On August 28, 2020, the Risk Management Agency (RMA) released a number of documents related to the Hurricane Insurance Protection – Wind Index Endorsement, including Product Management Bulletin: PM-20-061, the Hurricane Insurance Protection – Wind Index Endorsement, the Hurricane Insurance Protection – Wind Index Handbook, and the 21-Hurricane Data Provisions. https://www.rma.usda.gov/en/Policy-and-Procedure/Bulletins-and-Memos/2020/PM-20-061, https://www.rma.usda.gov/-/media/RMAweb/Policies/Hurricane-Insurance-Wind-Index/2021/Hurricane-Insurance-Protection-Wind-Index-Endorsement-21-HIP-WI.ashx, https://www.rma.usda.gov/-/media/RMAweb/Handbooks/Underwriting—24000/Hurricane-Insurance-Protection—Wind-Index/2021-24360-Hurricane-Insurance-Protection—Wind-Index-Handbook.ashx, https://www.rma.usda.gov/-/media/RMAweb/Policies/Hurricane-Insurance-Wind-Index/2021/Hurricane-Insurance-Protection-Wind-Index-Endorsement-21-HIP-WI/Hurricane-Data-Provisions.ashx.
RMA states that these policy materials will apply to the Hurricane Insurance Protection – Wind Index Endorsement for crops with a August 31, 2020, contract change date and that approved insurance providers must notify producers of these changes at least 30 days prior to the cancellation date.
ANALYSYS – The Hurricane Insurance Protection – Wind Index Endorsement was approved by the Federal Crop Insurance Board of Directors on November 15, 2019. in PM-20-061, RMA states that it continues to be available for the 2021 crop year. On February 27, 2020, RMA published the Hurricane Insurance Protection – Wind Index Endorsement. It is not clear whether the Hurricane Insurance Protection – Wind Index Endorsement published on August 28, 2020 is the same as the Hurricane Insurance Protection – Wind Index Endorsement published on February 27, 2020. In PM-20-061, RMA refers to changes that must be provided to producers 30 days before the cancellation date but no actual changes are references. Further, when changes are made to a policy, RMA usually includes a summary of changes with the policy when it is published. The August 28, 2020 Hurricane Insurance Protection – Wind Index Endorsement did not include any summary of changes. Without going line-by-line, it is impossible to determine what, if any, changes have been made to the Hurricane Insurance Protection – Wind Index Endorsement published on February 27, 2020.
All statements made are opinions of the author and are not intended to provide legal opinions or legal advice.