On November 27, 2019, the Risk Management Agency issued a Coarse Grains: Corn, Grain Sorghum. and Soybeans Fact Sheet. In the fact sheet, RMA shows maps of sales closing dates and provides information for the crop insured, the dates for the insurance period, acreage reporting requirements, causes of loss, duties in the event of damage or loss, coverage levels and premium subsidies, insurance units, and coverage options.
ANALYSIS – While the information appears to be accurate, it is very high level and there are many provisions and requirements from the policy that have not been included. There is concern that the insured will rely on the fact sheet for the terms of insurance instead of the policy, which can lead to mistakes that could result in insureds receiving only partial or no indemnity. The use of these fact sheets also increases the possibility of discrepancies with the policy terms and these fact sheets are not named in the policy. It can lead to confusion and affect the integrity of the program.
All statements made are opinions of the author and are not intended to provide legal opinions or legal advice.