Montana Policy Descriptions

Following are the policy descriptions for the state of Montana. These policy descriptions are intended for reference only. Refer to the state Special Provisions for actual policy language.

Basic: Full Coverage (5% Minimum Loss)

Provides a loss payment on a field(s) when the adjusted loss for the field(s) is

5.0% or greater. The loss payment shall be the full percent of loss. Any second

or subsequent loss must be 5.0% or more of the original crop. When the adjusted

loss on the field exceeds 70.0%, a Catastrophe Loss Award (CLA) is paid. The

catastrophe loss award is one-half percent (1/2%) for each one percent (1.0%) of

loss in excess of 70.0%. The total payable percentage of loss shall not exceed

100.0%.

DDA: Ten Percent (10%) Disappearing Deductible

Provides a loss payment on a field(s) when the adjusted loss for the field(s)

exceeds 10.0%. The loss payment shall be that percent of loss in excess of

10.0%. When the adjusted percent of loss exceeds 20.0%, an additional 2.0%

will be paid for each percent of loss in excess of 20.0%. When the percent of loss

equals 25.0% or greater, this provision will no longer apply. When the adjusted

loss on the field exceeds 70.0%, a Catastrophe Loss Award (CLA) is paid. The

catastrophe loss award is one-half percent (1/2%) for each one percent (1.0%) of

loss in excess of 70.0%. The total payable percentage of loss shall not exceed

100.0%.

Companion Plan Rules and Descriptions

The Companion Hail policy provides coverage on an acre basis against hail, fire

and transit perils on the portion of crops not insured under a Multiple Peril Crop

Insurance (MPCI) policy. The concept of the Companion plan for hail/fire is that

the liability will be paid out at or before the severity of loss at which point a loss

would be payable under the MPCI policy.

The Companion Hail policy provides a loss payment when the average appraised

percent of loss exceeds 5.0%. The loss payment would be the percent of loss in

excess of 5.0%, multiplied by the selected increasing payment factor. The

Companion plan covers all the acreage of each eligible crop, with the same

increasing payment factor. The policy is only written in conjunction with an MPCI

policy.

The Companion Hail policy is available when the insured has an accompanying

MPCI policy and both policies are administered through the same insurance company.