Northeast Nebraska and Candelaria Philippines | TD15 - 1/26/2014 09:18
The audits are coming from RMA, seems that the insurance people are making a lot of mistakes. What chaps my butt is that the producer is the one that has to pay back the mistakes. As far as I know there isn't any penalty for the agents or company that made the mistake. Signed : A farmer that had to pay back mistakes from 2009 and 2011 that his agent made.
I'm an agent. There are fines and penalties for the agent and or insurance companies imposed by the RMA. Sometimes the AIP (authorized insurance provider) or (insurance company) may choose to pass these fines on to the agent, and sometimes they may just pay them.
I know of a case where a farmer changed from a sole proprietor to a corp. For several years they continued to keep insuring him as a sole proprietor. The drought of 2012 resulted in a large claim that was not paid, and the resulting fine.
So... The moral of the story is, Take crop insurance seriously. Although it may be difficult to understand, try your best to understand what the agent is explaining. When you get the acreage reports, schedule of insurance, and production reports in the mail, look over them. If you sign something, know what you're signing.
Also.
I know that some of the specialty programs are hard to understand, but if your agent really doesn't understand the seed corn program, you need to find one that does. If you get an adjuster that doesn't seem to understand, call your agent and ask for another one BEFORE YOU SIGN ANY LOSS REPORTS.
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insurance indemnity take backs
