Sec. 11030. Index-based weather insurance pilot program
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Section 523(a)(2) of the Federal Crop Insurance Act ( 7 U.S.C. 1523(a)(2) ) is amended— by striking Under inserting the following: Under ; and by adding at the end the following: Notwithstanding subparagraph (A), the Corporation, at the sole discretion of the Corporation, may conduct a pilot program to provide financial assistance for producers of underserved crops and livestock (including specialty crops) to purchase an index-based weather insurance product from a private insurance company, subject to the requirements of this subparagraph. Subject to subclause
(II)and clause (v), the Corporation may pay a portion of the premium for producers who purchase index-based weather insurance protection from a private insurance company for a crop and policy that is not reinsured under this subtitle, as determined by the Corporation. The premium assistance under subclause
(I)shall not exceed 60 percent of the estimated premium amount, based on expected losses, representative operating expenses, and representative profit margins, as determined by the Corporation. Before providing premium assistance to producers to purchase index-based weather insurance from a private insurance company pursuant to this subparagraph, the Corporation shall verify that the company has adequate experience— to develop and manage the index-based weather insurance products, including adequate resources, experience, and assets or sufficient reinsurance to meet the obligations of the company under this subparagraph; and to support and deliver the index-based weather insurance products. The Corporation shall develop and publish procedures to administer the pilot program under this subparagraph that— require each applicable private insurance company to report claim and sales data, and any other data the Corporation determines to be appropriate, to allow the Corporation to evaluate product pricing and performance; allow the private insurance companies exclusive rights over the private insurance offered under this subparagraph, including rating of policies, protection of intellectual property rights on the product or policy, and associated rating methodology, for the period during which the companies are eligible under clause (iii); and contain such other requirements as the Corporation determines to be necessary to ensure that— the interests of producers are protected; and the program operates in an actuarially sound manner. Of the funds of the Corporation, the Corporation shall use to carry out this subparagraph $10,000,000 for each of fiscal years 2014 through 2018, to remain available until expended. .
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Sec. 11030
Index-based weather insurance pilot program
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