§1502. Purpose and definitions

(a) Purpose

It is the purpose of this chapter to promote the national welfare by improving the economic stability of agriculture through a sound system of crop insurance and providing the means for the research and experience helpful in devising and establishing such insurance.

(b) Definitions

As used in this chapter:

(1) Additional coverage

The term "additional coverage" means a plan of crop insurance coverage providing a level of coverage greater than the level available under catastrophic risk protection.

(2) Approved insurance provider

The term "approved insurance provider" means a private insurance provider that has been approved by the Corporation to provide insurance coverage to producers participating in the Federal crop insurance program established under this chapter.

(3) Board

The term "Board" means the Board of Directors of the Corporation established under section 1505(a) of this title.

(4) Corporation

The term "Corporation" means the Federal Crop Insurance Corporation established under section 1503 of this title.

(5) Department

The term "Department" means the United States Department of Agriculture.

(6) Loss ratio

The term "loss ratio" means the ratio of all sums paid by the Corporation as indemnities under any eligible crop insurance policy to that portion of the premium designated for anticipated losses and a reasonable reserve, other than that portion of the premium designated for operating and administrative expenses.

(7) Secretary

The term "Secretary" means the Secretary of Agriculture.

(8) Transitional yield

The term "transitional yield" means the maximum average production per acre or equivalent measure that is assigned to acreage for a crop year by the Corporation in accordance with the regulations of the Corporation whenever the producer fails-

(A) to certify that acceptable documentation of production and acreage for the crop year is in the possession of the producer; or

(B) to present the acceptable documentation on the demand of the Corporation or an insurance company reinsured by the Corporation.

(Feb. 16, 1938, ch. 30, title V, §502, 52 Stat. 72 ; June 21, 1941, ch. 214, §1, 55 Stat. 255 ; Aug. 1, 1947, ch. 440, §4, 61 Stat. 719 ; Pub. L. 103–354, title I, §102(a), Oct. 13, 1994, 108 Stat. 3180 .)

Amendments

1994-Pub. L. 103–354 substituted "Purpose and definitions" for "Declaration of purpose" in section catchline, designated existing text as subsec. (a) and added heading, and added subsec. (b).

1947-Act Aug. 1, 1947, amended section generally, restating purpose of chapter to improve all agriculture by crop insurance instead of being limited only to wheat.

1941-Act June 21, 1941, substituted "crop" for "wheat-crop" and "agricultural commodities" for "wheat".

Effective Date of 1994 Amendment

Section 120 of title I of Pub. L. 103–354 provided that: "Except as otherwise provided in this title, this title [enacting sections 1433f, 1515, 1521, and 2008f of this title, amending this section and sections 1441–2, 1444–2, 1444f, 1445b–3a, 1503 to 1509, 1511, 1513, 1516, and 1518 to 1520 of this title, sections 901 and 902 of Title 2, The Congress, and section 1014 of Title 18, Crimes and Criminal Procedure, repealing sections 1446i and 1508a of this title, enacting provisions set out as notes under sections 1501, 1506, and 1508 of this title and sections 901 and 902 of Title 2, and repealing provisions set out as a note under section 1421 of this title] and the amendments made by this title shall become effective on the date of enactment of this Act [Oct. 13, 1994] and shall apply to the provision of crop insurance under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) beginning with the 1995 crop year. With respect to the 1994 crop year, the Federal Crop Insurance Act (as in effect on the day before the date of enactment of this Act) shall continue to apply."