Verified FBN Member
(edited)
General

Do you have to pay your crop insurance bill if you have a large claim being worked?

I don’t think I should be charged interest if I can’t pay my bill before the claim is paid.

Verified FBN Member

Good question - couple things here.

Firstly, the normal payment terms still apply - even when your claim isn’t worked, finalized, paid prior to interest accrual. So if the loss amount is paid prior to due date and in full, it will be credited towards your MPCI premium, no interest due. If not, interest is due and payable. Earlier this afternoon RMA announced (see link below) relief via deferred interest accrual for MPCI premium with a normal billing date of 8/15/19. Note, if MPCI premium payment is not made in full by 11/30/19, interest is due retroactive to 9/1/19. Thanks for the question. -*************, Director of Crop Insurance

https://www.rma.usda.gov/en/Policy-and-Procedure/Bulletins-and-Memos/2019/MGR-19-023

Verified FBN Member

CLARIFICATION: Not all policies will receive interest deferral until 11/30. Only policies with 8/15 billing date qualify. Also, if the termination date is prior to 11/30, termination date will become the last date to avoid interest. For example, PRF and Margin Protection in many areas will have a 11/15 date.

Verified FBN Member

Private products such as hail and other supplements are not included in this bulletin.

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