United States 

Department of 

Agriculture

Federal Crop 

Insurance 

Corporation

FCIC-24360 

(08-2020)

HURRICANE

INSURANCE 

PROTECTIONWIND INDEX

STANDARDS

HANDBOOK

2021 and Succeeding 

Crop Years
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August 2020 FCIC 24360 TP 1

UNITED STATES DEPARTMENT OF AGRICULTURE WASHINGTON, D.C. 20250

TITLE: HURRICANE INSURANCE 

PROTECTION-WIND INDEX 

STANDARDS HANDBOOK

NUMBER: 24360

EFFECTIVE DATE: 2021 and Succeeding

Crop Years

ISSUE DATE: August 28, 2020

SUBJECT:

Provides procedures and instructions 

for administering the Hurricane

Insurance Protection -Wind Index

Endorsement

OPI: Product Administration & Standards 

Division

APPROVED:

/s/ Richard Flournoy

Deputy Administrator for Product 

Management

REASON FOR ISSUANCE

This handbook provides the official FCIC-approved standards for administering the Hurricane

Insurance Protection -Wind Index (HIP-WI) Endorsement for the 2021 and succeeding crop years for 

crops with a contract change date of August 31, 2020 or later.
August 2020 FCIC 24360 TP 2

HURRICANE INSURANCE PROTECTION-WIND INDEX ENDORSEMENT STANDARDS 

HANDBOOK CONTROL CHART

TP

Page(s)

TC

Page(s)

Text 

Page(s)

Exhibit 

Page(s)

Date Directive 

Number

Remove 1-2 1-1 1-12 13-22 February 

2020

FCIC 24360

Insert 1-2 1-2 1-14 15-24 February 

2020

FCIC 24360

Current 

Index

1-2 1-2 1-14 15-24 August

2020

FCIC 24360

FILING INSTRUCTIONS

This handbook replaces FCIC-24360, Hurricane Insurance Protection-Wind Index Standards 

Handbook, dated February 27, 2018. This handbook is effective upon approval until obsoleted.

SUMMARY OF CHANGES

Listed below are the changes to the 2021 FCIC-24360 Hurricane Insurance Protection-Wind Index 

Standards Handbook with significant content change. Minor changes and corrections are not included 

in this listing.

Reference Description of Changes

Para. 1 Clarified HIP-WI does not provide indemnities for acreage that is prevented 

from planting or any replanting reimbursement. Added language to clarify 

when the HIP-WI payment is limited due to first and second insured crop 

requirements and there is a reinstated guarantee on the underlying policy, the 

withheld 65 percent of HIP-WI indemnity will also be issued.

Para. 6 (3) Added language to clarify that HIP-WI coverage will not be increased if SCO 

or STAX coverage on a FN is removed due to the FN being enrolled in FSA 

ARC or PLC, unless the change to SCO or STAX coverage is reported by the 

insured on or before the ARD.

Para. 8 (1) Clarified in example that a crop in a county can only have HIP-WI coverage if 

the HIP-WI plan of insurance is specifically listed in the actuarial documents 

for that state, crop, and county.

Para. 11 Added language to clarify that HIP-WI coverage will not be increased if SCO 

or STAX coverage on a FN is removed due to the FN being enrolled in the 

ARC or PLC program, unless the change to SCO or STAX coverage is 

reported by the insured on or before the ARD.

Para. 13(1) Clarified that any crop acreage, inventory, or trees and plants that are not 

insured by the underlying policy are not covered by HIP-WI. If a qualifying 

event triggers an indemnity during a planting period, the insurable acreage 

planted as of that event date is insured under HIP-WI and eligible for an 

indemnity. If additional insurable crop acreage is planted during the same 
August 2020 FCIC 24360 TP 3

planting period after that qualifying event, the additional insurable crop acreage 

will be insurable and eligible for an indemnity payment if a second qualifying 

event occurs.

Para. 13(2) Clarified that insurable acreage planted during the late planting period is 

eligible for HIP-WI coverage based on the late planted guarantee. If acreage is 

planted after the late planting period or after the final planting date when no late 

planting period applies and the underlying policy guarantee is reduced to the 

same level as a prevented planting guarantee, the acreage will be covered by 

HIP-WI based on the reduced guarantee of the underlying policy.

Para. 13(4) Added language to address planted cotton acres and cottonseed endorsement.

Para. 14 A Changed language addressing beginning and ending of insurance period to 

conform to changes in the 2021 HIP-WI Endorsement.

Para. 15 Added paragraph to address insurable acreage and inventory.

Para. 18 Clarified only one indemnity payment per insurance period or per planting 

period when applicable, per acre is allowed.

Para. 19 Added paragraph to address nursery policy interaction with HIP-WI 

Endorsement.

Para. 21 Clarified that a HIP-WI indemnity cannot be paid until the insured has 

submitted an acreage report for the underlying policy.

Para. 21 A Clarified eligible acres based on the date a qualifying event triggers the county 

the initial year a HIP-WI Endorsement is accepted and any subsequent years.

Para. 21 B Added an example of a crop that does not require an acreage report.

Para. 31 Clarified that HIP-WI coverage is determined by coverage level, type, and 

practice, when applicable, then summed for the crop.

Para. 31 B Added language to address HIP-WI coverage will not increase for crop policies 

based on inventory when there is an increase in the underlying policy inventory 

during the crop year.

Para. 31 C Added language to clarify that HIP-WI coverage will not be increased if SCO 

or STAX coverage on a FN is removed due to the FN being enrolled in the 

ARC or PLC program, unless the change to SCO or STAX coverage is reported 

by the insured on or before the ARD. If the insured timely reports the 

enrollment of a FN in ARC or PLC on the acreage report on or before the ARD, 

the Hurricane Protection Amount (HPA) can extend to the coverage level on the 

underlying policy.

Para. 32 B Added language and example to address only one indemnity per insurance 

period per planted acre (or equivalent) and for those crops with multiple 

planting periods within an insurance period, only one indemnity payment is 

allowed per eligible planting period, on a per acre basis.

Para. 32 D Added language to clarify when HIP-WI indemnities will be paid.

Exh. 2 Updated definitions to be consistent with 2021 HIP-WI Endorsement. Changed 

definitions for Adjacent County, County Loss Trigger, Insurance Period, and 

added definition for Intended Acreage Report.
HURRICANE INSURANCE PROTECTION-WIND INDEX ENDORSEMENT 

STANDARDS HANDBOOK

August 2020 FCIC 24360 TC 1

TABLE OF CONTENTS

PAGE NO.

PART 1 GENERAL INFORMATION AND REQUIREMENTS

1 General Information................................................................................................................... 1

2 Endorsement Availability......................................................................................................... 1

3 Eligibility Requirements .......................................................................................................... 1

4 HIP-WI Plan of Insurance Code .............................................................................................. 2

5 Continuous Endorsement ......................................................................................................... 2

6 Cancellation or Policy Change................................................................................................. 2

7 Administrative Fees and Premium........................................................................................... 3

8 Written Agreements (WA)....................................................................................................... 3

9 Impact of High-Risk Land ....................................................................................................... 3

10 Underlying Policy Requirements............................................................................................. 4

11 Supplemental Coverage Option (SCO) and Stacked Income Protection Policy (STAX)........ 4

12 Duplicate Policy Exceptions.................................................................................................... 4

13 Planted Acreage Only .............................................................................................................. 4

14 Attachment of Coverage .......................................................................................................... 5

15 Insurable Acreage and Inventory ............................................................................................. 6

16 Units......................................................................................................................................... 7

17 Summary of Coverage/Schedule of Insurance......................................................................... 7

18 Insurable Cause of Loss........................................................................................................... 7

19 Nursery..................................................................................................................................... 8

20 (Reserved).................................................................................................................................... 8

PART 2 ACREAGE REPORTING

21 Acreage Reporting Requirements for HIP-WI......................................................................... 9

22-30 (Reserved)............................................................................................................................ 10

PART 3 DETERMINING HURRICANE INSURANCE PROTECTION AND INDEMNITY

31 Hurricane Protection Amount (HPA)................................................................................... 11

32 Indemnity.............................................................................................................................. 12

33-40 (Reserved)............................................................................................................................. 14

EXHIBITS

1 Acronyms and Abbreviations............................................................................................... 15

2 Definitions ............................................................................................................................ 16

3 Form Standards..................................................................................................................... 18

4 HIP-WI Endorsement Calculation Examples....................................................................... 20
August 2020 FCIC 24360 TC 2

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PART 1 GENERAL INFORMATION AND REQUIREMENTS

August 2020 FCIC 24360 1 

1 General Information

This handbook provides the FCIC approved procedures for administering the HIP-WI

Endorsement. HIP-WI attaches to and is made part of the Common Crop Insurance Policy, Basic 

Provisions (Basic Provisions) and Crop Provisions for the insured crop. The HIP-WI provides 

coverage for a portion of the deductible of the underlying policy that is not otherwise covered, 

when the county, or a county adjacent to it, is subject to sustained hurricane force winds within 

its boundaries according to the National Oceanic and Atmospheric Administration (NOAA). 

HIP-WI does not provide indemnities for acreage that is prevented from planting or any

replanting reimbursement. It is also not available with the Occurrence Loss Option (OLO) or the 

Comprehensive Tree Value (CTV) Endorsement. The coverage provided by this Endorsement 

may be combined with the Supplemental Coverage Option (SCO) and the Stacked Income 

Protection Plan (STAX), when acreage is also insured by a companion policy. 

The HIP-WI Endorsement must be purchased from the same AIP as the underlying policy and 

the HIP-WI guarantee is established using information from the underlying policy. Since there 

are no units for HIP-WI, policy protection is based on all planted acreage (annual crops), 

insurable acres (perennials), and dollar amount of insurance (tree crops and nursery) of the crop 

in the county insured by the underlying policy. If there are multiple coverage levels, types or 

practices for the insured crop in the county, the HIP-WI protection amount will be determined 

separately for acreage or plants insured at each coverage level, type and practice.

Additionally, any premium and/or indemnity reduction made on the underlying policy will apply 

to the HIP-WI Endorsement. For example, when the underlying policy premium and indemnity is 

reduced due to first and second insured crop limitations, the protection under the HIP-WI

Endorsement will similarly be reduced. When the HIP-WI payment is limited due to first and 

second insured crop requirements, if there is a reinstated guarantee on the underlying policy, i.e., 

the remaining 65 percent is issued for the first insured crop because there is not a loss on the 

second insured crop, the withheld 65 percent of HIP-WI indemnity will also be issued.

2 Endorsement Availability 

The HIP-WI Endorsement is available for CAT and additional coverage policies when provided 

on the actuarial documents.

3 Eligibility Requirements

To be eligible for the HIP-WI Endorsement, the insured must: 

(1) have an insurance policy under the CCIP-BP and the applicable CP with the same AIP; 

(2) elect the HIP-WI Endorsement on or before the SCD for the underlying policy; 

(3) elect a HIP-WI coverage percentage; 

(4) not have elected the Occurrence Loss Option (OLO) or the Comprehensive Tree Value 

(CTV) Endorsement for the underlying policy; and
August 2020 FCIC 24360 2

3 Eligibility Requirements (Continued)

(5) comply with all terms and conditions of the HIP-WI Endorsement.

4 HIP-WI Plan of Insurance Code

When elected, the HIP-WI Endorsement establishes a separate plan of insurance code of 37 for 

the HIP-WI Endorsement coverage for IT processing purposes only. Although the HIP-WI

Endorsement creates an insurance plan for IT processing, the actuarial documents identify HIPWI Endorsement availability as additional tabs for the underlying policy’s plan of insurance, on 

the actuarial documents.

5 Continuous Endorsement

The HIP-WI Endorsement is a continuous endorsement and will remain in effect until cancelled 

by the insured or the AIP on or before the cancellation date.

6 Cancellation or Policy Change

(1) If the insured’s underlying policy for the crop is cancelled, voided, or terminated, coverage 

under the HIP-WI Endorsement is automatically cancelled.

(2) Other changes made to the underlying policy do not cancel the HIP-WI Endorsement

provided the new coverage (plan of insurance, etc.) also allows HIP-WI. The HIP-WI

Endorsement will provide HIP-WI coverage based on the changes to the coverage level or 

plan of insurance of the underlying policy.

Example: The insured changes their coverage level on their underlying policy from 

80 percent to 70 percent. Their HIP-WI Endorsement coverage will change 

from covering 80 to 95 percent to covering 70 to 95 percent, increasing 

HIP-WI coverage from 15 percent to 25 percent.

(3) The HIP-WI Endorsement will remain in effect when an insured adds, modifies, or 

removes any SCO or STAX coverage associated with the underlying policy.

After the SCD, if SCO coverage on a farm number (FN) is removed due to the FN being 

enrolled in the FSA Agriculture Risk Coverage (ARC) program, or if STAX coverage on 

a FN is removed due to the FN being enrolled in either the ARC or FSA Price Loss 

Coverage (PLC) program, HIP-WI coverage will not be increased to the underlying policy 

coverage level, unless the change to SCO or STAX coverage is reported by the insured on 

or before the ARD.
August 2020 FCIC 24360 3

7 Administrative Fees and Premium

A. Administrative Fees

An administrative fee and premium for each crop covered by the HIP-WI Endorsement will 

be due in addition to any administrative fee(s) and/or premium(s) of the underlying policy 

(GSH Para. 807-809). However, waivers of the HIP-WI administrative fee are applicable 

for insureds who qualify as a limited resource farmer, a BFR or a VFR (see GSH Para. 

809).

B. Premium

Premium for HIP-WI is calculated by multiplying the Hurricane Protection Amount (HPA)

by the premium rate and any premium adjustment percentages that may apply. All 

information needed to calculate the premium is contained on the actuarial documents.

8 Written Agreements (WA)

(1) WAs are not authorized to add the HIP-WI Endorsement to an underlying policy when the 

HIP-WI Endorsement is not provided on the actuarial documents for the crop/county.

Example: The insured has a WA to insure corn in County A, which allows a crop to 

be insured in a county when the published actuarial documents do not 

include that crop in the county (XC WA). The XC WA references County

Z which offers the HIP-WI endorsement. The County A corn policy cannot 

have HIP-WI coverage because HIP-WI is not provided for corn in the 

published county actuarial documents in County A. A crop in a county can 

only have HIP-WI coverage if the HIP-WI plan of insurance is specifically 

listed in the actuarial documents for that state, crop, and county.

(2) If the HIP-WI Endorsement is available on the actuarial documents for the crop/county 

where the crop is physically located, the HIP-WI Endorsement may be elected when a WA 

applies to the underlying policy.

Example: The insured has a high-risk rated area written agreement (HR WA) on their 

underlying policy for NI corn for grain and the HIP-WI is available for NI 

corn for grain. Since the HIP-WI is available for the crop/county/P/T, the 

insured may elect HIP-WI for the policy even though the HR WA is 

applicable.

9 Impact of High-Risk Land

(1) High-risk acreage insured by the underlying policy is insurable under HIP-WI.

(2) Any high-risk acreage excluded from an underlying policy under the High-Risk Land 

Exclusion Option is not insurable under HIP-WI, unless the high-risk acreage is insured 

under a CAT policy. If the high-risk acreage is insured under a CAT policy the insured may 

elect to insure their high-risk acreage under the HIP-WI Endorsement.
August 2020 FCIC 24360 4

9 Impact of High-Risk Land (Continued)

(3) When high-risk acreage is insured under a separate policy by the HRACE, the HIP-WI

Endorsement must be elected on the HRACE policy when the insured elects the HIP-WI

Endorsement on their base policy.

10 Underlying Policy Requirements

The HIP-WI Endorsement can only be elected if the insured has an underlying policy insured 

under the CCIP-BP. Both the underlying policy and HIP-WI must be with the same AIP. 

The HIP-WI Endorsement is not available with ARPI, WFRP, or with STAX when STAX is a 

standalone policy.

11 Supplemental Coverage Option (SCO) and Stacked Income Protection Policy (STAX)

The insured may elect both the HIP-WI Endorsement and SCO or the HIP-WI Endorsement and 

STAX, if they meet the eligibility requirements of both programs. The insured may also elect the 

HIP-WI Endorsement, SCO and STAX; however, the same acreage cannot be insured under both 

the SCO and STAX.

If the insured has elected both the HIP-WI Endorsement and STAX, then the upland cotton must 

also be insured under the CCIP BP. If the underlying policy is ARPI or a standalone STAX 

policy, the HIP-WI Endorsement is not available for the upland cotton.

After the SCD, if SCO coverage on a FN is removed due to the FN being enrolled in the ARC 

program, or if STAX coverage on a FN is removed due to enrollment in either the ARC or PLC 

program, HIP-WI coverage will not be increased to the underlying policy coverage, unless the 

change to SCO or STAX coverage is reported by the insured on or before the ARD.

12 Duplicate Policy Exceptions

The HIP-WI Endorsement is not considered a duplicate policy with an underlying policy when 

available on the actuarial documents.

13 Planted Acreage Only

(1) Only planted acreage can be insured under HIP-WI. When HIP-WI is elected, all eligible

(insured) planted acreage of the crop, including perennial crops, inventory of the crop (e.g., 

nursery), and insurable trees and plants in the county where those acres, inventory, or trees 

and plants are insured by the underlying crop policy must also be insured under the HIP-WI

Endorsement when all acreage or inventory of the crop is required to be insured by the 

underlying policy. Any crop acreage, inventory, or trees and plants that are not insured by 

the underlying policy are not covered by HIP-WI. 
August 2020 FCIC 24360 5

13 Planted Acreage Only (Continued)

If a qualifying event triggers an indemnity during a planting period, as defined in the 

actuarial documents, the insurable acreage planted as of that event date is insured under 

HIP-WI and eligible for an indemnity. If additional insurable crop acreage is planted during 

the same planting period after that qualifying event, the additional insurable crop acreage

will be insurable and eligible for an indemnity payment if a second qualifying event occurs.

Example: Farmer A has 50 insurable crop acres planted when Hurricane A triggers the 

county and Farmer A receives a HIP-WI indemnity for the 50 acres. After the 

hurricane, Farmer A plants an additional 150 insurable crop acres before the 

final planting date. If Hurricane D triggers the county after Farmer A plants an

additional 150 acres, Farmer A can receive a HIP-WI indemnity on the

additional 150 acres, bringing the total acres indemnified to 200 acres (50 acres 

due to Hurricane A plus 150 acres due to Hurricane D). 

(2) Insurable acreage planted during the late planting period is eligible for HIP-WI coverage

based on the late planted guarantee. If acreage is planted after the late planting period or 

after the final planting date when no late planting period applies and the underlying policy 

guarantee is reduced to the same level as a prevented planting guarantee, the acreage will be 

covered by HIP-WI based on the reduced guarantee of the underlying policy

(3) HIP-WI will not insure any crop acreage prevented from planting.

(4) For planted cotton acres where cottonseed endorsement exists, HIP-WI coverage will apply 

to both the underlying cotton crop policy and the cottonseed endorsement.

14 Attachment of Coverage

A. Insurance Period

(1) Begins on the insurance attachment date, when provided in the HIP-WI actuarial 

documents. When no insurance attachment date is provided on the HIP-WI actuarial 

documents, the insurance period begins on the later of:

• the sales closing date for the underlying policy; or

• the earliest planting date, for each planting period when applicable, for the 

underlying policy; and

(2) Ends on the:

• end of insurance date, for each planting period when applicable, when provided in 

the HIP-WI actuarial documents; or

• end of insurance date, for each planting period when applicable, provided in the 

underlying policy actuarial documents when not provided in the HIP-WI actuarial 

documents.
August 2020 FCIC 24360 6

14 Attachment of Coverage (Continued)

(3) In lieu of (1-2) in this definition, for those crops where the underlying policy requires 

a waiting period, the period: 

(a) beginning on the date insurance attaches on the underlying policy; and 

(b) ending on the:

(i) the end of insurance date, for each planting period when applicable, when 

provided in the HIP-WI actuarial documents; or

(ii) the end of insurance date published, for each planting period when 

applicable, provided in the underlying policy actuarial documents when 

not provided in the HIP-WI actuarial documents.

B. Initial Year of Election

The initial year HIP-WI is elected, coverage will not begin until 14 days after the SCD. 

Where the underlying policy also requires a similar waiting period, the waiting periods will 

run concurrently and if the underlying policy waiting period is longer than 14 days, the 

HIP-WI waiting period will extend to match the underlying policy waiting period length.

Example: Nursery Crop policies are subject to a 30-day waiting period before 

commencement of coverage. If the application for a Nursery Crop policy 

and the HIP-WI is filed on or before the SCD, the HIP-WI 14-day waiting 

period will begin on the date the application is filed and will expand to run 

the entirety of the 30-day waiting period for the Nursery Crop policy.

C. Subsequent Years

For subsequent years, HIP-WI coverage may be increased (e.g., lowering coverage on 

underlying policy, increasing HIP-WI coverage factor, decreasing STAX coverage level) 

by the SCD, but the increased HIP-WI coverage will not take effect until 14 days after the 

SCD. If a qualifying event triggers the county within the 14-day period, coverage will be 

based on the coverage percentage and coverage range from the previous insured year.

15 Insurable Acreage and Inventory

(1) All eligible planted (insured) acreage, including perennial crops, inventory of the crop 

(e.g., nursery) and insurable trees and plants in the county where those acres, inventory, or 

trees and plants are insured by the underlying policy must be insured under the HIP-WI. 

This includes all acreage of a crop when there are different planting periods, unless:

• the underlying policy allows the planting periods to be insured separately; or

• the HIP-WI actuarial documents do not provide a HIP-WI rate for all planting 

periods.
August 2020 FCIC 24360 7

15 Insurable Acreage and Inventory (Continued)

If the HIP-WI actuarial documents provide a rate for multiple planting periods, all

planting periods must be insured under the HIP-WI Endorsement whenever the crop is

planted in multiple planting periods. If the HIP-WI actuarial documents only provide a 

rate for one, or some, of the planting periods, then only those planting period(s) for which 

the actuarial documents provide a rate can be insured under the HIP-WI Endorsement, 

even if the crop is planted in all planting periods.

Example: A crop policy has a fall, winter, and spring planting period. The HIP-WI 

insurance period for the spring planting period is 12/16 - 5/31 (entirely 

outside of the hurricane season). The HIP-WI insurance period for the 

fall planting period is 9/12 - 2/15. The HIP-WI insurance period for the 

winter planting period is 10/2 - 4/15. If the HIP-WI actuarial documents 

provide a HIP-WI rate for all planting periods, then all planting periods 

must be insured under the HIP-WI Endorsement if the crop is planted in 

all planting periods. If the HIP-WI actuarial documents only provide a 

HIP-WI rate for the fall and winter planting periods, then the fall and 

winter planting periods can be insured under the HIP-WI Endorsement 

but not the spring planting period, even if the crop was planted in all

planting periods.

(2) Any crop acreage or inventory that is not insured by the underlying crop policy is not 

covered by HIP-WI. 

(3) Any insurable crop acreage planted after a qualifying event has triggered an indemnity 

payment will be insurable and eligible for an indemnity payment if a second qualifying 

event occurs.

16 Units

In lieu of the provisions regarding units and unit division in the underlying policy, HIP-WI will 

be based on all eligible planted (insured) acreage, including perennial crops, inventory of the 

crop (e.g., nursery) and insurable trees and plants in the county insured by the underlying policy, 

regardless of whether such acreage is owned, rented for cash, or rented for a share of the crop, 

including acres on which the insured is insuring the share of the landlord/tenant.

17 Summary of Coverage/Schedule of Insurance

The Summary of Coverage/Schedule of Insurance must provide the protection, premium and 

administrative fee for the HIP-WI.

18 Insurable Cause of Loss

Sustained hurricane winds are the only cause of loss for HIP-WI and will be determined from 

NOAA hurricane wind extents data (refer to the HDP documents). NOAA publishes hurricane 

wind extent data for each storm track that includes the extent of the hurricane force winds from 

the hurricane’s location extended out to each of the Cartesian quadrants in nautical miles. The 

series of quadrant extents are utilized to determine the county loss trigger.
August 2020 FCIC 24360 8

18 Insurable Cause of Loss (Continued)

(1) To be eligible to receive an indemnity payment, the county loss trigger must have occurred

in the county, or an adjacent county, within the insurance period. 

(a) RMA will identify triggered counties on the actuarial documents.

(b) For an insured crop under the HIP-WI Endorsement, only one indemnity payment per 

insurance period or per planting period when applicable, per acre is allowed.

(2) Individual farm yields and revenues are not considered under HIP-WI. It is possible that an 

insured’s farm may experience reduced revenue or reduced yield and not receive an 

indemnity HIP-WI.

(3) Insureds are not required to file notices of loss. 

19 Nursery

HIP-WI coverage for nursery crop policies is based on the crop value using the initial PIVR filed 

by the policyholder. HIP-WI coverage does not consider any increases that may occur at any 

time throughout the crop year based on a revised PIVR or Peak Endorsement. 

(1) When an insured has Nursery (Field Grown (FG) & Container (C)) with HIP-WI and 

changes to Nursery Value Select (NVS) with HIP-WI, the Nursery FG&C is prorated and 

the total premium for HIP-WI is also prorated using the same factor as was used for the 

Nursery FG&C.

(2) Each nursery practice is treated as a separate crop; therefore, HIP-WI can apply to one 

practice but not the other.

(3) Since a new nursery policy under Nursery FG&C and NVS can be obtained at any time 

during the year, the insured may likewise purchase HIP-WI for a new policy, if elected at 

the time of the nursery crop application. Waiting periods as described in Para. 14 apply.

20 (Reserved)
PART 2 ACREAGE REPORTING

August 2020 FCIC 24360 9

21 Acreage Reporting Requirements for HIP-WI

Because the HIP-WI Endorsement uses the underlying policy’s acreage report, an insured is not 

required to submit an additional acreage report for HIP-WI. However, should a qualifying event 

trigger the county before the insured reports acreage for the underlying policy, the HIP-WI 

indemnity will not be paid until the insured submits an underlying policy acreage report to allow

HIP-WI coverage to be determined. For crops which do not require an acreage report, use the 

crop’s equivalent of an acreage report.

Example: The Nursery Crop Insurance Program does not require an acreage report but 

does require the insured to provide a Plant Inventory Value Report (PIVR) 

which is used to determine amount of insurance.

A. Eligible Acres

(1) The initial year a HIP-WI Endorsement is accepted:

(a) if a qualifying event triggers the county before the insured reports acreage for 

the underlying policy, the number of eligible acres for HIP-WI will be the lesser 

of the following as determined by the AIP:

(i) the number of acres specified on an intended acreage report submitted to 

the AIP by the underlying policy SCD or, for added acreage, within 10 

days of the date the insured acquires the acreage; or 

(ii) the actual acres planted at the time of the qualifying event triggers the 

county and reported on the underlying policy acreage report; or 

(b) if a qualifying event has not triggered the county on or before the insured reports 

acreage for the underlying policy, the number of eligible acres for HIP-WI will 

be the planted insurable acres specified on the acreage report filed and accepted 

by the AIP on or before the ARD of the underlying policy. 

Note: An intended acreage report is not required. However, for acres to be 

covered under HIP-WI the initial year of application, an insured must 

provide an acreage report prior to the qualifying event triggering the 

county.

(2) For any subsequent crop year: 

(a) if a qualifying event triggers the county before the insured reports acreage for 

the underlying policy, the number of eligible acres for HIP-WI will be the actual 

acres planted, limited to the lesser of the following as determined by the AIP:

(i) the number of acres planted at the time of the occurrence of the 

qualifying event, which must be reported on the underlying policy 

acreage report for the current year; or 
August 2020 FCIC 24360 10

21 Acreage Reporting Requirements for HIP-WI (Continued)

A. Eligible Acres (cont.)

(ii) the highest number of planted insurable acres for the crop in the county

in any one of the immediate past four crop years.

(b) if a qualifying event does not trigger the county before the insured reports their 

acreage for the underlying policy, the number of eligible acres for HIP-WI will 

be the number of acres specified on the acreage report filed and accepted by the 

AIP on or before the ARD of the underlying policy.

(3) When an intended acreage report is filed, eligible acres will be limited to the actual 

acres planted and reported on the acreage report.

B. Crops Which Do Not Require an Acreage Report

(1) Coverage will be based on the amount of insurance determined by the crop’s 

equivalent of the acreage report. 

Example: A Plant Inventory Value Report (PIVR) is required for the Nursery 

Crop Provisions instead of an acreage report, therefore, a PIVR is 

used in the same manner as an acreage report.

(2) When the underlying policy requires a waiting period for insurance to attach after 

acceptable documents to determine insurance coverage are received, if a qualifying 

event triggers the county:

(a) the initial crop year a HIP-WI Endorsement is accepted, HIP-WI coverage will 

attach the later of:

• the waiting period for HIP-WI (SCD plus 14 days); or

• the waiting period for the underlying policy after all required acceptable 

reporting documents are received.

(b) for any subsequent crop year for HIP-WI carryover insureds, if a qualifying 

event triggers the county after all required acceptable reporting documents are 

received but prior to insurance attachment of the underlying policy, coverage for 

HIP-WI will be the lesser of:

(i) the amount of insurance reported on the underlying policy acreage report 

equivalent for the current year; or 

(ii) the amount of insurance in the prior year. 

22-30 (Reserved)
PART 3 DETERMINING HURRICANE INSURANCE PROTECTION AND 

INDEMNITY

August 2020 FCIC 24360 11

31 Hurricane Protection Amount (HPA)

The AIP must determine protection provided under HIP-WI, separately by coverage level, type 

and practice, when applicable, then summed for the crop. 

A. Calculate HPA for Underlying Policies Containing Acres

To calculate the HPA for all eligible insured acres of the crop in the county:

(1) Calculate HPA separately for all planted acres of the crop in the county with the same 

coverage level, type, and practice:

(a) Determine the insured’s hurricane coverage range by subtracting from 95 

percent the higher of the coverage level of the underlying policy, the upper end 

of the insured’s SCO coverage range (if SCO coverage applies), or the upper 

end of the insured’s STAX coverage range (if STAX coverage applies); 

(b) Determine the expected crop value by dividing the liability of the underlying 

policy for those acres of the same coverage level, type and practice by the 

coverage level for the same eligible acres and then divide by the percentage of 

the price election or percentage of projected price, as applicable, of the 

underlying policy; 

Note: When SCO or STAX coverage is in effect with the underlying 

policy, use only the liability and coverage level for the underlying 

policy, not the SCO or STAX liability or coverage level;

(c) Multiply the expected crop value by the amount of the hurricane coverage 

range; and

(d) Multiply the result of (c) by the HIP-WI coverage percentage elected by the 

insured. This is the HPA.

(2) Sum the results of (1) for each coverage level, type, and practice combination to 

determine the HPA for all eligible insured acres of the crop in the county.

B. Calculate HPA for Underlying Policies That Do Not Contain Acres

To calculate the HPA for the crop in the county:

(1) Calculate HPA separately for each BU on the underlying policy with the same 

coverage level:

(a) Determine the hurricane coverage range by subtracting the coverage level of the 

underlying policy from 95 percent;
August 2020 FCIC 24360 12

31 HPA (Continued)

B. Calculate HPA for Underlying Policies That Do Not Contain Acres (cont.)

(b) Determine the expected crop value by dividing the liability of the underlying 

policy by the coverage level of the underlying policy, as applicable, and then 

again by the percentage of price election or percentage of projected price, as 

applicable, of the underlying policy to determine the expected crop value.

(c) Multiply the expected crop value by the hurricane coverage range; and

(d) Multiply the result of (c) by the coverage percentage elected by the insured. 

(2) For crop policies where protection is provided based on all eligible inventory, the 

value of HIP-WI will not increase when there is an increase in the underlying policy 

inventory during the crop year by a revised report allowable by the underlying policy. 

The HPA will remain consistent with the coverage established at the beginning of the 

insurance period for each planting period, where applicable, for the underlying 

policy.

C. Impact of ARC/PLC Election and/or Enrollment

If the underlying policy includes SCO, the HPA will not increase on a crop, practice, type,

and farm number if the insured elects that farm number in the ARC program and fails to 

report that election on the acreage report on or before the ARD. If the insured timely 

reports the election of a FN in ARC on the acreage report on or before the ARD, the HPA 

can extend to the coverage level on the underlying policy.

If the underlying policy includes STAX, the HPA will not increase on a crop, practice, 

type, and farm number if the insured enrolls that farm number in the ARC or 

PLC program and fails to report that enrollment on the acreage report on or before the 

ARD. If the insured timely reports the enrollment of a FN in ARC or PLC on the acreage 

report on or before the ARD, the HPA can extend to the coverage level on the underlying 

policy.

32 Indemnity

A. Notice of Loss Requirements

Insureds are not required to file a notice of loss for HIP-WI.

B. Indemnity Due

An indemnity will be due under HIP-WI if:

(1) The county loss trigger is identified for the county, or adjacent county.

(a) RMA may add counties that were not included in the initial county release 

based upon release of updated NOAA wind extent data. 
August 2020 FCIC 24360 13

32 Indemnity (Continued)

B. Indemnity Due (Continued)

(b) Once counties are included in the list, they will not be removed even if later data 

indicates they did not meet the criteria.

(2) FCIC will identify the counties and their adjacent counties meeting the trigger due to

sustained hurricane winds.

(3) Only one indemnity per insurance period per planted acre (or equivalent) is allowed

under the HIP-WI Endorsement.

(4) For those crops with multiple planting periods within an insurance period, only one 

indemnity payment is allowed per eligible planting period, on a per acre basis.

Example: An insured has 5 acres of the crop planted on September 10 when a 

hurricane hits and triggers the county. After that hurricane, the insured 

plants an additional 25 acres within the same planting period, giving the 

insured a total of 30 acres of the crop for that planting period. For the 

September 10 hurricane, the insured would be paid an indemnity on the 5 

acres, assuming all requirements are met (Note: Eligible acres are capped 

when the qualifying event that triggers the county occurs before acreage 

is reported on the underlying policy). The additional acres planted and 

reported on the acreage report during the same planting period but after 

the qualifying event that triggers the county are not eligible for an 

indemnity payment from that first event. 

If another hurricane occurs during the insurance period, the 25 additional 

insured acres planted during the planting period will be eligible for HIPWI coverage and an indemnity. The 5 acres indemnified under the 

September 10 hurricane are not eligible for another HIP-WI indemnity.

There will be only one indemnity payment made for an insurance period 

or planting period when applicable, on a per acre basis.

C. Indemnity Calculation

Indemnity will be the HPA for all eligible acres, inventory, or trees and plants for the crop

in the county when a qualifying event triggers the county (see Para. 31A).

D. Timing of Indemnities

Indemnities will be paid within 30 days after the later of the date:

(1) FCIC releases the eligible HIP-WI counties;

(2) The date the insured provides an acceptable acreage report; or

(3) The conditions in the Basic Provisions sections 14(f)(2)-(4) are met.
August 2020 FCIC 24360 14

33-40 (Reserved)
Exhibit 1

August 2020 FCIC 24360 15

Acronyms and Abbreviations

The following table provides the acronyms and abbreviations used in this handbook.

Approved

Acronyms/Abbreviations

Term

AIP Approved Insurance Provider

APH Actual Production History

ARC Agriculture Risk Coverage Program

ARPI Area Risk Protection Insurance

CAT Catastrophic Risk Protection Endorsement

CCIP-BP Common Crop Insurance Policy-Basic Provisions

CIH Crop Insurance Handbook

CP Crop Provisions

FCIC Federal Crop Insurance Corporation

HDP Hurricane Data Provisions

HIP-WI Hurricane Insurance Protection Wind Index

HPA Hurricane Protection Amount

HRACE High Risk Alternate Coverage Endorsement

NOAA National Oceanic and Atmospheric Administration

OU Optional Unit

RP Revenue Protection Plan of Insurance

RP-HPE Revenue Protection with Harvest Price Exclusion Plan of 

Insurance

SCD Sales Closing Date

STAX Stacked Income Protection Plan

YP Yield Protection Plan of Insurance
Exhibit 2

August 2020 FCIC 24360 16

Definitions

Adjacent County –Counties identified in the US Census County Adjacency File located at 

https://www2.census.gov/geo/docs/reference/county_adjacency.txt that have a common endpoint or 

border.

County Loss Trigger – The occurrence of sustained hurricane force winds, as determined by the Risk 

Management Agency (RMA) in accordance with the Hurricane Data Provisions (HDP) document and 

identified on the actuarial documents. The date of the county loss trigger will be the day of arrival of 

the sustained hurricane force wind field from a named hurricane in the county or adjacent county, as 

determined by RMA in accordance with HDP.

Coverage Percentage - A factor the insured elects, between 1 and 100 percent in whole percent 

increments, used to determine the Hurricane Protection Amount.

Expected Crop Value - The value of the crop based on the underlying policy and determined by

dividing the liability of the underlying policy for those acres by the coverage level and then dividing 

again by the percent of the price or price election of the underlying policy.

Hurricane Coverage Range - The amount of difference between 95 percent and the higher of the 

coverage level of your underlying policy, or the upper end of your SCO coverage range (if SCO 

coverage applies), or the STAX coverage range (if STAX coverage applies), expressed as a whole 

percentage.

Hurricane Data Provisions (HDP) – A document that describes the methodology utilized by RMA, 

incorporating NOAA hurricane data, that identifies a county subjected to sustained hurricane force 

winds and any county adjacent to that county.

Hurricane Protection Amount (HPA) - The dollar amount of insurance determined by the HIP-WI

Endorsement.
Exhibit 2

August 2020 FCIC 24360 17

Definitions (Continued)

Insurance Period - In lieu of section 11 of the Basic Provisions, the period:

(a) beginning on the insurance attachment date, when provided in the HIP-WI actuarial documents; or, 

when the insurance attachment date is not provided on the HIP-WI actuarial documents, the later

of:

(1) the sales closing date for the underlying policy; or

(2) the earliest planting date, for each planting period when applicable, for the

underlying policy; and

(b) ending on: 

(1) the end of insurance date, for each planting period when applicable, when provided in the 

HIP-WI actuarial documents; or

(2) the end of insurance date published, for each planting period when applicable, provided in 

the underlying policy actuarial documents when not provided in the HIP-WI actuarial 

documents.

(c) In lieu of (a-b) in this definition, for those crops where the underlying policy requires a waiting 

period, the period: 

(1) beginning on the date insurance attaches on the underlying policy; and 

(2) ending on:

(i) the end of insurance date, for each planting period when applicable, when provided in 

the HIP-WI actuarial documents; or

(ii) the end of insurance date published, for each planting period when applicable, 

provided in the underlying policy actuarial documents when not provided in the HIPWI actuarial documents.

Intended Acreage Report - In lieu of the definition contained in the Basic Provisions, a report of the 

acreage you intend to plant, by crop, for the current crop year and used solely for the purpose of 

establishing the number of eligible acres for coverage under this program as indicated in Para, 21 of 

this handbook.

National Oceanic and Atmospheric Administration (NOAA) - An agency within the United States 

Department of Commerce, or its successor.

Supplemental Coverage Option (SCO) - A county-level crop insurance option that provides additional 

coverage for a portion of an insured’s underlying insurance policy deductible.

Stacked Income Protection Plan (STAX) - A crop insurance product for upland cotton that provides

coverage for a portion of the expected revenue for an insured’s area.

Underlying Policy - The Common Crop Insurance Policy, Basic Provisions (Basic Provisions) 

published at 7 C.F.R. part 457 and Crop Provisions, to which this Endorsement is attached. A crop 

covered by any plan of insurance not under the Basic Provisions will not qualify as an underlying 

policy for the Endorsement
Exhibit 3

August 2020 FCIC 24360 18

Form Standards

Hurricane Insurance Protection Endorsement

Insureds who wish to insure under the HIP-WI Endorsement may amend their policy by signing and 

submitting the HIP-WI Endorsement Application, developed according to these standards on or before 

the SCD for the first crop year for which the insured wishes to elect the HIP-WI Endorsement. The 

AIP may combine the HIP-WI Endorsement Application with another form contained in the Document 

and Supplemental Standards Handbook (DSSH), if the combined form meets the applicable standards 

in place for each individual form.

1. Insured Information

A “Insured’s Name” (Substantive)

B “Underlying Policy Number” (Substantive)

C “Street or Mailing Address” (Substantive) 

D “City, State and Zip Code” (Substantive)

E “Identification Number” (Substantive)

F “Identification Number Type” (Substantive)

2. Crop Information

A “County Name” (Substantive)

B “Crop(s)” (Substantive)

C “Crop Year” (Substantive)

D “Underlying Plan of Insurance” (Substantive) 

E “HIP-WI Coverage Percentage” (Substantive)

F “HIP-WI Plan of Insurance” (Substantive)
Exhibit 3

August 2020 FCIC 24360 19

Form Standards (Continued)

3. Terms and Conditions

“In addition to Section 3(b)(2) of the Basic Provisions, I hereby elect this Hurricane Insurance 

Protection – Wind Index Endorsement, and by this election I understand:

(1) I must have purchased an underlying policy consisting of the Common Crop Insurance 

Policy Basic Provisions and applicable Crop Provisions to elect this Endorsement and must

also purchase this Endorsement with the same Approved Insurance Provider as my 

Common Crop Insurance Policy.

(2) If at any time my underlying policy for the crop is cancelled or terminated, coverage under 

this Endorsement is automatically cancelled orterminated.

(3) That by electing this Endorsement, it will continue from year to year unless I or you cancel 

or change my election by written notice on or before the cancellation date or my coverage 

is otherwise canceled or terminated under the terms of my underlying policy.

(4) Separate Administrative Fees will be assessed for each crop insured under this 

Endorsement.” (Substantive)

4. Required Signatures

A “Insured’s Printed Name, Signature and Date” (Substantive)

B “Agent’s Printed Name, Signature, Date, and Code Number” (Substantive)

5. Required Statements

A Certification Statement (Substantive)

B Privacy Act Statement (Substantive)

C Nondiscrimination Statement (Substantive)
Exhibit 4

August 2020 FCIC 24360 20

HIP-WI Endorsement Calculation Examples

Producer A farms 100 acres of corn in county X and has an approved yield of 154.6 bushels per acre, 

with a 100 percent share. The projected price is $4.00 per bushel, as published on the actuarial 

documents in county X. The producer elects HIP-WI coverage of 90 percent. (This information, with 

some changing variables, applies to the following examples.)

A. Example for Underlying Policy with CAT Coverage:

(1) Step 1: Calculate hurricane coverage range:

Formula: 95 percent minus the maximum coverage from the underlying policy

0.95 – 0.50 = 0.45 hurricane coverage range

(2) Step 2: Calculate the expected crop value of the underlying policy:

Formula: Divide the liability of the underlying policy by the coverage level of the 

underlying policy, and then by the percentage of price election or percentage 

of projected price, as applicable, of the underlying policy

$17,006 ÷ 0.50 ÷ 0.55 = $61,840 expected crop value

(3) Step 3: Calculate HPA:

Formula: Multiply the expected crop value by the HIP-WI coverage range and the 

coverage percentage

$61,840 x 0.45 x 0.90 = $25,045 HPA

(4) If FCIC determines a county is HIP-WI eligible, the indemnity payment would be $25,045, 

the full hurricane protection amount.

B. Example for CCIP Policy

Producer A elects HIP-WI coverage of 70 percent and 100 percent of price. The remaining 

information remains the same as the previous example. The liability for the underlying policy is 

$43,288:

(1) Step 1: Calculate hurricane coverage range:

Formula: 95 percent minus the maximum coverage from the underlying policy

0.95 – 0.70 = 0.25 hurricane coverage range
Exhibit 4

August 2020 FCIC 24360 21

HIP-WI Endorsement Calculation Examples (Continued)

B. Example for CCIP Policy (cont.)

(2) Step 2: Calculate the expected crop value of the underlying policy:

Formula: Divide the liability of the underlying policy by the coverage level of the 

underlying policy, and then by the percentage of price election or percentage 

of projected price, as applicable of the underlying policy

$43,288 ÷ 0.70 ÷ 1.00 = $61,840 expected crop value

(3) Step 3: Calculate the HPA:

Formula: Multiply the expected crop value of the underlying policy by the HIP 

coverage range and the coverage percentage 

$61,840 x 0.25 x 0.90 = $13,914 HPA 

If FCIC determines the county meets the county loss trigger, the indemnity payment would 

be $13,914. 

C Example for Underlying Policy with SCO 

(1) Step 1: Calculate hurricane coverage range:

Formula: 95 percent minus the higher of the coverage level from the underlying policy 

(which is 70 percent) or the upper end of the SCO coverage range (which is 

86 percent). In this case the higher number is the upper end of the SCO 

coverage range, or 86 percent

0.95 – 0.86 = 0.09 hurricane coverage range

(2) Step 2: Calculate the expected crop value of the underlying policy:

Formula: Divide the liability of the underlying policy by the coverage level of the 

underlying policy, and then by the percentage of price election or percentage 

of projected price, as applicable of the underlying policy

$43,288 ÷ 0.70 ÷ 1 = $61,840 expected crop value of the underlying policy.

(3) Step 3: Calculate the HPA:

Formula: Multiply expected crop value of the underlying policy by the HIP coverage 

range and the coverage percentage 

$61,840 x 0.09 x .90 = $5,009 HPA
Exhibit 4

August 2020 FCIC 24360 22

HIP-WI Endorsement Calculation Examples (Continued)

C Example for Underlying Policy with SCO (Continued)

If FCIC determines the county meets the county loss trigger, the indemnity payment would 

be $5,009.

D. Example for Underlying Policy with STAX:

(1) Step 1: Calculate hurricane coverage range:

Formula: 95 percent minus the higher of the coverage level from the underlying policy 

(which is 70 percent) or the upper end of the STAX coverage range (which 

is 90 percent). In this case the higher number is the upper end of the STAX 

coverage range, or 90 percent

0.95 – 0.90 = 0.05 hurricane coverage range 

(2) Step 2: Calculate the expected crop value of the underlying policy:

Formula: Divide the liability of the underlying policy by the coverage level of the 

underlying policy, and then by the percent of price election or percentage of 

projected price, as applicable of the underlying policy

$43,288 ÷ 0.70 ÷ 1.00 = $61,840 expected crop value of the underlying 

policy.

(3) Step 3: Calculate the HPA:

Formula: Multiply expected crop value of the underlying policy by the HIP coverage 

range and the coverage percentage

$61,840 x 0.05 x 0.90 = $2,783 HPA

If FCIC determines the county meets the county loss trigger, the indemnity payment would 

be $2,783.

E. Example for CCIP Policy with Multiple Coverage Levels

Insured B has a cotton yield protection policy with an approved APH yield of 1,200 lbs. per acre

for IRR cotton and an approved yield of 900 lbs per acre for NI cotton in County X, which has a 

projected price of $.74 per lbs., as published on the actuarial documents. Insured B makes the 

following elections:

• coverage level of 80% for his IRR cotton

• coverage level of 70% for his NI cotton, 

• 100% percent of price, 

• HIP-WI Endorsement with a coverage level of 100%.
Exhibit 4

August 2020 FCIC 24360 23

HIP-WI Endorsement Calculation Examples (Continued)

E. Example for CCIP Policy with Multiple Coverage Levels (cont.)

Insured B plants 100 acres of IRR cotton and 100 acres of NI cotton in county X with a 100% 

share. The liability for the underlying policy for IRR corn is $71,040 and for NI corn is $46,620. 

Because the insured elected multiple coverage levels for cotton on the underlying policy, the 

HPA must be calculated separately for each coverage level

(1) Step 1: Calculate hurricane coverage range for each coverage level:

Formula: 95 percent minus the maximum coverage from the underlying policy

(a) 0.95 – 0.80 = 0.15 hurricane coverage range

(b) 0.95 – 0.70 = 0.25 hurricane coverage range

(2) Step 2: Calculate the expected crop value of the underlying policy:

Formula: Divide the liability of the underlying policy (in this situation by practice due 

to the different coverage levels by practice) by the coverage level of the 

underlying policy, and then by the percentage of price election or percentage 

of projected price, as applicable of the underlying policy

(a) 71,040 ÷.80 ÷ 1.00 = 88,800 expected crop value

(b) $46,620 ÷ 0.70 ÷ 1.00 = $66,600 expected crop value

(3) Step 3: Calculate the HPA:

Formula: Multiply the expected crop value of the underlying policy by the HIP 

coverage range and the coverage percentage 

(a) $88,800 x 0.15 x 1.00 = $13,320 HPA 

(b) $66,600 x 0.25 x 1.00 = $16,650 HPA

If FCIC determines the county meets the county loss trigger, the indemnity payment would 

be $29,970. 

F. Example for Underlying Policies That Do Not Contain Acres

Insured C has a nursery crop insurance policy in County Z with two BUs:

Unit = 0001-0000 - Field Grown/Roses, 

• Coverage level = 70%;Value = $50,000; Share = 1.000; 

• Amount of insurance = $50,000 * .70 * 1 = $35,000 
Exhibit 4

August 2020 FCIC 24360 24

HIP-WI Endorsement Calculation Examples (Continued)

F. Example for Underlying Policies That Do Not Contain Acres (cont.)

Unit = 0001-0000 - Field Grown/Fruit & Nut Trees, 

• Coverage level = 65%; Value = $75,000; Share = 1.000; 

• Amount of insurance = $75,000 * .65 * 1 = $48,750 

Insured C elects HIP-WI endorsement with a coverage level of 80%. The liability for the 

underlying policy for BU 0001-0000 Field Grown/Roses is $35,000 and for BU 0001-0000 Field 

Grown/Fruit & Nut Trees is $48,750. The HPA must be calculated separately for each BU.

(1) Step 1: Calculate hurricane coverage range for each coverage level:

Formula: 95 percent minus the maximum coverage from the underlying policy

(a) 0.95 – 0.70 = 0.25 hurricane coverage range

(b) 0.95 – 0.65 = 0.30 hurricane coverage range

(2) Step 2: Calculate the expected crop value of the underlying policy:

Formula: Divide the liability of the underlying policy by the coverage level of the 

underlying policy (in this situation by BU), and then by the percentage of 

price election or percentage of projected price, as applicable of the 

underlying policy

(a) 35,000 ÷.70 ÷ 1.00 = 50,000 expected crop value

(b) $48,750 ÷ 0.65 ÷ 1.00 = $75,000 expected crop value

(3) Step 3: Calculate the HPA: 

Formula: Multiply the expected crop value of the underlying policy by the HIP 

coverage range and the coverage percentage 

(a) $50,000 x 0.25 x 0.80 = $10,000 HPA 

(b) $75,000 x 0.30 x 0.80 = $18,000 HPA

If FCIC determines the county meets the county loss trigger, the indemnity payment would 

be $28,000.