BULLETIN NO.:  MGR-97-037

TO:    All Reinsured Companies
       Sacramento Field Offices
       All Other Interested Parties

FROM:  Kenneth D. Ackerman
       Administrator

SUBJECT:  Raisin Policy Administrative Fee


ISSUE:

The Risk Management Agency has received questions as to the date the raisin
policy administrative fee is due under the new policy.

BACKGROUND:

The administrative fee for carry-over policies with the catastrophic level
of insurance coverage is due at the acreage reporting date for most crops.
Prior to 1997, the raisin policy did not provide for an acreage report and
the administrative fee was due on the tonnage reporting date, or March 20.
The new 1997 Raisin Policy now contains requirement for an acreage report
which is due on the July 31 sales closing date.  The new 1997 Raisin Policy 
acreage report requirement provides for increasing or decreasing insurable
acreage up to the final lay down date for the crop.  Unlike acreage reports
for other crops, the raisin acreage report does not establish the liability
under the policy, the tonnage report or claim establishes the liability.

ACTION:

For the 1997 crop year, the raisin grower can pay the administrative fee up
to the tonnage reporting date and maintain coverage under the policy.  For
the 1998 and succeeding crop years, the administrative fee is due no later
than the acreage reporting date established in the policy.