2011 Premium Billing Policy LGM-Dairy: PM-10-055

The Federal Crop Insurance Corporation's (FCIC) Board of Directors (Board) approved revisions of the Livestock Gross Margin for Dairy Cattle (LGM-Dairy) plan of insurance on August 12, 2010.
2011 Premium Billing Policy LGM-Dairy: PM-10-055 - Articles

Updated: December 14, 2016

2011 Premium Billing Policy LGM-Dairy: PM-10-055

The revisions were requested by Iowa Agricultural Insurance Innovations, Inc. the owners of the LGM plans of insurance. The Board approved the following revisions of LGM-Dairy:

  • Revised timing of premium payment - Premium for LGM-Dairy will now be due at the end of the coverage period rather than at the time of purchase.
  • Subsidy - A premium subsidy will be available for those policies that insure multiple months during the insurance period. The subsidy amount will be determined by a dollar deductible selected by the policyholder (to range from $0-$2, in $.10 increments). Policyholders choosing a $0 deductible will receive a lower premium subsidy (18 percent) and those choosing the highest deductible of $2 will receive a higher premium subsidy (50 percent).
  • Adjustment of feed loads - Based on information provided by the National Milk Producers Federation, feed values have been updated.
  • Permit higher deductibles - The maximum dollar denominated deductible has been increased from $1.50 to $2.

Action:

The following 2011 reinsurance year LGM-Dairy materials will be available by close of business Monday, October 18, 2010, and may be accessed on the RMA website from the Livestock page.

Letter from RMA (Risk Management Agency) on October 15, 2010