On September 30, 2020, the Risk Management Agency issued Product Management Bulletin: PM–20-069, announcing that the Federal Crop Insurance Corporation Board of Directors approved the Hurricane Insurance Protection – Wind Index (HIP-WI) Endorsement, on November 15, 2019, for the 2020 crop year and issued the Hurricane Data Provisions. https://www.rma.usda.gov/Policy-and-Procedure/Bulletins-and-Memos/2020/PM-20-069; https://www.rma.usda.gov/-/media/RMA/Policies/Hurricane-Insurance-Wind-Index/2021/Hurricane-Insurance-Protection-Wind-Index-Endorsement-21-HIP-WI/Hurricane-Data-Provisions.ashx.
RMA states that HIP-WI continues to be available for the 2021 crop year for both Catastrophic (CAT) and additional coverage for Common Crop Insurance Policy Basic Provisions policies, when provided in the actuarial documents, in counties located in the vicinity of the Gulf of Mexico and the Atlantic Ocean, as well as Hawaii. The Hurricane Data Provisions documents the procedures for determining the counties where a loss is triggered for HIP-WI.
On October 6, 2020, RMA issued Product Management Bulletin: PM–20-071, providing the approved counties that have an updated payment flag and triggering event data available. https://www.rma.usda.gov/en/Policy-and-Procedure/Bulletins-and-Memos/2020/PM-20-071.
The following counties were triggered on September 16, 2020 for payment:
| Hurricane | State | County | ||
| Sally | Alabama | Baldwin | Escambia | Monroe |
| Clarke | Mobile | Washington | ||
| Florida | Escambia | Santa Rosa | Okaloosa | |
| Mississippi | George | Harrison | Stone | |
| Greene | Jackson |
ANALYSIS – The Hurricane Data Provisions are technical in nature and involve NOAA published data to establish storm center points, which are mapped, and the maximum distance of the winds extents used to draw circles around the storm center points that are used to establish the counties triggered for losses. This year’s storm season has already produced counties eligible for payment under the HIP-WI.
All statements made are opinions of the author and are not intended to provide legal opinions or legal advice.