§ 1502. — Purpose; definitions; protection of information; relation to other laws.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC1502]
TITLE 7--AGRICULTURE
CHAPTER 36--CROP INSURANCE
Sec. 1502. Purpose; definitions; protection of information;
relation to other laws
(a) Purpose
It is the purpose of this chapter to promote the national welfare by
improving the economic stability of agriculture through a sound system
of crop insurance and providing the means for the research and
experience helpful in devising and establishing such insurance.
(b) Definitions
As used in this chapter:
(1) Additional coverage
The term ``additional coverage'' means a plan of crop insurance
coverage providing a level of coverage greater than the level
available under catastrophic risk protection.
(2) Approved insurance provider
The term ``approved insurance provider'' means a private
insurance provider that has been approved by the Corporation to
provide insurance coverage to producers participating in the Federal
crop insurance program established under this chapter.
(3) Board
The term ``Board'' means the Board of Directors of the
Corporation established under section 1505(a) of this title.
(4) Corporation
The term ``Corporation'' means the Federal Crop Insurance
Corporation established under section 1503 of this title.
(5) Department
The term ``Department'' means the United States Department of
Agriculture.
(6) Loss ratio
The term ``loss ratio'' means the ratio of all sums paid by the
Corporation as indemnities under any eligible crop insurance policy
to that portion of the premium designated for anticipated losses and
a reasonable reserve, other than that portion of the premium
designated for operating and administrative expenses.
(7) Secretary
The term ``Secretary'' means the Secretary of Agriculture.
(8) Transitional yield
The term ``transitional yield'' means the maximum average
production per acre or equivalent measure that is assigned to
acreage for a crop year by the Corporation in accordance with the
regulations of the Corporation whenever the producer fails--
(A) to certify that acceptable documentation of production
and acreage for the crop year is in the possession of the
producer; or
(B) to present the acceptable documentation on the demand of
the Corporation or an insurance company reinsured by the
Corporation.
(c) Protection of confidential information
(1) General prohibition against disclosure
Except as provided in paragraph (2), the Secretary, any other
officer or employee of the Department or an agency thereof, an
approved insurance provider and its employees and contractors, and
any other person may not disclose to the public information
furnished by a producer under this chapter.
(2) Authorized disclosure
(A) Disclosure in statistical or aggregate form
Information described in paragraph (1) may be disclosed to
the public if the information has been transformed into a
statistical or aggregate form that does not allow the
identification of the person who supplied particular
information.
(B) Consent of producer
A producer may consent to the disclosure of information
described in paragraph (1). The participation of the producer
in, and the receipt of any benefit by the producer under, this
chapter or any other program administered by the Secretary may
not be conditioned on the producer providing consent under this
paragraph.
(3) Violations; penalties
Section 2276(c) of this title shall apply with respect to the
release of information collected in any manner or for any purpose
prohibited by this subsection.
(d) Relation to other laws
(1) Terms and conditions of policies and plans
The terms and conditions of any policy or plan of insurance
offered under this chapter that is reinsured by the Corporation
shall not--
(A) be subject to the jurisdiction of the Commodity Futures
Trading Commission or the Securities and Exchange Commission; or
(B) be considered to be accounts, agreements (including any
transaction that is of the character of, or is commonly known to
the trade as, an ``option'', ``privilege'', ``indemnity'',
``bid'', ``offer'', ``put'', ``call'', ``advance guaranty'', or
``decline guaranty''), or transactions involving contracts of
sale of a commodity for future delivery, traded or executed on a
contract market for the purposes of the Commodity Exchange Act
(7 U.S.C. 1 et seq.).
(2) Effect on CFTC and Commodity Exchange Act
Nothing in this chapter affects the jurisdiction of the
Commodity Futures Trading Commission or the applicability of the
Commodity Exchange Act (7 U.S.C. 1 et seq.) to any transaction
conducted on a contract market under that Act by an approved
insurance provider to offset the approved insurance provider's risk
under a plan or policy of insurance under this chapter.
(Feb. 16, 1938, ch. 30, title V, Sec. 502, 52 Stat. 72; June 21, 1941,
ch. 214, Sec. 1, 55 Stat. 255; Aug. 1, 1947, ch. 440, Sec. 4, 61 Stat.
719; Pub. L. 103-354, title I, Sec. 102(a), Oct. 13, 1994, 108 Stat.
3180; Pub. L. 106-224, title I, Secs. 122, 141, June 20, 2000, 114 Stat.
377, 389.)
References in Text
The Commodity Exchange Act, referred to in subsec. (d)(1)(B), (2),
is act Sept. 21, 1922, ch. 369, 42 Stat. 998, as amended, which is
classified generally to chapter 1 (Sec. 1 et seq.) of this title. For
complete classification of this Act to the Code, see section 1 of this
title and Tables.
Amendments
2000--Subsec. (c). Pub. L. 106-224, Sec. 122, added subsec. (c).
Subsec. (d). Pub. L. 106-224, Sec. 141, added subsec. (d).
1994--Pub. L. 103-354 substituted ``Purpose and definitions'' for
``Declaration of purpose'' in section catchline, designated existing
text as subsec. (a) and added heading, and added subsec. (b).
1947--Act Aug. 1, 1947, amended section generally, restating purpose
of chapter to improve all agriculture by crop insurance instead of being
limited only to wheat.
1941--Act June 21, 1941, substituted ``crop'' for ``wheat-crop'' and
``agricultural commodities'' for ``wheat''.
Effective Date of 1994 Amendment
Section 120 of title I of Pub. L. 103-354 provided that: ``Except as
otherwise provided in this title, this title [enacting sections 1433f,
1515, 1521, and 2008f of this title, amending this section and sections
1441-2, 1444-2, 1444f, 1445b-3a, 1503 to 1509, 1511, 1513, 1516, and
1518 to 1520 of this title, sections 901 and 902 of Title 2, The
Congress, and section 1014 of Title 18, Crimes and Criminal Procedure,
repealing sections 1446i and 1508a of this title, enacting provisions
set out as notes under sections 1501, 1506, and 1508 of this title and
sections 901 and 902 of Title 2, and repealing provisions set out as a
note under section 1421 of this title] and the amendments made by this
title shall become effective on the date of enactment of this Act [Oct.
13, 1994] and shall apply to the provision of crop insurance under the
Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) beginning with the
1995 crop year. With respect to the 1994 crop year, the Federal Crop
Insurance Act (as in effect on the day before the date of enactment of
this Act) shall continue to apply.''
Section Referred to in Other Sections
This section is referred to in sections 1506, 1515, 8002 of this
title.
