1400 Independence Avenue, SW
Stop 0801
Washington, DC  20250-0801


October 17, 2016


All Approved Insurance Providers
All Risk Management Agency Field Offices
All Other Interested Parties


Robert Ibarra, Deputy Administrator for Insurance Services /s/ Robert Ibarra    10/17/2016


Trend Adjusted Actual Production History Endorsement - User Fee Notification
Integrated Financial Analytics and Research, LLP (iFAR) the developers of the Trend Adjusted Actual Production History Endorsement (Trend-APH) advised the Federal Crop Insurance Corporation (FCIC) Board of Directors (Board) of their intent to maintain the Trend-APH endorsement and charge a user fee to approved insurance providers (AIP) selling the plan.  Section 522(b)(4)(C) of the Federal Crop Insurance Act (Act) allows submitters to maintain approved 508(h) products and charge a user fee to approved insurance providers (AIP) that elect to sell the policy.   
Section 522(b)(4)(D)(ii) of the Act and 7 C.F.R. 400.712(j)(4) provide that the Board will determine the reasonableness and approve the amount of user fee that is payable to the applicant by the AIP.  The user fee is owed by the AIP and cannot be passed on to producers as an increase in premium or an administrative charge.
On August 18, 2016, the Board approved a user fee in the amount of $0.53 per policy earning premium, not to exceed a total annual amount of $295,000 for policies covered under the Trend-APH endorsement for the 2017 insurance year.  The Board will review the user fee in future years to ensure that the amount is representative of the maintenance costs for the product.  
The regulation provides that it is iFAR’s responsibility to collect the fees from AIPs, and any indebtedness for such fees must be resolved by iFAR and the AIP.  Upon request, FCIC may provide the number of policies sold by each AIP to iFAR.
If you have any questions regarding the user fees, please contact your Reinsurance Services Account Representative.
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