2023 Livestock Risk Protection Basic Provisions

SUMMARY OF CHANGES FOR THE LIVESTOCK RISK PROTECTION INSURANCE POLICY

The following is a brief description of the changes to the Livestock Risk Protection insurance policy that are effective for the

2023 and succeeding crop years.

1. Definitions

• Added the definition of “covered livestock” as the livestock insured under an SCE. Throughout the policy the term “insured

livestock” is replaced with “covered livestock” because they have the same meaning.

• Added the definition of “end month” as the calendar month that includes the SCE end date.

• Revised the definition of “expected end value” to refer to “insurance period” since that is the term used most in the policy.

• Added a definition of “insurance period” because the term is used throughout the policy.

• Revised the definition of “insured share” to refer to the “ownership interest” since that is the term defined.

• Revised the definition of “insured value” to replace “livestock or livestock product covered under the Specific Coverage

Endorsement” with “covered livestock” since it is now a defined term.

• Add a definition of “livestock purchase agreement” to include the number of livestock purchased by the insured, the price,

and a delivery or pick up date.

• Added a definition of “bill of sale” as documentation showing a specified number of livestock sold by the insured to a buyer

at a specified price, and a delivery or pick up date that occurs within the insurance period of the applicable Specific

Coverage Endorsement.

• Delete the definition of “livestock product” since no livestock products are insured under the policy.

• Add a definition of “marketable” to mean that the covered livestock whose average actual weight on the earlier of end date

or when livestock is sold meets or exceeds the minimum allowed target weight.

• Add a definition of “ownership interest” to distinguish it from “insured share” since insured share is simply the percentage

of the ownership interest.

• Add a definition of “sold” to clarify that livestock are considered sold at the time they are possessed by the buyer, not the

date of the livestock purchase agreement.

• Revise the definition of “unborn livestock” to clarify they must be marketable by the end date.

• Added the definition for “cancellation date,” and revised definitions for “assignment of indemnity,” “RMA,” and “veteran

farmer or rancher” to be consistent with the Common Crop Insurance Policy – Basic Provisions.

2. Life of Policy, Cancellation, and Termination

• Moved section 2(e) to section 6(b) and revised the reference to the reporting of location to specify the state and county.

• Moved sections 2(g), (h) and (i) to a revised section 6, which is now entitled “Covered Livestock,” and redesignated the

remaining paragraphs.

• Updated section 2(g) (previously 2(k)) to clarify that the written notice of cancellation prior to June 30 prevents automatic

renewal of the policy for the next crop year. Cancellation during a crop year to submit an application to another LRP policy

with a different insurance provider within the same crop year is no longer allowed.

• Updated redesignated section 2(h)(3) (previously 2(m)(3)) to clarify when premium will be deducted from indemnity

payments.

• Deleted previous section 2(l) since premium is owed at the end of the insurance period.

• In redesigned section 2(i)(1)(ii), clarified that the insured will not receive any indemnity for any Specific Coverage

Endorsement in effect for the current crop year if the producer is ineligible and the policy has been terminated.

• In redesignated section 2(i)(2)(i)(A) and (B), clarified that when termination occurs after the start of the crop year it is

effective on July 1 of the current crop year, and added examples.

• In redesignated section 2(i)(2)(i)(D), revised the example to conform to the provisions.

• In redesignated 2(i)(5), updated the example to include the termination date of August 31.

• In redesignated section 2(j)(4), clarified that application for coverage must be submitted by the sales closing date.

• In redesignated section 2(m) clarified that the cancellation and termination dates are now specified in the actuarial

documents.

3. Contract Changes

• Clarified contract change date to be April 30 preceding the cancellation date. Only corrections of clear errors are allowed

after April 30. All changes are available from the agent’s office.

4. Coverage Limitations

• Modified section 4(g) to allow restricted use of multiple FCIC reinsured livestock policies covering the same class of

livestock. The insured may not have any other FCIC reinsured livestock policy covering the same class of livestock with

the same end month or have any other FCIC reinsured livestock policy covering the same covered livestock at the same

time.

5. Premium

• Removed provisions 5(b) and 5(d) relating to payment of premium on the date of purchase and redesignated the remaining

paragraphs.

• Clarify 5(c) to state that the premium is earned at the time coverage begins and the producer will be billed by the billing

date contained in the actuarial documents. The language is now consistent with other policies where premium owed at the

end of the coverage period.

6. Covered Livestock

• Revised section 6 to incorporate the provisions of coverage and insurability.

• Added provision 6(a)(1) regarding ownership interest and what qualifies.

• Added provision 6(a)(1)(ii)(A) regarding insurability of unborn livestock.

• Added provision 6(a)(1)(ii)(B) regarding insurability of unborn swine when a different entity owns pregnant sows.

• Add provision 6(a)(2) regarding documents that must be provided to receive an indemnity.

• Modified 6(c)(1) (previously 2(g)(2)) to allow purchase of multiple endorsements for the same class of livestock on the

same sales date if those endorsements are for different end months.

• Added provision 6(d) requiring the adjustment of the number of covered livestock in cases where the insured disposes of

or sells the covered livestock more than 60 days prior to the end date; when livestock are seized, quarantined or destroyed

by order of any governmental authority, or the livestock are not deliverable due to death or disease and the insured does

not provide prior written notice; the insured fails to provide ownership records; or the total weight of the covered livestock

at the end date is less than the number of covered livestock multiplied by the minimum target weight.

8. Insurance Period

• In section 8, clarify that the insurance period starts on the effective date and ends on the end date specified in the SCE.

9. Indemnity Payment for Losses

• Section 9(b) is revised to clarify that claims must be submitted within 60 days following issuance of the claims form by the

approved insurance provider.

• Section 9(c) is revised to stipulate indemnity payments must be made within 30 days (previously 60 days) following the

receipt of the claim form.

12. Access to Covered Livestock and Records, and Record Retention.

• In section 12(c), revise the acceptable records of ownership to include livestock purchase agreements and certified written

statements.

24. Other Insurance

• New section 24 “Other Insurance” is added to provide protocol for voiding prohibited overlapping insurance coverage.

Other Changes

• Sections 14 (Amounts Due Us) and 17 (Assignment of Indemnity) are revised to make them consistent with Common Crop

Insurance Policy – Basic Provisions.

• Previous section 23 “Subrogation” is deleted, and the same matter is now addressed in the newly added Section 24 “Other

Insurance.”

• Removed references to “livestock products” and “administrative fees” throughout the policy.

• Replace references of “insured livestock” with “covered livestock” to be consistent throughout the policy.

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LIVESTOCK RISK PROTECTION INSURANCE POLICY

(This is a continuous policy. Refer to section 2.)

This is a policy for Livestock Risk Protection insurance between you and the policy issuing company, and, when approved by

us in writing, each shall be subject to all of the terms and conditions of this policy. Each Livestock Risk Protection policy shall

be reinsured by the Federal Crop Insurance Corporation (FCIC) under the authority of sections 508(h) and 523(b) of the Federal

Crop Insurance Act (Act) (7 U.S.C. § 1508(h) and 1523(b)).

All provisions of the policy and rights and responsibilities of the parties are specifically subject to the Act. The provisions of the

policy may not be waived or varied in any way by the crop insurance agent or any other agent or employee of the company.

Neither FCIC nor the Risk Management Agency has the authority to revise, amend or otherwise alter this policy. They can only

approve or disapprove for reinsurance those terms submitted by the developer of this policy. In the event we cannot pay your

loss, your claim will be settled in accordance with the provisions of this policy and paid by FCIC. No state guarantee fund will

be liable for your loss.

Throughout this policy, “you” and “your” refer to the named insured shown on the approved application and “we,” “us,” and

“our” refer to the insurance company providing insurance. Unless the context indicates otherwise, use of the plural form of a

word includes the singular and use of the singular form of a word includes the plural.

AGREEMENT TO INSURE: In return for the payment of the premium, and subject to all of the provisions of this policy, we

agree with you to provide the insurance as stated in this policy. If a conflict exists among the policy provisions, the order of

priority is as follows: (1) the Special Provisions;(2) the actuarial documents; (3) the Livestock Risk Protection Endorsement;

and (4) these Basic Provisions, with the provisions of (1) controlling (2), etc.

BASIC PROVISIONS

TERMS AND CONDITIONS

Definitions.

Act - The Federal Crop Insurance Act (7 U.S.C. 1501

et seq.).

Actual ending value - The actual ending value is the

price at the end of the insurance period as defined in

each Specific Coverage Endorsement.

Actuarial documents - The information for the crop

year, available for public inspection in your agent’s

office or on the RMA website, which shows the dates,

coverage prices, rates, coverage levels, practices,

insurable class, and other related information regarding

Livestock Risk Protection coverage in the county or

state.

Agricultural Marketing Service (AMS) - An agency of

the United States Department of Agriculture (USDA).

The AMS website is https://www.ams.usda.gov.

Application - The form required to be completed by

you and approved by us in writing before insurance

coverage will begin. The Application form will identify

the insured and the classes of livestock to be insured.

Assignment of indemnity - A transfer of policy rights,

requested on our form, and effective when approved by

us in writing, whereby you assign your right to an

indemnity payment only to creditors or other persons to

whom you have a financial debt or other pecuniary

obligation.

Beginning farmer or rancher - An individual who has

not actively operated and managed a farm or ranch in

any state, with an insurable interest in a crop or

livestock as an owner-operator, landlord, tenant, or

sharecropper for more than five crop years, as

determined in accordance with FCIC procedures. Any

crop year’s insurable interest may, at your election, be

excluded if earned while under the age of 18, while in

full-time military service of the United States, or while

in post-secondary education, in accordance with FCIC

procedures. A person other than an individual may be

eligible for beginning farmer or rancher benefits if there

is at least one individual substantial beneficial interest

holder and all individual substantial beneficial interest

holders qualify as a beginning farmer or rancher.

Bill of sale - Documentation showing a specified

number of livestock sold to a buyer at a specified price,

with a specified delivery or pick-up date.

Cancellation date - The calendar date specified in the

actuarial documents on which coverage will

automatically renew unless canceled in writing by

either you or us or otherwise terminated in accordance

with the policy terms.

CME - The Chicago Mercantile Exchange Group.

Class - The same species of livestock that shares

common traits or characteristics and can be insured

under a Specific Coverage Endorsement.

Consent - Approval in writing by us allowing you to

take a specific action.

Contract change date - The calendar date by which

we make policy changes that will be effective for the

following crop year available for inspection in the

agent’s office or on RMA’s website in accordance with

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section 3 of these Basic Provisions.

Coverage - The insurance provided by this policy

insures against a decline in price as specified in the

Specific Coverage Endorsement.

Coverage level - The percent of the expected ending

value that is the coverage provided by the policy.

Coverage price - The level of protection provided by

the policy on a dollar per cwt basis as published each

day on RMA’s website.

Covered livestock – The livestock insured under an

SCE.

Crop year - The twelve-month period, beginning on

July 1 and ending on the following June 30 and

designated by the calendar year in which the period

ends. The crop year in which the effective date falls will

determine the crop year for a Specific Coverage

Endorsement.

Cwt - Hundredweight.

Days - Calendar days unless otherwise specified.

Daily price limit - For a given CME futures contract,

the maximum daily price change allowed by the CME,

either up or down, from the previous settlement price.

The Daily Price Limit is defined as the standard amount

that prices may vary from day to day and does not

include expanded limits.

Deductible - The amount determined by subtracting

the coverage level from 100 percent. For example, if

you elected an 85 percent coverage level, your

deductible would be 15 percent (100% - 85% = 15%).

Delinquent debt - Has the same meaning as the term

defined in 7 CFR part 400, subpart U.

Effective date - The date associated with the

beginning of insurance for a Specific Coverage

Endorsement. This is the date that coverage begins.

The effective date will always be the date the rates

were published on the RMA website. If the Specific

Coverage Endorsement was purchased and we

approved it on the day following the date the rates were

published on the RMA website, the effective date is still

the date that the rates were published on the RMA

website.

End date - The date selected by you, and stated in the

Specific Coverage Endorsement, on which coverage

under a Specific Coverage Endorsement ends.

End month – The calendar month that includes the

end date.

Ending period - The period specified by the Specific

Coverage Endorsement, ending on the end date, over

which the actual ending value is determined.

Expected ending value - The expected value of the

livestock at the end of the insurance period, as

published on the RMA website.

FCIC - The Federal Crop Insurance Corporation, a

wholly owned government corporation within USDA.

Insurance period - The period of time coverage is

provided as specified in section 8.

Insured - The named person(s) shown on the

application approved by us. This term does not extend

to any other person having a share or interest in the

covered livestock.

Insured share - Your percentage of ownership interest

in the covered livestock at the time coverage attaches.

Insured value - The insured value is the total dollar

amount of coverage calculated by multiplying the

number of livestock insured under the Specific

Coverage Endorsement by the target weight (as shown

in the Specific Coverage Endorsement), by the

coverage price (in dollars per cwt.), and by the insured

share.

Lean weight - Lean weight is a measure of animal

carcass weight, presented in cwt. To convert live

weight to lean weight, multiply the live weight by the

factor specified in the Specific Coverage Endorsement.

For example, for hogs, a 2.50 cwt. per head live weight

multiplied by .74 is equal to 1.85 cwt. lean weight.

Limited resource farmer or rancher - Has the same

meaning as the term defined by USDA at

https://lrftool.sc.egov.usda.gov/LRP_Definition.aspx or

successor website.

Live weight - Live weight is a measure of the live

animal's weight, stated in cwt.

Livestock - A species of domestic animals sharing the

same traits or characteristics which are insurable under

a Specific Coverage Endorsement.

Livestock purchase agreement – A legal contract,

entered into before the start of the insurance period, to

purchase a specified number of livestock at a specified

sales price or pricing formula, with a specific delivery or

pick-up date.

Marketable - The covered livestock is considered

marketable if the average actual livestock weight on the

earlier of the date when livestock are sold or the SCE

end date meets or exceeds the minimum allowed target

weight as stated in the Specific Coverage

Endorsement. Livestock that does not meet the

minimum weight may be considered marketable if you

can establish that extraordinary circumstances caused

the livestock to weigh less than the minimum weight,

such as drought causing a lack of feed.

Offset - The act of deducting one amount from another

amount.

Ownership interest - Your insurable interest as an

owner in the covered livestock during the insurance

period.

Person - An individual or an association, corporation,

estate, partnership, trust, or other legal entity, and,

where applicable, a State or a political subdivision or

agency of a State. “Person” does not include the United

States Government or any agency thereof.

Policy - The agreement between you and us consisting

of the application approved by us in writing, these Basic

Provisions, the Specific Coverage Endorsement, the

Special Provisions, other applicable endorsements,

and the actuarial documents for the covered livestock.

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Premium billing date – If applicable, the earliest date

upon which you will be billed for the Specific Coverage

Endorsement. The premium billing date is the first day

of the month following the end date for the Specific

Coverage Endorsement and is contained in the

actuarial documents.

Producer premium - Total premium minus the

premium subsidy paid by FCIC.

RMA – Risk Management Agency, an agency within

USDA.

RMA’s website - A website hosted by RMA and

located at https://www.rma.usda.gov/ or a successor

website.

Sales closing date - The effective date of the Specific

Coverage Endorsement.

Sales period - The period of time that begins when the

coverage price and rates are posted and ends at 9:00

am Central Time the following calendar day or as

otherwise specified in each Specific Coverage

Endorsement. Sales will not be available for purchase

on any sales period that would have an effective date

of a Federal or a market holiday or as otherwise

specified in each Specific Coverage Endorsement.

Sold - Livestock transferred to another person through

a valid bill of sale or auction. Livestock is considered

sold on the date the buyer takes physical possession

of the livestock.

Special provisions - The part of the policy that

contains specific provisions of insurance for each

insured class and may vary by geographic area.

Specific Coverage Endorsement (SCE) - An

endorsement to the policy necessary to provide

coverage that includes information about the class to

be insured.

Substantial beneficial interest - An interest held by

any person of at least 10 percent in the applicant or

insured. A spouse who resides in the household or

households of the applicant or insured will be

considered to have a substantial beneficial interest in

the applicant or insured unless the spouse can prove

that the class covered by the Specific Coverage

Endorsement is in a totally separate farming operation

in accordance with FCIC procedures and the spouse

derives no benefit from the farming operation of the

insured or applicant.

Target weight - The anticipated weight at the end date

as specified in the Specific Coverage Endorsement.

Termination date - The calendar date contained in the

actuarial documents upon which your insurance

ceases to be in effect because of nonpayment of any

amount due us under the policy, including premium if

applicable.

Unborn livestock - Livestock not born on the effective

date but expected to be marketable before the end

date.

Veteran farmer or rancher -

(1) An individual who has served active duty in the

United States Army, Navy, Marine Corps, Air

Force, Space Force, or Coast Guard, including the

reserve components; was discharged or released

under conditions other than dishonorable; and:

(i) Has not operated a farm or ranch;

(ii) Has not operated a farm or ranch for not more

than 5 years; or

(iii) First obtained status as a veteran during the

most recent 5-year period.

(2) A person, other than an individual, may be eligible

for veteran farmer or rancher benefits if all

substantial beneficial interest holders qualify as a

veteran farmer or rancher in accordance with

paragraph (1) of this definition; except in cases in

which there is only a married couple, then a veteran

and non-veteran spouse are considered a veteran

farmer or rancher

USDA - United States Department of Agriculture.

Life of Policy, Cancellation, and Termination

(a) This policy provides coverage to protect you

against price decreases during the insurance

period.

(b) The application must be completed by you and

received by us not later than the sales closing date.

If cancellation or termination of insurance coverage

occurs for any reason, including but not limited to

indebtedness,

suspension, debarment,

disqualification, cancellation by you or us or

violation of the controlled substance provisions of

the Food Security Act of 1985, a new application

must be filed.

under the policy or under any Federal statute or

regulation.

(d) Unless otherwise limited by section 4 of this policy,

an application for coverage under this policy may

be submitted during the sales period, must be

approved in writing by us before you can purchase

coverage under an SCE, and must contain all the

information required by us to be approved to insure

your livestock.

(e) Your agent does not have authority to bind

coverage under this policy. Once approved by us

in writing, coverage for the class described in the

SCE begins on the effective date.

(f) With respect to your application for coverage under

this policy and or SCE:

(1)

You must include your social security number

(SSN) if you are an individual (if you are an

individual applicant operating as a business,

you may provide an employer identification

number (EIN) but you must also provide your

SSN); or

(2)

You must include your EIN if you are a person

other than an individual;

(3)

In addition to the requirements of section

2(f)(1) or 2(f)(2), you must include the following

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for all persons who have a substantial

beneficial interest in you:

(i)

The SSN for individuals; or

(ii)

The EIN for persons other than individuals

and the SSNs for all individuals that

comprise the person with the EIN if such

individuals also a substantial beneficial

interest in you;

(4)

Your application will not be accepted, and no

insurance will be provided if the application

does not contain your SSN or EIN. If your

application contains an incorrect SSN or EIN

for you, your application will be considered not

to have been accepted, no insurance will be

provided for the year of application and for any

subsequent crop years, as applicable, and

such policies will be void if:

(i)

Such number is not corrected by you; or

(ii)

You correct the SSN or EIN but:

(A)

You cannot prove that any error was

inadvertent (Simply stating the error

was inadvertent is not sufficient to

prove the error was inadvertent); or

(B)

It is determined that the incorrect

number would have allowed you to

obtain disproportionate benefits under

the crop insurance program, you are

determined to be ineligible for

insurance or you could avoid an

obligation or requirement under any

State or Federal law;

(5)

With respect to persons with a substantial

beneficial interest in you:

(i)

The coverage for all the livestock included

on your SCEs will be reduced

proportionately by the percentage interest

in you of persons with a substantial

beneficial interest in you (presumed to be

50 percent for spouses of individuals) if the

SSNs or EINs of such persons are

included on your application, the SSNs or

EINs are correct, and the persons with a

substantial beneficial interest in you are

ineligible for insurance;

(ii)

The coverage for all livestock included on

your SCEs for all applicable crop years,

will be void if the SSN or EIN of any person

with a substantial beneficial interest in you

is incorrect or is not included on your

application and:

(A)

Such number is not corrected or

provided by you, as applicable;

(B)

You cannot prove that any error or

omission was inadvertent (Simply

stating the error or omission was

inadvertent is not sufficient to prove

the error or omission was inadvertent);

(C)

Even after the correct SSN or EIN is

provided by you, it is determined that

the incorrect or omitted SSN or EIN

would have allowed you to obtain

disproportionate benefits under the

crop insurance program, the person

with a substantial beneficial interest in

you is determined to be ineligible for

insurance, or you or the person with a

substantial beneficial interest in you

could avoid an obligation or

requirement under any State or

Federal law; or

(iii)

Except as provided in sections

2(f)(5)(ii)(B)and 2(f)(5)(ii)(C), your policies

will not be voided if you subsequently

provide the correct SSN or EIN for persons

with a substantial beneficial interest in you

and the persons are eligible for insurance;

(6)

When any of your policies are void under

sections 2(f)(4) or 2(f)(5):

(i)

You must repay any indemnity that may

have been paid for all applicable livestock

and crop years as determined by us;

(ii)

Even though the policies are void, you will

still be required to pay an amount equal to

20 percent of the premium that you would

otherwise be required to pay; and

(iii)

If you previously paid premium, any

amount in excess of the amount required

in section 2(f)(6)(ii) will be returned to you;

(7)

Notwithstanding any of the provisions in this

section, if you certify to an incorrect SSN or

EIN, or receive an indemnity and the SSN or

EIN was not correct, you may be subject to

civil, criminal or administrative sanctions;

(8)

If any of the information regarding persons with

a substantial beneficial interest in you changes

after the cancellation date for the previous crop

year, you must revise your application by the

cancellation date for the current crop year to

reflect the correct information. However, if

such information changed less than 30 days

before the cancellation date for the current

crop year, you must revise your application by

the cancellation date for the next crop year. If

you fail to provide the required revisions, the

provisions in section 2(f)(5) will apply; and

(9)

If you are, or a person with a substantial

beneficial interest in you is, not eligible to

obtain a SSN or EIN, whichever is required,

you must request an assigned number for the

purposes of this policy from us:

(i)

A number will be provided only if you can

demonstrate you are, or a person with a

substantial beneficial interest in you is,

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eligible to receive Federal benefits;

(ii)

If a number cannot be provided for you in

accordance with section 2(f)(9)(i), your

application will not be accepted; or

(iii)

If a number cannot be provided for any

person with a substantial beneficial

interest in you in accordance with section

2(f)(9)(i), the amount of coverage for all

crops on the application will be reduced

proportionately by the percentage interest

of such person in you.

(g) Either you or we may cancel this policy after the

initial crop year by providing written notice to the

other on or before June 30. Cancellation during a

crop year is not allowed.

(h) Any amount owed to us for any policy authorized

under the Act will be offset from any indemnity or

prevented planting due you for this or any other

crop insured with us under the authority of the Act.

(1)

Even if your claim has not yet been paid, you

must still pay the premium on or before the

termination date for you to remain eligible for

insurance.

(2)

If we offset any amount due us from an

indemnity or prevented planting payment owed

to you, the date of payment for the purpose of

determining whether you have a delinquent

debt will be the date that you submit the claim

for indemnity in accordance with section 9.

(Indemnity Payments for Losses.).

(3)

For this agricultural commodity policy and any

other agricultural commodity policy insured

with us and it is:

(i)

Prior to the premium billing date or for any

endorsement that has not ended, you may

request your premium and administrative

fees to be offset from any indemnity or

prevented planting payment due you; or

(ii)

On or after the premium billing date or for

any endorsement that has ended, your

premium and administrative fees will be

offset from any indemnity or prevented

planting payment due you.

(i) A delinquent debt for any policy will make you

ineligible to obtain crop insurance authorized under

the Act for any subsequent crop year and result in

termination of all policies in accordance with

section 2(i)(2).

(1)

With respect to ineligibility:

(i)

Ineligibility for crop insurance will be

effective on:

(A)

The date that a policy was terminated

in accordance with section 2(i)(2) for

the crop for which you failed to pay

premium, or any related interest owed,

as applicable;

(B)

The payment due date contained in

any notification of indebtedness for

any overpaid indemnity if you fail to

pay the amount owed, including any

related interest owed, as applicable,

by such due date; or

(C)

The termination date for the crop year

prior to the crop year in which a

scheduled payment is due under a

written payment agreement if you fail

to pay the amount owed by any

payment date in any agreement to pay

the debt;

(ii)

If you are ineligible and a policy has been

terminated in accordance with section

2(i)(2), you will not receive any indemnity

for any SCEs in effect for the current crop

year and such ineligibility and termination

of the policy may affect your eligibility for

benefits under other USDA programs. Any

indemnity payment that may be owed for

the policy before it has been terminated

will remain owed to you, but may be offset

in accordance with section 2(h), unless

your policy was terminated in accordance

with sections 2(i)(2)(i)(A), 2(i)(2)(i)(B), or

2(i)(2)(i)(D).

(2)

With respect to termination:

(i)

Termination will be effective on:

(A)

For a policy with unpaid premiums, the

termination date for the crop year (For

SCEs for which the sales closing dates

and insurance attachment occur prior

to the termination date, such SCEs will

terminate for the current crop year

even though insurance attached prior

to the termination date. Such

termination will be considered

effective as of July 1 of the current

crop year and no insurance will be

considered to have attached for any

SCEs for the crop year and no

indemnity will be owed. For example,

in the crop year 2023, you purchase an

SCE on July 15, 2022, and you fail to

pay all premium due for the crop year

2022 by the termination date for crop

year 2022. Your 2023 policy will

terminate on July 1, 2022, and no

premium or indemnity will be owed for

the SCE purchased on July 15, 2022);

(B)

For a policy with other amounts due

us, the termination date immediately

following the date such payment is

owed (For SCEs for which the sales

closing dates are prior to the

termination date, such SCEs will

terminate for the current crop year

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even if insurance attached prior to the

termination date. Such termination will

be considered effective as of July 1

subsequent to the prior crop year’s

cancellation date and no insurance will

be considered to have attached for the

current crop year and no indemnity will

be owed. For example, you owe

reimbursement of an overpaid

indemnity on an SCE, with payment

due on December 15, 2022, and you

fail to make the payment. Your policy

is terminated as of the next termination

date, August 31, 2023. If you have

purchased an SCE on or after July 1,

2023, those SCEs are terminated

effective on July 1, 2023);

(C)

For all other policies that are issued by

us under the authority of the Act, the

termination date that coincides with

the termination date for the policy with

the delinquent debt or, if there is no

coincidental termination date, the

termination date immediately following

the date you become ineligible;

(D)

For execution of a written payment

agreement and failure to make any

scheduled payment, the termination

date for the crop year prior to the crop

year in which you failed to make the

scheduled payment (for this purpose

only, the crop year will start the day

after the termination date and end on

the next termination date, e.g., you

enter a payment agreement for the

2021 crop year premium and you fail

to make a payment on April 15, 2022,

your policy will terminate effective on

July 1, 2020, effectively terminating

the 2021 and 2022 crop year policies);

(ii)

For all policies terminated under sections

2(i)(2)(i)(A), 2(i)(2)(i)(B), or 2(i)(2)(i)(D),

any indemnities paid subsequent to the

termination date must be repaid.

(iii)

Once the policy is terminated, it cannot be

reinstated for the current crop year unless:

(A)

The termination was in error;

(B)

The Administrator of the Risk

Management Agency, at his or her

sole discretion, determines that the

following are met:

(1) In accordance with 7 CFR part

400,

subpart U, and FCIC

issued

procedures, you provide

documentation that your

inadvertent failure to pay your debt

is due to an unforeseen or

unavoidable event or other

extenuating circumstances that

created the inadvertent failure for

you to make timely payment;

(2) You remit full payment of the

delinquent debt owed to us or

FCIC with your request submitted

in accordance with section

2(i)(2)(iii)(B)(3); and

(3) You submit a written request for

reinstatement of your policy to us

no later than 60 days after the

termination date or the missed

payment date of a previously

executed written payment

agreement, or in the case of

overpaid indemnity or any amount

that became due after the

termination date, the due date

specified in the notice to you of the

amount due, if applicable

(i) If authorization for

reinstatement, as defined in 7

CFR part 400, subpart U, is

granted, your policies will be

reinstated effective at the

beginning of the crop year for

which you were determined

ineligible, and you will be

entitled to all applicable

benefits under such policies,

provided you meet all

eligibility requirements and

comply with the terms of the

policy; and

(ii) There is no evidence of fraud

or misrepresentation; or

(C)

We determine that, in accordance with

7 CFR part 400, subpart U, and FCIC

procedures, the following are met:

(1) You can demonstrate:

(i) You made timely payment for

the amount of premium owed

but you inadvertently omitted

some small amount, such as

the most recent month’s

interest or a small

administrative fee;

(ii) The amount of the payment

was clearly transposed from

the amount that was

otherwise due (For example,

you owed $892 but you paid

$829);

(iii) You timely made the full

payment of the amount owed

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but the delivery of that

payment was delayed, and

was postmarked no more than

seven calendar days after the

termination date or the missed

payment date of a previously

executed written payment

agreement, or in the case of

overpaid indemnity or any

amount that became due after

the termination date, the due

date specified in a notice to

you of an amount due, as

applicable.

(iv) For previously executed

written payment agreements,

you made the full payment of

the scheduled payment

amount owed within 15

calendar days after the

missed payment date.

(2) You remit full payment of the

delinquent debt owed to us; and

(3) You submit a written request for

reinstatement of your policy to us

in accordance with 7 CFR part

400, subpart U, and applicable

procedures no later than 30 days

after the termination date or the

missed payment date of a

previously executed written

payment agreement, or in the

case of overpaid indemnity or any

amount that became due after the

termination date, the due date

specified in the notice to you of the

amount due, if applicable; and

(4) If authorization for reinstatement,

as defined in 7 CFR part 400,

subpart U, is granted, your policies

will be reinstated effective at the

beginning of the crop year for

which you were determined

ineligible, and you will be entitled

to all applicable benefits under

such policies, provided you meet

all eligibility requirements and

comply with the terms of the

policy; and

(5) There is no evidence of fraud or

misrepresentation.

(iv)

A determination made under:

(A)

Section 2(i)(2)(iii)(B) may only be

appe

aled to the National Appeals

Division in accordance with 7 CFR part

11; and

(B)

Section 2(i)(2)(iii)(C) may only be

appealed in accordance with section

11.

(3)

To regain eligibility, you must:

(i)

Repay the delinquent debt in full;

(ii)

Execute a written payment agreement, in

accordance with 7 CFR part 400, subpart

U, and make payments in accordance with

the agreement; or

(iii)

Have your debts discharged in bankruptcy.

(4)

After you become eligible for crop or livestock

insurance, if you want to obtain coverage for

your crops or livestock, you must submit a new

application but such application will not be

effective until the beginning of the next crop

year.

(5)

For example, for the 2023 crop year, if you

purchase a Livestock Risk Protection Policy

with a termination date of August 31, 2024, a

ou do not pay the premium or other amounts

due by the termination date, your livestock

policy will terminate for the current 2025 crop

year retroactive to July 1 start of the 2025 crop

year, even if insurance has already attached to

the 2025 current crop year. The effective dat

ineligibility would be August 31, 2024. In

accordance with section 2(i)(2)(i)(C), for any

other policy issued under the authority of the

Federal Crop Insurance Act that does not have

the same termination date of August 31, the

termination for such other policy will be

effective on the termination date following

when a policyholder becomes ineligible. If

oducer purchased a 2023 crop year

Livestock Risk Protection SCE on July 5, 2022,

and did not pay the premium by the termination

date of August 31, 2023, and the producer

purchased a Federally reinsured corn policy on

March 15, 2023. The Livestock Risk Protection

Policy is terminated August 31, 2023, effective

on July 1, 2023, and the producer is ineligible

for Livestock Risk Protection as of July 1 of the

current 2024 crop year. However, the

Federally reinsured corn policy would remain

in effect for 2023 and would be terminated as

of March 15, 2024, if the Livestock Risk

Protection premium remained delinquent. No

indemnity will be due for the 2024 crop year

corn policy. The insured will not be eligible to

apply for crop insurance for any crop until after

the amounts owed are paid in full or the

producer files a petition to discharge the debt

in bankruptcy.

(6)

If you are determined to be ineligible under

section 2(i), persons with a substantial

beneficial interest in you may also be ineligible

until you become eligible again.

(j) In cases where there has been a death,

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disappearance, judicially declared incompetence,

or dissolution of any insured person:

(1)

If any married individual insured dies,

disappears, or is judicially declared

incompetent, the named insured on the policy

will automatically convert to the name of the

spouse if:

(i)

The spouse was included on the policy as

having a substantial beneficial interest in

the named insured; and

(ii)

The spouse has a share of the crop.

(2)

The provisions in section 2(j)(3) will be

applicable if:

(i)

Any partner, member, shareholder, etc., of

an insured entity dies, disappears, or is

judicially declared incompetent, and such

event automatically dissolves the entity; or

(ii)

An individual, whose estate is left to a

beneficiary other than a spouse or left to

the spouse and the criteria in section

2(j)(1) are not met, dies, disappears, or is

judicially declared incompetent.

(3)

If section 2(j)(2) applies and the death,

disappearance, or judicially declared

incompetence occurred:

(i)

More than 30 days before the cancellation

date, the policy is automatically canceled

as of the cancellation date and a new

application must be submitted; or

(ii)

Thirty days or less before the cancellation

date, or after the cancellation date, the

policy will continue in effect through the

crop year immediately following the

cancellation date and be automatically

canceled as of the cancellation date

immediately following the end of the

insurance period for the crop year, unless

canceled by the cancellation date prior to

the start of the insurance period:

(A)

A new application for insurance must

be submitted prior to the sales closing

date for coverage for the subsequent

crop year; and

(B)

Any indemnity will be paid to the

person or persons determined to be

beneficially entitled to the payment

and such person or persons must

comply with all policy provisions and

pay the premium.

(4)

If any insured entity is dissolved for reasons

other than death, disappearance, or judicially

declared incompetence:

(i)

Before the cancellation date, the policy is

automatically canceled as of the

cancellation date and a new application

must be submitted; or

(ii)

On or after the cancellation date, the policy

will continue in effect through the crop year

immediately following the cancellation date

and be automatically canceled as of the

cancellation date immediately following the

end of the insurance period for the crop

year, unless canceled by the cancellation

date prior to the start of the insurance

period:

(A)

A new application for insurance must

be submitted prior to the sales closing

date; and

(B)

Any indemnity will be paid to the

person or persons determined to be

beneficially entitled to the payment

and such person or persons must

comply with all policy provisions and

pay the premium.

(5)

If section 2(j)(2) or 2(j)(4) applies, a remaining

member of the insured person or the

beneficiary is required to report to us the death,

disappearance, judicial incompetence, or other

event that causes dissolution not later than the

next cancellation date, except if section

2(j)(3)(ii) applies, notice must be provided by

the cancellation date for the next crop year. If

notice is not provided timely, the provisions of

section 2(j)(2) or 2(j)(4) will apply retroactive to

the date such notice should have been

provided and any payments made after the

date the policy should have been canceled

must be returned.

(k) This Livestock Risk Protection policy is a

continuous policy. If you submit and we approve an

application for coverage under the Livestock Risk

Protection policy on our form, such policy will

remain in effect until June 30 and will automatically

renew on July 1 thereafter unless canceled or

terminated pursuant to the terms of this policy. The

SCE’s are not continuous and are only effective for

the period stated therein.

(l) We may cancel your policy if no premium is earned

for three consecutive years.

(m) The cancellation for the policy is June 30 and the

termination date for the policy is August 31 of the

year following the cancellation date as stated in the

actuarial documents. For example, a policy with the

cancellation date of June 30, 2023, would have the

termination date of August 31, 2024.

(n) Any person may sign any document relative to

Federal crop insurance coverage on behalf of any

other person covered by such a policy, provided

that the person has a properly executed power of

attorney or such other legally sufficient document

authorizing such person to sign. You are still

responsible for the accuracy of all information

provided on your behalf and may be subject to any

applicable consequences, if any information has

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been misreported.

Contract Changes.

(a) We may change the terms of your coverage under

this policy from crop year to crop year.

(b) Any changes in policy provisions and program

dates will be published on RMA’s website not later

than the contract change date. We may only revise

this information after the contract change date to

correct clear errors.

Basic Provisions, SCEs, and the Special

Provisions not later than 30 days prior to the

cancellation date. Acceptance of changes will be

conclusively presumed in the absence of written

notice from you to change or cancel your insurance

coverage.

(d) After the contract change date, all changes

specified in the section 3(b) will also be available

upon request from your crop insurance agent.

(e) The contract change date is April 30 preceding the

cancellation date.

Coverage Limitations.

(a) This policy does not cover any other peril except

change in price, including, for example, mortality,

condemnation, physical damage, disease,

individual marketing decisions, local price

aberrations, or any other cause of loss other than

stated.

(b) Insurance coverage will not be provided if you are

ineligible under the contract or under any Federal

statute or regulation.

(1)

Unless such application or SCE is accepted by

RMA;

(2)

If the premium calculator (the computer

program that determines your premium) or the

RMA website is not operational;

(3)

If the required data for establishing rates or

coverage prices are not available because

futures did not trade, there was insufficient

trading volume, futures were not able to

continue trading at the end of the day (if the

price moved the maximum allowed by the

exchange), required data were not reported, or

the rates or coverage prices were not timely

provided to RMA; or

(4)

If there has been a news report,

announcement, or other event that occurs

during or after trading hours that is believed by

the Secretary of Agriculture, Manager of the

Risk Management Agency, or other

designated staff of the Risk Management

Agency, to result in market conditions

significantly different than those used to rate

the Livestock Risk Protection program.

(d) Coverage is not available under a SCE if the cause

of the change in price is anything other than the

unavoidable cause of loss, as specified in the Act.

(e) Sales of all SCEs of a given class of livestock will

be suspended for future sales periods if, based on

CME market settlement information, at least four

(4) of the relevant CME futures contracts have a

daily price change equal or exceeding the Daily

Price Limit for two (2) consecutive days. LRP sales

will resume if and when there have been two (2)

consecutive days without there being four (4) or

more of the relevant CME futures contracts

equaling or exceeding the Daily Price Limit. The

relevant CME futures contract for each class of

livestock is provided in the Special Provisions.

(f) Once published by RMA, coverage prices and

premium rates will not be changed as a result of

any late revisions made by the publishers of the

data.

(g) You may not have any other FCIC reinsured

livestock policy covering the same class of

livestock with the same end month or have any

other FCIC reinsured livestock policy insuring the

same covered livestock at the same time. For

example, an insured owns and intends to market

1,000 head of fed cattle. The insured covers 600

head on an SCE with the end month of October

2023. The insured may not declare any target

marketings on LGM-Cattle for October 2023, and

may only declare as target marketings in any other

month the 400 head not already covered on LRP

until that LRP SCE ends.

(1)

If you do and if the duplication was intentional,

you may be subject to the sanctions authorized

under this policy, the Act, 7 CFR part 400,

subpart R, or any other applicable statute.

(2)

If we determine that such duplication was not

intentional, the first coverage issued will

continue in force and all duplicate coverage will

be voided.

(h) The maximum number of livestock that can be

insured during a crop year is stated in the SCE.

Premium.

(a) Coverage attaches on the effective date shown on

the SCE.

(b) The premium is earned and payable at the time

coverage attaches and you will be billed for the

premium on the billing date specified in the

actuarial documents.

provide in a SCE.

(d) If you qualify as a beginning farmer or rancher; or

veteran farmer or rancher, your premium subsidy

will be 10 percentage points greater than the

premium subsidy that you would otherwise receive,

unless otherwise specified in the Special

Provisions;

(e) You will be ineligible for any premium subsidy paid

on your behalf by FCIC for any policy issued by us

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if:

(1)

USDA determines you have committed a

violation of the highly erodible land

conservation or wetland conservation

provisions of 7 CFR part 12 as amended by the

Agricultural Act of 2014; or

(2)

You have not filed form AD-1026 with FSA for

the reinsurance year by the premium billing

date.

(i)

Notwithstanding section 5(e)(2), you may

be eligible for premium subsidy without

having a timely filed form AD-1026: AD–

1026 on file with FSA.

(A)

For the initial reinsurance year if you

certify by the premium billing date for

your policy that you meet the

qualifications as outlined in FCIC

approved procedures for producers

who are new to farming, new to crop

insurance, a new entity, or have not

previously been required to file form

AD-1026; or

(B)

If FSA approves relief for failure to

timely file due to circumstances

beyond your control or failure to timely

provide adequate information to

complete form AD-1026 in accordance

with the provisions contained in 7 CFR

part 12.

(ii)

To be eligible for premium subsidy paid on

your behalf by FCIC, it is your

responsibility to assure you meet all the

requirements for:

(A)

Compliance with the conservation

provisions specified in section 5(e)(1)

of this section; and

(B)

Filing form AD-1026 to be properly

identified as in compliance with the

conservation provisions specified in

section 5(e)(1) of this section.

(f) Premium owed by you will be offset from an

indemnity or prevented planting payment due you

in accordance with section 2(h)

Covered Livestock

(a) This policy only covers livestock in which you have

an ownership interest during the insurance period

under the applicable SCE and which are

marketable by the end date.

(1)

Such ownership interest may include:

(i)

Livestock owned and raised by you.

(ii)

Unborn livestock, provided that you have:

(A)

An ownership interest in pregnant

cows or sows to which unborn

livestock will be born;

(B)

For swine only: you or holders of a

substantial beneficial interest in you

have an ownership interest in the

entity that owns pregnant sows. You

may insure the number of unborn

swine in proportion to ownership in the

pregnant sows. For example, if a

substantial beneficial holder in you has

a 20 percent ownership in a sow

breeding entity, then you can insure up

to 20 percent of the unborn swine

produced by the sow breeding entity.

(2)

To receive an indemnity, you must provide:

(i)

Documents verifying ownership of your

share of the livestock insured under the

SCE in accordance with section 12(c); or

(ii)

Documents verifying the sale of all covered

livestock during the insurance period, that

show:

(A)

You as a seller;

(B)

The purchaser;

(C)

The date sold;

(D)

The weight of the livestock sold.

(iii)

For covered livestock not sold by the end

date, in addition to 6(a)(2)(i), a certified

statement signed by you attesting that the

covered livestock was not sold prior to the

end date, and the covered livestock was

marketable at the end date.

(iv)

When ownership interest in unborn swine

is claimed under section 6(a)(1)(ii)(B) you

must also provide documentation

establishing:

(A)

Your ownership interest, or the

ownership interest of the person with a

substantial interest in you, in the sow

breeding entity;

(B)

The percentage of ownership interest

in the sow breeding entity.

(C)

The number of sows and offspring

produced and sold annually from the

sow breeding entity; and

(D)

Livestock purchase agreement with

delivery or pickup date within the

insurance period.

(3)

If you dispose of or sell your covered livestock

more than 60 days prior to the SCE end date,

you will not be considered to have an

ownership interest in the disposed of or sold

livestock.

(b) To obtain coverage on a specific class of livestock,

you must submit an SCE during the sales period

that identifies the class, the effective date of

coverage, the state and county, the number of

covered livestock, the target weight at the end

date, the coverage price, your insured share and

your signature. Any SCE submitted without these

elements or submitted outside of the sales period

will not be accepted.

you may obtain coverage for as many head of

livestock, under as many different SCEs, as you

are eligible for, subject to the following restrictions:

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(1)

You may not insure the same class of livestock

with the same end date under more than one

SCE during the same sales period.

(2)

You may not insure the same covered livestock

under more than one SCE simultaneously. For

example, an insured owns 1,000 head of

feeder cattle, and has covered all 1,000 head

as Steers Weight 1. Until the SCE on which

these head are covered has ended, the insured

may not cover the same 1,000 head again as

Steers Weight 1 with the same end month

(e.g., if available coverage price has

increased), as Steers Weight 2 with a later end

month, or as Fed Cattle with a later end month.

Once your original Steers Weight 1 SCE ends,

if you have retained some or all of the original

1,000 head, you may then choose to purchase

a new endorsement to cover the cattle at a new

weight with a new end month.

(3)

You may not have any other FCIC reinsured

livestock policy insuring the same class of

livestock with the same end month.

(4)

You may not have any other FCIC reinsured

livestock policy insuring the same covered

livestock at the same time.

(d) The number of covered livestock insured under an

SCE will be adjusted if:

(1)

You dispose of your share or sell the covered

livestock more than 60 days prior to the end

date, unless that portion of your share is

properly transferred, on our form, to an eligible

transferee under section 17.

(2)

At any time during the insurance period your

covered livestock are seized, quarantined or

destroyed by order of any governmental

authority, or your livestock are not deliverable

due to death or disease and you have not

provided us written notice of such

circumstance within 72 hours after your

knowledge of the livestock’s death. For

covered unborn feeder cattle or unborn swine:

(i)

Written notice of death needs to include

either evidence of pregnancy, or records of

number of born livestock in one of the prior

three years.

(ii)

If records for prior years are used in place

of evidence of pregnancy, then the number

of livestock born in a previous year must

be greater than or equal to the number of

insured unborn livestock.

(iii)

Valid records include, but are not limited

to, veterinary reports, or supply or sales

contracts.

(3)

You fail to provide ownership records for any

covered livestock as required in section

6(a)(2).

(4)

The total weight of the covered livestock at the

end date is less than the number of covered

livestock multiplied by the minimum allowed

target weight, unless you can establish that

extraordinary circumstances caused the

livestock to weigh less than the minimum

allowed target weight, such as drought causing

a lack of feed.

(e) If any conditions in 6(d) occur:

(1)

The number of covered livestock insured under

an SCE will be reduced by the number of

livestock no longer insured due to early

disposal, lack of records, or other reasons in

6(d).

(2)

No indemnity will be paid for any livestock no

longer insured under the SCE.

(3)

Because no indemnity is due because of a

breach of this policy, you will still be

responsible to pay for the full premium owed in

accordance with section 5.

(f) In accordance with section 24, you may not have

any other FCIC reinsured livestock policy covering

the same class of livestock with the same end

month.

(1)

If you do, and we determine the duplication is

intentional, you may be subject to the

sanctions authorized under this policy, the Act,

7 CFR Part 400, subpart R, or any other

applicable statute.

(2)

If we determine that such duplication was not

intentional, the first coverage issued will

continue in force and all duplicate coverage will

be voided.

Share Insured.

(a) Only an insured share as an owner of the livestock

will be eligible for insurance under this policy.

(1)

Insured shares as a landlord, tenant, operator,

or any other interest other than as an owner

are not eligible for insurance under this policy.

(2)

Insurance will apply only to the insured share

owned by the person completing the

application. Insurance will not extend to any

other person having a share in the livestock or

livestock product unless the application clearly

states that the insurance is requested for an

entity such as a partnership or a joint venture.

(3)

If you transfer any part of your insured share

during the insurance period to an eligible

person, coverage will transfer in accordance

with section 17.

(b) We may consider any share reported by or for your

spouse, child or any member of your household to

be included in your share if there is no evidence

that they had a separate interest in the livestock.

This does not abrogate the requirement in section

2 that all spouses provide their social security

numbers as a substantial beneficial interest holder

in the applicant or insured.

Insurance Period.

The insurance period is the period of coverage that:

(a) Begins on the covered livestock on the effective

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date for each SCE.

(b) Ends on the covered livestock on the end date

stated on each SCE.

Indemnity Payments for Losses.

(a) The calculation for indemnity payments is found in

the SCE.

(b) In order to receive an indemnity, you must submit

a claim to us on our form within sixty (60) days from

the date we provide you with the claim form.

(30) days following receipt by us of the properly

executed claim form.

(d) If the end date is on a Saturday, Sunday, or Federal

holiday, or, if for any reason the relevant report is

not available to us for that day or any other day of

the ending period, then the actual ending value will

be based on the most recent reports made prior to

that date.

10.

Agricultural Commodities as Payment.

We will not accept any livestock or other agricultural

commodity as compensation for payments due.

11.

Mediation, Arbitration, Appeal, Reconsideration,

and Administrative and Judicial Review.

(a) If you do not agree with any determination made by

us, the disagreement may be resolved through

mediation in accordance with section 11(f) If the

disagreement cannot be resolved through

mediation, or you and we do not agree to

mediation, you must timely seek resolution through

arbitration in accordance with the rules of the

American Arbitration Association (AAA), except as

provided in sections 11(c) and 11(e), and unless

rules are established by FCIC for this purpose. Any

mediator or arbitrator with a familial, financial or

other business relationship to you or us, or our

agent or loss adjuster, is disqualified from hearing

the dispute.

(1)

All disputes involving determinations made by

us are subject to mediation or arbitration.

However, if the dispute in any way involves a

policy or procedure interpretation, regarding

whether a specific policy provision or

procedure is applicable to the situation, how it

is applicable, or the meaning of any policy

provision or procedure, either you or we must

obtain an interpretation from FCIC in

accordance with 7 CFR part 400, subpart X or

such other procedures as established by FCIC.

(i)

Any interpretation by FCIC will be binding

in any mediation or arbitration.

(ii)

Failure to obtain any required

interpretation from FCIC will result in the

nullification of any agreement or award.

(iii)

An interpretation by FCIC of a procedure

may be appealed to the National Appeals

Division in accordance with 7 CFR part 11.

(2)

Unless the dispute is resolved through

mediation, the arbitrator must provide to you

and us a written statement describing the

issues in dispute, the factual findings, the

determinations and the amount and basis for

any award and breakdown by claim for any

award. The statement must also include any

amounts awarded for interest.

(i)

Failure of the arbitrator to provide such

written statement will result in the

nullification of all determinations of the

arbitrator.

(ii)

All agreements reached through

settlement, including those resulting from

mediation, must be in writing and contain

at a minimum a statement of the issues in

dispute and the amount of the settlement.

(b) Regardless of whether mediation is elected:

(1)

The initiation of arbitration proceedings must

occur within one year of the date we denied

your claim or rendered the determination with

which you disagree, whichever is later;

(2)

If you fail to initiate arbitration in accordance

with section 11(b)(1) and complete the

process, you will not be able to resolve the

dispute through judicial review;

(3)

If arbitration has been initiated in accordance

with section 11(b)(1) and completed, and

judicial review is sought, suit must be filed not

later than one year after the date the arbitration

decision was rendered; and

(4)

In any suit, if the dispute in any way involves a

policy or procedure interpretation, regarding

whether a specific policy provision or

procedure is applicable to the situation, how it

is applicable, or the meaning of any policy

provision or procedure, an interpretation must

be obtained from FCIC in accordance with 7

CFR part 400, subpart X or such other

procedures as established by FCIC. Such

interpretation will be binding.

you and us unless judicial review is sought in

accordance with section 11(b)(3). Notwithstanding

any provision in the rules of the AAA, you and we

have the right to judicial review of any decision

rendered in arbitration.

(d) If you disagree with any determination made by

FCIC or any claim where FCIC is directly involved

in the claims process or directs us in the resolution

of the claim, you may obtain an administrative

review in accordance with 7 CFR part 400, subpart

J (administrative review) or appeal in accordance

with 7 CFR part 11 (appeal).

(1)

If you elect to bring suit after completion of any

appeal, such suit must be filed against FCIC

not later than one year after the date of the

decision rendered in such appeal.

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(2)

Such suit must be brought in the United States

district court for the district in which the

covered livestock is located.

(3)

Under no circumstances can you recover any

attorney fees or other expenses, or any

punitive, compensatory or any other damages

from FCIC.

(e) In any mediation, arbitration, appeal, administrative

review, reconsideration or judicial process, the

terms of this policy, the Act, and the regulations

published at 7 CFR chapter IV, including the

provisions of 7 CFR part 400, subpart P, are

binding. Conflicts between this policy and any state

or local laws will be resolved in accordance with

section 21. If there are conflicts between any rules

of the AAA and the provisions of your policy, the

provisions of your policy will control.

(f) To resolve any dispute through mediation, you and

we must both:

(1)

Agree to mediate the dispute;

(2)

Agree on a mediator; and

(3)

Be present or have a designated

representative who has authority to settle the

case present, at the mediation.

(g) Except as provided in section 11(h), no award or

settlement in mediation, arbitration, appeal,

administrative review or reconsideration process or

judicial review can exceed the amount of liability

established or which should have been established

under the policy, except for interest awarded in

accordance with section 15.

(h) In a judicial review only, you may recover

attorney’s fees or other expenses, or any punitive,

compensatory or any other damages from us only

if you obtain a determination from FCIC that we,

our agent or loss adjuster failed to comply with the

terms of this policy or procedures issued by FCIC

and such failure resulted in you receiving a

payment in an amount that is less than the amount

to which you were entitled. Requests for such a

determination should be addressed to the

following: USDA/RMA/Deputy Administrator of

Compliance/ Stop 0806, 1400 Independence

Avenue, SW., Washington, D.C. 20250-0806.

(i) If FCIC elects to participate in the adjustment of

your claim, or modifies, revises or corrects your

claim, prior to payment, you may not bring an

arbitration, mediation or litigation action against us.

You must request administrative review or appeal

in accordance with section 11(d).

(j) Any determination made by FCIC that is a matter

of general applicability is not subject to

administrative review under 7 CFR part 400,

subpart J or appeal under 7 CFR part 11. If you

want to seek judicial review of any FCIC

determination that is a matter of general

applicability, you must request a determination of

non-appealability from the Director of the National

Appeals Division in accordance with 7 CFR 11.6

before seeking judicial review.

12.

Access to Covered Livestock and Records, and

Record Retention.

(a) We, any person designated by us, and any

employee designated by a USDA agency, reserve

the right to perform random, on-site inspections to

verify insured share or disposition of the covered

livestock. Inspections will be conducted in

accordance with generally accepted herd health

practices.

(b) For three years after the end date of any SCE, you

must retain, and provide upon our request, or the

request of any person designated by us or any

employee designated by a USDA agency,

complete records of the ownership of your share

and disposition of all the livestock that were insured

for the applicable period. We may extend the

record retention period beyond three years by

notifying you of such extension in writing. Your

failure to keep and maintain such records will result

in a denial of an indemnity under the SCE. Because

no indemnity is due as a result of a breach of this

policy, all premiums will still be owed.

verification of ownership include, but are not limited

to: livestock purchase agreements, bills of sale;

financing and credit documents secured by the

covered livestock; or certified written statements

from third parties such as feed suppliers or

veterinarians who have visited the farm or ranch,

who visually identified the livestock listed on the

SCE and can attest to your ownership of the

identified livestock. If livestock purchase

agreements are provided to verify ownership, they

must have a date of delivery or pickup before the

start of the insurance period, other than for

livestock described in section 6(a)(1)(ii)(B).

(d) Records of any mediation, arbitration, or litigation

involving the covered livestock must be made

available to us, any person designated by us, or

any employee designated by a USDA agency.

(e) Our representative and any employee designated

by a USDA agency, will, at any time during the

record retention period, have access to:

(1)

Any records relating to this insurance at any

location where such records may be found or

maintained; and

(2)

The farm, ranch, feedlot or any other facility

related to the production of livestock.

(f) By applying for insurance under the authority of the

Act or by continuing insurance for which you

previously applied, you authorize us, any employee

designated by a USDA agency, or any person

acting for us, to obtain records relating to the

insured livestock or livestock product from any

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person who may have custody of those records

including, but not limited to, banks and other

lenders, feedlots, cooperatives, marketing

associations, suppliers, and accountants. You

must assist us in obtaining all records, which we

request from third parties.

13.

Conformity to Food Security Act of 1985.

Although your violation of a number of federal statutes,

including the Act, may cause cancellation, termination,

or voidance of your insurance contract, you should be

specifically aware that your policy will be canceled if

you are determined to be ineligible to receive benefits

under the Act due to violation of the controlled

substance provisions (title XVII) of the Food Security

Act of 1985 (Pub. L. 99-198) and the regulations

promulgated under the Act by USDA. Your insurance

policy will be canceled if you are determined, by the

appropriate Agency, to be in violation of these

provisions. We will recover any and all monies paid to

you or received by you during your period of ineligibility,

and your premium will be refunded, less an amount for

expenses and handling equal to 20 percent of the

premium paid or to be paid by you.

14.

Amounts Due Us.

(a) Interest will accrue at the rate of 1.25 percent

simple interest per calendar month, on any amount

due us. Interest will start to accrue on the date that

notice is issued to you for the collection of the

amount due.

(1)

For the purpose of premium amounts owed to

us, interest will start to accrue on the first day

of the month following the issuance of the

notice by us, provided that a minimum of 30

days have passed from the premium billing

date specified in the actuarial documents.

(2)

We will collect any unpaid amounts owed to us

and any interest owed thereon.

(b) For the purpose of any other amounts due us, such

as repayment of indemnities found not to have

been earned, interest will start to accrue on the

date that notice is issued to you for the collection

of the unearned amount.

(1)

Amounts found due under this paragraph will

not be charged interest if payment is made

within 30 days of issuance of the notice by us.

(2)

The amount will be considered delinquent if not

paid within 30 days of the date the notice is

issued by us.

collection (see subsection (d) of this section) if any,

second to the reduction of accrued interest, and

then to the reduction of the principal balance.

(d) If we determine that it is necessary to contract with

a collection agency or to employ an attorney to

assist in collection, you agree to pay all of the

expenses of collection.

(e) The portion of the amounts owed by you for a policy

authorized under the Act that are owed to FCIC

may be collected in part through administrative

offset from payments you receive from United

States government agencies in accordance with 31

U.S.C. chapter 37. Such amounts include the

share of the overpaid indemnities and premiums

retained by FCIC plus any interest owed thereon.

15.

Payment and Interest Limitations.

We will pay simple interest computed on the net

indemnity ultimately found to be due by us or by a final

judgment of a court of competent jurisdiction from and

including the 61st day after the date you sign, date, and

submit to us the properly completed claim on our form.

Interest will be paid only if the reason for our failure to

timely pay is NOT due to your failure to provide a

properly completed claim form to us. The interest rate

will be that established by the Secretary of the Treasury

under section 12 of the Contract Disputes Act of 1978

(41 U.S.C. 611) and published in the Federal Register

semiannually on or about January 1 and July 1 of each

year and may vary with each publication.

16.

Concealment, Misrepresentation or Fraud.

(a) If you have falsely or fraudulently concealed the

fact that you are ineligible to receive benefits under

the Act or if you or anyone assisting you has

intentionally concealed or misrepresented any

material fact relating to this policy:

(1)

This policy, including all SCEs, will be voided

for each crop year in which the concealment,

fraud, or misrepresentation occurred; and

(2)

You may be subject to remedial sanctions in

accordance with 7 U.S.C. 1515(h) and 7 C.F.R.

part 400, subpart R.

(b) Even though the policy is void, you will still be

required to pay 20 percent of the premium that you

would otherwise be required to pay to offset costs

incurred by us in the service of this policy. If

previously paid, the balance of the premium will be

returned. Even though the policy is void, you may

still be required to pay the administrative and

operating expenses of the approved insurance

provider contained on your premium billing

statement percent of the premium due under the

policy to offset costs incurred by us in the service

of this policy. If previously paid, the balance of the

premium will be refunded

reimburse all indemnities paid for the crop year in

which the voidance was effective

(d) Voidance will be effective on the first day of the

SCE for the crop year in which the act occurred and

will not affect the policy for subsequent crop years

unless a violation of this section also occurred in

such crop years.

(e) If you willfully and intentionally provide false or

inaccurate information to us or FCIC or you fail to

comply with a requirement of FCIC, in accordance

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with 7 CFR part 400, subpart R, FCIC may impose

on you:

(1)

A civil fine for each violation in an amount not

to exceed the greater of:

(i)

The amount of the pecuniary gain obtained

as a result of the false or inaccurate

information provided or the noncompliance

with a requirement of FCIC; or

(ii)

$10,000; and

(2)

A disqualification for a period of up to 5 years

from receiving any monetary or non-monetary

benefit provided under each of the following:

(i)

Any crop insurance policy offered under

the Act;

(ii)

The Farm Security and Rural Investment

Act of 2002 (7 U.S.C. 7333 et seq.);

(iii)

The Agricultural Act of 1949 (7 U.S.C.

1421 et seq.);

(iv)

The Commodity Credit Corporation

Charter Act (15 U.S.C. 714 et seq.);

(v)

The Agricultural Adjustment Act of 1938 (7

U.S.C. 1281 et seq.);

(vi)

Title XII of the Food Security Act of 1985

(16 U.S.C. 3801 et seq.);

(vii)

The Consolidated Farm and Rural

Development Act (7 U.S.C. 1921 et seq.);

and

(viii)

Any federal law that provides assistance to

a producer of an agricultural commodity

affected by a crop loss or a decline in the

prices of agricultural commodities.

17.

Transfer of Coverage and Right to Indemnity.

(a) If you transfer any part of your insured share during

the period of insurance, you may transfer your

coverage rights if the transferee is eligible for

livestock insurance.

(b) We will not be liable for any more than the liability

determined in accordance with your policy that

existed before the transfer occurred.

and will not be effective until approved by us in

writing.

(d) The transferee shall have all rights and

responsibilities under this policy consistent with the

transferee’s interest.

(e) If the transferee is not eligible for livestock

insurance for any reason, and the transfer occurs

before the final 30 days of the insurance period, or

if you fail to inform us of a transfer by the end date

or within 30 days of the transfer whichever is later,

then the transferred portion of the coverage will be

terminated and no premium for that portion will be

refunded.

18.

Assignment of Indemnity.

(a) You may assign your right to an indemnity for the

crop year only to creditors or other persons to

whom you have a financial debt or other pecuniary

obligation. You may be required to provide proof of

the debt or other pecuniary obligation before we

will accept the assignment of indemnity.

(b) All assignments must be on our form and must be

provided to us. Each assignment form may

contain more than one creditor or other person to

whom you have a financial debt or other

pecuniary obligation.

executed assignment of indemnity, we will not

make any payment to a lienholder or other person

to whom you have a financial debt or other

pecuniary obligation even if you may have a lien

or other assignment recorded elsewhere. Under

no circumstances will we be liable:

(1)

To any lienholder or other person to whom

you have a financial debt or other pecuniary

obligation where you have failed to include

such lienholder or person on a properly

executed assignment of indemnity provided

to us; or

(2)

To pay to all lienholders or other persons to

whom you have a financial debt or other

pecuniary obligation any amount greater than

the total amount of indemnity owed under the

policy.

(d) If we have received the properly executed

assignment of indemnity form:

(1)

Only one payment will be issued jointly in the

names of all assignees and you; and

(2)

Any assignee will have the right to submit all

loss notices and forms as required by the

policy.

(e) If you have suffered a loss from an insurable cause

and fail to file a claim for indemnity within the

period specified in section 9(b), the assignee may

submit the claim for indemnity not later than 15

days after the period for filing a claim has expired.

We will honor the terms of the assignment only if

we can accurately determine the amount of the

claim. However, no action will lie against us for

failure to do so.

19.

Descriptive Headings.

The descriptive headings of the various policy

provisions are for convenience only and are not

intended to affect the construction or meaning of any of

the policy provisions.

20.

Notices.

(a) All notices required to be given by you must be in

writing and received by your insurance agent within

the designated time unless otherwise provided by

the notice requirement. Notices required to be

given immediately may be by facsimile, electronic

mail, or delivered in person. Time of the notice will

be determined by the time of our receipt of the

written notice. If the date by which you are required

to submit a report or notice falls on Saturday,

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Sunday, or a Federal holiday, or, if your agent's

office is, for any reason, not open for business on

the date you are required to submit such notice or

report, such notice or report must be submitted on

the next business day.

(b) All policy provisions, notices and communications

required to be sent by us to you will be:

(1)

Provided by electronic means, unless:

(i)

We do not have the ability to transmit such

information to you by electronic means; or

(ii)

You elect to receive a paper copy of such

information;

(2)

Sent to the location specified in your records

with your crop insurance agent; and

(3)

Will be conclusively presumed to have been

received by you.

21.

Applicability of State and Local Statutes.

If the provisions of this policy conflict with statutes of

the State or locality in which this policy is issued, these

policy provisions will prevail. State and local laws and

regulations in conflict with federal statutes, this policy,

and the applicable regulations do not apply to this

policy.

22.

Multiple Government Benefits

If you are eligible to receive an indemnity under this

plan of insurance and are also eligible to receive

benefits for the same loss under any other USDA

program, you may receive benefits under both

programs unless specifically limited by the

insurance contract or by law.

23.

Correction of Errors

(a) In addition to any other corrections allowed in your

policy subject to section 24(b), we may correct:

(1)

Within 60 days after the sales closing date, any

incorrect information on your application or

SCE or provided by the sales closing date,

including identification numbers for you and

any person with a substantial beneficial

interest in you, to ensure that the eligibility

information is correct and consistent with

information reported by you to any USDA

agency;

(2)

Within 30 days of any subsequent correction of

data by FSA, erroneous information corrected

as a result of verification of information; and

(3)

At any time, any incorrect information caused

by electronic transmission errors by us or

errors made by any agency within USDA in

transmitting the information provided by you for

purposes of other USDA programs.

(b) Corrections may be made but will not take effect for

the current crop year if the correction would allow

you to:

(1)

Avoid ineligibility requirements for insurance or

obtain a disproportionate benefit under the

crop insurance program or any related

program administered by the Secretary of

Agriculture;

(2)

Obtain, enhance, or increase an insurance

guarantee or indemnity if a cause of loss exists

or has occurred before any correction has

been made, or avoid premium owed if no loss

is likely to occur; or

(3)

Avoid an obligation or requirement under any

Federal or State law.

24.

Other Insurance.

Nothing in this section prevents you from obtaining

other insurance not authorized under the Act. Unless

specifically authorized by policy provisions, you must

not have any other livestock insurance issued under

the authority of the Act on the same class of livestock

with the same end month or same covered livestock. If

you cannot demonstrate that you did not intend to have

more than one policy or endorsement in effect, you may

be subject to the consequences authorized under this

policy, the Act, or any other applicable statute. If you

can demonstrate that you did not intend to have more

than one policy in effect (For example, an application

to transfer your policy or written notification to an

insurance provider that states you want to purchase, or

transfer, insurance and you want any other policies for

the livestock canceled would demonstrate you did not

intend to have duplicate policies), and:

(a) Both are for LRP policies, the policy with the

earliest date of application will be in force and the

other policy will be void, unless both policies are

with:

(1)

The same insurance provider and the

insurance provider agrees otherwise; or

(2)

Different insurance providers and both

insurance providers agree otherwise.

(b) One policy is a Livestock Risk Protection and the

other is a livestock policy insuring the same

covered livestock, or same class of livestock for the

same end month, the policy with the earliest date

of endorsement for the insurance period will be in

force and the other endorsement will be void.