CLAIMS ALERT
Most areas of the country have completed the winter wheat harvest and the spring wheat harvest will soon be underway and finished in a few weeks. It is anticipated that many areas will experience production losses and revenue losses due to a lower harvest price than the base price. ARMtech intends this alert as a reminder that the revenue polices of insurance contain specific provisions for timely reporting losses under a CRC or RA policy.
The insured’s duties in the event of a loss are contained in Section 15 of the CRC and RA Common Crop Provisions which states in part:
Duties In The Event of Damage, Loss, Abandonment, Destruction, or Alternative Use of Crop or Acreage.
(a) Your Duties
. . . . . . . . . . . . . . . . . .
(iv) Give us notice of your expected revenue loss not later than 45 days after the date the fall harvest price is released; and
. . . . . . . . . . . . . . . . . .
(3) In addition to complying with the notice requirements, you must submit a claim for indemnity declaring the amount of your loss not later than 60 days after the fall harvest price is released unless you request an extension in writing and we agree to such extension.
Extensions will only be granted if the amount of the loss cannot be determined within such time period because the information needed to determine the amount of the loss is not available. The claim for indemnity must include all information we require to settle the claim.
Failure to submit a claim or provide the required information will result in no indemnity, prevented planting payment or replant payment (Even though no indemnity or other payment is due, you will still be required to pay the premium due under the policy for the unit).
Please work closely with your clients to ensure that they receive the maximum amount of benefit under their respective policies. Don’t forget the Revenue Loss Estimator program located in AgriNet which will assist you in determining whether a revenue loss has occurred or not. As we approach the harvest of 2009 spring crops, keep in mind the same reporting requirements are contained in the revenue policies for spring crops as well.
If you have any questions, contact your ARMtech Regional Loss Supervisor.