Tropical Storm (TS) Option

Overview

For the 2023 RY+, the Risk Management Agency (RMA) introduced a new Crop Option—the Tropical Storm (TS) Option.

The TS Option, only available with the Hurricane Insurance Protection Wind Index (HIP-WI) endorsement, allows for an indemnity payment when the county or adjacent county is subjected to a Tropical Storm as determined in accordance with the Hurricane Data Provisions (HDP).

With the TS Option, the Hurricane Protection Amount (HPA) does not change. However, TS provides an additional county loss trigger for Tropical Storms based on a combination of Tropical Storm wind speeds and rainfall as determined in accordance with the HDP.

Insureds must elect TS on or before the HIP Sales Closing Date (SCD) and TS must be elected on an existing or new HIP coverage.

For the 2023 RY ONLY

For the 2023 RY only, if a producer elects TS by the 4/30 SCD but they have not already purchased HIP by the standard HIP SCD, then they will be allowed to elect HIP and TS by the 4/30 SCD without penalty.

• Only available in conjunction with a HIP-WI election.
• Availability is determined by the ADMs.
• The "TS" Crop Option is a continuous option and will remain in effect until canceled or until the HIP endorsement is canceled by the Insured or AIP by the cancellation date. All Coverage Factors will remain the same as elected on the HIP—only the County Loss Trigger is changed when "TS" is elected.
• When "TS" is elected, 50% of the HPA will be paid as an indemnity whenever a county is triggered but the indemnity is not to exceed 100% of the HDP within a Crop Year (CY).
• Premium will be owed even if the insured’s county is triggered by a Hurricane and indemnity paid prior to the arrival of a tropical storm, resulting in no remaining HPA for the CY.
• The "TS" Crop Option, if elected, will also be transmitted on all existing HIP P11s.

When available for the selected state/county/crop, the "TS" Crop Option will be available in "Crop Options" on the Add New MPCI Policy & Add New MPCI Coverage pages.

Once "TS" is elected on a new policy or Coverage, the "TS" Option will apply to all HIP child lines for the coverage. .