RENEGOTIATION OF STANDARD REINSURANCE AGREEMENT.

SEC. 12017. RENEGOTIATION OF STANDARD REINSURANCE AGREEMENT. Section 508(k) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)) is amended by adding at the end the following:“(8) Renegotiation of standard reinsurance agreement.—“(A) In general.—Except as provided in subparagraph (B), notwithstanding section 536 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 1506 note; Public Law 105–185) and section 148 of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 1506 note; Public Law 106–224), the Corporation may renegotiate the financial terms and conditions of each Standard Reinsurance Agreement—“(i) to be effective for the 2011 reinsurance year beginning July 1, 2010; and“(ii) once during each period of 5 reinsurance years thereafter.“(B) Exceptions.—“(i) Adverse circumstances.—Subject to clause (ii), subparagraph (A) shall not apply in any case in which the approved insurance providers, as a whole, experience unexpected adverse circumstances, as determined by the Secretary.“(ii) Effect of federal law changes.—If Federal law is enacted after the date of enactment of this paragraph that requires revisions in the financial terms of the Standard Reinsurance Agreement, and changes in the Agreement are made on a mandatory basis by the Corporation, the changes shall not be 122 STAT. 1380 considered to be a renegotiation of the Agreement for purposes of subparagraph (A).“(C) Notification requirement.—If the Corporation renegotiates a Standard Reinsurance Agreement under subparagraph (A)(iii), the Corporation shall notify the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate of the renegotiation.“(D) Consultation.—The approved insurance providers may confer with each other and collectively with the Corporation during any renegotiation under subparagraph (A).“(E) 2011 reinsurance year.—“(i) In general.—As part of the Standard Reinsurance Agreement renegotiation authorized under subparagraph (A)(i), the Corporation shall consider alternative methods to determine reimbursement rates for administrative and operating costs.“(ii) Alternative methods.—Alternatives considered under clause (i) shall include—“(I) methods that—“(aa) are graduated and base reimbursement rates in a State on changes in premiums in that State;“(bb) are graduated and base reimbursement rates in a State on the loss ratio for crop insurance for that State; and“(cc) are graduated and base reimbursement rates on individual policies on the level of total premium for each policy; and“(II) any other method that takes into account current financial conditions of the program and ensures continued availability of the program to producers on a nationwide basis.”.