A bill to amend the Federal Crop Insurance Act to limit the overall rate of return for crop insurance providers and remove the requirement of budget neutrality in the Standard Reinsurance Agreement.

Bill: 115-s-1773
Sponsor: full_name: Sen. Flake, Jeff [R-AZ]
Introduced: 2017-09-07
Policy area: Agriculture and Food
Subjects: Agricultural insurance

Insurance industry and regulation
Latest action: action_date: 2017-09-07
text: Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.

Summaries:
action_date: 2017-09-07
action_desc: Introduced in Senate
text: <p>This bill amends the Federal Crop Insurance Act to modify the requirements for the federal crop insurance program. The bill: (1) limits the average rate of return for reinsured companies for the 2018 reinsurance year and each subsequent reinsurance year to 9.6% of retained premiums, and (2) eliminates the requirement that any renegotiated Standard Insurance Agreement (SRA) be budget-neutral. </p> <p>(The SRA is an agreement between the Department of Agriculture [USDA] and the private companies that administer the federal crop insurance program that specifies details such as administrative and operating expense reimbursements and risk sharing. Eliminating the budget neutrality requirement permits USDA to use the renegotiation of the SRA to achieve savings.) </p>

tv_txt: II 115th CONGRESS 1st Session S. 1773 IN THE SENATE OF THE UNITED STATES September 7, 2017 Mr. Flake (for himself and Mrs. Shaheen ) introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry A BILL To amend the Federal Crop Insurance Act to limit the overall rate of return for crop insurance providers and remove the requirement of budget neutrality in the Standard Reinsurance Agreement.

1. Reinsurance Section 508(k) of the Federal Crop Insurance Act ( 7 U.S.C. 1508(k) ) is amended— (1) in paragraph (3)— (A) by striking (3) Share of risk .—The and inserting the following: (3) Risk (A) Share of risk The ; and (B) by adding at the end the following: (B) Limitation on average rate of return The target average rate of return for reinsured companies for the 2018 reinsurance year and each subsequent reinsurance year shall be 9.6 percent of retained premiums. ; and (2) in paragraph (8), by striking subparagraph (F).