Loss Examples
LOSS EXAMPLES AT 3 LEVELS OF COVERAGE: |
|
75%
LEVEL
|
|
65%
LEVEL
|
|
CAT
LEVEL
|
|
Plant
Inventory Value Reported
|
|
$100,000
|
|
$100,000
|
|
$100,000
|
|
Coverage
Election
|
|
75%
|
|
65%
|
|
50%
|
|
Price
Election
|
|
100%
|
|
100%
|
|
55%
|
|
Amount
of Insurance
|
|
$75,000
|
|
$65,000
|
|
$27,500
|
|
Crop
Year Deductible
|
|
$25,000
|
|
$35,000
|
|
$50,000
|
|
Deductible
%
|
|
25%
|
|
35%
|
|
50%
|
|
Field
Market Value A:
Value
of insurable plants, based on the USDA-RMA Price Schedule
immediately PRIOR to the occurrence of loss
|
|
$125,000
|
|
$125,000
|
|
$125,000
|
|
Field
Market Value B:
Value
of insurable plants, based on the USDA-RMA Price Schedule
immediately AFTER the occurrence of loss
|
-
|
$80,000
|
-
|
$80,000
|
-
|
$80,000
|
|
Field
Market Value A MINUS Field Market Value B
|
=
|
$45,000
|
=
|
$45,000
|
=
|
$45,000
|
|
Under-report
factor (100,000 DIVIDED by 125,000)
|
X
|
80%
|
X
|
80%
|
X
|
80%
|
|
Loss
Adjusted for Under Reporting
|
=
|
$36,000
|
=
|
$36,000
|
=
|
$36,000
|
|
Occurrence
Deductible (125,000 X 80% X % Deductible)
|
-
|
$25,000
|
-
|
$35,000
|
-
|
$50,000
|
|
Price
Election
|
X
|
100%
|
X
|
100%
|
X
|
55%
|
|
Amount
of Indemnity
|
=
|
$11,000
|
=
|
$1,000
|
=
|
$0
|
NURSERY CROP
INSURANCE CONTINUED:
THE
BASICS | CHOOSING COVERAGE | BEGINNING
COVERAGE | LOSS EXAMPLES
This is a summary and does not reflect complete
policy terms. For complete policy terms, go to http://www.rma.usda.gov/policies
This website provides limited information, and the information herein cannot be considered an offer or guarantee of insurance coverage. Contact AgSecure for more information on programs in your area. |
