Determination of WA Experience. Examine the loss experience (both revenue and production losses) of the acreage insured by the WA for all years that a WA was in effect for the crop or acreage, including a review of the AIP submitted data to RMA to ensure the data was transmitted in accordance with the terms provided in the approved WA. The WA experience is unfavorable if all of the following apply:
(1) an indemnity payment exceeded total premium paid on the acreage insured by the WA in the most recent crop year premium was earned;
(2) an indemnity was paid and exceeded total premium earned in the crop year the indemnity was paid for the acreage for a minimum of two crop years;
Determination of WA Experience. Examine the loss experience (both revenue and production losses) of the acreage insured by the WA for all years that a WA was in effect for the crop or acreage, including a review of the AIP submitted data to RMA to ensure the data was transmitted in accordance with the terms provided in the approved WA. The WA experience is unfavorable if all the following apply:
(1) an indemnity payment exceeded total premium paid on the acreage insured by the WA in the most recent crop year premium was earned; Exception: If the WA experience determination is being reviewed based on Subpara. 35A(3), the crop year preceding the most recent crop year is used in lieu of the most recent crop year to determine if the indemnity payment exceeded total premium paid on the acreage insured by the WA.
(2) an indemnity payment exceeded total premium earned in the crop year the indemnity was paid on the acreage insured by the WA for a minimum of two crop years;
(3) the cumulative ELCR (rounded to two decimals) for the acreage insured by the WA, for all crop years the WA was in effect, is greater than 0.15; and
(a) Cumulative means the total for all liability, premium, and indemnity for all years a WA is in effect.
(b) The ELCR is total indemnity minus total premium divided by total liability. $100,000 = 0.25.
Determination of WA Experience. Examine the loss experience (both revenue and production losses) of the acreage insured by the WA for all years that a WA was in effect for the crop or acreage, including a review of the AIP submitted data to RMA to ensure the data was transmitted in accordance with the terms provided in the approved WA. Note: For a WA type that is crop or P/T based (such as, XC, TP, TD, etc.), review the loss experience for the crop or P/T for all years that a WA was in effect in the county even if the experience is from different acreage. For a WA type that is acreage based (such as, UC, SM, etc.), review the loss experience for all years that a WA was in effect for the requested acreage only. The WA experience is unfavorable if all of the following apply:
(1) an indemnity payment exceeded total premium paid on the acreage insured by the WA in the most recent crop year premium was earned;
(2) an indemnity was paid and exceeded total premium earned in the crop year the indemnity was paid for the acreage for a minimum of two crop years;
Determination of WA Experience. Examine the loss experience (both revenue and production losses) of the acreage insured by the WA for all years that a WA was in effect for the crop or acreage, including a review of the AIP submitted data to RMA to ensure the data was transmitted in accordance with the terms provided in the approved WA. The WA experience is unfavorable if all of the following apply:
(1) an indemnity payment exceeded total premium paid on the acreage insured by the WA in the most recent crop year premium was earned;
(2) an indemnity was paid and exceeded total premium earned in the crop year the indemnity was paid for the acreage for a minimum of two crop years;
(3) the cumulative ELCR (rounded to two decimals) for the acreage insured by the WA, for all crop years the WA was in effect, is greater than 0.15; and
(a) Cumulative means the total for all liability, premium, and indemnity for all years a WA is in effect.
(b) The ELCR is total indemnity minus total premium divided by total liability. $100,000 = 0.25.
B. Determination of WA Experience (continued)
Determination of WA Experience. Examine the loss experience (both revenue and production losses) of the acreage insured by the WA for all years that a WA was in effect for the crop or acreage, including a review of the AIP submitted data to RMA to ensure the data was transmitted in accordance with the terms provided in the approved WA. The WA experience is unfavorable if all the following apply:
(1) an indemnity payment exceeded total premium paid on the acreage insured by the WA in the most recent crop year premium was earned;
Determination of WA Experience. (1) The WA experience will be considered unfavorable if all of the following apply:
(a) an indemnity payment exceeded total premium paid on the acreage insured by the WA in the most recent crop year premium was earned;
(b) a minimum of two crop years in which an indemnity paid exceeded total premium earned in the crop years in which an indemnity was paid for the acreage;
(c) the cumulative excess loss cost ratio (rounded to two decimals) for the acreage insured by the WA, for all crop years the WA was in effect, is greater than 0.15; and
(d) the cumulative loss ratio for the acreage insured by the WA, for all crop years that a WA was in effect for the acreage, is:
(i) equal to or greater than 1.5 times the cumulative loss ratio for the county, when the cumulative excess loss cost ratio is less than 0.40; or
(ii) equal to or greater than 1.0 times the cumulative loss ratio for the county, when the cumulative excess loss cost ratio is 0.40 or greater.
(2) Use the following steps to determine if the WA experience is unfavorable in accordance with (1) of this subparagraph:
(a) examine the loss experience of the acreage insured by the WA for all years that a WA was in effect for the acreage, which must include a review of the AIP submitted data to RMA to ensure the data was transmitted in accordance with the terms provided in the approved WA;
(b) calculate the cumulative excess loss cost ratio for all acreage insured by the WA;
(i) Cumulative means the total for all liability, premium, and indemnity for all years a WA is in effect.
(ii) The excess loss cost ratio is: (indemnity divided by liability) minus (the total premium divided by liability).
(c) calculate the cumulative loss ratio (the loss ratio is indemnity divided by total premium) for all acreage insured by the WA, for all crop years that a WA was in effect for the acreage; and
(d) calculate the cumulative loss ratio for additional (buy-up) coverage in the county for all crop years the WA was in effect. Use the following, in order, to determine the cumulative loss ratio for additional (buy-up) coverage in the county:
(i) the same crop, including different varieties or types, if insurance for the commodity is otherwise available in the county;
(ii) a different crop that would be similarly affected by the cause and time of loss. If insurance for the crop is unavailable, use the crop with the most similar risk exposures to the crop insured by the WA, which has the most insured acreage in the county during...
Determination of WA Experience. (1) The WA experience is unfavorable if all of the following apply:
(a) an indemnity payment exceeded total premium paid on the acreage insured by the WA in the most recent crop year premium was earned;
(b) an indemnity was paid and exceeded total premium earned in the crop year the indemnity was paid for the acreage for a minimum of two crop years;
(c) the cumulative excess LCR [see (2)(b) of this subparagraph] for the acreage insured by the WA, for all crop years the WA was in effect, is greater than 0.15; and
(d) the cumulative loss ratio for the acreage insured by the WA, for all crop years that a WA was in effect for the acreage, is:
(i) equal to or greater than 1.5 times the cumulative loss ratio for the county, when the cumulative excess LCR for the acreage insured by the WA is less than 0.40; or
(ii) equal to or greater than 1.0 times the cumulative loss ratio for the county, when the cumulative excess LCR for the acreage insured by the WA is 0.40 or greater.
(2) Use the following steps to determine if the WA experience is unfavorable in accordance with (1) of this subparagraph:
(a) examine the loss experience of the acreage insured by the WA for all years that a WA was in effect for the acreage, which must include a review of the AIP submitted data to RMA to ensure the data was transmitted in accordance with the terms provided in the approved WA;
Determination of WA Experience. Examine the loss experience (both revenue and production losses) of the acreage insured by the WA for all years that a WA was in effect for the crop or acreage, including a review of the AIP submitted data to RMA to ensure the data was transmitted in accordance with the terms provided in the approved WA. Note: For a WA type that is crop or P/T based (e.g., XC, TP, TD, etc.), review the loss experience for the crop or P/T for all years that a WA was in effect in the county even if the experience is from different acreage. For a WA type that is acreage based (e.g., UC, SM, etc.), review the loss experience for all years that a WA was in effect for the requested acreage only. The WA experience is unfavorable if all the following apply:
(1) an indemnity payment exceeded total premium paid on the acreage insured by the WA in the most recent crop year premium was earned; Exception: If the WA experience determination is being reviewed based on Subpara. 35A(3), the crop year preceding the most recent crop year is used in lieu of the most recent crop year to determine if the indemnity payment exceeded total premium paid on the acreage insured by the WA.
(2) an indemnity payment exceeded total premium earned in the crop year the indemnity was paid on the acreage insured by the WA for a minimum of two crop years;
(3) the cumulative ELCR (rounded to two decimals) for the acreage insured by the WA, for all crop years the WA was in effect, is greater than 0.15; and
(a) Cumulative means the total for all liability, premium, and indemnity for all years a WA is in effect.
(b) The ELCR is total indemnity minus total premium divided by total liability. $100,000 = 0.25.
