In crop insurance, who sells and services the policies?

• A. Private insurers
• B. Federal government
• C. State governments
• D. International organizations

Answer: (A)

In the U.S. crop insurance system, private insurers are the ones who sell and service the policies. They market the multi-peril crop insurance plans to farmers, issue the contracts, handle underwriting and premium collection, and process and pay claims. The government’s role is to back the program and provide reinsurance and oversight through the Federal Crop Insurance Corporation and the Risk Management Agency, and to subsidize part of the premiums. State governments and international organizations do not sell or service crop insurance policies.