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21-HIP-WI

(Released 8-2020) 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 sustained hurricane force winds from a named hurricane according to the National Oceanic and Atmospheric Administration

(NOAA). 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 damage may be associated with a hurricane

but will not trigger a loss. The coverage provided by this Endorsement may be combined with the Supplemental Coverage Option (SCO)

Endorsement, and the 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_adjace

ncy.txt

County loss trigger – The occurrence of sustained hurricane

force winds, as determined by the Risk Management Agency

(RMA), in accordance with the Hurricane Data Provisions

(HDP) 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 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.

Hurricane coverage range - The amount of difference

between 95 percent and the higher of the coverage level of

your underlying policy, orthe upper end of your SCO coverage

range (if SCO coverage applies), or your STAX coverage

range (if STAX coverage applies), if applicable, 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 as determined by section 6 of 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 published, 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:

(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 Section 4.

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 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.

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 this Endorsement.

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
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documents.

(c) This Endorsement is not available with STAX when

the acreage insured under STAX is not also insured

undera 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 increase your HIP-WI

coverage (e.g., lowering coverage on underlying

policy, increasing HIP-WI coverage factor,

decreasing STAX coverage level) by the sales closing

date, but it will not take effect 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. If a loss

is triggered for your county within the waiting period,

coverage will be based on the coverage percentage

and coverage range from the previous insured year.

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 or plan of insurance on

the underlying policy, or add, change, or remove any

SCO or STAX coverage associated with your

underlying policy, this Endorsement will remain in

effect and will provide coverage based on the revised

underlying coverage level or any SCO or STAX

coverage, as appropriate, if the change is made before

the SCD for the plan of insurance you selected, unless

you cancel this Endorsement on or before the

cancellation date or you change your underlying policy

to a plan of insurance not covered by the Common

Crop Insurance Policy Basic Provisions. After the

SCD, if SCO coverage changes due to enrollment in

the Agriculture Risk Coverage (ARC) program, or,

STAX, either the ARC or Price Loss Coverage (PLC)

program, then HIP-WI coverage is not increased to the

underlying policy coverage level, unless you report

such SCO or STAX coverage change by the acreage

reporting date.

4. Report of Acreage

You are notrequired 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

lesserof 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; or

(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

number of eligible acres will be 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 oneof the immediatepast 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 eligible acres will be those specified on

the acreage report from the previous year filed and

accepted by us 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
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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 or STAX coverage insured by

this 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 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;

(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 elected SCO with your underlying policy,

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

and farm number if you enrolled that farm number in

ARC for that crop but failed to report that enrollment

on your acreage report. If you have elected STAX with

your underlying policy, your HPA will not increase on

a crop, practice, type, and farm number if you enrolled

that farm number in ARC or PLC for seed cotton and

failed to report such enrollment on your acreage

report.

(d) For underlying policies with the amount of insurance

not based on insured acres, to calculate your HPA for

all of the 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

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.

(e) 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 HIP-WI 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 amount owed for the underlying policy.

(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 the county, or adjacent county, due

to sustained hurricane force winds. The county loss

trigger will be determined from HDP and shown in the

actuarial documents as determined by the Federal

Crop Insurance Corporation (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.

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.

(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:

i. the date FCIC releases the list of counties

identified as meeting the county loss trigger;

ii. the date you provide an acceptable acreage report;

or

iii. the conditions in Section 14(f)(2)-(4) of the Basic

Provisions are met.

(d) Hurricane wind extent data may be updated by NOAA.

FCIC may add counties that were not included in the

initial county release by FCIC of the counties that met

the county loss trigger following release of updated

NOAA wind extent data for the applicable crop year.

Once counties are listed by FCIC, they will not be

removed even if later data indicates they did not meet

the county loss trigger.

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. 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
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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 HIPWI coverage percentage of 0.90. (This information, with some

changing variables, applies to the following examples.)

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 cropvalue

$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 x 0.45 x 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 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.

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 x 0.09 x .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:

The STAX coverage band ranges from 75 percent to 90

percent.

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 STAX coverage range (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 to determine the

expected crop value.

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

underlying policy with STAX.

Step 3: Calculate the HPA.

Formula: Multiply expected crop value of the underlying

policy by the hurricane 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.