An Iowa-based startup insurer that left a few hundred Nebraska farmers in the lurch earlier this year appears to no longer be participating in the federal government's crop insurance program.
Crop Pro, based in the Des Moines area, is not on a U.S. Department of Agriculture list of approved crop insurance providers for 2019. The business was on last year's list.
Crop Pro officials did not respond to numerous emails and phone calls seeking comment. The USDA also did not respond to requests for comment, so it's unclear whether Crop Pro was forced out of the program or dropped out voluntarily.
However, an incident from this past spring likely played a role.
In May, Crop Pro notified a few hundred farmers in Nebraska and a handful in Colorado that it was canceling supplemental crop production hail insurance policies. The company originally said about 400 Nebraska farmers were affected, but it later said the number was less than 200. The apparent reason for the cancellations was that the company had sold more policies than it could get reinsurance for.
The USDA later announced it was allowing farmers who had bought their federally subsidized crop insurance from Crop Pro to cancel and return to their previous provider. In a bulletin, the USDA's Risk Management Agency said at the time that it was clear some farmers may have switched their crop insurance policies to Crop Pro specifically to get the supplemental hail insurance coverage.
The agency at the time also said that the cancellations had "caused a disruption in the marketplace" and that both agents and producers complained about the effects the cancellations had.
Nebraska Department of Insurance Director Bruce Ramge said his department still has an open investigation going on Crop Pro, "and additional action cannot be ruled out at this time."
Among action the department already took against the company was rescinding its approval to sell the supplemental hail insurance in the state next year.
The Iowa Insurance Division said it has not had any complaints about Crop Pro nor does it have any active investigations dealing with the company.
Source - https://columbustelegram.com
