Private Products | Production Plan

Crop-Hail Endorsements

Production Plan

The Production Plan Hail Endorsement is designed to cover that portion of the crop not covered by the underlying yield-based plan of insurance. The endorsement provides
protection against loss caused by hail and/or fire on a unit basis. The green snap endorsement is available in some areas.

 

Crops*

Corn, soybeans and wheat as specified in the state specific guidelines.
*Additional crops may be available

Percentage APH Options

100%, 105%, 110%, 115%*, 120%*
*Where offered

Price Election Options

50% to 100%, in 5% increments, of the yield-based plan of Insurance price election.

Unit Options

Unit options are based on the unit structure by practice of the underlying yield-based plan of insurance policy, with two exceptions:

1. By center pivot
2. Underlying optional unit for CAT coverage, enterprise or whole farm units

To qualify for the exceptions above, you must harvest units separately and records must be maintained by individual units.

Determining Coverage (Limit of Insurance)

Assume MP Policy Coverage of:

• Crop: Corn
• Acres: 100 acres
• Share: 100%
• MPCI Price: $4.00 per bushel
• Percent Price Election: 85%
• MPCI Approved Yield Per Acre: 150 bushels
• Percent APH: 110%
• Production Plan Yield: 165 bushels*
• MPCI Coverage Level: 75%

* Production Plan Yield = MPCI Approved Yield x Percent APH

Production Plan Yield	-	MPCI Approved Yield	x	MPCI Coverage Level		MPCI Production Guarantee	=
165	-	(150	x	75%)		112.5	=	52.5
	x	MPCI Price	x	Percent of MPCI Price Election	x	Acres	x	Shares	=	P Plan Limit of Insurance
52.5	x	$4.00	x	85%	x	100	x	1.00	=	$17,850

Calculating a Loss

• Losses under this endorsement will only be covered when the weighted average percentage of loss for the entire unit equals or exceeds the minimum loss requirement of 5%.
• There will never be a payable loss for any unit if the production to count from the unit exceeds the result of multiplying the approved yield per acre (or a reduced approved
  yield per acre if coverage under your yield-based plan of insurance policy is reduced for late planting) by the percentage of the approved yield elected, multiplied by the
  number of insured acres for the unit.
• Once the Crop-Hail weighted average percent of loss for the entire unit equals or exceeds 5%, the amount payable for the unit will be determined as follows:
  1. Determine the Crop-Hail weighted loss for the unit;
  2. Determine the production percent of loss for the unit;
  3. Determine the lesser of Item 1 and Item 2; and
  4. Multiply the result of Item 3 by the Total Limit of Insurance not to exceed the Production Plan Limit of Insurance.

Underwriting Guidelines

• This endorsement does not provide coverage on an acre basis.
• The limit of insurance for each unit is determined as follows: The approved yield per acre is multiplied by the coverage level percentage to determine the production guarantee per acre. The difference between the result of the approved yield per acre multiplied by the percentage of the approved yield elected and the production guarantee per acre is multiplied by the number of insured acres in the unit, multiplied by the price election, multiplied by the percentage of the price election elected, multiplied by your share in the crop.
• The total limit of insurance per unit is based on the unit’s ability to produce at least the potential as established by the result of multiplying the approved yield per acre by the percentage of the approved yield elected for the insured crop(s) prior to damage by insured or uninsured perils.
• All acreage of the insured crop(s) grown in the applicable county(ies) insured in which you have an insurable interest must be insured under this endorsement. Acreage that is prevented from being planted is not insurable.
• The crop acreage insured under this endorsement must also be insured under a yield-based plan of insurance policy. Any subsequent transfer to another approved insurance provider, cancellation or termination of the yield-based plan of insurance policy during the same year for which coverage is obtained under this endorsement will result in automatic cancellation of the coverage provided under this endorsement.
• Minimum Loss: Losses under this endorsement will only be covered when the weighted average percentage of loss for the entire unit equals or exceeds the minimum loss requirement of 5%.
• The limit of insurance for each unit under this endorsement will be determined from the information reported on your yield-based plan of insurance policy for the same unit. If you do not report all of the required information or if you fail to report all units for your yield-based plan of insurance policy, the insurer reserves the right to determine by unit the required information or to deny coverage on such units. If you have misreported any information to the insurer, or if the insurer determines any information is incorrect or has changed, the insurer reserves the right to adjust the limit of insurance for each unit accordingly based on the information determined to be correct.
• An additional option for green snap coverage is available.
• Replanting loss under this endorsement is limited to any percentage of loss due to a delay in replanting, if any, published in the applicable crop loss adjustment procedures or in the Special Provisions. The insurer does not cover the actual cost of replanting or any expense incurred to replant.

Availability: Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin and Wyoming

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