Crop Insurance Revenue Set By Govenment
May 11th, 2007 by David Graves
For crop insurance companies, A&O reimbursements and underwriting gains are determined in large measure by the terms and conditions of the Standard Reinsurance Agreement (SRA), a legally binding “cooperative financial assistance agreement” between the Federal Crop Insurance Corporation (FCIC) and approved insurance providers (AIPs) as developed more or less unilaterally by USDA. Traditional negotiations were not permitted by RMA in developing the current SRA in 2005. Crop insurance companies have been in a “take it or leave it” situation with respect to the SRA and its terms and conditions.