United States

Department of Agriculture

USDA

Risk

Management

Agency

Product

Development

Division

FCIC 24090

(11-98)

1999

NURSERY

CROP INSURANCE UNDERWRITING GUIDE

Underwriting Guides for Catastrophic (CAT), Limited & Additional Coverage Nursery Crop Insurance Contracts

NOVEMBER 1998	FCIC 24090

NURSERY CROP INSURANCE UNDERWRITING GUIDE

TABLE OF CONTENTS

1	PURPOSE AND OBJECTIVE	4

2	CANCELLATION	4

3	TRANSITION TO NEW NURSERY CROP PROVISIONS	5

4	AVAILABILITY	6

5	IMPORTANT DATES	6

6	BASIS OF COVERAGE	7

7	INSURABLE PLANTS	7

8	CAUSE OF LOSS LIMITATIONS	8

9	CONDITION OF ACCEPTANCE	8

10	UNIT DIVISION	10

11	PENALTIES FOR MISREPORTING	11

12	PLANT INVENTORY VALUE REPORT	12

13	PEAK INVENTORY ENDORSEMENT	14

14	DEDUCTIBLES	15

15	FIELD MARKET VALUES	16

16	INDEMNITY EXAMPLE	16

17	EXHIBITS	18

3	RESERVED

FEDERAL CROP INSURANCE CORP.	NUMBER: 24090
SUBJECT:

NURSERY CROP INSURANCE UNDERWRITING GUIDE	DATE: November 1998
OPI: PRODUCT DEVELOPMENT DIVISION
APPROVED:

1	PURPOSE AND OBJECTIVE

To provide instructions for underwriting nursery crops under policy 99-073 and to assure uniform acceptance of nursery risks meeting the criteria provided by handbook.

2	CANCELLATION

A	Effective Date: Upon Approval

B	Replaces: No other issuance

______________________________________________________________________________

DISTRIBUTION

RMA Deputy Administrators, Directors, Washington D.C. and Kansas City; RMA Regional Service and Risk Compliance Offices; National Appeals Division (NAD); Reinsured Companies, and Nationsl Crop Insurance Services (NCIS).

3	TRANSITION TO THE NEW NURSERY CROP PROVISIONS

For the 1999 crop year, only:

A	Nursery insureds may continue insurance coverage under provisions of the nursery crop insurance provisions (policy 96-056) or convert to insurance coverage under the new nursery crop insurance provisions (policy 99-073) through November 30, 1998.

B	If the insured elects to insure under policy 96-056:

(1)	Any administrative fees will be due on April 1, 1999.

(2)	Insureds may not convert to policy 99-073 if a claim is filed under policy 96-056.

(3)	Refer to the 1997 Nursery Crop Insurance Underwriting Guide FCIC 24080 dated August 1996, for guidance under policy 96-056.

(4)	Policy 96-056 will not be available for crop year 2000.

C	If the insured elects to convert to policy 99-073:

(1)	Policy 96-056 must be canceled simultaneously on conversion (see item 2 below).

(2)	The 30 day waiting period and inspection requirements for container grown nursery plants:

(a)	Will be waived for those policyholders who maintain their coverage level.

(b)	Will apply if the insured changes the level of coverage. In this case, coverage for the container grown plants under nursery policy 96-056 will remain in effect (the policy will not be canceled) until the end of the 30 day waiting period. (Nursery inventory insured under each policy is considered a separate crop, thus duplicate policies for a crop will not result.)

(3)	The 30 day waiting period and inspection requirements apply to field grown nursery plants irrespective of the coverage level or price percentage elected and to all new applicants insured under policy 99-073.

(4)	A Plant Inventory Value report must be submitted to reflect new values for container grown plants and to provide values for field grown plants.

(5)	Any premium or fees paid under policy 96-056 will be credited to policy 99-073 for converted policies.

D	Coverage for the 1999 crop year may not be transferred from one company to another. (Canceled and rewritten) Coverage for the 2000 crop year may be transferred provided:

(1)	An application and Plant Inventory Value Report are completed.

(2)	All underwriting requirements are completed including the nursery inspection.

COVERAGE UNDER NURSERY CROP PROVISIONS (99-073)

4	AVAILABILITY

Nursery crop insurance protection is available to all persons operating a nursery that produces and markets nursery plants grown in standard nursery containers or the field in accordance with the common crop insurance policy and nursery crop insurance provisions.

A nursery is a business enterprise that has wholesale sales of nursery plants equal to or greater than 50% of the gross income from the business enterprise. A nursery that receives more than 50% of its gross income from any combination of the following retail plants, plant care products, or other nursery related products and services, including landscaping, is not eligible for coverage under the nursery crop insurance provisions.

5	IMPORTANT DATES

A	Contract change date - 6/30.

B	Sales closing date:

C	(1)	New insureds - any time between 9/30 and 5/31.

(2)	Carryover insureds - 9/30.

D	Plant inventory reporting date:

(1)	New insureds - with the application.

(2)	Carryover insureds - 9/1.

E	Insurance attachment date:

(1)	New insureds - 30 days after the application is signed (unless otherwise notified).

(2)	Carryover insureds - 10/1.

F	Premium billing date - 7/1. Includes:

(1)	Premium based on:

(a)	The Plant Inventory Value Report.

(b)	A revised Plant Inventory Value Report.

(c)	A Peak Inventory Value Report.

(2)	Administrative fees.

G	Cancellation date - 9/30.

H	Termination date - 9/30.

6	BASIS OF COVERAGE

Eligible Plant Listing and Price Schedule:

A	Used to established insurability, liability, and indemnities.

B	Available in print and CD ROM.

C	Identifies insurable plants by name, type, and size.

D	Provides hardiness zones, storage keys, and prices for listed plants

E	Designates hardiness zones by county.

F	Provides other information to administer the nursery program.

NOTE: The term "minimum hardiness zone" is determined by the number assigned each zone. For example, zone 6 is less than zone 7

7	INSURABLE PLANTS

A	Container and field grown nursery plants identified on the Eligible Plant Listing and Price Schedule meeting the requirements of the common crop insurance policy and nursery crop insurance provisions.

B	Eligible plants grown under irrigation only (unless otherwise allowed by the Special Provisions for field grown plants).

C	Plants established as insurable under a written agreement issued by RMA (not applicable to CAT).

D	See the nursery crop insurance provisions, Section 8 for additional information regarding insurable plants.

E	The minimum sizes at which field grown plants are eligible are:

(1)	Diameter - 1/2 inch

(2)	Height - 6 inches

F	The maximum size at which field grown plants are eligible is 30 feet in height.

(See the Eligible Plant Listing and Price Schedule for additional plant information)

8	CAUSE OF LOSS LIMITATIONS

A	Plant disease and insect damage are not covered unless the disease or insect infestation occurs and no effective control measure exists or as specified on the Special Provisions.

B	Growers whose insurable plants do not have the required cold protection are covered for all named perils except cold temperatures without the need for a special endorsement.

C	See the nursery crop insurance provisions, Section 10(b) for additional limitations.

9	CONDITION OF ACCEPTANCE

A	An inspection report must be completed prior to the acceptance of any application for insurance of a nursery crop and at certain other times. The nursery inspection is conducted by the company to determine the acceptability of the nursery operation as an insurance risk. The company's underwriters will review the inspection reports and determine whether to bind coverage. In case of a negative inspection report, the company will respond by choosing from the options under E of this section.

B	Inspection of nursery operations must occur in the following circumstances:

(1)	The first year for a policyholder, including a policy that is transferred from another company.

(2)	When there is an increase in value shown on the Plant Inventory Value Report of 50% or more of the previous values. Note: This is measured on a policy basis, not practice.

(3)	When a new site or location is added to the operation.

(4)	When a CAT applicant or insured requests a waiver under section 6 (h) of the nursery crop insurance policy provisions.

(5)	When a policyholder transitions from policy 96-056 to policy 99-073 adding field grown plants.

C	The inspection is required to be completed timely enough to provide the company the opportunity to reject the application if necessary.

D	A negative inspection report will require one of the following actions.

(1)	Notify the applicant or insured in writing that if the deficiency is not corrected and a loss occurs, that there are potential grounds for denying coverage based on the nursery crop insurance provisions.

(2)	Notify the applicant or insured that coverage is denied on the basis of the negative inspection report and requirements of the nursery crop policy provisions.

(3)	Review nursery's records.

(4)	Re-inspect the nursery.

E	The required inspection elements and recommended company actions in case of a negative report are:

INSPECTION	ACTION (NEGATIVE REPORT)

(1) Eligibility	Deny coverage

(2) Reasonableness of reported	Review nursery's records

value	If still negative, deny coverage

(3) Records in support of a	Deny request

request to waive CAT

Inventory limits

(4) Adequacy of Facilities:

(a) Irrigation	Notice of potential grounds for denying
coverage or deny coverage

(b) Frost/Freeze protection	Notice of potential grounds for denying

coverage or deny coverage

(c) Container and potting	Notice of potential grounds for denying
Medium	coverage or deny coverage

(D) Weeds	Notice of potential grounds for denying
coverage or deny coverage

Note: In all cases, the company may choose to re-inspect

10	UNIT DIVISION

A	Unit division on a geographic basis (i.e., different sections, FSNs, etc.) is not available under policy (99-073) for CAT, limited or additional coverage.

B	For CAT:

(1)	Basic units are based on all nurseries combined in which the insured has a 100 percent interest and separately for each nursery in which the insured has a different share interest (see the CAT endorsement). Field and container grown plants produced in the same nursery will be contained in the same basic unit.

(2)	Optional units are not available.

C	For limited and additional coverage:

(1)	Share units are not available.

(2)	Basic units are established by practice, (container grown and field grown). All insurable plants under each practice in which the insured has a share is a basic unit.

(3)	A basic unit may be divided into optional units according to the following plant types:

(a)	Deciduous trees (shade and flower)

(b)	Broad-leaf Evergreen trees

(c)	Coniferous Evergreen trees

(d)	Fruit and Nut trees

(e)	Deciduous Shrubs

(f)	Broad-Leaf Evergreen Shrubs

(g)	Coniferous-Evergreen Shrubs

(h)	Small Fruits

(i)	Herbaceous Perennials

(j)	Roses

(k)	Ground Cover and Vines

(l)	Annual

(m)	Foliage

(n)	Other plant types listed in the Special Provisions

(4)	Regardless of the existence of optional units, the basic unit will be used to establish:

(a)	The amount of insurance.

(b)	Crop year deductible.

(c)	Under reporting factor.

(d)	Premium.

(e)	The maximum indemnity payable.

11	PENALTIES FOR MISREPORTING

A	Under Report Factor (penalty for under insuring)

If the policyholder fails to report an amount of insurance equal at least to the value of the inventory at the time of any loss determination, a penalty in proportion to the amount of underinsurance will be applied.

For example: The value of the nursery inventory for the basic unit reported on plant inventory report is $100,000. The value of the inventory in the basic unit prior to damage was $125,000 (field market value C). The under report factor is .80 (100,000 ÷ 125,000). A $40,000 loss occurs (125,000 - 85,000). The insured has insured 80% of the inventory and thus receives 80% of the loss or $32,000. This amount would be used to determine the final indemnity (see examples in section 15 of the nursery crop insurance provisions).

B	Overstating Inventory Value

If the policyholder reports an amount of insurance that exceeds the actual value of the inventory, the insured will pay for coverage on which no indemnity can be collected. The policy will not pay any indemnity amount that exceeds the actual inventory value and premium dollars will be wasted. In addition, the crop year will be overstated and will force the occurrence deductible to be applied for each loss in the case of multiple losses which may work an unnecessary denial of benefits on the insured.

12	PLANT INVENTORY VALUE REPORT

A	A Plant Inventory Report must be submitted:

(1)	At the time of application, for new insureds.

(2)	September 1, for carryover insureds. If a new report is not filed, and the policy is not canceled, the policy will continue using the reported inventory values in effect as of August 31. This does not include values reported on a Peak Inventory Endorsement.

NOTE: While in most cases, this will protect the interests of insureds, if the expiring reported inventory value is too great-- for example, if there had been a loss during the year and the insured restocked and increased the reported inventory-- the insured may purchase too much coverage and thus be subject to paying unnecessary premium and to the effects of an unnecessarily large crop year deductible. Since reported values cannot be revised downward, insureds should be advised to exercise caution in using this default mechanism.

(3)	And be signed and dated by the insured.

NOTE: It is not acceptable to mark report "signature on file" or "report by telephone" or any other remark without the original insured signature.

B	The report will include:

(1)	All nursery growing locations.

(2)	Applicable practices and values.

(3)	Inventory value base on the Plant Price Schedule. For CAT, the inventory value may not exceed:

(a)	150 percent of the prior year's sales for container grown plants.

(b)	250 percent of the prior year's sales for field grown plants.

Note:	These limits may not be waived by Written Agreement. (written agreements are not available for CAT; see the CAT Endorsement). However, if the 150/250 limitations contained in section 6 (h) of the nursery crop insurance provisions cause the grower to report so low an inventory value as to be potentially affected by the under- report factor, the grower may present acceptable records to the company that demonstrate the actual inventory value, and the company may waive the limits and issue coverage for a higher amount.

(4)	Share.

(5)	Previous year's plant sales (CAT only).

C	If necessary, the company may also request documentation including:

(1)	A detailed listing of all plants, by name, size, and number.

(2)	Sales and purchases of plants for the previous 3 years.

(3)	Evidence of the insured's ability to maintain the nursery plants.

D	Plant Inventory Report Revisions

(1)	This report may be revised to increase the insured inventory value due to:

(a)	Changes in the nursery (increased in the growing area and/or inventory volume.

(b)	Restocking after crop damage.

(c)	Written agreement approval providing coverage for plants not listed on the Plant Price Schedule.

(2)	Revisions must be made by May 31st of the crop year.

(3)	New inventory is subject to inspection requirements and the 30 day waiting period.

(4)	Downward revisions may be made to correct clerical errors only.

(5)	Premium is determined on a full year basis for carry-over insureds and for all months for which any coverage was provided in the case of first year insureds.

E	Unlisted nursery plants

(1)	For plants not listed in the Plant Price Schedule, submit a request to the RMA Regional Service Office for a written agreement.

(2)	The request must be submitted by:

(a)	The date the application is signed, for new insureds.

(b)	September 1, for carryover insureds.

(3)	Written agreements are not available for CAT.

NOTE:	The thirty day waiting period begins at the date of the application and is not delayed by the request for a written agreement. Coverage attaches on the thirty first day after the date of the application subject to the acceptance of the written agreement by the applicant.

13	PEAK INVENTORY ENDORSEMENT

The Peak Inventory Endorsement allows the value of the insured inventory to be increased temporarily to an amount greater than the amount provided by the plant inventory value report and is used to reflect values during a peak inventory period. Increases in inventory value through this endorsement are in addition to any increases that may be reported on a revised Plant Inventory Value Report.

A	Rules:

(1)	Annual endorsement.

(2)	All coverage factors (e.g. price percentage, elections, coverage level) remain the same as provided by the underlying policy. Only the inventory value changes.

(3)	No more than two endorsements can be purchased in a crop year for each basic unit (unless a loss has occurred and the lost inventory is replaced).

(4)	The maximum liability under any one peak endorsement is limited to the amount of insurance reported for the practice.

(5)	Premium is charged on a whole month basis for each month for which any coverage is provided.

(6)	The Peak Inventory Endorsement may not be purchased after May 31 for the crop year.

(7)	"Stacking" is permitted. That is, the insured may have two endorsements in effect at the same time for a basic unit. The commencement/termination dates of stacked peak endorsements do not have to coincide.

For example: A nursery producer decides to add containerized fiscus trees to inventory and purchases a peak season endorsement for the month of November. The nursery producer then adds containerized poinsettias to inventory for the months of November and December and purchases another peak season endorsement for November and December. The nursery producer has "stacked" the peak season endorsement for the month of November.

(8)	Not available for CAT.

B	Reporting requirements

(1)	Submit a Peak Inventory Value Report.

(2)	See reporting requirements under section 12B of this guide.

(3)	Specify the coverage commencement and termination dates.

14	DEDUCTIBLES

A	Crop year deductible.

The crop year deductible is determined when the level of coverage is selected and is equal to 1 minus the selected coverage level times the inventory value reported for the basic unit times the share. The crop year deductible is reduced by the amount of any loss until the deductible is met. Once the crop year deductible is met, subsequent losses are not reduced by a deductible. The crop year deductible may increase due to increases in inventory value on a revised Plant Inventory Value Report or the purchase of a Peak Inventory Endorsement. The increased deductible under the endorsement is applicable only during the effective period of the endorsement.

B	Occurrence deductible

Individual losses are determined by applying an occurrence deductible. The occurrence deductible is the lesser of:

(1)	the deductible percentage (1 - the coverage level) times field market value A times any under report factor, or

(2)	the crop year deductible.

15	FIELD MARKET VALUES

A	Field market value A

Value of the insurable nursery plants within the unit (basic or optional) immediately prior to a loss based on the Plant Price Schedule.

B	Field market value B

Appraised value of insurable nursery plants based on the Plant Price Schedule after a loss that establishes the value remaining after damage. This may include any appraisal for uninsured loss of value.

C	Field market value C

The value of undamaged insurable nursery plants based on prices contained in the plant price schedule for the basic unit immediately prior to a loss. This value is compared to the value reported for the basic unit on the Plant Inventory Value Report (including any revised report or Peak Inventory Report) to determine any under report factor.

16	INDEMNITY EXAMPLE

Successive indemnities may be paid on the same basic unit subject to a new occurrence deductible each time. Each indemnity paid reduces the amount of insurance remaining on the basic unit. The maximum indemnity is limited to the amount of insurance for the basic unit. When the amount of indemnities paid equals the amount of insurance, no additional coverage is available for the remainder of the crop year. However, coverage can be reestablished if the nursery is restocked and a revised inventory value report is approved

The following is a simple "single unit"example of an indemnity determination. Additional examples are contained in the nursery crop insurance provisions, Section 15.

A	Share	100%

B	Reported inventory value	$100,000

C	Coverage level	75%

D	Price election percentage	75%

E	Amount of Insurance	$ 56,250 B(100,000) C( .75) D( .75)

F	Crop Year Deductible	$ 25,000 B(100,000) .25(1 - C, .75)

Values at the time of loss:

G	Field market value A	$125,000

H	Field market value B	$ 80,000

I	Field market value C	$125,000

J	Under report factor	.80 B(100,000) ÷ I(125,000)

K	Occurrence deductible	$ 25,000 I(125,000) .25(1 - C, .75) J(.80)

Step 1	Determine the under report factor (J, .80)

Step 2	G(125,000) - H(80,000) = 45,000

Step 3	45,000 .80(the result of Step 1) = 36,000

Step 4	36,000 - K(25,000) = 11,000

Step 5	11,000 D(.75) = 8,250

Step 6	8,250 A(1.00) = 8,250 indemnity

The amount of insurance is reduced to $48,000 (E, 56,250 - 8,250).

EXHIBITS

OMB No. 0563-0053
FCI-543	U. S. DEPARTMENT OF AGRICULTURE
(10-98)	Federal Crop Insurance Corporation
PLANT INVENTORY VALUE REPORT
Insured's Name	Contract Number	Coverage Level	Price Level	Crop Year
Street Address	Has the nursery operation changed in the last year?	Yes	No
City, State, Zip	Are all growing locations insured?	Yes	No
Nursery Location	I elect to have optional units and pay the additional premium.	Yes	No
PRACTICE	CONTAINER GROWN (008)	FIELD GROWN (007)
IF REVISED

REPORT,

CHECK HERE	UNIT NO.	INSURED

SHARE	PRACTICE VALUE	AMOUNT OF

INSURANCE	UNIT NO.	INSURED

SHARE	PRACTICE VALUE	AMOUNT OF

INSURANCE
Previous Year's Sales (CAT only):	Previous Year's Sales (CAT only):
I submit this report pursuant to the requirements of the nursery crop insurance provisions and certify to the best of my knowledge that it is correct.

I understand and agree that:

1.	Only plants listed in the Eligible Plant List or for which I have an approved written agreement are insurable. Indemnities will be based on prices shown on the Plant Price Schedule or an approved written agreement.
2.	Over reporting my inventory value for insurance purposes, will cause me to overpay premium and will increase my crop year deductible. I cannot reduce my premium or crop year deductible by revising my Plant Inventory Value Report downward for any reason except to correct clerical errors.
3.	If I underreport my inventory value for a practice, based on prices shown on the Plant Price Schedule or an approved written agreement, any indemnities will be prorated by an under report factor.
4.	Only wholesale nurseries are eligible for coverage under this policy and that a wholesale nursery is one that derives at least 50 percent of it's gross income from the wholesale marketing of plants.
I have read and understand the terms of the Field Grown and Container Nursery policy. My questions have been answered by my agent to my satisfaction.

The information I have furnished on this form is complete and accurate. I understand that any false or inaccurate information may result in the sanctions outlined in my policy and administrative, civil, and criminal sanctions under 18 U.S.C. §§ 1006 and 1014, 7 U.S.C. § 1506, 31 U.S.C. §§ 3729 and 3730 and other federal statutes.
Insured's Signature	Date	Representative's Signature	Date

FCI-543 (Reverse)

COLLECTION OF INFORMATION AND DATA (PRIVACY ACT)

To the extent that the information requested herein relates to the applicant's individual capacity as opposed to the applicant's business capacity, the following statements are made in accordance with the Privacy Act of 1974, as amended (5 U.S.C. 552a). The authority for requesting information to be furnished on this form is the Federal Crop Insurance Act, (7 U.S.C. 1501 et seq.) and the Federal crop insurance regulations contained in 7 C.F.R. chapter IV.

Collection of the social security account number (SSN) or the employer identification number (EIN) is authorized by section 506 of the Federal Crop Insurance Act (7 U.S.C. 1506), and is required as a condition of eligibility for participation in the Federal crop insurance program. The primary use of the SSN or EIN is to correctly identify you, and any other person with an interest in your entity of 10 percent or more, as a policyholder within the systems maintained by the Federal Crop Insurance Corporation (FCIC). Furnishing the SSN or EIN is voluntary; however, failure to furnish that number will result in denial of program participation and benefits.

The balance of the information requested is necessary for the insurance company and FCIC to process this form to: provide insurance; provide reinsurance; determine eligibility; determine the correct parties to the agreement; determine and collect premiums or other monetary amounts (including administrative fees and over payments); and pay benefits. The information furnished on this form will be used by Federal agencies, FCIC employees, insurance companies, and contractors who require such information in the performance of their duties. The information may be furnished to: FCIC contract agencies, employees and loss adjusters; reinsured companies; other agencies within the United States Department of Agriculture; The Department of Treasury including the Internal Revenue Service; the Department of Justice, or other Federal or State law enforcement agencies; credit reporting agencies and collection agencies; other Federal agencies as requested in computer matching programs; and in response to judicial orders in the course of litigation. The information may also be furnished to congressional representatives and senators making inquiries on your behalf. Furnishing the information required by this form is voluntary; however, failure to report the correct and complete information requested may result in rejection of this form; rejection of any claim for indemnity, replanting payment, or other benefit; ineligibility for insurance; and a unilateral determination of any monetary amounts due.

PAPERWORK REDUCTION ACT

In accordance with the Paperwork Reduction Act, public reporting burden for the collection of information is estimated to average 30 minutes per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate, or any other aspect of this collection information, including suggestions for reducing this burden to the Department of Agriculture, Clearance Officer, OIRM (OMB No. 0563-0053), Stop 7630, Washington, D.C. 20250-7630.

NONDISCRIMINATION STATEMENT

The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, gender, religion, age, disability, political beliefs, sexual orientation, and marital or family status. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA's TARGET Center at (202) 720-2600 (voice and TDD).

To file a complaint of discrimination, write USDA, Director, Office of Civil Rights, Room 326-W, Whitten Building, 1400 Independence Avenue, SW, Washington, D.C. 20250-9410 or call (202) 720-5964 (voice or TDD). USDA is an equal opportunity provider and employer.

PLANT INVENTORY VALUE REPORT

The following entries are required for the plant inventory value report in the format selected by the company. The sequence of the items on the form will be determined by the format selected by the company.

This report must be completed at the time of application for new insureds and by September 1 for carryover insureds.

For carryover insureds this report must be filed by September 1, or the values reported for the previous crop year remain in effect.

This report may be revised up until May 31 for the crop year.

This report will include all locations.

This report may be used to add values of the inventory that has been replaced after a loss or which were not included in the original report.

In the event a plant cannot be identified on the Plant Price Schedule, the policyholder may request that the Regional Service Office assign the required plant value through a written agreement.

IDENTIFYING THE INSURED

Insured's Name

Contract number

Street Address

City, State. Zip Code

UNDERWRITING QUESTIONS

Coverage Level (one level for policy)

Price Level ( one price % per policy)

Crop Year

Has the nursery operation changed in the past year? Check Yes or No

Are all growing locations insured? Check yes or No

I elect to have optional units and pay the additional premium. Check Yes or No

REPORTING BY BASIC UNIT

Practice - Container Grown (008)

If revised report check here (Note: cannot revise downward unless clerical error.)

Unit number

Insured share

Practice value (Is the full value of all insurable plants in each basic unit on the plant inventory value report including any report increasing the value of insurable plant inventory.)

Amount of Insurance (For each basic unit, the practice value multiplied by coverage level percentage elected, multiplied by your price election and multiplied by your share.)

Practice - Field Grown (007)

Unit number

Insured share

Practice value (Is the full value of all insurable plants in each basic unit on the plant inventory value report including any report increasing the value of insurable plant inventory.)

Amount of Insurance (For each basic unit, the practice value multiplied by coverage level percentage elected, multiplied by your price election and

multiplied by your share.)

FOR CAT ONLY: Report for each basic unit by practice the sales for the prior year.

Inventory Coverage Commencement Date (Thirty days after the date the applications is completed.)

UNDERSTANDING BY INSURED

Assure that the inventory values reported are based on the Plant Price Schedule.

Understand that over reporting of inventory will cause the premium to be overpaid.

Understand that under reporting will result in a factor being applied to the indemnity reducing the amount by the percentage underinsured.

Understand that only wholesale nurseries are eligible for coverage. The nursery must derive at least 50 percent of it's gross income from marketing plants.

SIGNATURE BY INSURED

The insured must sign the plant inventory value report and date the form. It is not acceptable to mark report "signature on file" or "report by telephone" or any other remark without the original signature.

SIGNATURE BY REPRESENTATIVE

The agent must sign and date the Plant Inventory Value Report

OMB No. 0563-0053
FCI-543A	U. S. DEPARTMENT OF AGRICULTURE
(10-98)	Federal Crop Insurance Corporation
PEAK INVENTORY VALUE REPORT
Insured's Name	Contract Number	Coverage Level	Price Level	Crop Year
Street Address
City, State, Zip
PRACTICE	CONTAINER GROWN (008)	FIELD GROWN (007)
UNIT NO.	INSURED

SHARE	PEAK INVENTORY

VALUE	PEAK AMOUNT

OF INSURANCE	UNIT NO.	INSURED

SHARE	PEAK INVENTORY

VALUE	PEAK AMOUNT

OF INSURANCE
Peak Inventory Coverage Commencement Date	Peak Inventory Coverage Termination Date	Peak Inventory Coverage Commencement Date	Peak Inventory Coverage Termination Date
I submit this report pursuant to the requirements of the nursery crop insurance provisions and certify to the best of my knowledge that it is correct.
A false statement made to the Federal Crop Insurance Corporation or false statement made on a matter within the jurisdiction of the FCIC may subject the maker to criminal and civil penalties under the provisions of 18 U.S.C. 1006, 1014; 7 U.S.C. 1506; 31 U.S.C. 3729, 3730.
Insured's Signature	Date	Representative's Signature	Date
PRACTICE	CONTAINER GROWN (008)	FIELD GROWN (007)
UNIT NO.	INSURED

SHARE	PEAK INVENTORY

VALUE	PEAK AMOUNT

OF INSURANCE	UNIT NO.	INSURED

SHARE	PEAK INVENTORY

VALUE	PEAK AMOUNT

OF INSURANCE
Peak Inventory Coverage Commencement Date	Peak Inventory Coverage Termination Date	Peak Inventory Coverage Commencement Date	Peak Inventory Coverage Termination Date
I submit this report pursuant to the requirements of the nursery crop insurance provisions and certify to the best of my knowledge that it is correct.
The information I have furnished on this form is complete and accurate. I understand that any false or inaccurate information may result in the sanctions outlined in my policy and administrative, civil, and criminal sanctions under 18 U.S.C. §§ 1006 and 1014, 7 U.S.C. § 1506, 31 U.S.C. §§ 3729 and 3730 and other federal statutes.
Insured's Signature	Date	Representative's Signature	Date

FCI-543 (Reverse)

COLLECTION OF INFORMATION AND DATA (PRIVACY ACT)

To the extent that the information requested herein relates to the applicant's individual capacity as opposed to the applicant's business capacity, the following statements are made in accordance with the Privacy Act of 1974, as amended (5 U.S.C. 552a). The authority for requesting information to be furnished on this form is the Federal Crop Insurance Act, (7 U.S.C. 1501 et seq.) and the Federal crop insurance regulations contained in 7 C.F.R. chapter IV.

Collection of the social security account number (SSN) or the employer identification number (EIN) is authorized by section 506 of the Federal Crop Insurance Act (7 U.S.C. 1506), and is required as a condition of eligibility for participation in the Federal crop insurance program. The primary use of the SSN or EIN is to correctly identify you, and any other person with an interest in your entity of 10 percent or more, as a policyholder within the systems maintained by the Federal Crop Insurance Corporation (FCIC). Furnishing the SSN or EIN is voluntary; however, failure to furnish that number will result in denial of program participation and benefits.

The balance of the information requested is necessary for the insurance company and FCIC to process this form to: provide insurance; provide reinsurance; determine eligibility; determine the correct parties to the agreement; determine and collect premiums or other monetary amounts (including administrative fees and over payments); and pay benefits. The information furnished on this form will be used by Federal agencies, FCIC employees, insurance companies, and contractors who require such information in the performance of their duties. The information may be furnished to: FCIC contract agencies, employees and loss adjusters; reinsured companies; other agencies within the United States Department of Agriculture; The Department of Treasury including the Internal Revenue Service; the Department of Justice, or other Federal or State law enforcement agencies; credit reporting agencies and collection agencies; other Federal agencies as requested in computer matching programs; and in response to judicial orders in the course of litigation. The information may also be furnished to congressional representatives and senators making inquiries on your behalf. Furnishing the information required by this form is voluntary; however, failure to report the correct and complete information requested may result in rejection of this form; rejection of any claim for indemnity, replanting payment, or other benefit; ineligibility for insurance; and a unilateral determination of any monetary amounts due.

PAPERWORK REDUCTION ACT

In accordance with the Paperwork Reduction Act, public reporting burden for the collection of information is estimated to average 30 minutes per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate, or any other aspect of this collection information, including suggestions for reducing this burden to the Department of Agriculture, Clearance Officer, OIRM (OMB No. 0563-0053), Stop 7630, Washington, D.C. 20250-7630.

NONDISCRIMINATION STATEMENT

The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, gender, religion, age, disability, political beliefs, sexual orientation, and marital or family status. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA's TARGET Center at (202) 720-2600 (voice and TDD).

To file a complaint of discrimination, write USDA, Director, Office of Civil Rights, Room 326-W, Whitten Building, 1400 Independence Avenue, SW, Washington, D.C. 20250-9410 or call (202) 720-5964 (voice or TDD). USDA is an equal opportunity provider and employer.

INSTRUCTIONS FOR COMPLETION OF FCI-543A

PEAK INVENTORY VALUE REPORT

(NOT AVAILABLE FOR CAT)

The following entries are required for the Peak Inventory Value Report in the format selected by the company. The sequence of the items on the form will be determined by the format selected by the company.

This report must be completed when the insured reports values have been or will be increased for a particular period of time and the policy will be endorsed to reflect this time and value increase.

Premium will be charged for each month the amount of coverage is increased. A full months premium is charged for any fraction of a month the amount of coverage is increased.

This report may be filed up until May 31 of each year.

No more than two endorsements may be purchased in a crop year (unless a loss occurred and the loss was to inventory covered by the Peak Inventory Report. Damaged plants that are replaced, originally reported under the Plant Inventory Value Report, should be reported for coverage under the Plant Inventory Value Report

Price percentage, elections, and coverage level remain the same as provided by the underlying policy. Only the inventory value changes.

The maximum liability for any one peak season endorsement is limited to the amount of insurance reported for the practice.

The insured may have more than one peak season endorsement in effect covering portions or all of the same period of liability increase. The commencement/termination dates of peak season endorsements do not have coincide.

IDENTIFYING THE INSURED

Insured's Name

Contract Number

Street Address

City, State, Zip Code

UNDERWRITING QUESTIONS

Coverage Level

Price Election (One price % per policy)

Crop Year

REPORTING BY BASIC UNIT

(Practices Container Grown 008 and Field Grown 007)

Unit Number

Insured's Share

Peak Inventory Value (Is the value the Inventory is increased by the Peak Inventory Value Report)

Peak Amount of Insurance (For each basic unit, the practice value plus the peak inventory value multiplied by coverage level percentage elected, multiplied by the price election)

Peak Inventory Commencement Date (May be any date selected by the insured)

Peak Inventory Termination Date ) (May be any date selected by the insured)

UNDERSTANDING BY INSURED

Assure that the peak increase in inventory is reported in accordance with values from the Plant Price Schedule

Assure that the peak increase reflects the inventory values and practice during the peak period reported by the insured

SIGNATURE BY INSURED

The insured must sign the peak inventory value report and date the form. It is not acceptable to mark the report "signature on file" or "report by telephone" or any other remark without the original signature.

SIGNATURE BY REPRESENTATIVE

The agent must sign and date the peak inventory value report.

FCI-544	U.S. DEPARTMENT OF AGRICULTURE	OMB No. 0563-0053

(Rev. 10-98)	Federal Crop Insurance Corporation
NURSERY UNDERWRITING INSPECTION REPORT
1 CROP YEAR	2 UNIT NUMBER	3 ACRES	4 PRACTICE	5 CONTRACT NUMBER
6 NAME AND ADDRESS OF APPLICANT	7 NAME OF OWNER	8 NAME OF OPERATOR
9 NAME OF AGENT/AGENCY	10 LEGAL DESCRIPTION:
Section	Township	Range
Phone No.	(	)
11 LOCATION DESCRIPTION:
SITE INFORMATION
12 FLOOD RATING
Is the nursery site susceptible to flood damage?	YES	NO
If yes describe in detail what precautions have been taken to protect the container / in-ground stock

13 IRRIGATION PRACTICE
Describe in detail the irrigation water source.
A. Surface:	% of total supply	B. Irrigation Well(s):	% of total supply
(1)	Irrigation district name	(1)	Irrigation district name
(2)	Allocation last year:	% of normal	(2)	Allocation last year:	% of normal
(3)	Expected allocation:	% of normal	(3)	Expected allocation:	% of normal
(4)	Water Impoundment:	Size	How many	(4)	Number of Wells:	Gallons per minute
(5)	Rivers/Creeks:	Number of months available	Other: Size and number
Type of Irrigation Method:
Overhead	Drip or Trickle System	Other
14 Describe in detail the fertilization program used for the unit. Include any specialized requirements required by species (attach additional sheets as necessary)
15 Describe in detail weed control measures used for the unit
16 Describe in detail wildlife control measures used for the unit
17 Do any plant species show evidence of insect or disease infestation? If evidence of disease is observed describe in detail and document what is being done to control the disease. Attach additional sheets as necessary.
18 Are plants being grown in appropriate growing medium according to accepted industry standards?
19 (A) Is the unit subject to above normal frost hazard?
(B) Has winter damage or damage the previous year occurred which may affect this year's potential production? If yes, explain.
20 Frost/Freeze Protection: (Check and enter type information)
A.	None	G.	Does site location aid in frost protection?
TYPE
B.	Sprinklers	H.	Average number of times per year that frost protection is utilized?
C.	Hoop house	I.	Designated Hardiness Zone for the nursery location.
D.	Poly
E.	Greenhouse
F.	Heat

FCI-544 (Reverse)

21 Are adequate facilities available to meet over winterization requirements required by the Nursery Eligible Plant Listing? Note any deficiencies.
22 By what date does the nursery normally complete cold weather protection of container Plants?
23 On what date are container plants fully removed from cold weather protection?
24 Crop unit location map:
Small Blocks = 40 acres
Draw in nursery / unit locations with identifying roads and landmarks. Prepare a location map showing the unit as applicable

as well as other property units owned, share rented and land physically separated by another farm operator. The map itself

should be detailed showing landmarks and crops grown by the insured.
Is a hand sketched map attached?
Is an FSA aerial photo attached?
SECTION
25 Additional information and comments:
ABOVE

AVERAGE

AVERAGE	BELOW

AVERAGE
26	A.	Your evaluation of the management of this operation:
B.	Your evaluation of the nursery:
27 Action recommended:
Acceptance	Rejection	RSO Field Review	Company Representative
Certified Inspector	Date	Supervisor	Date

COLLECTION OF INFORMATION AND DATA (PRIVACY ACT)

To the extent that the information requested herein relates to your individual capacity as opposed to your business capacity, the following statements are made in accordance with the Privacy Act of 1974, as amended (5 U.S.C. 552a). The authority for requesting information to be furnished on this form is the Federal Crop Insurance Act, (7 U.S.C. 1501 et seq.) and the Federal crop insurance regulations contained in 7 C.F.R. chapter IV.

Collection of the social security account number (SSN) or the employer identification number (EIN) is authorized by section 506 of the Federal Crop Insurance Act (7 U.S.C. 1506), and is required as a condition of eligibility for participation in the Federal crop insurance program. The primary use of the SSN or EIN is to correctly identify you, and any other person with an interest in you or your entity of 10 percent or more, as a policyholder within the systems maintained by the Federal Crop Insurance Corporation (FCIC). Furnishing the SSN or EIN is voluntary; however, failure to furnish that number will result in denial of program participation and benefits.

The balance of the information requested is necessary for the insurance company and FCIC to process this form to: provide insurance; provide reinsurance; determine eligibility; determine the correct parties to the agreement; determine and collect premiums or other monetary amounts (including administrative fees and over payments); and pay benefits. The information furnished on this form will be used by Federal agencies, FCIC employees, insurance companies, and contractors who require such information in the performance of their duties. The information may be furnished to: FCIC contract agencies, employees and loss adjusters; reinsured companies; other agencies within the United States Department of Agriculture; The Department of Treasury including the Internal Revenue Service; the Department of Justice, or other Federal or State law enforcement agencies; credit reporting agencies and collection agencies; other Federal agencies as requested in computer matching programs; and in response to judicial orders in the course of litigation. The information may also be furnished to congressional representatives and senators making inquiries on your behalf. Furnishing the information required by this form is voluntary; however, failure to report the correct and complete information requested may result in rejection of this form; rejection of any claim for indemnity, replanting payment, or other benefit; ineligibility for insurance; and a unilateral determination of any monetary amounts due.

PAPERWORK REDUCTION ACT

In accordance with the Paperwork Reduction Act, public reporting burden for the collection of information is estimated to average 10 minutes per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate, or any other aspect of this collection information, including suggestions for reducing this burden to the Department of Agriculture, Clearance Officer, OIRM (OMB No. 0563-0053), Stop 7630, Washington, D.C. 20250-7630.

NONDISCRIMINATION STATEMENT

The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, gender, religion, age, disability, political beliefs, sexual orientation, and marital or family status. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA's TARGET Center at (202) 720-2600 (voice and TDD).

To file a complaint of discrimination, write USDA, Director, Office of Civil Rights, Room 326-W, Whitten Building, 1400 Independence Avenue, SW, Washington, D.C. 20250-9410 or call (202) 720-5964 (voice or TDD). USDA is an equal opportunity provider and employer.

NURSERY UNDERWRITING INSPECTION REPORT

Note: Complete an inspection report for each location inspected.

The following entries are required for the Nursery Underwriting Inspection Report in the format selected by the company. The sequence of the items on the form will be determined be the format selected by the company.

This report must be completed within thirty days of the signature date on the application by the applicant and as directed by the company for applicants/insureds.

IDENTIFYING THE INSURED

Crop year

Name of applicant

Unit number

Acres (Field grown and containerized plants. List number of acres for each practice separately)

Practice (List field grown or containerized or both practices)

Contract number

Name of Operator

Name of Agent/Agency and phone number

Legal Description

Location Description

Site Information

UNDERWRITING QUESTIONS

Is the nursery site susceptible to flood damage? yes or no

If yes describe in detail what precautions have been taken to protect the container/in-ground stock

IRRIGATION FACILITIES

Describe in detail the irrigation water source

Surface water supply as a percentage of total supply.

Irrigation district name.

Allocation last year as a percentage of normal usage.

Expected allocation as a percentage of normal usage.

Water impoundment. State size and how many.

Rivers/creeks. State number of months available as a supply.

Type of irrigation method. Overhead, Drip or trickle system, Other.

Irrigation well(s) as a percentage of total supply used.

Irrigation district name.

Allocation last year as a percentage of normal usage.

Expected allocation as a percentage of normal usage.

Number of wells.

Gallons per minute.

Other supply include size and number

OTHER SITE OBSERVATIONS

Describe in detail the fertilization program used and any special requirements by specie.

Describe in detail weed control measures

Describe in detail wildlife control measures

Do any plant species show evidence of insect or disease infestation? If so, document what is being done to control.

Are plants being grown in appropriate growing medium according to accepted industry standards?

FROST FREEZE

Is the unit subject to above normal frost hazard?

Has winter damage occurred the previous year that will affect this year's production?

Frost/Freeze protection, check and enter type: None, Sprinklers, Hoop house, Poly, Greenhouse, heat.

Does this sit location aid in frost protection?

Average number of times per year that frost protection is utilized?

USDA Hardiness Zone for the nursery location.

Are adequate facilities available to meet over winterization requirements required by the Eligible Plant listing? Note any deficiencies.

By what date does the nursery normally complete cold weather protection of container plants?

On what date are container plants fully removed from cold weather protection?

Hand sketch a map or provide an FSA aerial photo showing the unit in detail showing other owned or share rented, landmarks and nursery crops grown by the insured.

Provide additional information and comments.

INSPECTOR'S EVALUATION

The inspector's evaluation of the management of the nursery as to whether it is above average, average, or below average.

The inspector's evaluation of the nursery facilities and operation as to whether it is above average, average, or below average

Inspector's recommendation as to accept, reject or refer to company representative.

SIGNATURES

Inspector signs and dates on the date of inspection.

Company supervisor signs and dates on the date received and evaluated.