APH Tolerance Reviews Sample Clauses

APH Tolerance Reviews. (a) As provided in subparagraph (b), the Company must conduct reviews for those Category B and C eligible crop insurance contracts, as specified in the procedures, with a unit having a newly certified yield equal to or greater than 150 percent of the prior years’ approved APH yield, if the database contains 3 or more years of actual records, for the crop year certified that have been identified by FCIC. (b) The Company must review a minimum of 10 percent of crop insurance units (including required CIH Excessive and Maximum Yield reviews) meeting the criterion in subparagraph (a). During the review process, the Company will: (i) Review the production reports and yields certified on a crop basis; (ii) Review all units for each crop year wherein the actual yields were certified for the selected crop (For example, if the policyholder certified actual yields for the 2 most recent crop years on the current production report, all units for both years will be reviewed); (iii) Obtain acceptable records, as defined in procedures, from the policyholder to determine the accuracy of the certified yields and the established unit structures; (iv) If the supporting records furnished are questionable, obtain the information from other sources such as grain dealers, processors, and first handlers of the commodity to verify the validity of the records and certifications; (v) Recalculate the yield for each unit based on the acceptable records provided by the policyholder or obtained from other sources; (vi) Revise production reports when the calculated yield varies by more than allowable tolerances (Approved APH tolerances and the procedures for correcting APH errors and erroneous yield certifications are contained in the procedures); (vii) Verify the policyholder’s status as a new producer, as defined in procedures; and (viii) Correct any incorrect transitional yield.