#### § 400.302 Definitions.

*Act* means Federal Crop Insurance Act as amended (7 U.S.C. 1501 *et seq.*).

*Actively engaged in farming* means a person who, in return for a share of profits and losses, makes a contribution to the production of an insurable crop in the form of capital, equipment, land, personal labor, or personal management.

*Actual yield* means total harvested production of a crop divided by the number of acres on which the crop was planted. For insured acres, actual yield is the total production to count as defined in the insurance policy, divided by insured acres.

*Assigned yield* means units of crop production per acre administratively assigned by the Corporation for the purpose of determining insurance coverage.

*Corporation* means the Federal Crop Insurance Corporation.

*Cumulative earned premium rate* is the total premium earned for all years in the base period, divided by the total liability for all years in the base period with the result expressed as a percentage.

*Cumulative loss ratio* means the ratio of total indemnities to total earned premiums during the base period expressed as a decimal.

*Earned premium* means premium earned (both the amount subsidized and the amount paid by the producer, but excluding any amount of the subsidy attributed to the operating and administrative expenses of the insurance provider) for a crop under a policy insured or reinsured by the Corporation.

*Earned premium rate* —means premium earned divided by liability and expressed as a percentage.

*Entity* —means a person as defined in this subpart other than an individual.

*Indemnified loss* means a loss applicable for the policy for any year during the NCS base period for which the total indemnity exceeds the total earned premium. If the person has insurance for the crop in more than one county for any crop year, indemnities and premiums will be accumulated for all counties for each crop year to determine an indemnified loss.

*Insurance experience* means earned premiums, indemnities paid (but not including replant payments), and other data for the crop (after applicable adjustments), resulting from all of the insured's crop insurance policies insured or reinsured by the Corporation for one or more crop years and will include all information from all counties in which the person was insured.

*Loss ratio* —means the ratio of indemnity to earned premium expressed as a decimal.

*NCS* means nonstandard classification system.

*NCS base period* means the 10 consecutive crop years (as defined in the crop policy) ending 2 crop years prior to the crop year in which the NCS classification becomes effective for all crops, except those specified on the Special Provisions. For these excepted crops, the NCS base period means the 10 consecutive crop years ending 3 crop years prior to the crop year in which the NCS classification becomes effective. For example: An NCS classification effective for the 1996 crop year against a producer of citrus production in Arizona, California, and Texas, or sugarcane would have a NCS base period that includes the 1984 through 1993 crop years. An NCS classification effective for the 1996 crop year against a producer of all other crops would have a NCS base period that includes the 1985 through 1994 crop years.

*Person* —means an individual, partnership, association, corporation, estate, trust, or other legal entity, and whenever applicable, a State or a political subdivision, or agency of a state.

*Substantial beneficial interest* —means an interest of 10 percent or more. In determining whether such an interest equals at least 10 percent, all interests which are owned directly or indirectly through such means as ownership of shares in a corporation which owns the interest will be taken into consideration.

[55 FR 32595, Aug. 10, 1990, as amended at 62 FR 22876, Apr. 28, 1997]