Common use of Assigned Risk Fund Clause in Contracts

Assigned Risk Fund. The Company may designate eligible crop insurance contracts that have an aggregate net book premium not greater than the maximum cession limits specified in this paragraph to the Assigned Risk Fund for each State. The net book premium associated with eligible crop insurance contracts for pilot programs, as solely determined by FCIC, will not count against the maximum cession limits. a. The Company must retain the percentage of the net book premium and associated liability for ultimate net losses on eligible crop insurance contracts designated to the Assigned Risk Fund in accordance with the table in subparagraph b., except as provided in paragraph 6. The net book premium and associated liability for ultimate net losses not retained by the Company within the Assigned Risk Fund for each State will be ceded to FCIC. b. The maximum premium cession limits to the Assigned Risk Fund and retention of ceded premium by the Company for each State are: Maximum Premium Retention of Ceded Maximum Premium Retention of Ceded State Cession Premium State Cession Premium Alabama 75% 15% Montana 75% 15% Alaska 75% 15% Nebraska 25% 25% Arizona 75% 15% Nevada 75% 15% Arkansas 50% 20% New Hampshire 75% 15% California 50% 20% New Jersey 50% 20% Colorado 75% 15% New Mexico 75% 15% Connecticut 75% 15% New York 50% 20% Delaware 50% 20% North Carolina 75% 15% Florida 50% 20% North Dakota 75% 15% Georgia 75% 15% Ohio 25% 25% Hawaii 50% 20% Oklahoma 75% 15% Idaho 50% 20% Oregon 75% 15% Illinois 25% 25% Pennsylvania 50% 20% Indiana 25% 25% Rhode Island 75% 15% Iowa 25% 25% South Carolina 75% 15% Kansas 50% 20% South Dakota 50% 20% Kentucky 50% 20% Tennessee 50% 20% Louisiana 75% 15% Texas 75% 15% Maine 75% 15% Utah 75% 15% Maryland 50% 20% Vermont 75% 15% Massachusetts 75% 15% Virginia 50% 20% Michigan 50% 20% Washington 50% 20% Minnesota 25% 25% West Virginia 75% 15% Mississippi 75% 15% Wisconsin 50% 20% Missouri 50% 20% Wyoming 75% 15% c. Unless otherwise specified in the Agreement, in the event the aggregate net book premium for all such eligible crop insurance contracts exceeds the maximum allowable cession for any individual State, the amount ceded for each eligible crop insurance contract in such State will be reduced pro-rata to the maximum allowable cession for that State. The net book premium and associated liability for ultimate net losses that exceed the maximum allowable cession for an individual State will be placed in the appropriate Developmental Funds for that State on a pro rata basis.

Assigned Risk Fund. The Company may designate eligible crop insurance contracts that have an aggregate net book premium not greater than the maximum cession limits specified in this paragraph to the Assigned Risk Fund for each State. The net book premium associated with eligible crop insurance contracts for pilot programs, as solely determined by FCIC, will not count against the maximum cession limits. a. The Company must retain 25 percent of the net book premium and associated liability for ultimate net losses on eligible crop insurance contracts designated to the Assigned Risk Fund, except as provided in paragraph 6. The net book premium and associated liability for ultimate net losses not retained by the Company within the Assigned Risk Fund for each State will be ceded to FCIC. a. The Company must retain the percentage of the net book premium and associated liability for ultimate net losses on eligible crop insurance contracts designated to the Assigned Risk Fund in accordance with the table in subparagraph b., except as provided in paragraph 6. The net book premium and associated liability for ultimate net losses not retained by the Company within the Assigned Risk Fund for each State will be ceded to FCIC. b. The Assigned Risk Fund maximum cession limits for each State are: Maximum Maximum State Cession State Cession Alabama 55% Montana 75% Alaska 75% Nebraska 25% Arizona 55% Nevada 75% Arkansas 50% New Hampshire 20% California 20% New Jersey 50% Colorado 40% New Mexico 55% Connecticut 45% New York 45% Delaware 30% North Carolina 45% Florida 40% North Dakota 65% Georgia 75% Ohio 25% Hawaii 15% Oklahoma 55% Idaho 45% Oregon 45% Illinois 20% Pennsylvania 35% Indiana 25% Rhode Island 75% Iowa 15% South Carolina 60% Kansas 35% South Dakota 40% Kentucky 30% Tennessee 40% Louisiana 55% Texas 75% Maine 75% Utah 75% Maryland 20% Vermont 15% Massachusetts 50% Virginia 35% Michigan 50% Washington 30% Minnesota 25% West Virginia 75% Mississippi 65% Wisconsin 35% Missouri 20% Wyoming 40% Formatted: Bullets and Numbering a. The maximum premium cession limits to the Assigned Risk Fund and retention of ceded premium by the Company for each State are: Maximum Retention Maximum Retention Premium Retention of Ceded Maximum Premium Retention of Ceded State Cession Premium State Cession Premium Alabama 75% 15% Montana 75% 15% Alaska 75% 15% Nebraska 25% 25% Arizona 75% 15% Nevada 75% 15% 13 Arkansas 50% 20% New Hampshire 75% 15% California 50% 20% New Jersey 50% 20% Colorado 7550% 1520% New Mexico 75% 15% Connecticut 75% 15% New York 50% 20% Delaware 50% 20% North Carolina 75% 15% Florida 50% 20% North Dakota 75% 15% Georgia 75% 15% Ohio 25% 25% Hawaii 50% 20% Oklahoma 75% 15% Idaho 50% 20% Oregon 7550% 1520% Illinois 25% 25% Pennsylvania 50% 20% Indiana 25% 25% Rhode Island 75% 15% Iowa 25% 25% South Carolina 75% 15% Kansas 50% 20% South Dakota 50% 20% Kentucky 50% 20% Tennessee 50% 20% Louisiana 75% 15% Texas 75% 15% Maine 75% 15% Utah 75% 15% Maryland 50% 20% Vermont 75% 15% Massachusetts 75% 15% Virginia 50% 20% Michigan 50% 20% Washington 50% 20% Minnesota 25% 25% West Virginia 75% 15% Mississippi 75% 15% Wisconsin 50% 20% Missouri 50% 20% Wyoming 7550% 1520% c. Unless otherwise specified in the Agreement, in the event the aggregate net book premium for all such eligible crop insurance contracts exceeds the maximum allowable cession for any individual State, the amount ceded for each eligible crop insurance contract in such State will be reduced pro-rata to the maximum allowable cession for that State. The net book premium and associated liability for ultimate net losses that exceed the maximum allowable cession for an individual State will be placed in the appropriate Developmental Funds for that State on a pro rata basis.