Common use of Supplemental Insurance Clause in Contracts

Supplemental Insurance. (1) The Company shall not sell a contract of insurance or similar instrument, which is written in conjunction with an eligible livestock price insurance contract and not reinsured by FCIC, unless the Company has complied with the requirements of 7 C.F.R. § 400.713. (2) FCIC will not provide reinsurance for an eligible livestock price insurance contract if the Company sold a contract of insurance or instrument described in paragraph (1) that FCIC determines to have shifted risk to, or increases the risk of, such eligible livestock price insurance contract reinsured under this Agreement, or if the Company administers such insurance or instrument in a manner inconsistent with information submitted in accordance with 7 C.F.R. § 400.713. (3) The Company shall maintain, and make available at the request of FCIC, the underwriting information pertaining to a contract of insurance or instrument described in paragraph (1), including, but not limited to, the policy number and all SSNs and EINs related to the eligible livestock price insurance contract. (4) If the terms of a contract of insurance or instrument described in paragraph (1) become inconsistent with the terms of the eligible livestock price insurance contract causing payments to be made under the eligible livestock price insurance contract that would not otherwise be payable, reinsurance will be denied.