Transfer of Coverage and Right to an Indemnity (TOC/TOR)

When there is a change in ownership of land on a policy after the policy’s insurance period begins, users can utilize the Transfer of Coverage and Right to an Indemnity (TOC/TOR) process in the System to make sure that the person to whom ownership of the land has been transferred (i.e., the transferee) receives their percentage of any indemnity that may be calculated on detail lines on the policy that they have a share in.

NOTE: If a TOC/TOR transferee is added to a policy in the System after a claim has already been paid on the detail lines the transferee has a share in, the transferee cannot retroactively receive funds for that claim.

The steps needed to complete this process involve both agents and the AIP. The transferee must first be added to the policy in the System as an SBI (with an entity type of "Transfer of Right to Indemnity (SBI Only)") and indicate whether any claims checks involving the transferee will be made payable to the transferee only or jointly to the grower and the transferee on this record. Once this is done, the AIP is notified that a TOC/TOR transferee needs to be approved for the policy. While waiting for approval, the agent can attach the transferee (as a shareholder) to applicable detail lines on the policy and then transfer acres or shares to the transferee on those detail lines. Once the TOC/TOR is approved by the AIP, if a claim is opened on the policy and indemnity is calculated on the detail lines the transferee has a share in, the transferee will receive their share of the indemnity as a check.

NOTE: A Transfer of Right to an Indemnity (TOR) Shareholder is only valid on detail lines where the insurable Reported acres value is greater than zero.