S.Amdt. 2460

1. Inserts new text after section 11001(b)

   Inserts

   In S. 3240 · Placed on Calendar Senate

   "(II) include an amount for operating and administrative expenses established in accordance with subsection (k)(4)(F).".

   Inserted: (c) Supplemental, Weather Index-based Insurance.--Section 508(c) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)) is amended by adding at the end the following:

   Inserted: "(11) Supplemental, weather index-based insurance.--

   Inserted: "(A) In general.--The Corporation may consider and approve applications, consistent with procedures for products submitted under subsection (h), submitted by private companies to provide supplemental, weather index-based insurance products that are not reinsured under this subtitle to producers as an alternative to the coverage provided under this section to determine whether the products can provide enhanced coverage for producers than is otherwise available under this section.

   Inserted: "(B) Payment of portion of premium by corporation.--

   Inserted: "(i) In general.--Subject to subparagraph (F), if the Corporation determines that supplemental, weather index-based insurance products offered by private companies meet the conditions described in subparagraph (A), the Corporation may pay a portion of the premium for a producer to purchase a product that is not reinsured under this subtitle from a private company for an equivalent level of coverage under this section.

   Inserted: "(ii) Administration.--Any premium assistance under clause (i)--

   Inserted: "(I) shall be determined by the Corporation; and

   Inserted: "(II) may be based on, as determined by the Corporation--

   Inserted: "(aa) a percentage of premium;

   Inserted: "(bb) a percentage of expected loss determined pursuant to a reasonable actuarial methodology; or

   Inserted: "(cc) a fixed dollar amount per acre.

   Inserted: "(C) Eligible providers.--Before providing premium assistance to producers to purchase supplemental, index-based coverage from a private company under this paragraph, the Corporation shall verify that the private company--

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   Inserted: "(i) has adequate experience developing and managing similar index-based products for crop producers (including adequate resources, experience, and assets) or sufficient reinsurance, to meet the obligations of the private company under this paragraph;

   Inserted: "(ii) has adequate experience to sell and administer index-based or similar products;

   Inserted: "(iii) possesses a sufficient insurance credit rating from an appropriate credit rating bureau; and

   Inserted: "(iv) has approval from each State in which the company intends to make the supplemental insurance products of the company available.

   Inserted: "(D) Oversight.--The Corporation shall develop and publish procedures to administer a supplemental, index-based insurance option for producers under this paragraph that--

   Inserted: "(i) require each applicable private company to report sales, acreage and claim data, and any other data the Corporation determines to be appropriate, to allow the Corporation to evaluate product pricing and performance;

   Inserted: "(ii) allow each participating private company exclusive rights, ownership of intellectual property, and protection of confidential information with respect to the insurance offered under this paragraph; and

   Inserted: "(iii) contain such other requirements as the Corporation determines necessary to ensure that--

   Inserted: "(I) the interests of producers are protected; and

   Inserted: "(II) the program operates in an actuarially sound manner.

   Inserted: "(E) Selection limitation.--A producer shall be allowed to select supplemental coverage annually and may not select both weather index-based coverage under this paragraph and any other supplemental coverage offered under other provisions of this section.

   Inserted: "(F) Baseline savings.--

   Inserted: "(i) In general.--The Corporation may not offer premium assistance for producers to purchase private company weather index-based supplemental coverage under this paragraph unless the Corporation determines that offering private company coverage will result in savings against baseline spending estimates for the supplemental coverage option provided by the Office of Management and Budget.

   Inserted: "(ii) Administrative expenses.--In addition to any other available funds, the Corporation shall use savings derived from offering supplemental coverage from private companies to cover administrative costs associated with evaluating and approving private company coverage under this subsection.".

   Original wording

   In section 11001, after subsection (b) insert the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed