Enclosure

FCIC Interpretation of Procedure Page 2

Risk Management Agency Interpretation of FCIC Provisions:

Subject: Request dated April 29, 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 if a power of attorney authorizing a person to sign crop insurance documents issued by a 

specified approved insurance provider (AIP) is effective for purposes of authorizing the signing of an

application with a different AIP.

The relevent policy and handbook procedures related to this request are WFRP Policy Section4(h) and 

GSH Paragraphs 854 and 855:

WFRP Policy

4. Life of Policy, Termination, and Cancellation

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(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 l5(j), and any other 

consequences, including administrative, criminal or civil sanctions, if any information

has been misreported.

General Standards Handbook

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. 

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FCIC Interpretation of Procedure Page 3

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. 

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 non-substantive signatory evidences the 

assignment of this authority to another person.

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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. 
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FCIC Interpretation of Procedure Page 4

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. 

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. 
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FCIC Interpretation of Procedure Page 5

(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. 

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)

The requestor’s interpretation of GSH Paragraph 855, is that a POA must be in writing and specify the 

powers granted to the authorized representative by the grantor and the POA must specify the person 

authorized, the period of authorization, and powers granted. The “powers granted” define the scope of 

a POA. Where the powers granted to the authorized representative extend only to a designated policy 

or policies, the POA has no applicability beyond the specified policy or policies. Similarly, where a 

POA limits the authority of the representative to policies issued or to be issued by a particular AIP, the 

POA is ineffective for purposes of policies issued or to be issued by a different AIP.

Federal Crop Insurance Corporation Determination

FCIC agrees with the requestor’s interpretation of Paragraph 855 of the 2019 GSH. All POAs for crop 

insurance purposes must be in writing and provide the powers granted. When a POA is limited in 

scope, such as to a designated policy or AIP, the authority does not extend beyond those designations. 

Therefore, if a POA was limited to a designated policy or AIP, that POA would not be valid for other 

policies or AIPs and the individual granted authority through the POA would not have a valid 

signature on other policies with other AIPs.

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.