Montana's hail insurance program paid out record amounts in 2013.

Due to the costs associated with the extensive crop damage, the hail board voted to not offer refunds to farmers this year. After issuing 2,082 polices last year, the Montana Department of Agriculture and the hail board covered 1,046 losses totaling more than $14 million from hail events. In the program's 98-year history, the program experienced the worst loss on record.

"The bottom-line is Montana had a bad hail year. With sound fiscal management and a strong reserve fund, the department was able to cover 186% of premiums in 2013. After reviewing the actuarial report at our annual meeting, the hail board voted to not offer refunds to farmers this year to keep the program whole for next year," said Montana Department of Agriculture Director Ron de Yong.

The Montana state hail insurance program was created to provide basic hail insurance coverage on any crop grown in the state. The five-member board consists of Commissioner of Insurance Monica Lindeen, Agriculture Department Director Ron de Yong, chair Gary Gollehon, and producers Trudy Lass Skari and Jim Schillinger. A reserve fund is maintained to provide security for the programs financial responsibilities.

"This might have been a once in a life-time hail year, but we need to be prepared for the worst and hope for the best. Currently, we are looking into reinsurance so Montana farmers are protected next year," explained Gary Gollehon, chairman of the hail board.

The program, with existing reserves, can cover 122% of claims next year. In examining reinsurance, the board must consider catastrophic weather events that could be harmful to farmers.

Source - http://www.kaj18.com/

 

Montana's hail insurance program paid out record amounts in 2013. Due to the costs associated with the extensive crop damage, the hail board voted to not offer refunds to farmers this year. After issuing 2,082 polices last year, the Montana Department of Agriculture and the hail board covered 1,046 losses totaling more than $14 million from hail events. In the program's 98-year history, the program experienced the worst loss on record.

USA - Montana Board of Hail Insurance paid out record amount in 2013