The Risk Management Agency (RMA) yesterday released the final version of the Standard Reinsurance Agreement (SRA), which determines the terms and conditions for the Administrative and Operating (A&O) reimbursements and underwriting gains for crop insurance companies.
Charles Symington, IIABA SVP of government affairs, says the new agent commission cap provision included in the SRA is unnecessary, noting that research shows that the average commission rate has declined from 2008 to 2009.
“The agent cap does not impact the crop insurance budget whatsoever and has no policy merit,” Symington said. “Crop insurance agents are small business owners in small towns that not only employ agency staff, but are intertwined with the vitality of their communities. We have repeatedly communicated to this administration the harmful impact that the commission cap would have on small businesses and are astounded that in this final document they have chosen to side with insurance companies over small business.”
