PRODUCT: Total Revenue Coverage (TRC) for crops
COMPANY: Hudson Crop, a unit of Hudson Insurance Group, the U. S. Insurance Division of Odyssey Re Holdings Corp.
BEST RATING: A (Excellent)
AVAILABILITY: Coverage is available through independent agents appointed by Hudson Insurance Company.
FOCUS: TRC is a supplemental crop insurance policy that offers growers a single, firm guarantee, expressed in dollars per acre, at the time of signup. Growers need only select the dollar amounts for the per-acre guarantee and the payment limit that is appropriate for their farm. If income from the value of their crop plus their MPCI (federal crop insurance) indemnity plus their farm program is less than their guarantee, an indemnity is due. TRC indemnities are subject to a maximum limit selected by the grower.
“This product is differentiated by its simplicity,” says Dan Gasser, president of Hudson Crop. “It gives farmers a crop value guarantee—a single-dollar value they choose for the revenue per acre that they need.”
TRC is designed for corn, soybean and wheat growers of all portfolio sizes and for most regions of the country. “It helps growers eliminate market uncertainties, and it provides additional leverage at the loan negotiation table,” Gasser explains. “With this insurance, a grower can now sit with the loan officer and demonstrate a total guarantee for his crop well before the base price of the crop has been established. TRC is designed to meet guarantee requirements at the time a crop loan is secured. It takes the volatility out of the crop commodities market.”
Agents benefit, too. “TRC virtually eliminates the seasonality associated with crop insurance,” Gasser points out. “Agents are now able to pursue new business throughout the entire calendar and/or reinsurance year.”
UNDERWRITING: TRC is available only as a supplement to the Revenue Protection Plan of insurance, which is available under the MPCI policy offered by the federal government, and for the 2016 reinsurance year in selected states for corn, soybeans and wheat crop only. The product excludes high-risk ground, silage corn, prevented planting and written agreement acres and is available up to a 95% coverage level.
The farmer fills out an application, much of it similar to the underlying MPCI, revealing intended acres and shareholders. TRC takes into account the difference between intended acres versus actual planted acres. Hudson has a 110% rule: If a farmer intends to plant X acres at signing but actually plants more, Hudson caps covered acres at 110%. The company does not consider prior loss history. Any farm grower with an underlying federal policy is insurable, subject to the conditions and exclusions listed above. The federal policy does not have to be with Hudson.
Please note: TRC is a privately offered supplemental insurance product not subsidized by the federal government.
MINIMUM PREMIUM: Not applicable. Premium is based on the time the farmer buys the insurance.
TARGET: Growers of corn, soybean and wheat of all portfolio sizes.
COVERAGE TERRITORY: AL, AR, CO, DE, GA, ID, IL, IN, IA, KS, KY, MD, MI, MN, MO, NE, NJ, NY, NC, ND, OH, PA, SC, SD, TN, TX, VA and WI.
CONTACT: Dan Gasser, president; Hudson Crop, 7300 West 110th Street, Suite 400, Overland Park, KS 66210; 866-450-1445.
Ronimarie Acord is an IA contributor.
