Rule2023-22964
Transparency in Policy Cancellations
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
October 18, 2023
Effective
November 30, 2023
Issuing agencies
Agriculture DepartmentFederal Crop Insurance Corporation
Abstract
The Federal Crop Insurance Corporation (FCIC) is making a technical amendment to its regulations by clarifying that an Approved Insurance Provider (AIP) may only cancel a crop insurance policy (policy) with express written consent from FCIC. This requirement is already binding in the Standard Reinsurance Agreement (SRA), which establishes the terms under which FCIC provides reinsurance and subsidies on eligible crop insurance policies sold by AIPs. By adding the same conditions to the regulation as are in the policy between the AIP and the producer, it provides greater transparency to producers about the existing rights in their policy. The changes to the crop insurance policies resulting from the amendments in this rule are applicable for the 2024 and succeeding crop years for crops with a contract change date on or after November 30, 2023. For all other crops, the changes to the crop insurance policies made in this rule are applicable for the 2025 and succeeding crop years.
Full Text
<html>
<head>
<title>Federal Register, Volume 88 Issue 200 (Wednesday, October 18, 2023)</title>
</head>
<body><pre>
[Federal Register Volume 88, Number 200 (Wednesday, October 18, 2023)]
[Rules and Regulations]
[Pages 71731-71733]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-22964]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Parts 407 and 457
[Docket ID FCIC-23-0006]
RIN 0563-AC83
Transparency in Policy Cancellations
AGENCY: Federal Crop Insurance Corporation, U.S. Department of
Agriculture (USDA).
ACTION: Final rule; technical amendment; request for comments.
-----------------------------------------------------------------------
SUMMARY: The Federal Crop Insurance Corporation (FCIC) is making a
technical amendment to its regulations by clarifying that an Approved
Insurance Provider (AIP) may only cancel a crop insurance policy
(policy) with express written consent from FCIC. This requirement is
already binding in the Standard Reinsurance Agreement (SRA), which
establishes the terms under which FCIC provides reinsurance and
subsidies on eligible crop insurance policies sold by AIPs. By adding
the same conditions to the regulation as are in the policy between the
AIP and the producer, it provides greater transparency to producers
about the existing rights in their policy. The changes to the crop
insurance policies resulting from the amendments in this rule are
applicable for the 2024 and succeeding crop years for crops with a
contract change date on or after November 30, 2023. For all other
crops, the changes to the crop insurance policies made in this rule are
applicable for the 2025 and succeeding crop years.
DATES:
Effective date: This final rule is effective November 30, 2023.
Comment date: We will consider comments that we receive by the
close of business December 18, 2023. FCIC will consider the comments
received and may conduct additional rulemaking in the future based on
the comments.
ADDRESSES: We invite you to submit comments on this rule. You may
submit comments by going through the Federal eRulemaking Portal as
follows:
<bullet> Federal eRulemaking Portal: Go to <a href="http://www.regulations.gov">http://www.regulations.gov</a> and search for Docket ID FCIC-23-0006. Follow the
instructions for submitting comments.
All comments will be posted without change and will be publicly
available on <a href="http://www.regulations.gov">www.regulations.gov</a>.
FOR FURTHER INFORMATION CONTACT: Francie Tolle; telephone (816) 926-
7829; or email <a href="/cdn-cgi/l/email-protection#0660746768656f632872696a6a63467375626728616970"><span class="__cf_email__" data-cfemail="355347545b565c501b415a59595075404651541b525a43">[email protected]</span></a>. Persons with disabilities who
require alternative means for communication should contact the USDA
Target Center at (202) 720-2600 (voice) or (844) 433-2774 (toll-free
nationwide).
SUPPLEMENTARY INFORMATION:
Background
The Risk Management Agency (RMA) administers the FCIC regulations.
FCIC serves America's agricultural producers through effective, market-
based risk management tools to strengthen the economic stability of
agricultural producers and rural communities. The AIPs sell and service
Federal crop insurance policies in every State through a public-private
partnership.
[[Page 71732]]
SRA is a cooperative financial assistance agreement between FCIC
and an AIP. AIPs are bound by the SRA terms in administering Federal
crop insurance policies with insured producers. FCIC is making a
technical amendment for a conforming change in the regulations for
consistency with an SRA requirement.
In this rule, FCIC amends the Area Risk Protection Insurance (ARPI)
Basic Provisions (7 CFR part 407) and the Common Crop Insurance Policy
(CCIP) Basic Provisions (7 CFR 457.8). The technical amendments made by
this rule are applicable for the 2024 and succeeding crop years for
crops with a contract change date on or after November 30, 2023. For
all other crops, the changes to the policy made in this rule are
applicable for the 2025 and succeeding crop years.
FCIC is clarifying that an AIP may only cancel a policy with
express written consent from FCIC in the CCIP and ARPI Basic
Provisions. The SRA prohibits any AIP from cancelling an eligible crop
insurance policy held by a producer so long as the producer remains
eligible and the AIP continues to write eligible crop insurance
contracts within the State, except as authorized by FCIC. However,
language in the regulations for ARPI and CCIP Basic Provisions requires
a conforming change to be clear so that insured producers will be fully
aware of their protection from unauthorized AIP cancellations, which
already exists in the SRA terms.
The language in the ARPI and CCIP Basic Provisions only specified
the deadline for cancellations (that is, by the cancellation date), but
did not specify any allowable conditions for cancellation.
FCIC is making conforming changes in the regulations for ARPI and
CCIP Basic Provisions to be consistent with existing SRA terms
regarding the policy cancellation requirements to be transparent for
the producer.
Clarity of the Regulation
Executive Order 12866, as supplemented by Executive Order 13563,
requires each agency to write all rules in plain language. In addition
to your substantive comments on this rule, we invite your comments on
how to make the rule easier to understand. For example:
<bullet> Are the requirements in the rule clearly stated? Are the
scope and intent of the rule clear?
<bullet> Does the rule contain technical language or jargon that is
not clear?
<bullet> Is the material logically organized?
<bullet> Would changing the grouping or order of sections or adding
headings make the rule easier to understand?
<bullet> Could we improve clarity by adding tables, lists, or
diagrams?
<bullet> Would more, but shorter, sections be better? Are there
specific sections that are too long or confusing?
<bullet> What else could we do to make the rule easier to
understand?
USDA Non-Discrimination Policy
In accordance with Federal civil rights law and USDA civil rights
regulations and policies, USDA, its Agencies, offices, and employees,
and institutions participating in or administering USDA programs are
prohibited from discriminating based on race, color, national origin,
religion, sex, gender identity (including gender expression), sexual
orientation, disability, age, marital status, family or parental
status, income derived from a public assistance program, political
beliefs, or reprisal or retaliation for prior civil rights activity, in
any program or activity conducted or funded by USDA (not all bases
apply to all programs). Remedies and complaint filing deadlines vary by
program or incident.
Individuals who require alternative means of communication for
program information (for example, braille, large print, audiotape,
American Sign Language, etc.) should contact the responsible Agency or
the USDA TARGET Center at (202) 720-2600 (voice and text telephone
(TTY)) or dial 711 for Telecommunications Relay Service (both voice and
text telephone users can initiate this call from any telephone).
Additionally, program information may be made available in languages
other than English.
To file a program discrimination complaint, complete the USDA
Program Discrimination Complaint Form, AD-3027, found online at <a href="https://www.usda.gov/oascr/how-to-file-a-program-discrimination-complaint">https://www.usda.gov/oascr/how-to-file-a-program-discrimination-complaint</a> and
at any USDA office or write a letter addressed to USDA and provide in
the letter all the information requested in the form. To request a copy
of the complaint form, call (866) 632-9992. Submit your completed form
or letter to USDA by: (1) mail to: U.S. Department of Agriculture,
Office of the Assistant Secretary for Civil Rights, 1400 Independence
Avenue SW, Washington, DC 20250-9410; (2) fax: (202) 690-7442; or (3)
email: <a href="/cdn-cgi/l/email-protection#b9c9cbd6decbd8d497d0d7cdd8d2dcf9cccaddd897ded6cf"><span class="__cf_email__" data-cfemail="176765787065767a397e7963767c72576264737639707861">[email protected]</span></a>.
USDA is an equal opportunity provider, employer, and lender.
List of Subjects
7 CFR Part 407
Acreage allotments, Administrative practice and procedure, Barley,
Corn, Cotton, Crop insurance, Peanuts, Reporting and recordkeeping
requirements, Sorghum, Soybeans, Wheat.
7 CFR Part 457
Acreage allotments, Crop insurance, Reporting and recordkeeping
requirements.
For the reasons discussed in the preamble, FCIC amends 7 CFR parts
407 and 457, effective for the 2024 and succeeding crop years for crops
with a contract change date on or after November 30, 2023, and for the
2025 and succeeding crop years for all other crops, as follows:
PART 407--AREA RISK PROTECTION INSURANCE REGULATIONS
0
1. The authority citation for part 407 continues to read as follows:
Authority: 7 U.S.C. 1506(l) and 1506(o).
0
2. In Sec. 407.9, section 2, revise paragraph (i) to read as follows:
Sec. 407.9 Area Risk Protection Insurance Regulations.
* * * * *
2. Life of Policy, Cancellation, and Termination
* * * * *
(i) You may cancel this policy after the initial crop year by
providing written notice to us on or before the cancellation date shown
in the Crop Provisions. We may cancel this policy with express written
consent from FCIC.
* * * * *
PART 457--COMMON CROP INSURANCE REGULATIONS
0
3. The authority citation for part 457 is revised to read as follows:
Authority: 7 U.S.C. 1506(l) and 1506(o).
0
4. In Sec. 457.8, section 2, revise paragraph (d) to read as follows:
Sec. 457.8 The application and policy.
* * * * *
2. Life of Policy, Cancellation, and Termination
* * * * *
(d) You may cancel this policy after the initial crop year by
providing written notice to us on or before the cancellation date shown
in the Crop
[[Page 71733]]
Provisions. We may cancel this policy with express written consent from
FCIC.
* * * * *
Marcia Bunger,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 2023-22964 Filed 10-17-23; 8:45 am]
BILLING CODE 3410-08-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on October 18, 2023.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.