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RMA Apiculture Pilot Insurance Program

Report Information

Date Issued
Report Number:
05601-0002-41
Report Type
Audit
Component
Risk Management Agency
Description
Our objective was to evaluate the Risk Management Agency's administration and oversight of the Apiculture Pilot Insurance Program.
Joint Report
No
Agency Wide
Yes (agency-wide)
Questioned Costs
$2,252,516
Funds for Better Use
$0

Recommendations

Require that the AIP responsible for administering the three policies identified with insufficient lease documentation provide adequate support that producers had the right to place colonies on insured land; and, if adequate support is not provided, recover the $442,188 in indemnities paid for the three policies.

Revise the lease certification form guidance to incorporate additional information for reviewers to validate the accuracy and completeness of the producers’ self-certified information.

Review the four $200,000 Indemnity Reviews identified for CY 2020 in California and Florida, and if adequate support is not provided, recover $1,082,604 in indemnity payments.

Review the remaining three required $200,000 Indemnity Reviews for CY 2020 in California and Florida for adequate supporting documentation; if adequate support is not provided, recover $727,724 in indemnity payments.

Consider whether the issues identified regarding the $200,000 Indemnity Reviews are applicable to other states, and if so, expand the review accordingly.