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United States 

Department of 

Agriculture 

Federal Crop 

Insurance 

Corporation 

FCIC-24360 

(06-2021) 

HURRICANE 

INSURANCE 

PROTECTIONWIND INDEX 

STANDARDS 

HANDBOOK 

2022 and Succeeding 

Crop Years 
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TITLE: HURRICANE 

INSURANCE PROTECTION -

WIND INDEX STANDARDS 

HANDBOOK 

NUMBER: 24360 

EFFECTIVE DATE: 2022 and 

Succeeding Crop Years 

ISSUE DATE: June 30, 2021 

SUBJECT: 

Provides procedures and 

instructions for administering the 

Hurricane Insurance Protection -

Wind Index Endorsement 

OPI: Product Administration & 

Standards Division 

APPROVED: 

 /s/ John W. Underwood for 

Deputy Administrator for 

Product Management 

 

 

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

REASON FOR ISSUANCE 

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

Insurance Protection - Wind Index (HIP-WI) Endorsement for the 2022 and succeeding crop years 

for crops with a contract change date of June 30, 2021, or later. 

June 2021 FCIC 24360 TP 1 
 

Reference Description of 

Changes 

Para. 2 Added note to address 2-year module for Pecan Revenue. 

Para. 6 (1) Added coverage under the HIP-WI Endorsement will automatically be voided 

or terminated to match when the underlying policy is voided or terminated. 

Para. 7 A Added language to clarify attachment of the administrative fee for HIP-WI 

coverage. 

Para. 14 C Added clarifying language to address the attachment of insurance waiting 

period in subsequent years when HIP-WI coverage levels are adjusted. 

Para. 22 Added a new paragraph clarifying the impact to HIP-WI liability for acreage 

adjustments to the underlying crop policy. 

Para. 31 Added clarifying language that any adjustment to liability to the underlying 

crop policy will apply. 

Definitions Added and modified definitions. 

V 

LJ 

LJ 

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 1-16 17-26 June 

2021

FCIC 24360 

Current 

Index 

1-2 1-2 1-16 17-26 June 

2021

FCIC 24360 

FILING INSTRUCTIONS 

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

Handbook, dated August 20, 2020. This handbook is effective upon approval until obsoleted. 

SUMMARY OF CHANGES 

Listed below are the changes to the 2022 FCIC-24360 Hurricane Insurance Protection - Wind Index 

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

in this listing. 

June 2021 FCIC 24360 TP 2 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HURRICANE INSURANCE PROTECTION - WIND INDEX 

ENDORSEMENT STANDARDS HANDBOOK 

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........................................................................................................ 4 

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............................................................................................................... 5 

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

15 Insurable Acreage and Inventory ............................................................................................. 7 

16 Units ......................................................................................................................................... 8 

17 Summary of Coverage/Schedule of Insurance ......................................................................... 8 

18 Insurable Cause of Loss ........................................................................................................... 8 

19 Nursery..................................................................................................................................... 9 

20 (Reserved) ................................................................................................................................ 9 

PART 2 ACREAGE REPORTING 

21 Acreage Reporting Requirements for HIP-WI....................................................................... 10 

22 Acreage Adjustments to the Underlying Policy..................................................................... 12 

23-30 (Reserved)............................................................................................................................ 12 

PART 3 DETERMINING HURRICANE INSURANCE PROTECTION AND INDEMNITY 

31 Hurricane Protection Amount (HPA) ................................................................................... 13 

32 Indemnity.............................................................................................................................. 14 

33-40 (Reserved)............................................................................................................................. 16 

EXHIBITS 

1 Acronyms and Abbreviations ............................................................................................... 17 

2 Definitions ............................................................................................................................ 18 

3 Form Standards..................................................................................................................... 20 

4 HIP-WI Endorsement Calculation Examples ....................................................................... 22 

June 2021 FCIC 24360 TC 1 
 

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June 2021 FCIC 24360 TC 2 
 

 

 

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1 

2 

PART 1 GENERAL INFORMATION AND REQUIREMENTS 

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 liability, premium, and/or indemnity adjustments 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. 

Endorsement Availability 

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

on the actuarial documents. 

Note: For Pecan Revenue, if the HIP-WI Endorsement is available, the HIP-WI 

Endorsement may be elected by the SCD and cancelled by the cancellation date for 

either year of the two-year coverage module. 

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; 

June 2021 FCIC 24360 

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5 

6 

3 Eligibility Requirements (Continued) 

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

(CTV) Endorsement for the underlying policy; and 

(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. 

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. 

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, voided, or terminated. 

(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. 

June 2021 FCIC 24360 2 
 

 

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8 

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) for the crop year in which the HIP-WI Endorsement attaches to the 

underlying policy. The administrative fee for HIP-WI coverage is on a policy basis and only 

attaches to the underlying policy. However, the HIP-WI administrative fee may be waived 

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

809). 

Note: The HIP-WI Endorsement attaches only to the underlying policy and not to an 

endorsement. Therefore, only one administrative fee is charged for HIP-WI 

coverage. 

Example: An insured has a Revenue Protection policy and elects the Cottonseed 

Endorsement, SCO Endorsement, and the HIP-WI Endorsement. The insured 

would pay four administrative fees, based on these elections, as follows: 

• administrative fee for the Revenue Protection policy (underlying policy). 

• administrative fee for the Cottonseed Endorsement (attached to the 

underlying policy). 

• administrative fee for SCO (attached to the underlying policy) 

• administrative fee for the HIP-WI Endorsement (attached to the 

underlying policy). 

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. 

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. 

June 2021 FCIC 24360 3 
 

 

 

 

I 

8 Written Agreements (WA) (Continued) 

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. 

(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 in the actuarial documents. 

June 2021 FCIC 24360 4 
 

 

 

 

 

 

 

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. 

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: 

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

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

underlying policy, and 

June 2021 FCIC 24360 5 
 

 

 

 

 

 

 

 

 

 

 

14 Attachment of Coverage (Continued) 

A. Insurance Period (Continued) 

(2) Ends on the end of insurance date, for each planting period when applicable, when 

provided in the: 

(a) HIP-WI actuarial documents; or 

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

documents. 

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

provided in the HIP-WI actuarial documents; or 

(ii) 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 HIPWI 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 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 adjusted (e.g., lowering coverage on 

underlying policy, increasing HIP-WI coverage percentage, decreasing STAX coverage 

level, etc.) on or before the SCD. If HIP-WI coverage is: 

(1) Decreased, the decreased coverage will take effect immediately (there is no waiting 

period). If a qualifying event triggers the county, HIP-WI coverage will be based on 

the lower coverage for the current insured year. 

June 2021 FCIC 24360 6 
 

 

 

 

 

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14 Attachment of Coverage (Continued) 

C. Subsequent Years (Continued) 

(2) Increased, the increased coverage will not be effective until the later of 14 days after the 

SCD, or the end of the waiting period for the underlying policy, when a waiting period 

is required by the underlying policy. 

(a) If a qualifying event triggers the county within the 14-day waiting period, or 

within the waiting period for the underlying policy when required, HIP-WI 

coverage (including liability, premium and any indemnity) will be calculated 

based on the lower HIP-WI coverage from the previous crop year for the acreage 

insured under HIP-WI at that time. 

Example: Farmer A elected 70 percent coverage level for winter wheat on 

his underlying policy for crop year 2021. In crop year 2022, 

Farmer A lowers the coverage level on the underlying winter 

wheat policy to 65 percent which increases the coverage under 

HIP-WI for winter wheat. If Farmer A’s county is triggered 

within the 14-day waiting period, HIP-WI coverage and 

indemnity will be calculated based on the HIP-WI coverage 

from the 2021 crop year. 

(b) If additional acreage is insured under HIP-WI after the 14-day waiting period, or 

the waiting period of the underlying policy, that acreage will be insured using 

the current year’s HIP-WI coverage. 

Example: Using the example in (a) above, in crop year 2022 Farmer A 

plants 100 acres of winter wheat on 10/05/2021, a hurricane 

makes landfall in the county on 10/10/2021, which is within 14 

days after the SCD, triggering the county. Since coverage 

under the HIP-WI was increased from the prior year, the 

coverage and indemnity for this triggered event will be based 

on the prior year’s HIP-WI coverage. Farmer A plants an 

additional 50 acres on 10/20/21; HIP-WI coverage on the 

additional acres will be based on the 2022 elected coverage 

instead of being limited to the prior year’s lower coverage. 

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 actuarial documents do not provide a HIP-WI rate for all planting periods. 

June 2021 FCIC 24360 7 
 

 

 

 

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15 Insurable Acreage and Inventory (continued) 

If the actuarial documents provide a HIP-WI 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 actuarial documents only provide a HIP-WI 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 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 

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. 

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

June 2021 FCIC 24360 8 
in the county, or an adjacent county, within the insurance period. 

June 2021 FCIC 24360 8 
 

 

 

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18 Insurable Cause of Loss (Continued) 

(a) RMA will identify counties with a county loss trigger or an adjacent county 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 Plant 

Inventory Value Report (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) 

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PART 2 ACREAGE REPORTING 

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 PIVR, which is used to determine the 

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 

June 2021 FCIC 24360 11 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

21 Acreage Reporting Requirements for HIP-WI (Continued) 

A. Eligible Acres (continued) 

(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 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. 

June 2021 FCIC 24360 12 
 

 

 

 

 

 

22 Acreage Adjustments to the Underlying Policy 

Any adjustments to the acreage report on the underlying policy will automatically apply to 

the HIP-WI Endorsement. 

Example: If the underlying policy acreage report is revised from what was initially 

reported due to overreported acreage by reducing the number of insurable acres, 

such reductions will also apply to the HIP-WI Endorsement automatically since 

HIP-WI uses the underlying policy’s acreage report. 

Example: When an acreage report is revised from what was initially reported due to 

underreported acreage, assuming the underreported acreage does not meet the 

qualifications to be added as insurable acreage on a revised acreage report, the 

underreported acreage is included on the revised acreage report as unreported 

acreage or an unreported unit, when units are applicable, Liability for both the 

underlying policy and the HIP-WI Endorsement will not increase. Unreported 

acreage is not considered insurable (see CIH Para. 1232A(3)). 

23-30 (Reserved) 

June 2021 FCIC 24360 13 
 

 

 

 

 

 

 

 

 

 

 

 

PART 3 DETERMINING HURRICANE INSURANCE PROTECTION AND 

INDEMNITY 

31 Hurricane Protection Amount 

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. 

Note: Any adjustment to liability to the underlying crop policy will 

apply to the HIP-WI Endorsement. 

(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. 

June 2021 FCIC 24360 14 
 

 

 

 

 

 

 

 

 

 

 

 

 

31 Hurricane Protection Amount (Continued) 

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; 

(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. 

June 2021 FCIC 24360 14 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

32 Indemnity (Continued) 

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. 

(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). 

June 2021 FCIC 24360 15 
 

 

32 Indemnity (Continued) 

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. 

33-40 (Reserved) 

June 2021 FCIC 24360 16 
Exhibit 1

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 

June 2021 FCIC 24360 17 
 

 

 

 

 

 

 

 

 

 

 

 

Exhibit 2 

Definitions 

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

https://www2.census.gov/geo/docs/reference/county_adjacency.txt, unless modified in the actuarial 

documents. 

County - In addition to the definition in the Basic Provisions, county boundaries may be modified for 

the purposes of determining coverage and county loss trigger in the actuarial documents. 

County Loss Trigger - The occurrence of sustained hurricane force winds in a county, or adjacent 

county, 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. 

June 2021 FCIC 24360 18 
 

 

 

 

 

 

 

 

 

 

 

 

Exhibit 2 

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 HIPWI 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 HIP- WI 

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. 

June 2021 FCIC 24360 19 
 

 

 

Exhibit 3 

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) 

June 2021 FCIC 24360 20 
 

 

 

 

 

 

 

 

 

Exhibit 3 

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 or terminated. 

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

June 2021 FCIC 24360 21 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exhibit 4 

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 

June 2021 FCIC 24360 22 
 

 

 

 

 

 

 

 

 

 

 

 

 

Exhibit 4 

HIP-WI Endorsement Calculation Examples (Continued) 

B. Example for CCIP Policy (Continued) 

(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 0.90 = $5,009 HPA 

June 2021 FCIC 24360 23 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exhibit 4 

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%. 

June 2021 FCIC 24360 24 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exhibit 4 

HIP-WI Endorsement Calculation Examples (Continued) 

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

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 ÷ 0.80 ÷ 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 0.0025 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 x 0.70 x 1 = $35,000 

June 2021 FCIC 24360 25 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exhibit 4 

HIP-WI Endorsement Calculation Examples (Continued) 

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

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

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

• Amount of insurance = $75,000 x 0.65 x 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 ÷ 0.70 ÷ 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. 

June 2021 FCIC 24360 26