GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Canada Production Insurance Regulations — Canada Production Insurance Regulations
production insurance agreement means an agreement entered into by Canada and a province to allow contributions to be made by the parties to an insurance program. ( accord sur l’assurance production )
Canada Production Insurance Regulations — Canada Production Insurance Regulations
responsible officer means, in respect of any province, the person or persons designated by the province to be responsible for the administration of the province’s insurance program. ( agent compétent )
Canada Production Insurance Regulations — Canada Production Insurance Regulations
risk area [Repealed, SOR/2018-118, s. 1]
Canada Production Insurance Regulations — Canada Production Insurance Regulations
risk-splitting benefit means insurance coverage benefits that are deemed to be risk-splitting benefits in accordance with subsection 4(4). ( garantie de fractionnement du risque )
Canada Production Insurance Regulations — (a)
wildlife compensation means an amount that is paid to producers to compensate them for damage that is specified in a production insurance agreement and that (a) is caused by wildlife specified in the agreement; and (b) is not included as part of an insurance plan. ( indemnités pour les dommages causés par la faune )
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Eligible agricultural products 2 (1) A production insurance agreement shall provide for the agricultural products eligible for coverage under the insurance plan. Provincial submission (2) The agreement shall provide that any proposal by the province, that is intended to take effect in the following year, for the introduction of an insurance plan for a new agricultural product, or for a change to an insurance program or insurance plan, that has a financial impact shall be submitted by the responsible officer of the province to the Minister, in writing, with complete operational details and an estimate of the financial impact at least 60 days before the proposed date of implementation, unless otherwise agreed to by Canada and the province. Eligibility of provincial proposal (3) The agreement shall provide that Canada shall (a) inform the responsible officer of the province in writing, as soon as possible, whether the proposal is eligible for contributions; and (b) outline any elements of the proposal that are not in compliance with the Act or these Regulations. SOR/2018-118, s. 20(E)
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Maximum coverage levels 3 A production insurance agreement shall provide that the manner of determining the percentage of the value of production of an agricultural product that may be insured, as set out in the agreement, shall be subject to the following maximum level: (a) 90% of the probable yield for insurance plans based on yield; (b) 90% of the value of production for insurance plans not based on yield if production of the agricultural product is reduced by weather or other agricultural perils; and (c) for all other insurance plans not based on yield, as covered under section 15, 100% of the value of production minus the long-term average loss percentage for the agricultural product or 90% of the value of production if the long-term average loss percentage cannot be determined.
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Insured perils 4 (1) A production insurance agreement shall provide that all insurance contracts to which the agreement applies, except those covering losses specified in paragraph 15(c), shall provide insurance against more than one of the perils specified in the agreement. Determination of losses (2) The agreement shall provide that losses of a farm enterprise, with the exception of the losses referred to in section 15, shall be determined by subtracting the total production of an agricultural product, adjusted for any quality losses, from the total production guarantee for the agricultural product on all exposure units of the farm enterprise. Agricultural products to be distinguishable (3) The agreement shall provide that, for the losses in respect of an agricultural product to be determined separately under an insurance plan, the agricultural product shall meet the following criteria: (a) the agricultural product can be distinguished from other like agricultural products; (b) the agricultural product has a separate market price from other like agricultural products; (c) the agricultural product has different productive capabilities or production risks from other like agricultural products; and (d) there is sufficient volume of production and availability of data to ensure the financial viability of an insurance plan related to the agricultural product. Exception (4) The agreement shall provide that any insurance coverage benefit under an insurance contract that is an exception to subsections (1) to (3) is deemed to be a risk-splitting benefit. Level of premium support (5) The agreement shall provide that the risk-splitting benefit shall be subject to the level of premium support from Canada that is associated with high-cost production coverage, as set out in the agreement, and shall be supported as being feasible by documentation that demonstrates that the following conditions are met: (a) standards and procedures for adjusting losses are in place; (b) administrative resources agreed to as adequate by the parties to the agreement are available; (c) administrative costs associated with the risk-splitting benefit are reported separately from the other administrative costs associated with insurance plans; and (d) there is sufficient volume of production and availability of data to ensure the financial viability of the risk-splitting benefits. No double indemnity (6) The agreement shall provide that if there is a risk-splitting benefit under an insurance contract, there shall be loss adjustment and payment processes to ensure that damage is paid for only once or that any indemnity payable under a risk-splitting benefit is deducted from any other indemnities payable under an insurance contract. SOR/2018-118, s. 2
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Risk-splitting benefit 5 A production insurance agreement shall provide that a risk-splitting benefit may be subject to the level of premium support from Canada that is associated with comprehensive production coverage, as set out in the agreement, if one of the following conditions is met: (a) the province can prove that the risk-splitting benefits arise from third-party intervention; (b) the province demonstrates, by a statistical analysis, that operating a risk-splitting benefit results in indemnity payments that are less than would otherwise be paid under the insurance plan; or (c) the total costs of the risk-splitting benefit are less than the total costs for the same perils and coverage level under an insurance plan that does not provide risk-splitting benefits. SOR/2018-118, s. 20(E)
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Premium rate methodologies 6 (1) A production insurance agreement shall provide for premium rate methodologies and shall provide that (a) premium rates shall be determined in accordance with those methodologies; and (b) those methodologies shall be subject to the national certification guidelines. Additional requirements (2) Those premium rate methodologies shall reflect the following requirements: (a) premium rates shall be established in an actuarially sound manner; (b) premium rates shall provide for an amount to be applied to the repayment of a deficit under the insurance program; (c) premium rates for risk-splitting benefits shall be determined separately from the premium rates for other benefits in the insurance plan; (d) all elements of an insurance plan or program that have cost implications shall be included in the determination of premiums; and (e) premium rates shall include a margin for building reserves.
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Actuary’s opinions 7 (1) A production insurance agreement shall (a) require the submission of (i) an opinion, signed by an actuary, certifying that premium rate methodologies have been established in an actuarially sound manner, and (ii) an opinion, signed by an actuary, certifying that the insurance program is self-sustaining; and (b) provide for the date for meeting the requirements of paragraph (a). Failure to submit opinions (2) Until the opinions required by paragraph (1)(a) are submitted, Canada shall limit its payments toward premium and reinsurance payments under the agreement in respect of the relevant fiscal year and subsequent fiscal years to the following amounts: (a) 90% of the amount otherwise payable under the agreement if one of the requirements of paragraph (1)(a) is met; or (b) 80% of the amount otherwise payable under the agreement if neither of the requirements of paragraph (1)(a) is met. Qualified opinions (3) If the requirements of paragraph 1(a) have not been met, premium receipts used for calculating a payment from the Crop Reinsurance Fund shall be determined by the Minister using the estimated premium receipts that would have been collected if the opinions had indicated that the requirements of that paragraph had been met. New agricultural products (4) The opinion referred to in subparagraph (1)(a)(i) is not required with respect to the manner of establishing premium rates for new agricultural products. SOR/2018-118, ss. 3, 20(E)
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Probable yield methodologies 8 (1) A production insurance agreement shall provide for probable yield methodologies and shall provide that (a) probable yields shall be determined in accordance with those methodologies; and (b) those methodologies shall be subject to the national certification guidelines. Statistical measure of yield (2) In establishing those methodologies, a statistical measure of yield that is based on actual yields per seeded area shall be used. That measure may be adjusted to reflect the demonstrated productive capability of producers and may take into account the average level of quality produced related to the levels of quality of the agricultural product provided for in an insurance plan. Data sources (3) If insurance data is unavailable or unrepresentative as a data source for determining the probable yield of an agricultural product, other data sources may be used, as agreed to by the parties to the agreement. SOR/2018-118, s. 4(F)
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Actuary’s opinion 9 (1) A production insurance agreement shall (a) require the submission of an opinion, signed by an actuary, certifying that the probable yield methodologies result in probable yields that accurately reflect the producers’ production capability for the agricultural product; (b) if that opinion is qualified, require the disclosure by the actuary of the extent and sources of any bias in the methodology; and (c) provide for the date for meeting the requirements of paragraph (a). Failure to submit opinion (2) Until the opinion required by paragraph (1)(a) is submitted, Canada shall limit its payments toward premium and reinsurance payments under the agreement in respect of the relevant fiscal year and subsequent fiscal years to 75% of the amount otherwise payable under the agreement. Qualified opinion (3) If the opinion of the actuary indicates that there is a bias in the probable yield methodology, payments by Canada shall be limited to the amount that would otherwise be provided for under the agreement. SOR/2018-118, ss. 5, 20(E)
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Definitions 10 (1) The following definitions apply in this section. provincial actual yield to provincial probable yield ratio means the weighted average of all actual or reported yields for a year, adjusted to reflect the level of quality that is provided for in an insurance plan, divided by the provincial probable yield for that year. ( rapport entre le rendement réel provincial et le rendement probable provincial ) provincial moving average yield means the mean of the annual weighted averages of actual or reported yields, adjusted to reflect the level of quality that is provided for in an insurance plan. ( moyenne mobile du rendement provincial ) provincial probable yield means the weighted average of probable yields, determined in accordance with section 8, of all producers insured under an insurance plan for a year. ( rendement probable provincial ) provincial probable yield to provincial moving average yield ratio means the provincial probable yield for a year, divided by the provincial moving average yield for that year. ( rapport entre le rendement probable provincial et la moyenne mobile du rendement provincial ) Tests for probable yield (2) A production insurance agreement shall require the province to submit documents to the Minister to demonstrate, using insurance data of previous years, that the provincial probable yield of an agricultural product in a year meets either of the following tests, which shall be subject to the national certification guidelines: (a) the provincial probable yield to provincial moving average yield ratio for the year does not exceed a value of 1.015; or (b) the mean of the provincial actual yield to provincial probable yield ratio, based on ten years or more, is a value not less than 0.985. SOR/2018-118, s. 6
Canada Production Insurance Regulations — Canada Production Insurance Regulations
provincial actual yield to provincial probable yield ratio means the weighted average of all actual or reported yields for a year, adjusted to reflect the level of quality that is provided for in an insurance plan, divided by the provincial probable yield for that year. ( rapport entre le rendement réel provincial et le rendement probable provincial )
Canada Production Insurance Regulations — Canada Production Insurance Regulations
provincial moving average yield means the mean of the annual weighted averages of actual or reported yields, adjusted to reflect the level of quality that is provided for in an insurance plan. ( moyenne mobile du rendement provincial )
Canada Production Insurance Regulations — Canada Production Insurance Regulations
provincial probable yield means the weighted average of probable yields, determined in accordance with section 8, of all producers insured under an insurance plan for a year. ( rendement probable provincial )
Canada Production Insurance Regulations — Canada Production Insurance Regulations
provincial probable yield to provincial moving average yield ratio means the provincial probable yield for a year, divided by the provincial moving average yield for that year. ( rapport entre le rendement probable provincial et la moyenne mobile du rendement provincial )
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Time for compliance 11 (1) A production insurance agreement shall include a schedule, in accordance with the national certification guidelines, that sets out the deadline for the province to submit the documents referred to in subsection 10(2) for each insurance plan that is based on yield. Failure to submit documents (2) Until the province submits the documents required by subsection 10(2), Canada shall limit its payments toward premium and reinsurance payments under the agreement in respect of the relevant fiscal year and subsequent fiscal years to 75% of the amount otherwise payable under the agreement. Documents not demonstrating compliance (3) If the documents submitted by the province do not demonstrate, using insurance data of previous years, that the provincial probable yield for an agricultural product in a given year meets the test set out in either paragraph 10(2)(a) or (b), payments by Canada shall be limited to the amount that would otherwise have been payable under the agreement. SOR/2018-118, s. 7
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Unit value methodologies 12 (1) A production insurance agreement shall provide for methodologies for use in determining the value of eligible agricultural products and shall provide that (a) the unit values shall be determined in accordance with those methodologies; and (b) those methodologies shall be subject to the national certification guidelines. Additional requirement (2) Those unit value methodologies shall be based on one of the following: (a) a market price method that reflects estimated or actual farmgate or replacement values of the production; (b) a cost of production method using standard accounting procedures and recommended provincial agronomic practices; or (c) an alternative method provided for in the agreement. SOR/2018-118, s. 8(F)
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Maximum unit value 13 A production insurance agreement shall provide that the province shall submit documents to the Minister to demonstrate, using historical market prices or replacement values, that the maximum unit value of an agricultural product meets either of the following tests, which shall be subject to the national certification guidelines: (a) the ratio of the average of the maximum unit values to the moving average of the farmgate or replacement values, based on three or more years, does not exceed a value of 1.0; or (b) the average of the ratios of the maximum unit value to the actual farmgate or replacement value, based on three or more years, does not exceed a value of 1.0. SOR/2018-118, s. 9
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Time for compliance 14 (1) A production insurance agreement shall provide for the establishment of a schedule, in accordance with the national certification guidelines, that sets out the deadline for the province to submit the documents referred to in section 13 for each insurance plan that is based on yield. Failure to submit documents (2) Until the province submits the documents required by section 13, Canada shall limit its payments toward premium and reinsurance payments under the agreement in respect of the relevant fiscal year and subsequent fiscal years to 90% of the amount otherwise payable under the agreement. Limited payments (3) If the province submits the documents required by section 13 but the values determined under paragraphs 13(a) and (b) exceed 1.0, payments by Canada shall be limited to the level of federal premium support provided for high-cost production coverage as set out in the agreement. No administrative procedures to prevent moral hazard (4) If the values determined under paragraphs 13(a) and (b) exceed 1.0 and the province cannot demonstrate that adequate administrative procedures are in place to prevent moral hazard, payments by Canada shall be based on the lower of the values determined under those paragraphs, which is deemed to be 1.0. Administrative procedures to prevent moral hazard (5) Subject to subsections (3) and (6), if the values determined under paragraphs 13(a) and (b) exceed 1.0 and the province can demonstrate that adequate administrative procedures are in place to prevent moral hazard, payments by Canada shall be based on the lower of the values determined under those paragraphs, which is deemed to be 1.2 if it exceeds 1.2. Methodology without bias (6) Despite subsection (3), if the province can demonstrate that the methodology used to determine the unit value contains no bias, only payments by Canada related to the extent that the lower of the values determined under paragraphs 13(a) and (b) exceeds 1.0 shall be limited to the level of federal premium support provided for high-cost production coverage as set out in the agreement. SOR/2018-118, s. 10
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Insurable losses 15 If a probable yield is not used as the basis of determining coverage under an insurance plan, the following losses, in whole or in part, may be covered in an insurance plan: (a) losses in respect of stands of fruit trees or other perennial plants; (b) losses in respect of livestock; and (c) losses in respect of agricultural products caused by production being prevented or reduced by weather or another agricultural peril.
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Value of production methodologies 16 (1) A production insurance agreement shall provide for methodologies for determining the value of production and shall provide that (a) values of production shall be determined in accordance with those methodologies; and (b) those methodologies shall be subject to the national certification guidelines. Additional requirement (2) Those methodologies are also subject to the following maximum limits: (a) for losses referred to in paragraphs 15(a) and (b), (i) the average cost to re-establish the interrupted production resulting from the loss of the fruit trees, perennial plants or livestock, (ii) 80% of the present value of the expected net income for the period required to re-establish production, where net income is the difference between the value of production of an agricultural product and the average costs of production, (iii) the average costs of production incurred with an insured agricultural product, or (iv) the expected or actual value of an insured agricultural product; and (b) for losses referred to in paragraph 15(c), (i) the average costs of operations in preparation for seeding and planting, namely, summer-fallowing, cultivating, fertilizing the land, purchasing plants for transplanting and other related activities, and the costs incurred with respect to land rental, (ii) 80% of the expected net income for an agricultural product, where net income is the value of production of the agricultural product minus the average costs of production incurred for the agricultural product, (iii) the average costs of production incurred with an insured agricultural product, or (iv) the expected or actual value of an insured agricultural product.
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Tests for value of production 17 A production insurance agreement shall provide that the province shall submit documents to the Minister to demonstrate that the value of production of an agricultural product in the province meets either of the following tests, which shall be subject to the national certification guidelines: (a) the ratio of the average of the maximum values of production to the moving average of the farmgate or replacement values, based on five or more years of historical data, does not exceed a value of 1.0; or (b) the average of the ratios of the maximum value of production to the actual farmgate or replacement value, based on five or more years of historical data, does not exceed a value of 1.0. SOR/2018-118, s. 11