (RMA). Mr. Miller reported that the RMA recently released its first draft of the Standard Reinsurance Agreement for the 2011 crop year. He also announced that on Dec. 1, the Crop Adjuster Proficiency Program (CAPP) was officially approved by the director of the RMA.

• Heard a report from Laurence Crane (National Crop Insurance Services-NCIS), who reported that there has been substantial improvement in the uniformity of adjuster licensing and training through CAPP. The program consists of three parts: 1) 60 hours of initial training and 18 hours annually of company level training; 2) a series of three CAPP online examinations. Once someone has completed the exams, a proficiency card is issued that would be accepted by state insurance departments for licensing; 3) the annual continuing education requirements of 18 hours of training. The NCIS will communicate with insurers about adjusters that have failed to meet the annual requirements. To date, nearly 3,800 adjusters have passed the examination, with approximately 30 adjusters passing on a daily basis. Beginning February 2010, all CAPP examinations will be proctored.