Nursery Value Select Pilot Crop Insurance Standards Handbook
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NURSERY VALUE United States SELECT PILOT Department of Agriculture CROP INSURANCE STANDARDS Federal Crop HANDBOOK Insurance Corporation FCIC-24070 (02-2020) 2021 and Succeeding Crop Years RISK MANAGEMENT AGENCY KANSAS CITY, MO 64133 TITLE: NURSERY VALUE SELECT NUMBER: FCIC-24070 PILOT CROP INSURANCE STANDARDS HANDBOOK EFFECTIVE DATE: 2021 and Succeeding ISSUE DATE: February 26, 2020 Crop Years SUBJECT: OPI: Product Administration & Standards Division Provides underwriting procedures and APPROVED: instructions for administering the Pilot Nursery Value Select crop insurance /s/ Richard Flournoy program Deputy Administrator for Product Management REASON FOR ISSUANCE The Nursery Value Select Pilot Crop Insurance Standards Handbook is being issued and effective for the Nursery Value Select Pilot Crop Insurance Program available beginning with the 2021 crop year. CONTROL CHART Nursery Value Select Pilot Insurance Standards Handbook TP TC Text Exhibit Exhibit Directive Date Page(s) Page(s) Page(s) Number Page(s) Number Current Index 1-2 1-2 1-32 1-10 33-55 02-2020 FCIC-24070 February 2020 FCIC-24070 TP 1 (Reserved) February 2020 FCIC-24070 TP 2 NURSERY VALUE SELECT PILOT CROP INSURANCE STANDARDS HANDBOOK TABLE OF CONTENTS PAGE NO. PART 1 - GENERAL INFORMATION AND RESPONSIBILITIES 1 General Information ................................................................................................................ 1 2 Duration .................................................................................................................................. 1 3 Important Dates ...................................................................................................................... 1 4 Policy and Application Change Form..................................................................................... 4 5-10 (Reserved) PART 2 - NVS CROP PROVISIONS 11 Availability ............................................................................................................................. 5 12 Coverage Levels ..................................................................................................................... 6 13 Basis of Coverage ................................................................................................................... 7 14 Insurable Plants ..................................................................................................................... 10 15 Cause of Loss Limitations .................................................................................................... 22 16 Conditions of Acceptance ..................................................................................................... 23 17 Unit Division ........................................................................................................................ 27 18 Amount of Insurance and Premium ...................................................................................... 28 19 Nursery Value Report ........................................................................................................... 29 20 Written Agreements .............................................................................................................. 32 21 Deductibles ........................................................................................................................... 32 22 Occurrence Loss Option ....................................................................................................... 33 23-30 (Reserved) EXHIBITS 1 Acronyms and Abbreviations ............................................................................................... 34 2 Definitions ............................................................................................................................ 35 3 Nursery Value Report ........................................................................................................... 36 4 Monthly Unit Value Plan ...................................................................................................... 42 5 NVS Underwriting Inspection Report .................................................................................. 45 6 FCIC Container Sizes ........................................................................................................... 51 7 Nursery Catalog Checklist .................................................................................................... 52 8 Coverage Levels, Unit and Fee Structure ............................................................................. 53 9 Cold Protection Assignments ............................................................................................... 54 10 Operational Cold Protection Requirements .......................................................................... 55 February 2020 FCIC-24070 TC 1 (RESERVED) February 2020 FCIC-24070 TC 2 PART 1 - GENERAL INFORMATION AND RESPONSIBILITIES 1 General Information Purpose and Objective To provide instructions for underwriting nursery crops under the NVS CP and to assure uniform acceptance of nursery risks. AIPs may develop forms that meet their internal systems and administrative needs. The forms must meet FCIC’s approved standards contained in this handbook or as specified in FCIC 24040, the Document and Supplemental Standards Handbook, and provide all required information. Standards and examples contained in this handbook do not contain required statements. Refer to the FCIC 24040 to determine the applicable statements to be included on each form. The Collection of Information and Data (Privacy Act) Statement and the Nondiscrimination Statement must be included on any form the insured signs. Related Handbooks The following table identifies handbooks that shall be used in conjunction with this handbook. Handbook Relation/Purpose GSH Provides general insurance standards and procedures. CIH Provides general underwriting procedures. Provides instructions for loss adjustment of nursery crops under the NVS NVS LASH CP and to assure uniform application of loss adjustment procedures. Provides the form standards and procedures for use in the sales and DSSH service of crop insurance contracts. 2 Duration Effective Date: Upon Approval. This handbook remains in effect until amended, superseded, or cancelled. 3 Important Dates Contract Change (1) January 31 preceding the cancellation date for Alabama, Florida, New Jersey and Texas; and (2) April 30 preceding the cancellation date for all other pilot states. Sales Closing (1) SCDs are shown in the actuarial documents. The program has two SCDs: (a) Alabama, Florida, New Jersey, and Texas: May 1 preceding the crop year (crop year begins June 1 and ends May 31). February 2020 FCIC-24070 1 3 Important Dates (Continued) B. Sales Closing (continued) (b) Colorado, Michigan, Oregon, Tennessee, and Washington: September 1 preceding the crop year (crop year begins October 1 and ends September 30). (2) New policy applications may be filed after the sales closing date. All applications, including those for new or amended coverage, are subject to a 30-day waiting period before commencement of coverage as specified in section 9 of the CP. Carryover insureds may request changes to the coverage level and SV for a basic unit on or before the SCD. NVR, MUVP, and Catalog Submission Deadlines (1) New insureds: With the application. (2) Carryover insureds: On or before the SCD. If an acceptable NVR is not provided by the SCD for any crop year, insurance will not attach until the 31st day (30-day waiting period) after all acceptable documents are received by the AIP. Insurance Attachment (1) New insureds: The later of the 31st day (30-day waiting period) after the application and all required documentation is received by the AIP or June 1 or October 1, as applicable. (2) Carryover insureds: The later of the 31st day after an acceptable NVR and catalog are received by the AIP or June 1 or October 1, as applicable, after the SCD. If the insured fails to submit a new NVR on or before the SCD, insurance will not attach for the crop year. The 30-day waiting period does not include the date the required documentation is received or the date insurance attaches. For example, an application and all required documentation are received on May 10. Insurance would not attach until the 31st day after the required documentation is received; therefore, insurance does not attach until June 10. However, premium will be owed for the entire month of June. The AIP may reject the application or documentation if it is determined that the information provided is incomplete or incorrect. For each subsequent crop year, provided the insured has submitted all required documentation from section 6(b) of the CP by the SCD, coverage will begin at the same coverage level and SV on June 1 or October 1, as applicable. (3) If the insured submits a new NVR by the applicable SCD, but the AIP notifies the insured the new NVR is unacceptable, the insured must provide an acceptable NVR within 30 days after the date of notice of rejection of an unacceptable NVR has been sent for insurance to attach for the crop year. February 2020 FCIC-24070 2 3 Important Dates (Continued) D. Insurance Attachment (continued) (4) If an acceptable NVR is not submitted within the 30 days after the date of notice of rejection, insurance will not attach for the crop year. (5) If an acceptable NVR is received within 30 days after rejection, insurance will attach on the 31st day after all documents required for an acceptable NVR