Enclosure

FCIC Interpretation of Procedure Page 2 

Risk Management Agency Interpretation of FCIC Provisions:

Subject: Joint request dated April 13, 2021, to the Risk Management Agency for an interpretation of 

the 2019 Whole-Farm Revenue Protection (WFRP) Pilot Policy and General Standards Handbook

(GSH) regarding whether a Whole-Farm Revenue Protection Pilot Policy issued to a corporation is 

void if the person signing the application lacks a properly executed power of attorney or other 

sufficient legal authorization to sign on behalf of the corporation.

The relevent policy and handbook procedures related to this request are WFRP Policy Sections 1, 2(a) 

and 4(h) and GSH Paragraphs 255, 831, 854, and 855: 

WFRP Policy

1. Definitions

***

Application - The form required to be completed by you and accepted by us before insurance 

coverage will begin.

***

Insured - The named person as shown on the application accepted by us. This term does not 

extend to any other person having a share or interest in the crop such as, a partnership, landlord, or 

any other person, unless specifically indicated on the application accepted by us.

***

Void - When the policy is considered not to have existed for a policy year.

***

2. Application

(a) For your initial year of insurance, you must provide the completed,signed, application to your 

agent not later than the sales closing date ***

***

4. Life of Policy, Termination, and Cancellation

***

(h) Any person may sign any document relative to crop insurance coverage on behalf of any other 

person covered by such a policy, provided that the person has a properly executed power of 

attorney or such other legally sufficient document authorizing such person to sign. You are 

still responsible for the accuracy of all information provided on your behalf and may be subject 

to the consequences in section 15(j), and any other consequences, including administrative, 

criminal or civil sanctions, if any information has been misreported.
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FCIC Interpretation of Procedure Page 3

General Standards Handbook

255 Corporations

***

The Application must be signed by a person authorized by the corporation to bind the 

corporation into contracts. Upon request, the insured must be able to provide written 

documentation from the corporation identifying the authorized representative of the 

corporation. The insured must provide to the AIP, in writing, the state in which the articles of 

incorporation/organization are filed.

831 The Application 

The Application is used to request insurance and must contain all of the information required 

by the policy. If the required information is not contained on the application, the application is 

not acceptable and insurance will not be provided.

854 Signatures

A. Requirement 

Any crop insurance document requiring a signature must be signed by the person whose 

signature is required (e.g., the applicant must sign the Application). A POA or other 

legally sufficient document is required for any person who is authorized to sign on behalf 

of the required person. 

If the applicant is a minor, the parent or court-appointed guardian must sign all documents 

that require a signature unless the minor has been legally emancipated. 

B. Acceptable Signature Types 

Acceptable signatures for crop insurance include the: 

(1) signature of the required person (e.g., applicant, insured, or grantor); 

(2) signature of the authorized representative (or attorney-in-fact) granted by a POA; and 

(3) signature of the authorized representative granted by a legally sufficient document. 

***

C. POA or Other Legally Sufficient Documentation Required 

The POA or other legally sufficient document (such as the Articles of Incorporation) must 

identify who is authorized to sign the initial Application and represents the original 

agreement between the grantor and its authorized representative. 
Enclosure

FCIC Interpretation of Procedure Page 4

Exception: The application does not represent the original agreement between the 

grantor and its authorized representative when an authorized representative 

who is required to sign the initial application assigns signatory authority to 

another person by the non-substantive signatory statement. 

Example 1: An individual operating as a business person type, where the sole proprietor 

signs the Application then assigns the signature authority to another person 

by using the non-substantive signatory statement, represents the original 

agreement between the sole proprietor and the authorized person. 

Example 2: For the partnership person type, the partnership agreement must identify the 

authorized representative who may sign the Application. The authorized 

representative, identified by the partnership agreement, then assigns 

signatory authority using the non-substantive signatory statement to another 

person. The partnership agreement evidences the original agreement 

between the partnership and its authorized representative, and the nonsubstantive signatory evidences the assignment of this authority to another 

person.

***

D. Non-Substantive Signatory Statement 

The DSSH provides a non-substantive statement that allows the required person or its 

authorized representative to designate person(s) who are authorized to sign crop insurance 

documents on its behalf. If the AIP elects to utilize the non-substantive statement 

contained on the Application or Policy Change form in the DSSH, then the Application or 

Policy Change is deemed to be a legally sufficient document that allows for the person to 

sign on behalf of the required person, notwithstanding individual State signature authority 

requirements. 

Example: The State requires that signature authority, which binds a person to the 

terms of the document being signed, must be notarized. If the AIP elects to 

utilize the non-substantive statement contained in the DSSH for the 

Application, the required person may elect to grant signature authority on 

the Application or provide a separate POA. 

If the required person grants authority on the Application, the Application is not subject to 

the signature requirements of the State. If the required person provides a POA to the AIP, 

the POA must be notarized in accordance with the signature requirements of the State.

The non-substantive signatory statement is effective from the date it is signed by the 

grantor and until it is rescinded, revoked, or dissolved. For example, the required person 

signs the statement on the application, accordingly, any subsequent crop insurance 

documents may be signed by the authorized representative until the authority is rescinded, 

revoked, or dissolved. Additionally, the death, disappearance or judicially declared 

incompetence of the grantor rescinds the signatory statement in accordance with the 

timelines regarding policy cancellation in Para. 231.
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FCIC Interpretation of Procedure Page 5

The signatory statement is considered rescinded, revoked, or dissolved when a change of 

insurance plans requires a new initial Application. The required person must sign the 

initial Application. The Policy Change modifies an existing Application; the nonsubstantive signatory statement remains in effect on the existing Application, unless 

canceled or revoked by the Policy Change.

855 Power of Attorney 

Insureds may grant a third-party the authority to sign crop insurance documents on their behalf 

if a legally executed POA is provided to the AIP. 

A. POA Types 

(1) A POA that is executed in accordance with the laws of the state of execution is 

acceptable for crop insurance purposes. Such POA must be in writing and specify the 

powers granted to the authorized representative by the grantor. A POA is executed 

when it is signed. 

(2) A POA that is executed according to federal authorities, such as an FSA Power of 

Attorney, is acceptable. An acceptable POA executed according to federal authorities 

is a POA that includes language that the form is applicable for crop insurance purposes. 

A form executed in accordance with federal authorities is a form that has been 

approved by the Office of Management and Budget. 

Note: A POA developed by an AIP, in accordance with the standards provided by the 

DSSH, is not considered a “federal form” executed according to federal authorities, 

unlike the FSA POA which is a federal form that supersedes state law. Any AIP 

developed POA requires compliance with state law.

B. POA Requirements 

(1) Authority 

POAs which grant authority to sign contracts and legally bind the grantor(s) are 

sufficient for crop insurance purposes. The POA must specify the person authorized, 

the period of authorization, and powers granted.

Exception: Oral or open powers of attorney are not acceptable. An oral or open 

POA is a POA that does not specify who the authorized representative 

receiving the power is at the time of execution. 

(2) Notarization 

In states that require POAs to be notarized, the signatures of the grantor and grantee 

must be notarized. If notarization is not required by the state, the signatures of the 

grantor and grantee must be witnessed and the signatures of the witness obtained on the 

document. 
Enclosure

FCIC Interpretation of Procedure Page 6 

C. Filing Requirement 

A POA must be filed with the office where the official insurance file is maintained and 

must remain in full force and effect until written notice of its revocation has been received 

by the office maintaining the official insurance file. The revocation must maintain in the 

official insurance file.

Interpretation Submitted by Requestor(s)

First Requestor’s Interpretation

The first requestor’s interpretation of Section 4(h) of the WFRP Pilot Policy is that if the signature was 

previously, contemporaneously, or subsequently authorized, and the policy is further ratified by the 

corporation, on whose behalf the signature was applied to the document, by payment of the policy and 

the policy was ratified by the AIP by the issuance of the insurance coverage and acceptance of the 

premium, the policy is not void. 

Second Requestor’s Interpretation

The second requestor further interprets Section 1 of the WFRP Pilot Policy that an application must be 

completed and accepted before coverage will begin and Section 2(a) further requires the submission of 

a, “completed, signed, application to your agent not later than the sales closing date.” The second 

requestor’s interpretation is that when the person who signs a crop insurance application on behalf of a 

corporation lacks a properly executed POA or other sufficient legal authorization to bind the 

corporation to contracts, the application is invalid. Since coverage cannot incept without a completed 

and signed application. Any policy issued on the basis of an application signed by a person who lacks 

appropriate legal authority to do so is void.

Federal Crop Insurance Corporation Determination

FCIC disagrees with the first requestor’s interpretation of the WFRP Pilot Policy Section 4(h). 

Section 4(h) is clear that the only way for a person to legally sign an application on behalf of another 

is with a properly executed power of attorney or such other legally sufficient document authorizing 

such person to sign. GSH Paragraph 255 states that the application for a corporation must be signed 

by a person authorized by the corporation to bind the corporation into contracts. The applicant must 

be able to provide written documentation from the corporation identifying the authorized 

representative(s) of the corporation. If the person signing the application does not appear in the 

documentation from the corporation identifying them as authorized to bind the corporation, then a 

valid POA must exist for the signature on the application to be valid. If the signature on the 

application is not valid, then the policy is void.

FCIC agrees with the second requestor’s interpretation of the WFRP Pilot Policy Section 4(h) that if 

the person that signs an application on behalf of another does not have a properly executed power of 

attorney or such other legally sufficient document authorizing such person to sign, then the application 

is invalid and the policy is void. The applicant must be able to provide written documentation from 

the corporation identifying the authorized representative(s) of the corporation. Additionally, if the 

person signing the application does not appear in the written documentation from the corporation 

identifying them as a person authorized to bind the corporation into contracts, then a valid POA is the 

only means that such a person would be able to provide an acceptable signature on the application. If 

the signature on the application is not valid, then the policy is void.
Enclosure

FCIC Interpretation of Procedure Page 7

In accordance with section 33(a)(1) of the WFRP Pilot Policy, this FCIC interpretation is generally 

applicable and binding in any mediation or arbitration. In accordance with section 33(a)(1), any 

appeal of this interpretation must be in accordance with 7 C.F.R. part 11.

Date of Issue: December 2, 2022

This Interpretation of Procedure was originally issued July 8, 2021, and was revised as stated above.