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Understanding the Standard Reinsurance Agreement Explains Crop Insurance Companies’ Losses

Summary

There are a number of press stories that will likely overestimate the size of this year’s crop insurance claims and the resulting cost to taxpayers. Then these critics overstate their case by assuming that taxpayers will cover all or most of the 2012 underwriting losses and the Approved Insurance Providers (AlPs, is the Risk Management Agency’s (RMA) name for insurance companies) will pay “little” of the loss.