Informational Memorandum

March 11, 2019

TO:             All Approved Insurance Providers Writing in the State of Virginia

FROM:       Alexander Sereno /s/
                   Director, Raleigh Regional Office

SUBJECT: 2019 Underwriting Guidelines for Cropland Subject to County Boundary Changes in Virginia

The state of Virginia has 38 independent cities, each with their own unique Federal Information Processing Standard (FIPS) code. These cities are considered county equivalents and have their own published actuarial documents for crop insurance.

As these cities grow, they may annex land that previously was located within a neighboring county. As these boundaries change, and cities that do not have actuarial documents for crops annex land from counties with actuarial documents, some land may lose access to crop insurance.

When defining the insured crop under the Common Crop Insurance Policy Basic Provisions (18-BR), section 8 (b) (2) states that “a crop which will NOT be insured will include, but will not be limited to, any crop for which the information necessary for insurance (price election, amount of insurance, projected price and harvest price, as applicable, premium rate, etc.) is not included in the actuarial documents, unless such information is provided by a written agreement in accordance with section 18;”

Section 18 of the Common Crop Insurance Policy Basic Provisions (18-BR) gives RMA the authority to provide coverage in counties without actuarial documents via a County Without Actuarial Documents (XC) type written agreement. The procedure for requesting and approving an XC written agreement is contained in RMA’s Written Agreement Handbook (FCIC 24020).

For the 2019 crop year, in lieu of requesting insurability through an XC type Written Agreement, insureds through their Approved Insurance Provider (AIP) may continue to insure land that has been annexed into independent cities as if it was a part of the same county the land was previously located in. Please see the chart below for a list of eligible cities and counties.

AIPs should use an “X” for the CLU Determination Code on the Land (P-27) Records submitted through RMA’s Policy Acceptance Storage System (PASS) for these policies.

Insureds may also request an XC written agreement to insure this land. To request an XC written agreement, the AIP should refer to the submission requirements and dates established by 2019 Written Agreement Handbook.

Please contact the Raleigh Regional Office at RSONC@rma.usda.gov if you have any additional questions.


DISPOSAL DATE: August 31, 2019