SUMMARY OF CHANGES FOR THE

NURSERY VALUE SELECT (NVS) PILOT CROP PROVISIONS (25-1010)

(Released January 2024)

The following is a brief description of changes to the Crop Provisions that will be effective for the 2025 and 

succeeding crop years. Please refer to the Crop Provisions for more complete information.

• Added an introductory paragraph clarifying the NVS Crop Provisions are attached to and made part of 

the Common Crop Insurance Policy, Basic Provisions.

• Section 1 –

o In the definitions of “crop year,” “plant category,” “practice,” “sales closing date,” and 

“undamaged plant,” replaced the phrase “actuarial documents” with “Special Provisions.” 

• Section 3 –

o Aligned the section title with the corresponding section in the CCIP Basic Provisions by 

removing “for Determining Indemnities.”

o In paragraph (c)(2), replaced the word “reject” with “not accept.”

o In paragraph (c)(4), replaced the phrase “such rejection” with the phrase “the NVS not being 

accepted.”

• Section 6 –

o In paragraph (d), replaced the phrase “is rejected” with “is not accepted.”

o In paragraph (e), replaced the word “reject” with the phrase “do not accept.”

o In paragraph (i)(3), replaced the phrase “unless we reject” with “unless we do not accept.”

o In paragraph (i)(4), replaced the phrase “will reject” with “will not accept.”

o In paragraph (i)(6), replaced the word “reject” with the phrase “do not accept” and replaced 

the word “Rejection” with the phrase “Non-acceptance.”

• Section 7 –

o In paragraph (d), replaced the phrase “actuarial documents” with “Special Provisions” in all 

places it occurs.

• Section 9 –

o In paragraphs (a)(1)(i) and (ii), replaced the phrase “is rejected” with “is not accepted” and 

replaced the phrase “not accepted by us” to “not acceptable to us.”
25-1010

(Released January 2024)

UNITED STATES DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

NURSERY VALUE SELECT PILOT CROP PROVISIONS

In return for your payment of premium and administrative fee for the coverage, these Nursery Value Select Pilot 

Crop Provisions will be attached to and made part of the Common Crop Insurance Policy, Basic Provisions 

(Basic Provisions) subject to the terms and conditions described herein.

1. Definitions

Amount of insurance – Your selected value 

(SV) multiplied by the coverage level you elect 

and by your insurable share; and, if you elect 

Catastrophic Risk Protection (CAT) coverage, 

by 0.55 (price election). The amount of 

insurance will be reduced by subtracting the 

amount included on any claim for indemnity 

made under these Crop Provisions during the 

crop year. If you elect additional coverage for a 

practice and restock after a loss, the amount of 

insurance may be increased by adding an 

amount equal to the coverage level multiplied 

by your declared value of new plants placed in 

the nursery if a revised Nursery Value Report 

(NVR) is submitted.

Approved sales value – A dollar amount that 

we determine in order as follows:

(a) The average weighted wholesale price (net 

of all discounts) you received for each 

specific plant within each plant category, 

not to exceed 1.5 times your catalog price, 

unless otherwise specified in the Special 

Provisions, determined for:

(1) The 60-day period immediately 

preceding the date of the insured 

cause of loss; or

(2) If no sales occurred in the 60-day 

period immediately preceding the date 

of the insured cause of loss, the 12 

calendar months immediately 

preceding the date of the insured 

cause of loss; or

(b) If no wholesale sales occurred for the 

specific plant during the 12 calendar 

months immediately preceding the date of 

the insured cause of loss, the average 

contract price (net of all discounts), not to 

exceed 1.5 times your catalog price, unless 

otherwise specified in the Special 

Provisions, for all future wholesale 

deliveries of the specific plant insured 

during the insurance period; or

(c) If no wholesale sales occurred for the 

specific plant during the 12 calendar 

months immediately preceding the date of 

the insured cause of loss and there is no 

contract price for future wholesale 

deliveries of the specific plant, then your 

current wholesale catalog price for that 

specific plant multiplied by the difference 

between 1.00 and the largest percentage 

discount (calculated as a percentage if the 

discount is recorded as a dollar amount), 

that you provide to any buyer for any 

quantity of any specific plant.

(1) If your catalog does not contain all 

applicable discounts, your wholesale 

catalog price for the specific plant will 

be decreased by 10 percent; and 

(2) Notwithstanding (c), discounts will not 

be applied to prices for plants grown 

under license from the holder of a 

patent issued by the US Patent and 

Trademark Office provided the license 

specifically establishes the required 

sales price.

(3) A discount stated as a dollar value 

relative to a specific dollar amount or a 

range of dollar amounts for a purchase 

will be converted to a percentage rate 

by dividing the dollar amount of such 

discount by the dollar amount to which 

such discount applies.

(d) If a specific plant was not sold in the 12 

calendar months immediately preceding 

the date of the insured cause of loss and no 

current wholesale catalog price or any 

unfulfilled contracted sales exist, the 

approved sales value for that specific plant 

will be determined by prorating the 

approved sales values of the nearest size 

of that specific plant species and variety (if 

variety is available) using first (a), then (b).

Average weighted wholesale price – Value 

obtained by summing each quantity of specific 

plants sold multiplied by its price (excluding all 

discounts and shipping charges as well as any 

similar amounts that do not directly relate to the 

wholesale value of the specific plants) obtained 

from verifiable sales records for a defined 

period of time and dividing by the total quantity 

sold of the same specific plant.
Average contract price For a specific plant, 

the sum of the sales for future delivery under a 

written contract (excluding all discounts and 

shipping charges, as well as any other similar 

amounts that do not directly relate to the 

wholesale value of the specific plant) divided by

the total number of that same specific plant.

Basic unit – In addition to the definition in the 

Basic Provisions, a basic unit consists of all 

insurable plants within all insured plant 

categories within each practice that you elect to 

insure. Further unit division may be allowed as 

specified in section 2(b).

Catalog – Any document in a format that meets 

the requirements set forth in section 6(k) issued 

by your nursery and used to advise actual 

and/or potential wholesale buyers of the 

amount you are charging for the purchase of 

each specific plant that you offer for sale, 

including all applicable discounts. Such 

documents may be by season or any other 

basis consistent with your business practices. If 

you have plants in an insured plant category in 

your nursery that are not yet available for sale 

and are not included in your nursery catalog, 

you must submit a supplement to the nursery 

catalog/price list that meets the requirements of 

section 6(k).

Cold protection methods – Enclosed 

structures, irrigation sprinklers, heaters, 

insulating blankets, or any other appropriate 

item or method that prevents cold air from 

damaging insured plants.

Container grown – A nursery production 

practice in which plants are grown in standard 

nursery containers or in an appropriate medium 

for production of nursery plants (e.g., in a 

hydroponic tank); above the ground; placed in 

the ground; or placed in other standard nursery 

containers in the ground (i.e., pot-in-pot).

Crop year – A 12-month period identified by the 

sales closing date in the Special Provisions that 

begins June 1 and extends until the 

immediately following May 31 (May 1 sales 

closing date) or begins October 1 and extends 

until the immediately following September 30 

(September 1 sales closing date), as 

applicable. The crop year is designated by the 

calendar year in which it ends.

Crop year deductible – An amount determined 

by multiplying the deductible percentage by the 

SV minus the amount of any previouslyincurred deductible.

Damage factor – A value, less than or equal to 

1.00, that we use to determine the post-loss 

damage value of undamaged, retained 

damaged, discarded damaged, and dead/zero 

market value plants. The damage factors are 

contained in the Special Provisions.

Damaged plant – A specific plant showing 

signs of physical injury or deterioration to at 

least ten percent of its physical structure, as 

determined by us, unless otherwise specified in 

the Special Provisions.

Dead/zero market value plant – A plant that, 

as determined by us:

(a) Is damaged and exhibits no signs of 

viability;

(b) Is a liner multipack that has been damaged 

so that one or more of the cells no longer 

contain a viable plant;

(c) Is any specific plant in the Annual Plants 

and Plants Grown for One Year or Less 

Plant Category damaged to the extent it 

cannot be sold at the approved sales value;

(d) Is damaged to the extent that it has no 

market value, determined in accordance 

with FCIC approved procedures; or

(e) Has disappeared due to an insurable cause 

of loss (e.g., a hurricane, tornado, or flood) 

and that you can substantiate to our 

satisfaction was in your inventory at the 

time of the loss.

Deductible percentage – The amount 

determined by subtracting your elected 

coverage level from 100 percent.

Discarded damaged plant – A damaged plant 

which does not meet the conditions of a 

dead/zero market value plant and that you elect 

not to rehabilitate.

Field grown – A nursery production practice in 

which roots of the plant are grown in the ground 

or appropriate medium. Plants grown using inground fabric grow bags, plants that are balled 

and burlapped, or plants grown in containers 

that allow the plants to root into the ground or 

appropriate medium (for example, a container 

without a bottom) are also considered field 

grown.

Good nursery practices – In addition to the 

definition of “good farming practices” contained 

in section 1 of the Basic Provisions, the 

horticultural practices generally used in the area 

for the insured specific plant to make normal 

progress toward the stage of growth at which 

marketing of the specific plant can occur and:

(a) For conventional production practices, 

generally recognized by agricultural 

experts as compatible with the nursery 

production practices and weather 

conditions in the county; or

(b) For organic production practices, generally 

recognized by the NOP as compatible with 

the nursery production practices and 

weather conditions in the county. 

We may, or you may request us to, contact 

FCIC to determine whether production methods 

will be considered “good nursery practices.”
Harvest – For bare root nursery plants, removal 

from the growth medium; for all other insured 

nursery plants, removal from the nursery. 

Inventory – A compilation of all specific plants 

and their quantities for all plant categories, 

whether insured, uninsured, or uninsurable, 

contained in your nursery.

Irrigated – In lieu of the definition in the Basic 

Provisions, the application of water, using 

appropriate systems and at the proper times, to 

provide the quantity of water needed to sustain 

normal growth of your insured specific plants 

and, if appropriate based on good nursery 

practices, to provide cold protection for any 

applicable specific plant.

Liners – Plants produced in standard nursery 

containers that have a minimum dimension 

greater than or equal to 5/8 inch and a 

maximum dimension of less than 3 inches at the 

widest point of the container or cell interior, 

have an established root system, and meet all 

other conditions specified in the Special 

Provisions.

Maximum value – For each insured plant 

category, the highest total dollar value for all 

specific plants you anticipate will be in your 

nursery for each month during the insurance 

period.

Monthly unit value plan (MUVP) – Your 

declaration for each basic unit, by month from 

the first month to the last month within the 

insurance period, of the maximum value of all 

specific plants in each insured plant category 

that you expect to be in your nursery during 

each month of the insurance period. This 

declaration must be on our form and is made as 

part of the NVR.

NOP – The National Organic Program 

administered by the Agricultural Marketing 

Service, USDA.

Nursery – A business enterprise that grows 

nursery plants and derives at least 40 percent 

of its gross income from the wholesale 

marketing of such plants.

Nursery Value Report (NVR) – Your 

declaration on our form of the insurance 

choices you elect in accordance with section 6.

Occurrence deductible – The dollar amount of 

an insured loss you must incur before an 

indemnity becomes payable (see section 12).

Occurrence Loss Option (OLO) – An option 

that you may elect that eliminates the unit 

deductible in accordance with section 15.

Plant category – A grouping of plants as 

identified below and defined in the Special 

Provisions:

(a) Liners

(b) Annual Plants and Plants Grown for One 

Year or Less

(c) Herbaceous Biennial and Perennial Plants

(d) Foliage

(e) Vines

(f) Broadleaf Evergreen Trees and Shrubs

(g) Coniferous Trees and Shrubs

(h) Deciduous Trees and Shrubs

(i) Palms

(j) Cycads

(k) Other groupings of plants as identified in 

the Special Provisions.

Post-loss damage value – The total dollar 

value of all insurable specific plants lost in a 

basic unit due to an insured cause of loss as 

determined in section 12 using FCIC approved 

procedures, and the damage factors contained 

in the Special Provisions.

Practice – The cultural methods required for 

specific plants that meet either the definition of 

container grown or field grown, or any other 

method specified in the Special Provisions.

Pre-loss actual unit value – The total dollar 

value of all insurable specific plants in a basic 

unit, immediately prior to the occurrence of the 

loss event, determined for each specific plant 

by multiplying the approved sales value by the 

number of each specific plant and summing the 

results for that basic unit.

Rehabilitate – The cultural practices required 

to mend or restore a damaged plant to a 

condition in which it will be ready to market.

Restock – Replacement of lost or damaged 

plants that increases the SV of the insurable 

inventory to an amount not greater than the 

amount that existed prior to the date damage 

occurred.

Retained damaged plant – A damaged plant 

that does not meet the conditions of a 

dead/zero market value plant and that you elect 

to rehabilitate.

Sales closing date – In addition to the 

definition in the Basic Provisions, the date 

shown in the Special Provisions by which an 

application or any changes to coverage must be 

submitted to us. All applications and changes to 

coverage are subject to the terms of sections 3, 

6, and 9 of these Crop Provisions.

Selected value (SV) – The value you declare 

on your NVR of the insurable specific plants in 

each insured plant category in the basic unit. 

You may be required at any time we perform an 

inspection, or at any time upon our request, to 

provide documentation supporting the 

maximum values reported.

(a) For additional coverage:

(1) The SV may not exceed the highest 

maximum value for the same plant 

category reported on your MUVP;

(2) If you do not elect to create additional 

basic units by plant category as 
authorized by section 2(b)(1) of these 

Crop Provisions, your SV for the 

purpose of establishing the amount of 

insurance is the sum of the SVs you 

established for each plant category.

(b) For CAT coverage, your SV for each 

insured practice cannot exceed the lesser 

of:

(1) 110 percent of the maximum value for 

all plant categories in any given month 

during any of the preceding three crop 

years; or

(2) The maximum of the monthly values 

reported on the MUVP. Specific plant –

A plant identified by the complete 

botanical or common name as listed in 

your catalog, including the size of the 

plant, or as otherwise defined in the 

Special Provisions.

Standard nursery containers – For the 

container grown practice: 

(a) Semi-rigid containers that are plug trays, 

sheet pots, tray packs, and bedding packs 

whose cells are greater than or equal to 

than 5/8-inch across at the widest point of 

the cell interior;

(b) Separate rigid containers that have a 

minimum width greater than or equal to 5/8 

inch at the widest point of the container 

interior;

(c) Above-ground fabric grow bags that are 

appropriate in size and provide adequate 

drainage for the specific plant; and

(d) Any other type of container specified in the 

Special Provisions. Standard nursery 

containers do not include trays (flats) 

without individual cells.

Stock plants – Specific plants used solely for 

propagation during the insurance period, that 

you do not sell and do not include in your 

catalog.

Undamaged plant – A specific plant that is not 

a dead/zero market value plant and which 

shows injury or deterioration to less than ten 

percent of its physical structure as determined 

by us, unless otherwise specified in the Special 

Provisions.

Verifiable sales records – Records that show 

the sales of specific plants to disinterested third 

party purchasers during a period specified in 

these Crop Provisions containing:

(a) The name and address of the purchaser;

(b) The date of sale; and

(c) The complete botanical or common name 

of the specific plant(s) sold, number of each 

specific plant(s) sold, and the actual 

wholesale price (excluding all discounts 

and shipping charges as well as any other 

similar amounts that do not directly relate to 

the wholesale value of the specific plants) 

received for each specific plant.

Wholesale – The sale of plants to retailers for 

resale and not directly to the end-user, except 

to end-users including but not limited to 

landscape contractors, government entities or 

organizations, and commercial fruit producers.

2. Unit Division

(a) Section 34 of the Basic Provisions is not 

applicable.

(b) If you elect additional coverage, a basic unit 

may be divided into additional basic units 

by using one of the following methods. You 

may choose only one method for all your 

basic units.

(1) Each plant category you choose to 

insure within an insured practice as a 

separate basic unit; or

(2) Non-contiguous land for the field grown 

practice and, if allowed by the Special 

Provisions, for the container grown 

practice. You may choose to insure 

one or more plant categories under this 

additional basic unit structure.

3. Insurance Guarantees, Coverage Levels, 

and Prices

(a) The production reporting requirements 

contained in section 3(f) of the Basic 

Provisions are not applicable.

(b) In addition to the terms of section 3(b)(2)(i) 

of the Basic Provisions:

(1) You may elect either CAT or additional 

coverage for an insured practice. You 

will owe an administrative fee 

established in accordance with section 

7(e) of the Basic Provisions for each 

insured practice for CAT coverage and 

for each insured plant category under 

each insured practice for additional 

coverage;

(2) If you elect additional coverage for an 

insured practice and you further elect 

basic units by plant category, you may 

select a different level of coverage for 

each plant category; and

(3) For the purpose of establishing the preloss actual unit value and the post-loss 

damage value, you are deemed to 

have selected 100 percent of the 

approved sales value for each specific 

plant. 

(c) Section 3(e) of the Basic Provisions is 

amended as follows:

(1) Section 3(e)(1) is not applicable.

(2) In addition to section 3(e)(2), if you 

request an increase in the coverage 

level or an increase in the SV for the 

crop year following the currently 

insured crop year, we may not accept
such request at any time we discover 

that damage occurred before 

insurance was scheduled to attach.

(3) In lieu of section 3(e)(3), your amount 

of insurance will be as defined in these 

Crop Provisions.

(4) In addition to section 3(e)(4), if you 

submit a new NVR by the applicable 

sales closing date, but we notify you in 

writing the NVR or documentation is 

unacceptable, you must provide an 

acceptable NVR or documentation 

within 30 days after the date of notice

of the NVR not being accepted. If you 

submit a new NVR which is 

acceptable, insurance will attach on 

the 31st day after we receive all 

documents required for an acceptable 

NVR. If the new NVR is still not 

acceptable to us, insurance will not 

attach for the crop year.

4. Contract Changes

In accordance with section 4 of the Basic 

Provisions, the contract change date is:

(a) January 31 immediately preceding the crop 

year for counties with a May 1 sales closing 

date; and

(b) April 30 immediately preceding the crop 

year for counties with a September 1 sales 

closing date.

5. Cancellation and Termination Dates

In accordance with section 2 of the Basic 

Provisions, the cancellation and termination 

dates are May 31 for states with a May 1 sales 

closing date, and September 30 for states with 

a September 1 sales closing date.

6. Nursery Value Report

(a) Section 6 of the Basic Provisions is not 

applicable.

(b) An NVR that includes the following 

documentation must be submitted to us on 

or before the sales closing date, except as 

provided in section 6(e), for each insured 

practice and basic unit:

(1) Your SV consistent with these Crop 

Provisions, for each insured plant 

category.

(2) Your elected coverage level and your 

share;

(3) Two printed copies or one electronic 

copy of your most recent catalog; and

(4) The MUVP.

(c) In subsequent crop years, in lieu of section 

6(b)(4), you may certify on the NVR there is 

no material change in the information 

reported on the MUVP.

(d) You will be notified in writing on or before 

the end of the 30-day waiting period if your 

application for insurance is not accepted 

because our inspection determines your 

nursery does not meet insurability 

requirements, or the NVR or any other 

supporting documentation (if requested by 

us) is not acceptable to us.

(e) For the year of application, if you fail to 

provide the NVR required by subparagraph 

(b) on or before the applicable sales closing 

date, insurance will not attach until the 31st 

day after we have received all NVR 

documents, unless we do not accept your 

application in accordance with section 6(d). 

We will not be liable for any damage or loss 

that occurs before insurance has attached. 

After insurance attaches, we will provide 

coverage through the end of the insurance 

period. Your premium will be adjusted 

according to the proration factor contained 

in the actuarial documents for the month 

insurance attached.

(f) Your NVR, including any revised NVR, will 

be used to determine your premium and 

amount of insurance.

(g) You must provide all the documentation 

required by these Crop Provisions by the 

applicable sales closing date if you wish to 

increase your coverage level or SV for the 

next crop year.

(h) At our discretion, we may perform an 

inspection of the nursery at any time to 

determine good nursery practices are 

followed, and that adequate, acceptable 

facilities exist to accommodate the 

inventory.

(i) You may increase your SV for each basic 

unit no more than twice during the crop 

year by submitting a revised NVR, except 

as provided in section 6(i)(6).

(1) Any requested increase must be made 

in writing and meet all the requirements 

for an NVR described in section 6(b).

(2) We will perform an inspection of the 

nursery to determine good nursery 

practices are followed, and that 

adequate, acceptable facilities exist to 

accommodate the requested increase 

in the SV when the total of all SVs 

reported on the revised NVR is 

increased 50 percent or more from the 

previous total of all SVs on the original 

NVR, and the increase is not due to 

restocking subsequent to an insured 

loss.

(3) Your revised NVR will be accepted by 

us and insurance will attach on any 

requested increase in SV 31 days after 

your written request is received, unless 

we do not accept the proposed 

increase in your SV in writing.
(4) We will not accept any requested 

increase in the SV if any damage 

occurs within 30 days of the date you 

make such request (Non-acceptance

can occur at any time we discover such 

damage has occurred.).

(5) You cannot revise your NVR to 

decrease the SV after insurance 

attaches.

(6) You may increase your SV one 

additional time if you have suffered an 

insured cause of loss on a unit and 

have restocked the nursery. You must 

submit a revised NVR in writing that 

meets all the requirements for an NVR 

described in section 6(b). Insurance 

will attach on the increased SV 31 days 

after your written request is received, 

unless we do not accept the requested 

increase in your SV in writing.

(j) Specific plants we determine were 

damaged plants prior to the attachment of 

insurance coverage are not insurable 

unless such plants have been rehabilitated 

and are offered for sale at the approved 

sales value for the specific plant.

(1) If we do not accept the damaged 

plants, the value of such plants will be 

subtracted from the appropriate values 

in the MUVP and, as necessary, your 

SV reported on the NVR, will be 

adjusted for each basic unit.

(2) If you have previously made a claim 

and the loss adjuster is unable to 

determine whether a specific plant was 

damaged prior to submission of your 

NVR for the current crop year, the 

specific plant will be uninsurable.

(3) You must maintain the identity of the 

uninsurable damaged plants using a 

method approved by us.

(4) All specific plants damaged prior to the 

attachment of insurance coverage, 

including those that have been 

rehabilitated and are offered for sale at 

the approved sales value, must be 

reported on the NVR.

(k) Your catalog must meet the following 

minimum standards:

(1) Be typewritten or printed and legible;

(2) Show an issue date on the cover page 

(may be handwritten);

(3) Contain the complete name, address, 

and phone number of your nursery;

(4) Be provided to customers and used in 

the sale of your plants or, for the 

purposes of a supplement, be intended 

for use in the sale of your plants once 

they are available for sale; and 

(5) List each insurable specific plant name 

(botanical or common), plant or 

container size, and wholesale price.

7. Premium

(a) In lieu of section 7(c) of the Basic 

Provisions, we will determine your premium 

by multiplying the amount of insurance by 

the appropriate premium rate, and the 

proration factor contained in the actuarial 

documents.

(b) In addition to section 7 of the Basic 

Provisions, we will prorate your premium 

based on:

(1) For the year of application, the time 

remaining in the crop year if you submit 

the documentation required by section 

6(b) after the applicable sales closing 

date.

(2) For a revised NVR submitted by you 

and accepted by us, the time remaining 

in the crop year after insurance 

attaches on the revised NVR.

(c) You will owe premium for an entire month 

for any calendar month or portion thereof 

during which coverage is provided under 

these Crop Provisions.

(d) In lieu of section 7(a) of the Basic 

Provisions:

(1) If you apply for insurance before the 

premium billing date listed in the 

Special Provisions, the premium is 

earned and payable when coverage 

attaches. You will be billed for the 

premium and administrative fee no 

earlier than the premium billing date 

listed in the Special Provisions.

(2) If you apply for insurance or submit 

your NVR or any other required 

documents contained in section 6 on or 

after the premium billing date listed in 

the Special Provisions, the premium for 

the remainder of the crop year will be 

due and must be paid at the time of 

application or submission of your NVR. 

Failure to pay the premium at the time 

of application or when you submit your 

NVR will result in no insurance and no 

indemnity for the crop year.

8. Insured Crop and Plants

In lieu of sections 8 and 9 of the Basic 

Provisions, the insured crop will be all specific 

plants within each insured practice for CAT 

level of coverage, and each plant category you 

choose to insure within each insured practice 

for additional level of coverage and that:

(a) You have an insurable share;

(b) Are specific plants determined by us to be 

acceptable;
(c) Are grown in a county for which a premium 

rate is provided in the actuarial documents;

(d) Are grown in a nursery determined by us to 

be acceptable;

(e) Are irrigated unless otherwise provided by 

the Special Provisions (you must have 

adequate irrigation equipment and water to 

irrigate all insurable nursery plants at the 

time coverage attaches and throughout the 

insurance period);

(f) Are grown in accordance with the 

production and good nursery practices for 

which premium rates have been 

established;

(g) Are grown in an appropriate medium; 

(h) Are grown and sold with the root system 

attached;

(i) Are not grown solely as stock plants or 

plants being grown solely for harvest of 

buds, flowers, or greenery;

(j) May produce edible fruits or nuts provided 

the plants are available for sale (harvest of 

the edible fruit or nuts does not affect 

insurability);

(k) For the field grown practice, must be 

adapted in the hardiness zone recognized 

by the USDA Plant Hardiness Zone Map in 

which they are grown;

(l) For the container grown practice, are 

individual plants grown in standard nursery 

containers unless otherwise permitted by 

the Special Provisions;

(m) Were not damaged in a prior crop year 

unless such specific plants have been 

rehabilitated and are offered for sale at the 

approved sales value for the current crop 

year prior to insurance attaching, as 

accepted by us;

(n) Are not any plant classified by a state or 

county as illegal to grow or sell in the county 

in which the nursery is located. For 

example, growing or selling plants 

classified as invasive species is illegal in 

many states and counties. No indemnity 

will be paid on any such plant; and

(o) Are not produced in nursery containers that 

include two or more different genera, 

species, subspecies, varieties or cultivars, 

unless otherwise provided in the Special 

Provisions.

9. Insurance Period

(a) In lieu of section 11 of the Basic Provisions:

(1) For the year of application, if you 

provide the NVR required in section 6: 

(i) On or before the sales closing 

date, insurance attaches June 1 or 

October 1, as applicable, unless 

we notify you in writing that your 

application is not accepted

because the documentation you 

provided is not acceptable to us;

(ii) After the sales closing date, 

insurance attaches on the 31st 

day after we receive all documents 

required in section 6, unless we 

notify you in writing that your 

application is not accepted

because the documentation you 

provided is not acceptable to us; 

and

(2) For each subsequent crop year, 

insurance will attach on June 1 or 

October 1, as applicable:

(i) At the same coverage level and 

SV as the previous crop year if you 

provide the certification identified 

in section 6(c); or

(ii) At the coverage level and SV 

chosen for that crop year.

(b) Insurance ends on a basic unit, or portion 

thereof, at the earliest of: 

(1) The date of final adjustment of a loss 

when the total of all indemnities equals 

the amount of insurance;

(2) Harvest;

(3) End of day on May 31 or September 

30, as applicable;

(4) Abandonment or destruction of the 

crop in the unit; or

(5) For specific plants, when determined to 

be discarded damaged or dead/zero 

market value plant.

10. Causes of Loss

(a) In accordance with section 12 of the Basic 

Provisions, insurance is provided for 

unavoidable damage caused only by the 

following causes of loss that occur within 

the insurance period:

(1) Adverse weather conditions, except as 

specified in section 10(c) or the Special 

Provisions;

(2) Fire, provided weeds and undergrowth 

near the insured plants or the buildings 

in which the insured plants are grown 

are controlled by chemical or 

mechanical means;

(3) Wildlife;

(4) Earthquake; or

(5) Volcanic eruption.

(b) Insurance is also provided against the 

following if due to a cause of loss specified 

in section 10(a) that occurs within the 

insurance period:

(1) A loss in insured plant value because 

such insured plants are dead/zero 

market value plants (e.g., poinsettias 

that cannot be sold during the usual 
and recognized marketing period of 

November 1 through December 25); 

(2) Failure of the irrigation water supply; or 

(3) Failure of, or reduction in, the power 

supply.

(c) In addition to the causes of loss excluded 

in sections 12(a) and (c) through (f) of the 

Basic Provisions, we do not insure:

(1) Damage to specific plants due to 

disease or insect infestation, unless:

(i) A disease or insect infestation 

occurs for which no effective, 

appropriate control measure 

exists; or

(ii) Coverage is provided by the 

Special Provisions;

(2) The inability to market the specific 

plants resulting solely from:

(i) The refusal of a buyer to accept 

such plants;

(ii) Boycott; or

(iii) An order from a public official 

prohibiting sale including, but not 

limited to, a stop sale order, 

quarantine, or phytosanitary 

restriction on sales;

(3) Damage to specific plants due to cold 

temperatures, if cold protection is 

required in the Special Provisions for 

the plant category, unless you have 

installed cold protection equipment or 

facilities, and:

(i) Failure or breakdown of the cold 

protection equipment or facilities 

resulting from an insurable cause 

of loss provided you establish that 

repair or replacement was not 

possible between the time of 

failure or breakdown and the time 

the damaging temperatures

occurred; or

(ii) The lowest temperature or its 

duration exceeded the ability of 

the cold protection equipment or 

facilities to keep the specific plants 

from sustaining cold damage;

(4) Damage to specific plants due to 

collapse or failure of buildings or 

structures that house or contain the 

specific plants, unless the damage to 

the buildings or structures results from 

a cause of loss specified in section 

10(a);

(5) Any cause of loss if the only damage 

suffered is a failure of specific plants to 

grow to an expected size; or

(6) Damage to specific plants due to 

failure to follow recognized good 

nursery practices.

11. Duties in the Event of Damage or Loss

(a) In addition to your duties contained in 

section 14 of the Basic Provisions,

(1) You must obtain our written consent for 

each basic unit prior to:

(i) Destroying, selling or otherwise 

disposing of any damaged plants; 

or

(ii) Changing or discontinuing your 

normal and customary good 

nursery practices related to the 

care and maintenance of the 

specific plants.

(2) You must submit a claim for indemnity 

to us on our form no later than 60 days 

after the date of your loss for each 

applicable basic unit, but in no event 

later than 60 days after the end of the 

insurance period. We will waive this 

requirement if the final adjustment of 

your claim is totally or partially deferred 

because we are unable to make an 

accurate determination of the amount 

of damage to the specific plants. If we 

notify you that we are unable to make 

an accurate determination of damage 

on all or some of your specific plants:

(i) For those specific plants in the 

basic unit on which the loss 

adjustment and claim have not 

been deferred, you must submit a 

claim for such specific plants in 

accordance with this section and 

we will settle your claim on such 

specific plants;

(ii) For those specific plants in the 

basic unit on which the loss 

adjustment and claim have been 

deferred, we will determine the 

post-loss damage value at the 

earliest possible date but no later 

than one year after the end of the 

insurance period for the crop year 

in which the damage occurred; 

and

(iii) You must maintain the identity of 

the insured damaged plants using 

a method approved by us 

throughout the entire deferral 

period. Failure to maintain the 

identity will result in the damaged 

plants being uninsurable for the 

remainder of the crop year.

(3) For each specific plant, you must 

determine whether it will be a retained 

damaged plant or a discarded 

damaged plant.

(b) If you fail to obtain our written consent as 

required by section 11(a)(1), your claim will 
be denied on each basic unit for which 

written consent was not obtained.

(c) If you fail to meet the above requirements 

and such failure results in our inability to 

inspect the damaged or dead/zero market 

value plants, any damage to such insured 

plants will be considered uninsurable, and 

the claim will be denied.

(d) Prior to our determination of the amount of 

any loss, you must provide acceptable 

documentation to us that supports your 

NVR and inventory immediately prior to the 

loss occurrence.

(1) Required documentation includes, but 

is not limited to, the following:

(i) A detailed listing that includes the 

full name of each specific plant;

(ii) Acceptable, verifiable sales 

records for any specific plants that 

were sold the previous 60 days or 

12 months, as applicable, that 

support the determination of an 

approved sales value for each 

specific plant as described in 

section 1; and

(iii) Documentation or demonstrated 

performance of your ability to 

properly obtain specific plants and 

carry out good nursery practices 

related to the maintenance of the 

specific plants.

(2) If you fail to provide the required 

documentation you will still owe 

premium based upon your SV, but you 

will not receive an indemnity for any 

specific plant for which you did not 

provide such documentation.

(e) You must maintain an inventory. If 

requested, you must provide:

(1) Your most recent inventory; and

(2) Purchase and verifiable sales records 

from the date of your most recent 

inventory to the date of loss 

occurrence;

(f) You must provide any information that we 

request to verify you have followed good 

nursery practices.

(g) Prior to receiving an indemnity, we must 

verify that you destroyed or disposed of the 

discarded damaged and dead/zero market 

value plants by a method approved by us. 

We will determine the number of each 

specific plant destroyed or disposed of as 

described in section 12(b).

(h) You must maintain the identity of the 

retained damaged plants using a method 

approved by us. Failure to maintain the 

identity will result in the damaged plants 

being uninsurable for the remainder of the 

crop year.

(i) If identity is maintained, retained damaged 

plants will remain insurable for the 

remainder of the crop year:

(1) If a subsequent loss occurs within the 

crop year and the retained damaged 

plant is determined to be a dead/zero 

market value plant, the damage factor 

applied to the post-loss damage value 

is the retained damaged plant damage 

factor contained in the Special 

Provisions. The plant must be 

destroyed in accordance with section 

11(g).

(2) If a subsequent loss occurs within the 

crop year and the retained damaged 

plant is not determined to be a 

dead/zero market value plant, the 

damage factor applied to the post-loss 

damage value is the undamaged plant 

damage factor contained in the Special 

Provisions.

(3) For a subsequent crop year, if 

approved by us, retained damaged 

plants may be insurable if they have 

been rehabilitated and are offered for 

sale at the approved sales value for the 

specific plants in your catalog prior to 

the start of the crop year.

12. Settlement of Claim

(a) We will determine an indemnity for each 

basic unit as follows:

(1) Determine the pre-loss actual unit 

value;

(2) Determine the post-loss damage 

value;

(3) Determine the percent of loss by 

dividing the result of 12(a)(2) by the 

result of 12(a)(1);

(4) Determine the amount of loss by 

multiplying the result of 12(a)(3) by the 

lesser of the:

(i) Pre-loss actual unit value; or

(ii) SV minus the total amount of any 

previous loss for the basic unit.

(5) Determine the occurrence deductible 

by calculating the lesser of:

(i) The deductible percentage 

multiplied by the pre-loss actual 

unit value; or

(ii) The crop year deductible.

(6) If the result of 12(a)(4) is greater than 

the result of 12(a)(5), subtract 12(a)(5) 

from 12(a)(4); otherwise, no indemnity 

is due;

(7) If the result of section 12(a)(6) is 

greater than zero:
(i) For additional coverage, your 

indemnity equals the result of 

section 12(a)(6), multiplied by your 

share, but not to exceed any 

remaining amount of insurance, if 

applicable.

(ii) For CAT, your indemnity equals 

the result of section 12(a)(6) 

multiplied by 55 percent and by 

your share, but not to exceed any 

remaining amount of insurance, if 

applicable.

(b) The post-loss damage value will be 

determined as follows:

(1) We will take one or more 

representative samples, in accordance 

with FCIC approved procedures, for 

each specific plant;

(2) We will determine the number of 

undamaged, damaged, and dead/zero 

market value plants within each 

sample;

(3) For damaged plants, you must group 

specific plants into:

(i) Retained damaged plants; or

(ii) Discarded damaged plants;

(4) For each damaged plant group 

established in section 12(b)(3), 

multiply the damage factor by the 

approved sales price and by the 

number of specific plants included in 

the damaged plant group;

(5) Sum the results from section 12(b)(4) 

for each sample;

(6) Sum the results of section 12(b)(5) for 

all samples;

(7) Divide the result of section 12(b)(6) by 

the total number of the specific plant 

included in all samples;

(8) Multiply the result of section 12(b)(7) 

by the total number of the specific plant 

included in the basic unit; and 

(9) Sum the results from section 12(b)(8) 

for all specific plants in the basic unit.

13. Late and Prevented Planting

The late and prevented planting provisions in 

the Basic Provisions are not applicable.

14. Written Agreements

The written agreement provisions in the Basic 

Provisions are not applicable.

15. Occurrence Loss Option (OLO)

(a) The provisions of this option are 

continuous, if:

(1) A premium rate is published for the 

option in the actuarial documents;

(2) You have not elected coverage under 

the Catastrophic Risk Protection 

Endorsement.

(3) You elect the OLO:

(i) For new insureds, at the time of 

application for the first year you 

obtain coverage; or

(ii) On or before the sales closing date 

for any subsequent crop year; and

(4) You pay the additional premium 

indicated in the actuarial documents for 

this optional coverage.

(b) All basic units within the insured practice(s) 

will be insured under this option.

(c) Either you or we may cancel this option for 

any subsequent crop year by giving written 

notice on or before the cancellation date 

preceding the crop year for which the 

cancellation of this option is to be effective.

(d) In lieu of section 12(a), if specific plants 

within a basic unit are damaged by an 

insured cause of loss, we will settle your 

claim under this option as follows:

(1) Determine the pre-loss actual unit 

value;

(2) Determine the post-loss damage 

value;

(3) Determine the percent of loss by 

dividing the result of section 15(d)(2) 

by the result of section 15(d)(1). If the 

resulting percent of loss is:

(i) Equal to or greater than ten 

percent, unless otherwise 

provided in the Special Provisions:

(A) Multiply the percent of loss by 

the coverage level; and

(B) Multiply the result of 

15(d)(3)(i)(A) by the lesser of 

the:

(i) Pre-loss actual unit value; 

or

(ii) SV minus any previous 

loss for the basic unit; and

(C) Multiply the result from section 

15(d)(3)(i)(B) by your share.

(ii) Less than ten percent, unless 

otherwise specified in the Special 

Provisions, no indemnity is due.

(4) Total indemnities for the crop year 

cannot exceed the amount of 

insurance.

16. Examples

Single Unit Example without OLO: Pre-Loss 

Actual Unit Value Exceeds SV

Assume you have a 100 percent share and your 

SV based on your MUVP is $500,000. Your 

coverage level is 75 percent. Your amount of 

insurance is $375,000 (($500,000 × 0.7500) ×

1.0000 percent). You have not had any 

previous indemnity on the basic unit during the 

crop year. At the time of loss, we determine that 

your pre-loss actual unit value is $600,000. At 

the time of loss, we determine that 30,000 
specific plants with an approved sales price of 

$20.00 each are in the basic unit. There are no 

other specific plants in the basic unit. Our 

samples determine the average value lost per 

specific plant is $7.29, resulting in a post-loss 

damage value of $218,700. We determine there 

is no damage due to uninsured causes of loss. 

Your indemnity is calculated as follows:

(a) Determine the pre-loss actual unit value:

$600,000;

(b) Determine the post-loss damage value:

$218,700;

(c) Determine the percent of loss [(b) ÷ (a)]:

$218,700 ÷ $600,000 = 36.45 percent;

(d) Determine the amount of loss:

(lesser of the pre-loss actual unit value (a) 

or (the SV – any previous indemnity)) ×

percent of loss (c) min($600,000, 

($500,000 – $0)) × 0.3645 = $182,250;

(e) Determine the occurrence deductible: 

lesser of (deductible percentage × pre-loss 

actual unit value or the crop year 

deductible): min(.25 × $600,000, (.25 ×

$500,000 – $0)) = $125,000;

(f) Subtract the occurrence deductible (e) from 

the result of (d);

$182,250 – $125,000 = $57,250.

(g) For additional coverage, your indemnity 

equals the result of (f) multiplied by your 

share.

$57,250 × 1.0000 share = $57,250.

(h) For CAT coverage, the coverage level is 50 

percent and the price election is 55 percent. 

In this scenario, the SV is greater than the 

actual unit value, so the occurrence 

deductible would be $250,000, which is 

greater than the amount of loss. 

Consequently, no indemnity would be due. 

If the occurrence deductible had been less 

than the amount of loss, the remainder from 

(f) would be multiplied by the price election 

(0.5500) and the share to determine the 

indemnity.

Single Unit Example without OLO: SV 

Exceeds Pre-Loss Actual Unit Value

Assume you have a 100 percent share and your 

SV based on your MUVP is $600,000. Your 

coverage level is 75 percent. Your amount of 

insurance is $450,000 (($600,000 × 0.7500) ×

1.0000 percent). You have not had any 

previous indemnity on the basic unit during the 

crop year. At the time of loss, we determine that 

your pre-loss actual unit value is $500,000. The 

post-loss damage value is the same as shown 

in the previous example 1, which is $218,700. 

We determine there is no damage due to 

uninsured causes of loss. Your indemnity is 

calculated as follows:

(a) Determine the pre-loss actual unit value:

$500,000;

(b) Determine the post-loss damage value:

$218,700;

(c) Determine the percent of loss [(b) ÷ (a)]:

$218,700 ÷ $500,000 = 43.74 percent;

(d) Determine the amount of loss (lesser of the 

pre-loss actual unit value (a) or (the SV –

any previous indemnities paid)) × percent 

of loss (c)):

min($500,000, ($600,000 – $0)) × 0.4374 = 

$218,700

(e) Determine the occurrence deductible: 

lesser of (deductible percentage × pre-loss 

actual unit value or the crop year 

deductible):

min(.25 × $500,000, (.25 × $600,000 - $0)) 

= $125,000;

(f) Subtract the occurrence deductible (e) from 

the result of (d);

$218,700 – $125,000 = $93,700.

(g) For additional coverage, your indemnity 

equals the result of (f) multiplied by your 

share.

$93,700 × 1.0000 share = $93,700.

Single Unit Loss Example with OLO

Assume you have a 100 percent share and your 

SV based on your MUVP is $600,000. Your 

coverage level is 75 percent. Your amount of 

insurance is $450,000. At the time of loss, we 

determine that your pre-loss actual unit value is 

$500,000. The post-loss damage value of the 

retained, discarded, and dead/zero market 

value plants is determined to be $218,700. 

There is no damage due to uninsured causes. 

Your indemnity is calculated as follows:

(a) Determine the pre-loss actual unit value:

$500,000;

(b) Determine the post-loss damage value:

$218,700;

(c) Determine percent of loss:

$218,700/$500,000 = 43.74 percent

This is greater than 10 percent so an 

indemnity is payable;

(d) Percent of loss (c) multiplied by the 

coverage level percentage = 0.4374 ×

0.7500 = 0.3281;

(e) Multiply result of (d) by the lesser of the preloss actual unit value or the SV minus any 

previous loss: 0.3281 × min($500,000, 

($600,000 – $0)) =

$164,050.

(f) $164,050 multiplied by the share (1.0000) 

is $164,050.

(g) $164,050 is less than the amount of 

insurance ($450,000) so the full amount of 

$164,050 is the payable indemnity.