Initial selection criteria.

CFR · 2024-01-01 · US · Title 7

(a) Nonstandard classification procedures in this subpart initially apply when all of the following insurance experience criteria (including any applicable adjustment in § 400.303(d)) for the crop have been met: (1) Three (3) or more indemnified losses during the NCS base period; (2) Cumulative indemnities in the NCS base period that exceed cumulative premiums during the same period by at least $500; (3) The result of dividing the number of indemnified losses during the NCS base period by the number of years premium is earned for that period equals .30 or greater; and (4) Either of the following apply: (i) The natural logarithm of the cumulative earned premium rate multiplied by the square root of the cumulative loss ratio equals 2.00 or greater; or (ii) Five (5) or more indemnified losses have occurred during the NCS base period and the cumulative loss ratio equals or exceeds 1.50. (b) The minimum standards provided in paragraphs (a) (2), (3), and (4) of this section may be increased in a specific (c) Selection criteria may be applied on the basis of insurance experience of a person, insured acreage, or the combination of both. (1) Insurance experience of a person will include: (i) Insurance experience of the person; (ii) Insurance experience of other insured entities in which the person had substantial beneficial interest if the person was actively engaged in farming of the insured crop by virtue of the person's interest in those insured entities; (iii) Insurance experience

official document · source cfr-2024 · id 7:§ 400.303