Crop Insurance Study Guide Exam And
Actual Answers.
What is a *peril*? - Answer A possible cause of loss
What perils does *Crop/Hail* cover? - Answer Hail, fire, lightning
What determines published *Crop/Hail* rates? - Answer State, County, Township
Whose signatures are required on the *Crop/Hail* application? - Answer The applicant and the
licensed insurance agent
How many seasons are *Crop/Hail* policies issued for? - Answer 1,3,5 seasons
When does the *Crop/Hail* policy take effect? - Answer When the crop is clearly visible above ground
How long does the Insurer have to pay a *Crop/Hail* loss? - Answer 30 days after reaching an
agreement with the Insured
Can the Insurer defer adjustment of a covered *Crop/Hail* loss? - Answer The Insurer may defer
adjustment of a covered loss until the actual loss can be determined.
When a *Crop/Hail* loss is paid, how much is available for future claims? - Answer The amount
available for future claims is reduced by the amount paid
If an Insured and an Insurer can't agree on the amount to be paid for a *Crop/Hail* loss, how is the claim
settled? - Answer Appraisal
How can an Insured assign their interest in the policy to another person in a *Crop/Hail* policy? -
Answer Only by written consent from the Insurer
, How can an Insured assign their right to an indemnity to another person in a *Crop/Hail* policy? -
Answer Only on the Insurer's form and with the Insured's approval
What are the 5 standard exclusions in *Crop/Hail* policies? - Answer 1. Any loss that occurs before the
application is signed
2. Loss by any uninsured peril
3. Loss resulting from neglect or failure to harvest matured crops
4. Loss of any portion of a crop recoverable by harvesting equipment
5. Damage to the vegetative or flowering portion of a plant except when it results in loss to the crop
itself
What does Transit Coverage cover on a *Crop/Hail* policy? - Answer the crop is insured against fire,
lightning, wind, collision or overturn and collapse of bridges while the harvested crop is being
transported to its first place of storage (up to 50 miles)
How much coverage is there for Fire Department Service Charges on a *Crop/Hail* policy? - Answer
$250.00
In a *Crop/Hail* policy, if crops are damaged to the point replanting is necessary and possible, how
much will the Insurer reimburse? - Answer The actual cost of replanting the crop, up to 20% of the
insurance on the crop
In a *Crop/Hail* policy, how long does an Insured have to replant? - Answer Up to 25 days
In a *Crop/Hail* policy, what is the "excess of loss" clause? - Answer The deductible, which is a % of the
value insured instead of a fixed dollar amount
In a *Crop/Hail* policy, how many days does an Insured have to submit a notice of loss to growing crops
by hail to the Insurer? - Answer No longer than 10 days after the occurrence
In a *Crop/Hail* Percentage Plan policy, how is indemnity computed? - Answer The percentage of
damage X the amount of coverage in the contract
Actual Answers.
What is a *peril*? - Answer A possible cause of loss
What perils does *Crop/Hail* cover? - Answer Hail, fire, lightning
What determines published *Crop/Hail* rates? - Answer State, County, Township
Whose signatures are required on the *Crop/Hail* application? - Answer The applicant and the
licensed insurance agent
How many seasons are *Crop/Hail* policies issued for? - Answer 1,3,5 seasons
When does the *Crop/Hail* policy take effect? - Answer When the crop is clearly visible above ground
How long does the Insurer have to pay a *Crop/Hail* loss? - Answer 30 days after reaching an
agreement with the Insured
Can the Insurer defer adjustment of a covered *Crop/Hail* loss? - Answer The Insurer may defer
adjustment of a covered loss until the actual loss can be determined.
When a *Crop/Hail* loss is paid, how much is available for future claims? - Answer The amount
available for future claims is reduced by the amount paid
If an Insured and an Insurer can't agree on the amount to be paid for a *Crop/Hail* loss, how is the claim
settled? - Answer Appraisal
How can an Insured assign their interest in the policy to another person in a *Crop/Hail* policy? -
Answer Only by written consent from the Insurer
, How can an Insured assign their right to an indemnity to another person in a *Crop/Hail* policy? -
Answer Only on the Insurer's form and with the Insured's approval
What are the 5 standard exclusions in *Crop/Hail* policies? - Answer 1. Any loss that occurs before the
application is signed
2. Loss by any uninsured peril
3. Loss resulting from neglect or failure to harvest matured crops
4. Loss of any portion of a crop recoverable by harvesting equipment
5. Damage to the vegetative or flowering portion of a plant except when it results in loss to the crop
itself
What does Transit Coverage cover on a *Crop/Hail* policy? - Answer the crop is insured against fire,
lightning, wind, collision or overturn and collapse of bridges while the harvested crop is being
transported to its first place of storage (up to 50 miles)
How much coverage is there for Fire Department Service Charges on a *Crop/Hail* policy? - Answer
$250.00
In a *Crop/Hail* policy, if crops are damaged to the point replanting is necessary and possible, how
much will the Insurer reimburse? - Answer The actual cost of replanting the crop, up to 20% of the
insurance on the crop
In a *Crop/Hail* policy, how long does an Insured have to replant? - Answer Up to 25 days
In a *Crop/Hail* policy, what is the "excess of loss" clause? - Answer The deductible, which is a % of the
value insured instead of a fixed dollar amount
In a *Crop/Hail* policy, how many days does an Insured have to submit a notice of loss to growing crops
by hail to the Insurer? - Answer No longer than 10 days after the occurrence
In a *Crop/Hail* Percentage Plan policy, how is indemnity computed? - Answer The percentage of
damage X the amount of coverage in the contract
