Regulacje i polityka gospodarcza · 17.09.1997

General Administrative Regulations; Nonstandard Underwriting Classification System

This notice announces a public comment period on the Nonstandard Underwriting Classification System (NCS) which is administered by the Federal Crop Insurance Corporation (FCIC) in conjunction with the Federal crop insurance program. The NCS program compares an individual producer's crop loss history with the losses for the producer's county. If the producer exceeds the level of loss frequency and severity set by FCIC, the producer's rates and coverages are adjusted to bring the policy into line with FCIC's statutory mandate to implement an actuarially sound crop insurance program. Concurrently, the loss histories for these NCS producers are removed from the accumulated program statistics which are used to set the insurance rates for the remainder of the policyholder population. This has the effect of moderating rate increases for the majority of producers by making high loss producers responsible for paying more premium based on their individual risk. A number of interested parties, including producer groups and insurance agent associations, have indicated that NCS does not treat producers fairly and that it does not correctly identify those producers who represent greater risk to