FCIC APPEAL PROCEDURE REGULATIONS AMENDED

WASHINGTON, May 8, 2002 - USDA's Risk Management Agency (RMA), which administers Federal Crop Insurance Corporation (FCIC) programs, has amended its provisions located at 7 CFR part 400, subpart J, that are applicable to producers participating in the Federal crop insurance program effective April 22, 2002.

If an insured disagrees with any factual determination made by RMA, the disagreement must be resolved through the appeal provisions, as follows:

• An insured may appeal directly to the National Appeals Division (NAD). An appeal is a timely written request by an insured asking for a review of an adverse decision. Adverse decisions based on a general program provision or program policy, any statutory or regulatory requirement that is applicable to all similarly situated producers, mathematical formulas established under a statute, or program regulations and decisions based solely on the application of those formulas, are not appealable.
  
  
• An insured may appeal directly to the National Appeals Division (NAD). An appeal is a timely written request by an insured asking for a review of an adverse decision. Adverse decisions based on a general program provision or program policy, any statutory or regulatory requirement that is applicable to all similarly situated producers, mathematical formulas established under a statute, or program regulations and decisions based solely on the application of those formulas, are not appealable.
  
  
• If an insured receives a determination from RMA that a decision is not appealable, the insured may submit a written request to the Director of NAD for a determination of appealability. However, such request must be made if the insured plans to bring any judicial action against RMA or FCIC. A final determination of NAD is reviewable and enforceable by any United States District Court of competent jurisdiction.

FCIC has a Standard Reinsurance Agreement with private insurance companies to sell and service Federal crop insurance policies. Crop insurance companies sell, service, and adjust losses on crop policies they write according to FCIC approved policies, provisions, standards, and loss adjustment procedures. FCIC is a reinsurer and does not have a direct appeal involvement with the policy and, therefore, any disputes with the crop insurance companies must be resolved in accordance with the arbitration provision of the policy.