Common use of Subsidies, Expenses, and Payments Clause in Contracts

Subsidies, Expenses, and Payments. A. Subsidies and Expenses 1. Risk subsidy, for eligible livestock price insurance contracts will be the amount approved by the Board, and will be provided to the Company by FCIC at the first monthly settlement after the Company submits, and the UCM accepts, the eligible livestock price insurance contracts, and will be updated each month thereafter as needed. 2. A&O subsidy Notwithstanding the provisions of this section, under no circumstances will A&O subsidy be paid in excess of the amount authorized by statute. a. A & O Subsidy for eligible livestock price insurance contracts will be the percent, approved by the Board, of the net book premium attributed to such eligible livestock price insurance contracts. Payment will be made by FCIC to the Company at the first monthly settlement after the Company submits, and the UCM accepts, the eligible livestock price insurance contracts, and will be updated each month thereafter as needed. b. In addition to other provisions of this Agreement, the amount of A&O subsidy may be adjusted to a level that FCIC determines to be equitable if issuing or servicing eligible livestock price insurance contracts involve expenses that vary significantly from the basis used to determine the A&O subsidy under this section. c. The SSNs of all agents and loss adjusters, as applicable, who perform any service or related activity under an eligible livestock price insurance contract, must be provided to FCIC in accordance with procedures. If the applicable SSN is not provided for an eligible livestock price insurance contract, the Company will not receive any reinsurance for that eligible livestock price insurance contract until the appropriate SSN is provided.

Subsidies, Expenses, and Payments. A. Subsidies and Expenses 1. Risk subsidy, for eligible livestock price insurance contracts will be the amount approved by the Board, and will be provided to the Company by FCIC at the first monthly settlement after the Company submits, and the UCM accepts, the eligible livestock price insurance contracts, and will be updated each month thereafter as needed. 2. A&O subsidy Notwithstanding the provisions of this section, under no circumstances will A&O subsidy be paid in excess of the amount authorized by statute. a. A & O Subsidy for eligible livestock price insurance contracts will be the 22.2 percent, or a percent approved by the Board, of the net book premium attributed to such eligible livestock price insurance contractscontracts (This amount will increase to 23.35 percent for states with a loss ratio greater than 120 percent of the total net book premium written in the state by all approved insurance providers). Payment will be made by FCIC to the Company at the first monthly settlement after the Company submits, and the UCM accepts, the eligible livestock price insurance contracts, and will be updated each month thereafter as needed. b. In addition to other provisions of this Agreement, the amount of A&O subsidy may be adjusted to a level that FCIC determines to be equitable if issuing or servicing eligible livestock price insurance contracts involve expenses that vary significantly from the basis used to determine the A&O subsidy under this section. c. The SSNs of all agents and loss adjusters, as applicable, who perform any service or related activity under an eligible livestock price insurance contract, must be provided to FCIC in accordance with procedures. If the applicable SSN is not provided for an eligible livestock price insurance contract, the Company will not receive any reinsurance for that eligible livestock price insurance contract until the appropriate SSN is provided.