Sec. 11502. Rating methodology and data reporting updates
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Section 508(i) of the Federal Crop Insurance Act ( 7 U.S.C. 1508(i) ) is amended— by striking paragraphs (1), (2), and (4); by redesignating paragraph
(3)as paragraph (2); by inserting before paragraph
(2)(as so redesignated) the following: To maximize participation in the Federal crop insurance program and to ensure equity for producers, the Corporation shall review the methodologies employed for rating plans of insurance under this Act in accordance with section 507(c)(2)— not later than December 31, 2025; and not less frequently than once every 9 years thereafter. In conducting a review under subparagraph (A), the Corporation shall ensure that the rating methodology used by the Corporation— achieves regionally consistent outcomes in insurance participation and reinsurance; appropriately models and weighs changes in risk from— crop genetics; increasing frequency of extreme weather events and climatic impacts; and other factors known to be changing farm risks; and engenders premium rates regionally and on a national basis in accordance with subsection (d)(1). The Corporation shall make the rating methodology used by the Corporation, and any changes to that methodology, available for review and comment by at least 3 outside experts before implementing a change. ; in paragraph
(2)(as so redesignated), by inserting and coverage level before the period at the end; and by adding at the end the following: Not later than January 1, 2026, and not less frequently than once every 3 years thereafter, subject to clause (ii), the Administrator of the Risk Management Agency (referred to in this paragraph as the Administrator ) shall review the premium rates for all crops and policies and plans of insurance, by county. The Administrator shall conduct a review under clause
(i)more frequently for any policy, plan of insurance, or region of the United States that meets 1 or more of the following criteria: Policies or plans of insurance with more than $500,000,000 in liability annually. Policies, plans of insurance, or regions with consistently high or low loss ratios, as determined by the Administrator. Policies, plans of insurance, or regions that, as determined by the Administrator, have been consistently placed in the assigned risk pool. Such other criteria as the Administrator determines to be appropriate. In conducting rate reviews under subparagraph (A), the Administrator shall— take necessary actions to align the reviewed policies or plans of insurance with standards for actuarial soundness, if needed, including by modifying rates by the percentage indicated by the rating model of the Risk Management Agency, subject to the conditions that— if the rating model of the Risk Management Agency indicates that rates must increase, the Administrator shall increase the rates by not more than 20 percent, as compared to the comparable rate of the preceding crop year; and if the rating model of the Risk Management Agency indicates that rates must decrease, the Administrator shall decrease the rates by the full amount indicated; and make publicly available a report that describes— each review under subparagraph (A); the performance of the policies and plans of insurance subject to the review; and any actions carried out pursuant to clause (i). .
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Sec. 11502
Rating methodology and data reporting updates
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