Some approved insurance providers may not participate in the sales and service of CAT coverage. However, the total amount received for the loss will not exceed the amount of the actual loss sustained by the insured. The amount of the actual loss will be the difference between the fair market value of the production before and after the loss, as determined by the approved insurance provider based upon the insured's production records.
Companies are responsible for administering their contract with insured producers.
The CFSA will be responsible for determining and paying the additional amount due the insured for any applicable USDA program benefit, after first considering the appropriate amount of indemnity to be paid for the loss. In this situation, the producer would not have to obtain insurance coverage for the crop to remain eligible for certain other USDA program benefits. However, if the producer later decides to plant the crop as an alternate crop, for whatever reason, the producer will not have insurance on the crop and may lose USDA program benefits. The following question has been raised regarding administrative fees under crop reform for a carry-over insured. The following rules apply to a valid crop insurance contract in the 1995 crop year regardless of the contract change date.