All Risk Management Agency Field Offices
All Other Interested Parties
BACKGROUND
On October 3, 2024, the Risk Management Agency (RMA) issued MGR-24-006, Emergency Procedures for Crops Damaged by Hurricane Helene and Continuing Impacts from Hurricane Debby, authorizing emergency procedures for all counties in Alabama, Florida, Georgia, Kentucky, North Carolina, Ohio, South Carolina, Tennessee, Virginia, and West Virginia impacted by Hurricanes Debby and/or Helene.
Since the issuance of MGR-24-006, RMA has received requests for additional emergency loss adjustment procedures and information regarding interest deferral.
ACTION
RMA authorizes Approved Insurance Providers (AIPs) to use the following additional emergency procedures for all counties in Alabama, Florida, Georgia, Kentucky, North Carolina, Ohio, South Carolina, Tennessee, Virginia, and West Virginia impacted by Hurricanes Debby and/or Helene to assist impacted policyholders and increase efficiency of AIP services and determinations.
(1) In lieu of item (6) in MGR-24-006, and to expedite Pecan Tree loss adjustment, the following guidelines are approved to establish a deviation in the appraisal procedure as outlined in Paragraph 35 of the Pecan Tree Loss Adjustment Standards Handbook (LASH) (FCIC-20300L). For appraisal deviation purposes, loss adjusters working with policyholders, may designate blocks of damaged, undamaged, and destroyed trees. The following actions are authorized for Pecan Tree loss adjustment:
(a) Trees reported and certified on the acreage report prior to the date of loss may be used as the actual number of trees for claim purposes unless:
(i) an alternate, acceptable measure of the number of trees is readily available (e.g., number of trees determined during a previous inspection, insured provides a tree inventory record, etc.); or
(ii) it is determined (based on visual observation at loss adjustment time) that the reported number of trees appears to be unreasonable, in which case, the number of trees must be determined according to LASH procedure.
(b) A stand of damaged trees within a stage-block requires an appraisal worksheet as specified in the LASH.
(c) Stage-blocks of undamaged trees do not require an appraisal worksheet but must be accounted for on the production worksheet (PW) as outlined in item (1)(e) below.
(d) Stage-blocks of destroyed trees with no remaining value do not require an appraisal worksheet.
(e) With the signed consent of the policyholder, loss adjusters may show stage-blocks that are undamaged as a separate line item on the PW.
(f) The LASH instructs AIPs to account for the total number of trees in all stage-blocks present in the unit, to calculate the unit value for all claims and the unit deductible for insureds that have not elected the occurrence loss option. In addition to the instructions for completing Section I of the PW, authority is granted to modify the instructions to add: “c. Undamaged trees in the unit” to allow undamaged trees to be accounted for on the PW and to add “d. trees totally destroyed.” Section I of the PW should be completed following the instructions in the LASH with the following exceptions:
(i) Item A: Field ID: The grove identification symbol for the block of undamaged trees;
(ii) Item C: Enter the number of undamaged trees in the agreed upon block of trees;
(iii) Item D: Enter the number of trees totally destroyed in the agreed upon block of trees; and
(iv) Item L: % Damage: Enter “1.000” if the trees in the stand are totally destroyed and 0.000 if all the trees in the stand are undamaged.
(2) For those situations where the insured is unable to file an acreage report on or before the acreage reporting date due to hurricane damage, in lieu of unreported acreage procedures in the Loss Adjustment Manual Standards Handbook (FCIC-25010), Paragraph 633, RMA authorizes AIPs to inspect and accept liability for unreported acreage after a loss situation has occurred and without meeting the 90 percent of the approved yield appraisal requirements. Acceptance of unreported acreage should be limited to situations where producers were unable to meet the deadline for acreage reporting due to hurricane damage. Document acceptance in the narrative of the PW.
(3) As it relates to payments, AIPs are authorized to provide additional time for policyholders to make payment of premium and administrative fees associated with policies that have August and September premium billing dates. Interest accrual on premium payments and administrative fees may be waived to the earliest of an additional 60 days of the scheduled payment due date or the termination date on policies with premium billing dates between August 1, 2024, and September 30, 2024. AIPs will begin to accrue interest after this additional period for unpaid premium and administrative fees. AIPs are also authorized to provide additional time for policyholders to make payment for Written Payment Agreements due between August 1, 2024, and September 30, 2024. Payments may be extended up to 60 days of the scheduled payment due date and considered a timely payment. Such extension of time will not be considered a modification of the Written Payment Agreement, and the AIP may waive any additional interest for the payment during this 60-day period. AIPs should attempt to notify potentially affected policyholders of said relief.
RMA will continue to monitor the situation and issue additional emergency procedures, if necessary.
DISPOSAL DATE
December 31, 2024