12 2 STA T . 1 379PUBLIC LA W 11 0– 23 4—M A Y 22 , 200 8SEC.120 1 6 . R E IMBU RSEME NT R A TE. Section508(k) ( 4 )o f t h e F e d e ralC ro pI n su rance A ct( 7U. S.C. 1 508(k)(4)) (as a m ended by section 1 2 015) is amended — (1) in subpara g raph (A) , by striking ‘ ‘ Ex cept as pro v ided in subparagraph ( B ) ’ ’ and inserting ‘‘Except as other w ise pro - vided in this paragraph’’
and (2) by adding at the end the following
‘‘(E) REIMBURS EME NT R A TE RE D U C TI O N.—In the case of a policy of additional coverage that received a rate of reimbursement for administrative and operating costs for the 2008 reinsurance year, for each of the 200 9 and subse- q uent reinsurance years, the reimbursement rate for administrative and operating costs shall be 2. 3 percentage points below the rates in effect as of the date of enactment of the Food, Conservation, and Energy Act of 2008 for all crop insurance policies used to define loss ratio, except that only 1⁄2 of the reduction shall apply in a reinsurance year to the total premium written in a State in which the State loss ratio is greater than 1.2. ‘‘(F) REIMBURSEMENT RATE F OR AREA P O L ICIES AND PLANS OF INSURANCE.— N otwithstanding subparagraphs (A) through (E), for each of the 2009 and subsequent reinsur- ance years, the reimbursement rate for area policies and plans of insurance widely available as of the date of enact- ment of this subparagraph shall be 12 percent of the pre- mium used to define loss ratio for that reinsurance year.’’. SEC. 1201 7 . RENE GO TIATION O F STAN D ARD REINSURANCE AGREE - MENT. Section 508(k) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)) is amended by adding at the end the following: ‘‘(8) RENE G OTIATION OF STANDARD REINSURANCE AGREE- MENT.— ‘‘(A) IN GENERAL.—Except as provided in subparagraph (B), notwithstanding section 53 6 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 1506 note; P ublic L aw 105 – 185) and section 148 of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 1506 note; Public Law 106–224), the Corporation may renegotiate the financial terms and conditions of each Standard Reinsurance Agreement— ‘‘(i) to be effective for the 2011 reinsurance year beginning J uly 1, 2010; and ‘‘(ii) once during each period of 5 reinsurance years thereafter. ‘‘(B) E X CEPTIONS.— ‘‘(i) AD V ERSE CIRCUMSTANCES.—Sub j ect to clause (ii), subparagraph (A) shall not apply in any case in which the approved insurance providers, as a whole, experience unexpected adverse circumstances, as deter- mined by the Secretary. ‘‘(ii) EFFECT OF FEDERAL LA W C H ANGES.—If Federal law is enacted after the date of enactment of this paragraph that requires revisions in the financial terms of the Standard Reinsurance Agreement, and changes in the Agreement are made on a mandatory basis by the Corporation, the changes shall not be Timep e r i od.Ef fe ct i v ed a te.
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