SUMMARY OF CHANGES FOR THE 

HURRICANE INSURANCE PROTECTION-WIND INDEX ENDORSEMENT (23.1-HIP-WI)

(Released February 2023) 

The following is a brief description of changes to this Endorsement that will be effective for the 2023 and 

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

 Preamble – Added an option for coverage for a tropical storm Weather Event as determined by this

Endorsement.

 Section 1 – Clarified the definition of “County Loss Trigger” so that the coverage provided by this

Endorsement may include an option for coverage for a tropical storm Weather Event as determined by

this Endorsement. Added the definitions of “Final Rainfall Amount,” “National Oceanic and Atmospheric

Administration Climate Prediction Center,” “Sustained Surface Wind,” and “Weather Event.”

 Section 9 – Added that National Oceanic and Atmospheric Administration interpolated gridded

precipitation data will be used to calculate the Final Rainfall Amount and is conclusively presumed to be

accurate but may be changed in accordance section 9.

 Section 12 – Added a new section to establish that coverage provided by this Endorsement may include

an option for coverage for a tropical storm Weather Event as defined by this Endorsement.

 Section 13 – Previously Section 12, updated example for STAX to be more reflective of cotton and added

an example demonstrating calculations for the Tropical Storm Option.
 

23.1-HIP-WI 

(Released 2023) 

UNITED STATES DEPARTMENT OF AGRICULTURE 

FEDERAL CROP INSURANCE CORPORATION 

HURRICANE INSURANCE PROTECTION-WIND INDEX ENDORSEMENT 

In return for your payment of premium and administrative fee for the coverage, this Endorsement will be attached to and made 

part of the Common Crop Insurance Policy, Basic Provisions (Basic Provisions) and Crop Provisions for the insured crop, subject 

to the terms and conditions described herein. The Hurricane Insurance Protection-Wind Index (HIP-WI) Endorsement provides 

coverage for a portion of the deductible of your underlying insurance policy that is not otherwise covered, when the insured county, 

or a county adjacent to it, is within the area of a Weather Event as covered by and determined under the provisions of this 

Endorsement. This Endorsement does not provide payments for prevented planting or replanting, nor is it available with the 

Occurrence Loss Option (OLO) or the Comprehensive Tree Value (CTV) Endorsement. Factors other than wind or rainfall damage, 

as applicable through the provisions below, may be associated with the Weather Event but will not trigger a loss under this 

Endorsement. The coverage provided by this Endorsement may be combined with other endorsements that provide additional 

coverage for a portion of the Underlying Policy deductible so long as the other endorsement(s) do(es) not provide the same 

coverage as the HIP-WI coverage range. Examples of other endorsements that can be combined with HIP-WI include 

Supplemental Coverage Option (SCO) Endorsement and Stacked Income Protection Plan (STAX), when acreage covered by 

STAX is also insured by a companion policy. 

1. Definitions

Adjacent county - Counties identified in the US Census

County Adjacency File located at

https://www2.census.gov/geo/docs/reference/county_adj

acency.txt,, or successor location, unless modified in the

actuarial documents.

County - In addition to the definition in the Basic

Provisions, county boundaries may be modified for

purposes of determining coverage and County Loss

Trigger in the actuarial documents.

County Loss Trigger - The occurrence of a Weather

Event as defined in this Endorsement making the county

eligible for payment under this Endorsement. There is a

separate County Loss Trigger for each Weather Event.

The date of the County Loss Trigger will be the day of

arrival of the Weather Event in the county, as determined

by the Federal Crop Insurance Corporation (FCIC) in

accordance with the HDP (the same County Loss Trigger

date will apply to adjacent counties, when applicable for

the Weather Event). To determine the arrival date of a

Weather Event under this Endorsement, FCIC will use

Coordinated Universal Time (UTC), not your local time

zone.

Coverage Percentage - A factor elected, 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 upon

the Underlying Policy and determined by dividing the

liability of the Underlying Policy by the coverage level, and

further dividing by the percent of the price or price election

of the Underlying Policy.

Final Rainfall Amount - A county average rainfall

determined by FCIC, in accordance with the HDP, based

on the grid weighted average accumulated precipitation

calculated using NOAA CPC, or successor data. The data

used to calculate the Final Rainfall Amount is conclusively

presumed to be accurate but may be changed in

accordance with section 8.

Hurricane Coverage Range - The amount of difference

between 95 percent and the higher of the coverage level

of your Underlying Policy or, if applicable, the upper end

of your SCO coverage range (if SCO coverage applies), 

STAX coverage range (if STAX coverage applies), or 

other endorsement coverage where such endorsement 

provides additional coverage for a portion of the 

Underlying Policy deductible. The Hurricane Coverage 

Range is expressed as a whole percentage. The 

Hurricane Coverage Range applies to all Weather Events 

covered by this Endorsement. 

Hurricane Data Provisions (HDP) - A document that 

describes the methodology utilized by FCIC, incorporating 

NOAA data, that identifies a county subjected to a 

Weather Event, and any county adjacent to that county. 

Hurricane Protection Amount (HPA) - The dollar 

amount of insurance as determined by section 6 of this 

Endorsement. The HPA applies to all Weather Events 

covered under this Endorsement. 

Insurance Period -

In lieu of section 11 of the Basic Provisions, 

(a) the period:

(1) Beginning on the insurance attachment date,

when provided in the HIP-WI actuarial

documents; or the later of:

(i) The sales closing date for the Underlying

Policy; or

(ii) The earliest planting date, for each planting

period when applicable, for 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, for each planting

period when applicable, provided in the

Underlying Policy actuarial documents when

not provided in the HIP-WI actuarial

documents.

(b) In lieu of (a) 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:

(1 of 6) 
 

 

(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, 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 Section 4. 

National Oceanic and Atmospheric Administration 

(NOAA) - An agency within the United States Department 

of Commerce, or its successor. 

National Oceanic and Atmospheric Administration 

Climate Prediction Center (NOAA CPC) - A Service 

Center within NOAA's National Centers for Environmental 

Prediction (NCEP), or its successor. 

Supplemental Coverage Option (SCO) - A county-level 

crop insurance option that provides additional coverage 

for a portion of a producer’s Underlying 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 a 

producer’s area. 

Sustained Surface Wind - Wind speed determined by 

averaging observed values over a two-minute period 

determined by NOAA. 

Underlying Policy - The 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 this Endorsement. 

Weather Event - A named tropical cyclone, as identified 

by NOAA and determined by FCIC in accordance with the 

HDP and identified in the actuarial documents, which 

includes hurricanes and tropical storms. To meet the 

County Loss Trigger: 

(a) A hurricane must have sustained surface winds of 64 

knots (74 mph) or greater in a county or adjacent 

county. 

(b) A tropical storm must have: 

(1) Sustained surface wind speeds of at least 34 

knots (39 mph); and 

(2) A Final Rainfall Amount of at least 6 inches 

received over the following four consecutive 

days: 

(i) The day immediately preceding the arrival 

date of the tropical storm; 

(ii) The arrival date of the tropical storm; and 

(iii) The two days immediately following the 

arrival date of the tropical storm. 

2. Conditions of Insurance 

(a) There must be an Underlying Policy in force with us 

to elect coverage under this Endorsement. 

(b) This Endorsement is applicable only in those counties 

where coverage is offered in the actuarial documents. 

(c) This Endorsement is not available with STAX when 

the acreage insured under STAX is not also insured 

under a companion policy. 

(d) To be eligible to receive an indemnity payment, the 

County Loss Trigger must occur within the Insurance 

Period, as defined in this Endorsement. For crop 

policies with multiple planting periods within an 

Insurance Period, only one indemnity payment is 

allowed per eligible planting period, on a per acre 

basis. 

(e) For the initial year you elect this Endorsement, 

coverage will not begin until the later of 14 days after 

the sales closing date or the end of the waiting period 

for the Underlying Policy when the Underlying Policy 

also requires a similar waiting period. 

(f) For subsequent years, you may change your HIP-WI 

coverage (e.g., lowering coverage on the Underlying 

Policy, increasing HIP-WI Coverage Percentage, 

decreasing STAX coverage level) by the sales closing 

date, and: 

(1) If you decrease your coverage under this 

Endorsement, the decreased coverage will be 

effective without a waiting period. If a loss is 

triggered for your county within the waiting period, 

coverage for the acreage insurable at that time 

will be based on the lower coverage for your 

current insured year. 

(2) If you increase your coverage under this 

Endorsement, the increased coverage will take 

effect the later of 14 days after the sales closing 

date or the end of the waiting period for the 

Underlying Policy when the Underlying Policy 

also requires a similar waiting period. If a loss is 

triggered for your county within 14 days after the 

sales closing date or the Underlying Policy 

waiting period, coverage for the acreage insured 

under this Endorsement for the current crop year 

will be limited to your coverage from the previous 

crop year. If additional acreage is insured under 

this Endorsement after the 14-day waiting period, 

or the waiting period of the Underlying Policy, and 

an additional weather event occurs, that acreage 

will be insured using the current year’s coverage. 

3. Life of Endorsement 

(a) This is a continuous Endorsement, in accordance with 

section 2 of the Basic Provisions. 

(b) If at any time your Underlying Policy for the crop is 

cancelled, voided, or terminated, coverage under this 

Endorsement is automatically cancelled, voided, or 

terminated as of the same date. 

(c) If you change the coverage level on the Underlying 

Policy, or add, change, or remove any SCO, STAX, or 

other endorsement that covers a portion of the 

Underlying Policy deductible by the sales closing 

date, this Endorsement will remain in effect and will 

provide coverage based on the revised Hurricane 

Coverage Range, unless you cancel this 

Endorsement by the cancellation date. 

(d) After this Endorsement’s sales closing date, if your 

SCO coverage on a farm number is removed due to 

the election of the Agriculture Risk Coverage (ARC) 

program, or your STAX coverage changes due to 

enrollment in either the ARC or Price Loss Coverage 

(PLC) program, your Hurricane Coverage Range will 

not increase, unless you report such SCO or STAX 

coverage change to us by the acreage reporting date. 

(2 of 6) 
4. Report of Acreage

You are not required to file a separate report of acreage 

when you elect this Endorsement. However, should a loss 

trigger before you report acreage for the Underlying 

Policy, your claim will not be settled in accordance with 

Section 9 until you submit your acreage report to us so we 

can determine your coverage under this Endorsement. 

The number of eligible acres of the insured crop under this 

Endorsement will be: 

(a) For the initial year the Endorsement is accepted: 

(1) If a loss is triggered for your county before you 

report your acreage for the Underlying Policy, the 

lesser of the following, as determined by us: 

(i) The number of acres specified on your 

Intended Acreage Report submitted to us by 

the sales closing date of the Underlying 

Policy or the number of acres submitted 

within 10 days of the date you acquire such 

acreage; or 

(ii) The actual acres planted at the time of the 

occurrence of the triggering event and 

reported on the current crop year acreage 

report for the Underlying Policy. 

(2) If a loss is not triggered for your county before you 

report your acreage for the Underlying Policy, the 

number of planted insurable acres specified on 

your current crop year acreage report filed and 

accepted by us for the Underlying Policy. 

(b) For any subsequent crop year: 

(1) If a loss is triggered for your county before you 

report your acreage for the Underlying Policy, the 

actual acres planted but limited to our 

determination of the lesser of: 

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

the occurrence of the triggering event and 

reported on the acreage report of the 

Underlying Policy you filed for the current 

crop year; or 

(ii) The highest number of planted insurable 

acres in any one of the immediate past four 

crop years. 

(2) If a loss is not triggered for your county before you 

report your acreage for the Underlying Policy, the 

number of planted insurable acres specified on 

the acreage report filed and accepted by us on or 

before the acreage reporting date for the 

Underlying Policy. 

(c) If an acreage report is not required for the Underlying 

Policy, use the crop’s equivalent of an acreage report. 

For 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. 

5. Insurable Acreage, Inventory, and Unit Division 

(a) All eligible planted acreage or inventory of the crop 

(including perennial or nursery crops and insurable 

trees) in the county that is insured by the Underlying 

Policy must be insured under this Endorsement when 

all acreage or inventory of the crop is required to be 

insured by the underlying crop policy. Any crop 

acreage or inventory that is not insured by the 

underlying crop policy is not covered by this 

Endorsement. This Endorsement will not insure 

prevented planting acreage. Any acreage planted in a 

planting period, as defined in the actuarial documents, 

after a qualifying event has triggered an indemnity 

payment for eligible acreage, will be insurable and 

eligible for an indemnity payment if a second 

qualifying event occurs. 

(b) In lieu of the provisions regarding units and unit 

division in the Underlying Policy, protection provided 

by this Endorsement will be based on all eligible 

planted acreage or inventory (including perennial or 

nursery crops and insurable trees) of the crop in the 

county insured by the Underlying Policy, regardless of 

whether such acreage or inventory is owned, rented 

for cash, or rented for a share of the crop, including 

acres on which you are insuring another person’s 

share of the crop. 

6. Hurricane Protection Amount 

(a) If there are multiple coverage levels, types, or 

practices for the insured crop in the county, your HPA 

will be determined separately for each coverage level, 

type, and practice and then summed for the crop. 

(b) To calculate your HPA for all eligible insured acres of 

the crop in the county with the same coverage level, 

type, practice, and SCO, STAX, or other 

endorsement: 

(1) Determine your Hurricane Coverage Range; 

(2) Determine the Expected Crop Value by dividing 

the Underlying Policy liability for the eligible acres 

with the same coverage level, type, and practice 

by the Underlying Policy coverage level, as 

applicable, and then again by the percentage of 

price election or percentage of projected price, as 

applicable, of the Underlying Policy. When SCO, 

STAX, or other endorsement coverage is in effect 

with the Underlying Policy, use only the liability 

and coverage level for the Underlying Policy, not 

the SCO, STAX, or other endorsement liability or 

coverage level. Any adjustment in liability on the 

underlying crop policy will apply; 

(3) Multiply your Expected Crop Value by your 

Hurricane Coverage Range; and 

(4) Multiply the result of (3) by the Coverage 

Percentage elected by you. This is your HPA. 

(c) If you have SCO with your Underlying Policy, your 

HPA will not increase on a crop, practice, type, and 

farm number if you have ARC on that farm number for 

that crop and you failed to report that such information 

on your acreage report. 

(d) If you have STAX with your Underlying Policy, your 

HPA will not increase on a crop, practice, type, and 

farm number if you have ARC or PLC on that farm 

number for cotton and you failed to report such 

information on your acreage report. 

(e) For underlying policies with the amount of insurance 

not based on insured acres, to calculate your HPA for 

a crop in the county with the same coverage level, 

type, and practice, insured by this Endorsement: 

(1) Determine your Hurricane Coverage Range; 

(2) Divide the Underlying Policy liability by the 

Underlying Policy coverage level, as applicable, 

and then again by the percentage of price 

election or percentage of projected price, as 

applicable, of the Underlying Policy to determine 

(3 of 6) 
the Expected Crop Value; 

(3) Multiply your Expected Crop Value by your 

Hurricane Coverage Range; and 

(4) Multiply the result of (3) by the Coverage 

Percentage elected by you. 

(f) For crop policies where protection is provided by this 

Endorsement based on all eligible inventory, if you 

increase inventory values above what you reported on 

the original report (e.g., PIVR or Nursery Value 

Report) at any point during the crop year by 

submitting a revised report (e.g., Peak Inventory 

Value Report or revised PIVR) allowable by the 

Underlying Policy, the value of coverage under this 

Endorsement will not increase, but will remain 

consistent with the coverage established at the 

beginning of the Insurance Period according to the 

original report for each planting period, where 

applicable, for the Underlying Policy. 

7. Annual Premium and Administrative Fee 

(a) You will owe a separate annual premium and 

administrative fee for this Endorsement, in addition to 

any administrative fee owed for the Underlying Policy. 

Only one HIP-WI administrative fee per insured crop, 

per county is owed. 

(b) Premium for this Endorsement is calculated by 

multiplying your HPA determined from section 6 by 

the premium rate and any premium adjustment 

percentages that may apply. All information needed to 

calculate the premium rate is contained in the 

actuarial documents. 

(c) The administrative fee for this Endorsement is 

determined in accordance with the provisions in 

section 7(e) of the Basic Provisions. 

8. Causes of Loss 

(a) This Endorsement provides protection against 

widespread loss in a county, or adjacent county, due 

to a Weather Event as defined under this 

Endorsement. The County Loss Trigger will be 

determined under the HDP and shown in the actuarial 

documents as determined by FCIC. 

(b) Individual farm yields and revenues are not 

considered under this Endorsement. It is possible that 

your individual farm may experience reduced revenue 

or reduced yield and you do not receive an indemnity 

under this Endorsement. 

(c) The notice provisions in section 14(b) of the Basic 

Provisions do not apply to this Endorsement. 

(d) Weather Event data may be updated by NOAA. 

Following NOAA’s release of updated data, the Risk 

Management Agency (RMA) may add counties that 

were not included in the initial release by RMA of the 

counties that met the County Loss Trigger for the 

applicable crop year. Once counties are listed by 

RMA, they will not be removed even if later data 

indicates they did not meet the County Loss Trigger. 

(e) Once published, the Final Rainfall Amount data is a 

matter of general applicability, presumed to be 

accurate, and will not be changed once published 

unless: 

(1) RMA is notified by NOAA CPC in writing of an 

error in the data FCIC published; 

(2) The RMA Administrator reviews the 

circumstances of the error and determines a 

change is warranted; and 

(3) Less than one year has elapsed from the date the 

Final Rainfall Amount data was published. 

9. Settlement of Claim 

(a) An indemnity is due when the County Loss Trigger is 

identified for the insured county in the Insurance 

Period. Indemnities are calculated following the 

release by FCIC of any county that meets the County 

Loss Trigger. 

(b) The indemnity is equal to the HPA determined in 

section 6, unless the county is triggered by a previous 

Weather Event, as set forth in Section 12(c)(4). 

(c) In lieu of the provisions in section 14(f)(1) of the Basic 

Provisions, we will pay your loss under this 

Endorsement within 30 days after the later of: 

(1) The date FCIC releases the list of counties 

identified as meeting the County Loss Trigger; 

(2) The date you provide an acceptable acreage 

report; or 

(3) The conditions in Section 14(f)(2)-(4) of the Basic 

Provisions are met. 

10. [Reserved]

11. Written Agreements

(a) This Endorsement is available only when authorized 

by the actuarial documents for the crop, type, and 

practice in the county and cannot be made available 

through a Written Agreement. 

(b) This Endorsement is applicable when available on the 

actuarial documents when a Written Agreement 

applies to the Underlying Policy. 

12. Tropical Storm Option

(a) Applicability 

(1) You must have the HIP-WI Endorsement elected. 

(2) You must elect this option in writing on or before 

the sales closing date for the first year it is in 

effect. 

(3) This option is continuous, in accordance with 

section 3(a) of this Endorsement, unless 

canceled by the cancellation date. 

(4) This option must be available in the actuarial 

documents for your county. 

(b) Premium and Insurance Guarantees 

(1) The HPA will be the insurance guarantee. 

(2) This option includes an additional premium rate, 

and you will owe an annual premium for this 

option in addition to the premium amount in 

section 7. A separate administrative fee is not 

required for this option. 

(3) You will still owe tropical storm premium even if 

your county is triggered by a hurricane prior to the 

arrival of a tropical storm, resulting in no 

remaining HPA for the crop year. 

(c) Settlement Of Claim 

(1) An indemnity is due when the County Loss 

Trigger for a tropical storm Weather Event is 

identified in the actuarial documents for the 

insured county in the Insurance Period. 

(2) The tropical storm indemnity is equal to 50 

percent of the HPA determined in section 6. 

(3) You may receive up to two tropical storm 

indemnities in a crop year, but the total indemnity 

received under this Endorsement for all Weather 

Events cannot exceed your HPA. 

(4 of 6) 
(4) If your county is triggered due to tropical storm and is 

later triggered due to hurricane, you may receive a 

tropical storm indemnity and a partial hurricane 

indemnity, the total not to exceed the HPA. 

(5) If you receive an indemnity due to a hurricane, such 

payment will equal your HPA, and you cannot receive 

an indemnity for a subsequent tropical storm. You will 

still owe premium for this option. 

13. Examples

The following are examples of the calculation of the HPA 

and HIP-WI indemnity for the plans of insurance that may 

be selected for the Underlying Policy. Your information will 

likely be different, and you should consult the actuarial 

documents in your county and the policy information. The 

following examples are for illustration purposes only. 

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, as published 

in the actuarial documents for county X. The producer 

elects a HIP-WI Coverage Percentage of 0.90. (This 

information, with some changing variables, applies to the 

following examples, except when indicated otherwise). 

Example for Underlying Policy with CAT coverage and 

HIP-WI election: 

Resulting liability for the Underlying Policy is $17,006 

Hurricane Protection Amount calculation: 

Step 1: Calculate Hurricane Coverage Range. 

Formula: 95 percent minus the maximum coverage 

level from the Underlying Policy. 

0.95 - 0.50 = 0.45 Hurricane Coverage Range. 

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 to determine the 

Expected Crop Value. 

$17,006 ÷ 0. 50 ÷ 0. 55 = $61,840 Expected Crop 

Value. 

Step 3: Calculate HPA. 

Multiply the Expected Crop Value by the Hurricane 

Coverage Range and the Coverage Percentage you 

elected under this Endorsement. 

$61,840 × 0.45 × 0.90 = $25,045 HPA. 

If FCIC determines the county meets the County Loss 

Trigger, the indemnity payment would be $25,045. 

Example for Underlying Policy with 70 percent coverage, 

100 percent of price, and HIP-WI election: 

Resulting liability for the Underlying Policy is $43,288. 

Hurricane Protection Amount calculation: 

Step 1: Calculate Hurricane Coverage Range. 

Formula: 95 percent minus the maximum coverage 

level from the Underlying Policy. 

0.95 - 0.70 = 0.25 Hurricane Coverage Range. 

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 to determine the Expected Crop Value. 

$43,288 ÷ 0.70 ÷ 1 = $61,840 Expected Crop Value. 

Step 3: Calculate the HPA. 

Formula: Multiply the Expected Crop Value of the 

Underlying Policy by the Hurricane Coverage Range 

and the Coverage Percentage you elected under this 

Endorsement. 

$61,840 × 0.25 × 0.90 = $13,914 HPA. 

If FCIC determines the county meets the County Loss 

Trigger, the indemnity payment would be $13,914. 

Example for SCO election: 

Hurricane Protection Amount calculation: 

Step 1: Calculate Hurricane Coverage Range. 

Formula: 95 percent minus the higher of the coverage 

level from the Underlying Policy (70 percent) or the 

upper end of the SCO coverage range (86 percent). 

0.95 - 0.86 = 0.09 Hurricane Coverage Range. 

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 to determine the Expected Crop Value. 

$43,288 ÷ 0.70 ÷ 1.00 = $61,840 Expected Crop 

Value of the Underlying Policy. 

Step 3: Calculate the HPA. 

Formula: Multiply Expected Crop Value of the 

Underlying Policy by the Hurricane Coverage Range 

and the Coverage Percentage you elected under this 

Endorsement. 

$61,840 × 0.09 × .90 = $5,009 HPA. 

If FCIC determines the county meets the County Loss 

Trigger, the indemnity payment would be $5,009. 

Example for STAX election for cotton: 

Producer B farms 100 acres of irrigated cotton in 

county X with an approved yield of 1,200 pounds per 

acre, with 100 percent share and 80 percent coverage 

elected for the Underlying Policy. The projected price 

for cotton is $0.74 per lbs. in county X, as published 

on the AD, and the liability for the Underlying Policy 

for cotton is $71,040. Insured B elects a Coverage 

Percentage of 100 percent for the HIP-WI 

Endorsement. 

Hurricane Protection Amount calculation: 

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. 

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. 

71,040 ÷ 0.80 ÷ 1.00 = $88,800 Expected Crop Value 

(5 of 6) 
of the Underlying Policy with STAX. 

Step 3: Calculate the HPA. 

Formula: Multiply Expected Crop Value of the 

Underlying Policy by the HIP coverage range and the 

Coverage Percentage. 

$88,800 × 0.05 × 1.00 = $4,440 HPA. 

If FCIC determines the county meets the County Loss 

Trigger, the indemnity payment would be $4,440. 

Example for Tropical Storm Option election: 

Hurricane Protection Amount calculation: 

Producer A has an Underlying Policy with 70 percent 

coverage, 100 percent of price, and a HIP-WI 

election. 

Resulting liability for the Underlying Policy is $43,288. 

Hurricane Protection Amount calculation: 

Step 1: Calculate Hurricane Coverage Range. 

Formula: 95 percent minus the maximum coverage 

level from the Underlying Policy. 

0.95 - 0.70 = 0.25 Hurricane Coverage Range. 

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 to determine the Expected Crop Value. 

$43,288 ÷ 0.70 ÷ 1 = $61,840 Expected Crop Value. 

Step 3: Calculate the HPA. 

Formula: Multiply the Expected Crop Value of the 

Underlying Policy by the Hurricane Coverage Range 

and the Coverage Percentage you elected under this 

Endorsement. 

$61,840 × 0.25 × 0.90 = $13,914 HPA. 

On September 1, 2023, the county is within the area 

of a tropical storm. For that event, the indemnity 

payment would be 50 percent of the HPA, or $6,957 

($13,914 × 0.50). 

On October 1, 2023, the county is within the area of a 

named hurricane. For that event, the indemnity 

payment would be the remainder of the HPA, or 

$6,957. 

For the remainder of the Insurance Period, Producer 

A is ineligible for any further indemnity payments 

under this Endorsement. 

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