407.8—The application and policy.
(a)
Application for insurance, on a form prescribed or approved by FCIC, must be made by any person who wishes to participate in the program in order to cover such person's share in the insured crop as landlord, owner-operator, tenant, or other crop ownership interest. No other person's interest in the crop may be insured under the application. The application must be submitted to the insurance provider on or before the applicable sales closing date on file in the insurance provider's local office.
(b)
FCIC or the reinsured company may reject or no longer accept applications upon the FCIC's determination that the insurance risk is excessive. The Manager of the Corporation is authorized in any crop year to extend the sales closing date for submitting applications for fall planted crops, unless prohibited by law, upon determining that the probability and severity of claims will not increase because of the extension, by placing the extended date on file in the insurance provider's office and publishing a notice in the Federal Register. If adverse conditions should develop during the extended period, the Corporation will require the insurance provider to immediately discontinue acceptance of applications.
(c)
Since this Group Risk Plan differs significantly from traditional Multiple Peril Crop Insurance, persons who purchase the Group Risk Plan and their crop insurance agents will be required to execute an “Acknowledgment of Differences” that explains that the terms and conditions of the Group Risk Plan are different from traditional crop insurance in that:
(1)
The Group Risk Plan indemnity payment, if any, will be made after the Group Risk Plan premium is received;
(2)
A person may have a low yield on his or her individual farm and not receive a payment under Group Risk Plan; and
(3)
A person may not have any loss of production and still collect under the policy if a loss of production is general in the area.
(iii)
Both a Group Risk Plan and a MPCI Plan cannot be purchased on the same crop by the same insured in the same county.