Rural Community Insurance Services

Initial Business Response /* (1000, 9, 2015/11/04) */
**Entire original` hard copy is attached **
On behalf of Rural Community Insurance Services (RCIS), I am responding to the complaint filed on October 1, 2015 by [redacted] and [redacted] ("the [redacted]s").
As a prefatory note, the...

disputed insurance policy, specifically the Common Crop Insurance Policy (Basic Provisions), is regulated by the Federal Crop Insurance Corporation ("FCIC") as authorized by the Federal Crop Insurance Act, as amended, 7 U.S.C. §§ 1501 et. seq. ("the Act"), and its attendant regulations. RCIS sells and services said policy pursuant to its Standard Reinsurance Agreement with FCIC and in accordance with procedures and guidelines issued by FCIC. Accordingly, RCIS's delivery of federally-reinsured crop insurance, including its application and enforcement of policy terms and conditions, is wholly regulated by FCIC. Moreover, both the Act and FCIC regulations preempt state and local laws that directly or indirectly affect insurance policies authorized by the Act. As explained below, the [redacted]'s federally reinsured crop insurance policy includes an alternative dispute resolution mechanism that the [redacted]'s must follow if they disagree with RCIS's decision.
Notwithstanding the preceding, RCLS has reviewed the case file and the subject policy information and concluded that the premium charged the [redacted]s is consistent with the requirements of the Basic Provisions and reflects the rates established by FCIC. More specifically, the [redacted]s did not qualify for an Enterprise Unit and, therefore, could obtain insurance only for a Basic Unit. In addition, as per the terms of the Basic Provisions, any representations made by Cheryl [redacted], the independent insurance agent from whom the [redacted]s purchased the subject policy, do not waive or vary the terms and conditions of coverage established by the Basic Provisions. If the [redacted]'s disagree with RCIS's determination, section 20 of the Basic Provisions mandates arbitration in accordance with the rules of the American Arbitration Association.
The complete text regarding dispute resolution can be viewed in the Common Crop Insurance Policy, Basic Provisions, found on the Risk Management Agency website:
http://www,rma.usda.gov4solicies/2015poUcy.html.