Create an MP/MP-HPO Coverage

The steps for creating an MP/MP-HPO coverage diﬀer depending on whether the user is creating a new standalone policy for the coverage or a new coverage on a related base policy. For more information on Margin Protection, see "Margin Protection (MP & MP-HPO)".

NOTE: According to RMA, on MP policies, the unit structure election must be made by the earlier SCD. For 2022+ RYs, to do this, the Unit Structure Transaction Code field displays on the Add New Policy and Add New/Maintain Coverage pages when Margin Protection is elected. In this field, for the related MP coverage, the user selects the unit structure that the grower is electing on the base coverage even though its SCD is later. Then, when the base coverage is added, the user selects which type of enterprise units they are electing (e.g., a single EU for the crop/county, EUs by Irrigation Practice, EUs by Cropping Practice, MCEU) and based on that election, the System determines the proper Unit Structure Transaction code. If the user selects a different unit structure on the base coverage than what was selected in the Unit Structure Transaction Code on the MP coverage, the System will throw a suspension and the coverages will also error at RMA.

Create a Stand-alone Policy

Begin a new policy for the current Reinsurance Year (see "Add a Coverage to a Policy" for more information on creating a new policy).

From the Select Policy dropdown, select "Create a New/Standalone Policy for MP Coverage".

In the Coverage Information section, from the Crop Plan dropdown, select "MP (16)" or “MP (17)”. The Select Policy dropdowns display.

NOTE: If Margin Protection is selected, then CAT will not be available in the Coverage Level dropdown.

Make remaining coverage selections and save. A new policy is created for the MP/MP-HPO coverage.

Create a Coverage on an Existing Policy (Related Coverage)

How a user creates an MP/MP-HPO coverage depends on whether the related policy has rolled to the new Reinsurance Year:

NOTE: For MP/MP-HPO, if the grower will be insuring a related Plan 01, 02, or 03 coverage for the same crop and RY, both coverages must be on the same policy. Also, multiple coverages are allowed for the same State/County/Crop so long as each has a diﬀerent Type/Practice.

IF THE RELATED POLICY HAS NOT ROLLED

Begin a new policy for the Reinsurance Year (see "Add a New MPCI Policy" for more information on creating a new policy).

From the Select Policy dropdown, select the policy number of the related coverage that has not rolled. This will allow the System to link the policies after the spring coverages have rolled.

In the Coverage Information section, from the Crop Plan dropdown, select "MP (16)" or MP-HPO (17)”. The System refreshes and displays the Related Coverage checkbox.

NOTE: Due to transmission requirements, RMA doesn’t want the associated policy key to be sent on the Margin Protection policy until the spring coverage is transmitted. Therefore, the Related Coverage will be selected after the policy is rolled and the two policies can be “linked”.

Make remaining coverage selections and save. The policy details from the prior year policy are copied to the new Reinsurance Year and the Margin Protection coverage is attached to it.

NOTE: If Margin Protection is selected, then CAT will not be available in the Coverage Level dropdown.

IF THE RELATED POLICY HAS ROLLED

If the base coverage policy has already rolled to the new Reinsurance Year, users can create a Margin Protection coverage on an existing policy.

Locate and open the policy you need to add an MP/MP-HPO coverage to. The policy opens on the Coverages tab. Any coverages already on the policy are shown in the MPCI Coverage Information section.

On the Coverages tab of the policy, in the MPCI Coverage Information section, click Add MPCI Coverage. The Add New Coverage page opens.

Make the appropriate selections for County Name, Crop Name, Is Primary County, and any other fields as required for the selected crop.

From the Crop Plan dropdown, select “MP (16)” or “MP (17)”. The Related Coverage dropdown appears.

Mark the Related Coverage checkbox. The Select Related Coverage dropdown appears.

From the Select Related Coverage dropdown, select the active Plan 01, 02, or 03 coverage related to this MP/MP-HPO coverage.

Make remaining coverage selections and save. The policy details from the prior year policy are copied to the new Reinsurance Year and the Margin Protection coverage is attached to it.