07/01/24

1

Training and Performance Plan (TPEP) and 

Training and Performance Report (TPER) Guidance

I. PURPOSE

The TPEP and TPER outline on an annual basis the methods planned and taken by 

each Company to assess and correct where appropriate the work performance of the 

Company’s staff who, in turn, sell and service the FCIC-approved crop insurance 

programs to producers and ranchers. This stems from the statutory requirements 

stated in the Federal Crop Insurance Act (section 515).

1-43 FEDERAL CROP INSURANCE ACT Sec. 515 

(f) DETECTION OF DISPARATE PERFORMANCE

(3) OVER SIGHT OF AGENTS AND LOSS ADJUSTERS - The Corporation 

shall develop procedures to require an annual review by an approved insurance 

provider of the performance of each agent and loss adjuster used by the approved 

insurance provider regarding any remedial action that is determined to be 

necessary as a result of the annual review of an agent or loss adjuster.

II. CYCLE

The formation of the training plan and the evaluation report will create a cycle of 

planning and implementing (TPEP), assessing and reporting (TPER), and improving 

the work performance of the Company’s staff (TPEP). This cycle will cause a 

dynamic in which the effectiveness of the training to staff is measured by their actual 

work performance. Individuals found by the Company’s own standards as nonsatisfactory will be placed on a more rigorous training and monitoring plan to achieve 

satisfactory performance. Evaluation of individual work performance is expected to 

be on-going, and as such, will affect the overall effectiveness of the Company in the 

delivery of the FCIC-approved crop insurance programs. 

First, the TPEP will be submitted with the Company’s Plan of Operations.

Second, the subsequent TPEP will include information that demonstrates how the 

results captured by the TPER affected change in the Company’s TPEP.

SECTION II. TRAINING OF AGENTS, LOSS ADJUSTERS, AND OTHER PERSONNEL

(a) General Company Responsibilities
07/01/24

2

(1) The Company is responsible for establishing a “Training and Performance 

Evaluation Plan” (TPEP) and submitting the TPEP in the Company’s Plan 

of Operations, in accordance with Appendix II. Nothing in these 

requirements precludes the Company from providing training that exceeds 

these requirements.

In each instance in which training or testing is required hereunder, it may, 

at the AIP’s option, be provided in person in a classroom setting or via 

online format. If conducted online, the methodology used must ensure the 

individual is trained or tested appropriately, as if in person in a classroom 

setting.

(2) The TPEP shall:

(A) State the measurement standards acceptable for:

(i) Test proficiency; and

In fulfillment of Appendix IV Sec. II (a)(2)(A)(i), the 

measurement standards for testing proficiency will be an AIPadministered written Competency Test, administered in person in a 

classroom setting or via online format. AIPs will have access to 

NCIS test questions and will use the NCIS exam or create a 

competency exam of their own. Such test will be conducted 

according to the RMA-accepted Competency Test rules. New 

agents are required to successfully complete the Agent 

Competency Test prior to selling or servicing any eligible crop 

insurance contracts. New loss adjusters are required to 

successfully complete the Adjuster Competency Test prior to 

signing any claim under an eligible crop insurance contract. All 

agents and loss adjusters are required to successfully complete the 

test at least every three years. A score resulting in 70 percent or 

greater is considered passing. Those new to this AIP will be 

required to take the Competency Test unless we or the agent/loss 

adjuster can obtain documentation from the former AIP that he/she 

successfully completed said exam within the past three years.

Agent and loss adjuster Competency Test results will be 

maintained in accordance with section IV (g) of the SRA.

(ii) Satisfactory work performance.

In fulfillment of Appendix IV Sec. II (a)(2)(A)(ii):The 

measurement standards for unsatisfactory work performance will 

be the determination by the Company that the review and 

evaluation of the individual has identified a frequency or severity 

of material errors as defined in the SRA that require additional
07/01/24

3

training and/or remedial action of the individual by the Company. 

Note, the definition in the SRA states, “as determined by FCIC” 

however, for this requirement the definition shall also include as 

determined by the company as well.

(B) Describe the internal control measures used to assign work and 

track, monitor and evaluate work performance against the 

measurement standards under subparagraph (a)(2)(A);

Provide a description of the processes and controls utilized by the 

company to assign work, and to track, monitor and evaluate work 

performance of individuals against the measurement standards 

under subparagraph (a)(2)(A).

(C) Describe the additional training and monitoring applicable to any 

individual who fails to meet the measurement standards specified 

in subparagraph (a)(2)(A);

Provide a description of the processes utilized by the company to 

determine what additional training is necessary, and show how 

performance will be monitored for any individual who fails to meet 

the measurement standards specified in subparagraph (a)(2)(A).

(D) Describe the training curriculum developed from subsections (b) 

and (c) for:

(i) New agents and new loss adjusters;

(ii) Experienced agents and experienced loss adjusters;

In fulfillment of Appendix IV Sec. II (a)(2)(D)(i) & (ii), the 

training curriculum for new and experienced agents and new and 

experienced loss adjusters will, at a minimum, include all of the 

requirements of Section II of appendix IV.

(iii) Agents and loss adjusters with deficient work performance 

to meet the standards established in subsection (a) (2) (A); 

and

In fulfillment of Appendix IV Sec. II (a)(2)(D)(iii), when a 

performance deficiency is determined of agents and loss adjusters, 

follow up will be provided in the area of deficiency and the 

agent/loss adjuster will be monitored until competency is 

determined.
07/01/24

4

(iv) Employees performing functions relating to sales and 

service, loss adjustment, and underwriting.

In fulfillment of Appendix IV Sec. II (a)(2)(D)(iv), the training 

curriculum for employees performing functions relating to sales 

and service, loss adjustment, and underwriting will, at a minimum, 

include all of the requirements of Section II of appendix IV.

(E) Describe the individual training for employees, agents, loss 

adjusters, or other affiliates with respect to specific crops, areas, 

and plans of insurance serviced by such individuals;

Provide a description of the process utilized by the company to 

determine and to provide to employees, agents, loss adjusters, or 

other affiliates training on specific crops, areas, and plans of 

insurance serviced by such individuals.

(F) List the names and titles of the individuals responsible for the 

training under the TPEP;

In fulfillment of Appendix IV Sec. II (a)(2)(F): List the titles of the 

personnel responsible for the training (i.e. Field Personnel, 

Division Office Management).

(G) Provide a timeline for training all individuals identified in 

subsection (a)(2)(D)(i-iv) prior to the time the work is performed;

Provide a timeline for training all individuals identified in 

subsection (a)(2)(D)(i)-(iv) includes training provided throughout 

the crop year, and prior to the time the work is performed for new 

agents and loss adjusters. Employee, experienced agent and 

experienced loss adjuster training will be done concurrently on an 

annual basis.

(H) Describe the Company’s plan for taking corrective, follow-up, or 

remedial actions when additional training does not correct the 

identified deficiencies.

Provide the plan utilized by the company for determining when 

additional training does not correct an identified deficiency, and 

the plan for taking corrective, follow-up, or remedial actions for 

these types of situations. Such actions will be documented and 

implemented as applicable to the individual. For loss adjusters, 

claims will not be assigned until proficiency can be proven.
07/01/24

5

(I) Describe the procedure for the Company to maintain, retain, and 

provide to FCIC upon request:

(i) The tracking and evaluations of the historical performance 

of individuals identified in subsection (a)(2)(D); and

Provide a description of the process utilized by the company to 

track and evaluate the historical performance of individuals 

identified in subsection (a)(2)(D).

(ii) Records of all corrective, follow-up, or remedial actions 

taken with respect to any individual identified in subsection 

(a)(2)(D).

Provide a description of the process utilized by the company to 

record corrective, follow-up, or remedial actions with respect to 

any individual identified in subsection (a)(2)(D).

(J) Contain a provision to conduct such other training that may be 

required by FCIC.

Provide a description of the process utilized by the company to 

determine and conduct other training when required by FCIC.

(3) An annual Training and Performance Evaluation Report (TPER) shall be 

submitted with the Company’s Plan of Operations, in accordance with 

Appendix II. The annual TPER shall provide:

(A) An evaluation of each agent and loss adjuster. Such performance 

evaluation shall include a review of the loss ratios associated with 

such agent and loss adjuster and the number and type of any errors 

or omissions related to the compliance with obligations under the 

Agreement; and

Provide the results of reviews conducted on each agent/loss adjuster 

identified on the anomalous agent/loss adjuster ARPA list provided by 

RMA and the results of any review conducted on any agent/loss adjuster 

or other person that was identified by the Company as not having a 

satisfactory work performance.

(B) A report of any remedial actions taken by the Company to correct 

any error or omission or ensure compliance with the Agreement.

Provide a description of the action(s) taken by the company 

relative to any individual who fails to meet the measurement 

standards specified in subparagraph (a)(2)(A).
07/01/24

6

(b) Sales Training Curriculum and Requirements

(1) The sales training curriculum developed by the Company shall include 

those eligible crop insurance contracts the Company will be selling or 

servicing in the States identified in the Company’s Plan of Operations, in 

accordance with Appendix II, and include at a minimum (for new agents 

and employees performing functions relating to sales or service, 

comprehensive information on all of the following, and for experienced 

agents and employees performing functions relating to sales or service, 

comprehensive information on updates or changes in the following), 

sufficient information to make such individuals proficient in:

(A) The meaning of the terms and conditions of the Common Crop 

Insurance Policy, Basic Provisions and applicable Crop Provisions, 

published at 7 C.F.R. part 457, and the other available plans of 

insurance such as the Group Risk Plan published at 7 C.F.R. part 

407, the revenue insurance plans, pilot programs, and other plans 

of insurance found on FCIC’s website at www.rma.usda.gov, and 

any changes thereto;

(B) All applicable endorsements, Special Provisions and options and 

any changes thereto;

(C) The benefits and differences between the applicable plans of 

insurance specified in subparagraph (A) and their suitability to 

farming conditions and operations in the relevant area;

(D) The actuarial documents and their use;

(E) The procedures applicable to the sales and service of eligible crop 

insurance contracts and any changes thereto;

(F) How to properly fill out and submit all applicable forms, 

documents, notices and reports;

(G) The requirements under applicable Federal civil rights statutes and 

methods to encourage program participation, including, but not 

limited to, participation of limited resource, women, minority, and 

underserved producers or in underserved areas;

(H) How to recognize anomalies in reported information and common 

indicators of misrepresentation, fraud, waste or abuse, the process 

to report such to the Company, and appropriate actions to be taken 

when anomalies or evidence of misrepresentation, fraud, waste or 

abuse exist;
07/01/24

7

(I) Compliance with applicable laws and regulations governing 

business conduct and ethics, including, but not limited to, rebating 

prohibitions, conflicts of interest, and controlled business, etc.; and 

(J) Any other requirements as may be established by FCIC.

(2) The Company shall ensure the following:

(A) Any new agent or other individual who solicits or otherwise 

promotes crop insurance sales on behalf of the Company shall 

participate in a structured training program on all of the items 

listed in paragraph (1) before selling or servicing any eligible crop 

insurance contract.

(B) Any experienced agent shall annually complete structured training, 

on updates or changes specifically related to the items listed in 

paragraph (1), or that are identified by FCIC or the Company 

where errors or omissions were identified during quality control 

reviews or processing of the sales related documents. 

(C) All new agents shall pass a basic competency test before they can 

sell or service an eligible crop insurance contract (all testing 

records, including test results, shall be maintained in accordance 

with section IV(g) of the Agreement). Basic competency tests 

shall specifically relate to the items listed in paragraph (1) and 

determine the proficiency of the individual who completed the 

required training. Additionally, the Company shall review the test 

results and document follow-up training for any deficiencies 

identified. 

(D) All agents shall retake and pass the basic competency test (in 

accordance with the standard established in subsection 

(a)(2)(A)(i)) every three years. 

(E) If the agent was not employed by or did not contract with the 

Company in the previous year(s), the Company shall obtain, and 

make available upon request, documentation that the agent has 

passed the basic competency test within the past 3 years with 

another AIP.

(F) Proficiency is established by passing a written test meeting the 

standards of the TPEP, and maintaining satisfactory work 

performance during the respective crop year measured against the 

measurement standards established under subsection (a)(2)(A).
07/01/24

8

Testing may be administered in person in a classroom setting or 

via online format.

(G) In addition, the agent is considered to maintain satisfactory work 

performance if the results of reviews to respond to producer 

complaints, State Departments of Insurance or FCIC inquiries, or 

other quality control reviews identify no material errors.

(c) Loss Adjustment Training Curriculum and Requirements

(1) The loss adjustment training curriculum developed by the Company shall 

include those eligible crop insurance contracts which the Company will be 

selling or servicing in the States, identified by the Company in its Plan of 

Operations, in accordance with section V(b) of Appendix II, and include at 

a minimum (for new loss adjusters, or employees performing functions 

related to loss adjustment, all of the following and for experienced loss 

adjusters or employees performing functions related to loss adjustment, 

updates and changes), sufficient information to make such individuals 

proficient in:

(A) The items listed in subsections (b), (1), (A), (B), (C), (D), (F), (H), 

(I), and (J);

(B) The procedures applicable to loss adjustment of eligible crop 

insurance contracts and any changes thereto;

(C) How to properly verify the accuracy of the information contained 

on applicable forms, documents, notices and reports;

(D) How to properly determine the amount of production to be used for 

the purposes of determining losses;

(E) The requirements under applicable Federal civil rights statutes; and

(F) Any other requirements as may be established by FCIC.

(2) The Company shall ensure the following for loss adjusters or employees 

that adjust or sign any claim for any eligible crop insurance contract:

(A) Any new loss adjuster shall participate in a structured training 

program on all of the items listed in paragraph (1) before signing 

any claim under an eligible crop insurance contract.

(B) Any experienced loss adjuster shall annually complete structured 

training on updates or changes specifically related to the areas 

listed in paragraph (1) or that are identified by FCIC or the
07/01/24

9

Company as errors or omissions discovered during quality control 

reviews or processing of the loss related documents.

(C) All new loss adjusters shall pass a basic competency test (all 

testing records, including test results shall be maintained in 

accordance with section IV(g) of the Agreement) before signing 

any claim under an eligible crop insurance contract. Basic 

competency tests shall specifically relate to the areas listed in 

paragraph (1) and determine the proficiency of the individuals who 

completed the required training to accurately and correctly 

determine the amount of the loss and verify applicable information. 

Additionally, the Company shall review the test results and 

document follow-up training initiatives for any deficiency.

(D) All loss adjusters shall retake and pass the competency test every 

three years.

(E) If the loss adjuster was not employed by or did not contract with 

the Company in the previous year(s), the Company shall obtain, 

and make available upon request, documentation that the loss 

adjuster has passed the basic competency test within the past 3 

years with another AIP.

(F) Proficiency is established by passing a written test meeting the 

standards of the TPEP, and maintaining satisfactory work 

performance during the respective crop year measured against the 

measurement standards established under subsection (a)(2)(A).

Testing may be administered in person in a classroom setting or 

via online format.

(G) In addition, the loss adjuster is considered to maintain satisfactory 

work performance if the results of reviews to respond to producer 

complaints, State Departments of Insurance or FCIC inquiries, or 

other quality control reviews identify no material errors.

(d) Minimum Hours of Training for Agents and Loss Adjusters

(1) In order to sell or service any eligible crop insurance contract:

(A) A new agent or other applicable individuals (including any other 

individual who solicits or otherwise promotes crop insurance sales 

on behalf of the Company) must participate in a structured training 

program of at least 12 hours on all of the items listed in subsection 

(b)(1).
07/01/24

10

(B) An experienced agent or other applicable individual must annually 

complete at least 3 hours of structured training on updates or 

changes specifically related to the items listed in subsection (b)(1), 

or that are identified by FCIC or the Company as deficient during 

the quality control reviews or processing of the sales related 

documents. 

(C) All agents and other applicable individuals must pass a basic 

competency test before they can sell or service an eligible crop 

insurance contract (all testing records, including test results, shall 

be maintained in accordance with section IV(g) of the Agreement). 

Basic competency tests must specifically relate to the items listed 

in subsection (b)(1) and determine the proficiency of the individual 

who completed the required training to sell and service eligible 

crop insurance contracts. Additionally, the Company must review 

the test results and document follow-up training initiatives for any 

area of identified weakness on the part of any one or more 

individuals. 

(D) All agents and applicable individuals must retake and pass the 

basic competency test every three years. 

(E) If the agent or other applicable individual was not employed by or 

did not contract with the Company in previous years, the Company 

must obtain and have available upon request, documentation that 

the agent or other applicable individual has passed the basic 

competency test within the past 3 years with another AIP.

(2) In order to adjust or sign any claim for any eligible crop insurance 

contract:

(A) A new loss adjuster or other applicable individual must participate 

in a structured training program of at least 60 hours on all of the 

items listed in subsection (c)(1) (including at least 24 hours of 

classroom training).

(B) An experienced loss adjuster or other applicable individual must 

annually complete at least 16 hours of structured training 

(including at least 8 hours of classroom training), on updates or 

changes specifically related to the areas listed in subsections (c)(1) 

or that are identified by FCIC or the Company as deficient during 

the quality control reviews or processing of the sales related 

documents. 

(C) All loss adjusters and other applicable individuals must pass a 

basic competency test (all testing records, including test results,
07/01/24

11

shall be maintained in accordance with section IV(g) of the 

Agreement). Basic competency tests must specifically relate to the 

areas listed in subsection (c)(1) and determine the proficiency of 

the individuals who completed the required training to accurately 

and correctly determine the amount of the loss and verify 

applicable information. Additionally, the Company must review 

the test results and document follow-up training initiatives for any 

area of identified weakness on the part of any one or more new 

loss adjusters or experienced loss adjusters.

(D) All loss adjusters and other applicable individuals must retake and 

pass the competency test every three years. 

(E) The Company must obtain and have available upon request, 

documentation for any loss adjuster or other applicable individual 

that has passed the basic competency test within the past 3 years 

with another AIP to fulfill the requirements of this subsection.