Page:United States Statutes at Large Volume 108 Part 4.djvu/562

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108 STAT. 3196 PUBLIC LAW 103-354—OCT. 13, 1994 costs and reasonable attorney fees incurred by the approved insurance provider, due to errors or omissions on the part of the Corporation. "(k) REINSURANCE.— " (1) IN GENERAL. —Notwithstanding any other provision of this title, the Corporation shall, to the maximum extent practicable, provide reinsurance to insiurers approved by the Corporation that insure producers of any agricultural commodity under 1 or more plans acceptable to the Corporation. "(2) TERMS AND CONDITIONS. — The reinsurance shall be provided on such terms and conditions as the Board may determine to be consistent with subsections (b) and (c) and soiuid reinsurance principles. "(3) SHARE OF RISK. — The reinsurance agreements of the Corporation with the reinsured companies shall require the reinsiu^d companies to bear a sufficient share of any potential loss under the agreement so as to ensiire that the reinsured company wiQ sell and service poUcies of insurance in a sound and prudent manner, taking mto consideration the financial condition of the reinsured companies and the availabiHty of private reinsurance. "(4) RATE.—The rate estabhshed by the Board to reimbm^e approved insurance providers and agents for the administrative and operating costs of the providers and agents shall not exceed-— "(A) for the 1997 reinsurance year, 29 percent of the premium used to define loss ratio; "(B) for the 1998 reinsurance year, 28 percent of the premium used to define loss ratio; and "(C) for the 1999 reinsurance year, 27.5 percent of the premium used to define loss ratio. "(5) COST AND REGULATORY REDUCTION.— Consistent with section 118 of the Federsil Crop Insurance Reform Act of 1994, and consistent with maintenance of program integrity, prevention of fraud and abuse, the need for program expansion, and improvement of quaUty of service to customers, the Board shall alter program procedures and administrative requirements in order to reduce the adnunistrative and operating costs of approved insurance providers and agents in an amount that corresponds to any reduction in the reimbursement rate required under paragraph (4) diuing the 5-year period beginning on the date of enactment of this paragraph. "(6) AGENCY DISCRETION.—The determination of whether the Corporation is achieving, or has achieved, corresponding administrative cost savings shall not be subject to administrative review, and is wholly committed to agency discretion within the meaning of section 701(a)(2) of title 5, United States Code. "(7) PLAN. —The Corporation shall submit to Congress a plan outlining the measures that will be used to achieve the reduction required under paragraph (5). If the Corporation can identify additional cost reduction measures, the Corporation shall describe the measures in the plan. "(1) OPTIONAL COVERAGES.—The (Jorporation may offer specific risk protection programs, including protection against prevented planting, wildhfe depredation, tree damage and disease, and insect infestation, under such terms and conditions as the Board may determine, except that no program may be undertaken if insurance