NY Adjusters - Farm/Crop

Under Farm Liability, is there coverage for the property of others in the insured's care, custody or control?

• no
• yes

Jim is fully insured by his farm policy. A tornado destroys his livestock barn worth $20,000 and two silos worth $1,750 combined. It also destroyed a satellite dish worth $3,000. How much can Jim collect from his insurance?

• $24,750

• $22,000

• $20,750

• $23,000

Answer explanation

The barn and silos are covered at actual cash value but the satellite dish has a special limit of $250. Jim will get $20,000 + $1,750 + $250 = $22,000.

A "transitional yield," or "T-yield," is:

• the average yield of an entire farm for at least the previous 4 years.

• a supplemental crop planted between growing seasons of the farmer's primary crop.

• the threshold for the amount of damage sustained to a crop before insurance coverage will apply.

• the average yield of other farms in the county, used to calculate a farmer's APH when the farmer does not have 4 years of production records.

Answer explanation

The barn and silos are covered at actual cash value but the satellite dish has a special limit of $250. Jim will get $20,000 + $1,750 + $250 = $22,000.

Chip’s farmhouse was burglarized. The thieves stole his $4,000 sofa, his $3,000 silverware collection, and his $5,000 watch. Under Chip’s farm insurance policy, which has a Coverage A limit of $150,000, how much can he expect to receive in indemnification for this loss, assuming there are no endorsements and ignoring any deductibles?

• $8,000

• $12,000

• $9,000

• $7,500

Answer explanation

Coverage C has a special limits of $2,500 for silverware and for watches. Chip will be indemnified $4,000 for the sofa, $2,500 for the silverware, and $2,500 for the watch. $4,000 + $2,500 + $2,500 = $9,000.

Julia was unloading her cattle from the trailer and four of her cows slipped off the ramp and suffered severe injuries to their backs and legs. Julia had to put down the injured cattle. Which farm policy cause of loss form would indemnify Julia for this loss?

• Broad Form or Special Form

• Broad Form only

• Special Form only

• Basic, Broad or Special Forms

Answer explanation

The Broad form covers loading and unloading accidents, but the Basic form does not. The Special form provides open peril coverage, so it will also cover this type of loss as long as it is not specifically excluded.

Mary’s barn burned down during a lightning storm. The barn was fully insured at replacement cost under Mary's Farm policy. At the time of the loss, the barn was valued at $65,000, but it will cost $80,000 to replace it. How much can Mary expect to get indemnified for?

• Mary will receive a check for $80,000.

• Mary will receive a check for $65,000 once the adjuster completes the claim and up to an additional check for the remaining $15,000 once the new barn is completed.

• Mary will receive one check for $65,000.

• Mary will receive one check for $52,000 first and another check for $13,000 once the new barn is finished.

Answer explanation

The barn is covered at replacement cost. Replacement cost policies pay Actual Cash Value at first and reimburse the insured for the full cost of repair or replacement once the work is complete. Mary would therefore get $65,000 at first and once it's completed she will get the rest up to the total amount it cost her to replace/rebuild it. 

Which statement about the Catastrophic Risk Protection Endorsement is FALSE?

• It pays 55% of the price of the commodity.
• It is optional coverage.
• The premiums are paid by the insured.
• It pays on crop losses in excess of 50%.

All of the following would cover the death of the insured’s cow due to a lightning strike EXCEPT:

• Scheduled Farm Personal Property coverage
• Property Damage Liability
• Livestock Floater
• Unscheduled Farm Personal Property coverage

Which of the following crops would NOT be covered under a Coarse Grains Provision

• barley
• corn
• soybeans
• grain sorghum

When would a farmer receive an indemnity payment under an Area Yield Protection policy?

• Only after the actual county revenue decreases by at least 50% because of a disastrous loss.
• Any time the farmer has damage to his crops.
• When the farmer suffers loss of yield and production is low for the entire county.
• Only after the governor declares a state of emergency for the county in which the farm is located.