(1 of 10) 10-LRP-BASIC LIVESTOCK RISK PROTECTION INSURANCE POLICY (This is a continuous policy. Refer to section 3.) This is a policy for Livestock Risk Protection insurance between you and the policy issuing company, and, when approved by us in writing, each shall be subject to all of the terms and conditions of this policy. Each Livestock Risk Protection policy shall be reinsured by the Federal Crop Insurance Corporation (FCIC) under the authority of sections 508(h) and 523(b) of the Federal Crop Insurance Act (Act) (7 U.S.C. § 1508(h) and 1523(b)). All provisions of the policy and rights and responsibilities of the parties are specifically subject to the Act. The provisions of the policy may not be waived or varied in any way by the crop insurance agent or any other agent or employee of the company. Neither FCIC nor the Risk Management Agency has the authority to revise, amend or otherwise alter this policy. They can only approve or disapprove for reinsurance those terms submitted by the developer of this policy. In the event we cannot pay your loss, your claim will be settled in accordance with the provisions of this policy and paid by FCIC. No state guarantee fund will be liable for your loss. Throughout this policy, “you” and “your” refer to the named insured shown on the approved application and “we,” “us,” and “our” refer to the insurance company providing insurance. Unless the context indicates otherwise, use of the plural form of a word includes the singular and use of the singular form of a word includes the plural. AGREEMENT TO INSURE: In return for the payment of premium, and subject to all of provisions of this policy, we agree with you to provide the insurance as stated in this policy. If a conflict exists among the policy provisions, the order of priority is as follows: (1) The Special Provisions; (2) The Livestock Risk Protection Endorsement; and (3) these Basic Provisions, with the provisions of (1) controlling (2), and the provisions of (2) controlling (3). BASIC PROVISIONS TERMS AND CONDITIONS 1. Definitions. Act - The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) Actual Ending Value - The actual ending value is the weighted average price as defined in each Specific Coverage Endorsement. Actuarial Documents - The information for the crop year, available for public inspection in your agent’s office or on the RMA website, which shows the dates, coverage prices, rates, coverage levels, practices, insurable class, and other related information regarding Livestock Risk Protection coverage in the county or state. Agricultural Marketing Service (AMS) - An agency of the United States Department of Agriculture (USDA). The AMS web site is www.ams.usda.gov. Application - The form required to be completed by you and approved by us in writing before insurance coverage will begin. The Application form will identify the insured and the classes of livestock or livestock product (swine, for example) to be insured. Assignment of Indemnity - A transfer of policy rights, requested on our form, and effective when approved by us. It is the arrangement whereby you assign your right to an indemnity payment to another party of your choice. CME - Chicago Mercantile Exchange Class - The same species of livestock or livestock product that shares common traits or characteristics and can be insured under a Specific Coverage Endorsement. Consent - Approval in writing by us allowing you to take a specific action. Contract Change Date - The calendar date by which we make policy changes that will be effective for the following crop year available for inspection in the agent’s office or on RMA’s website. (See section 2.) Coverage - The insurance provided by this policy insures against a decline in price as specified in the Specific Coverage Endorsement. Coverage Level - The percent of the expected ending value that is the coverage provided by the policy. Coverage Price - The level of protection provided by the policy on a dollar per cwt basis as published each day on RMA’s website. Crop Year - The twelve month period, beginning on July 1 and ending on the following June 30 and designated by the calendar year in which the period ends. The crop year in which the effective date falls will determine the crop year for a Specific Coverage Endorsement. Cwt - Hundredweight. Days - Calendar days unless otherwise noted. Daily Price Limit - For a given CME futures contract, the maximum daily price change allowed by the CME (for example, the current daily price limit for swine, fed cattle and feeder cattle is $3.00 but such amounts may change), either up or down, from the previous settlement price. The Daily Price Limit is defined as(2 of 10) the standard amount that prices may vary from day to day, and does not include expanded limits that may occur after multiple and successive limit up or down days. Delinquent Account - Any debt owed to us, which arises under any program administered under the authority of the Act, which has not been paid by the due date for payment contained in the policy or in any agreement or notification of indebtedness. Such debt may include any accrued interest, penalty, and administrative charges. A delinquent debt does not include debts discharged in bankruptcy and other debts that are legally barred from collection. Deductible - The amount determined by subtracting the coverage level from 100 percent. For example, if you elected an 85 percent coverage level, your deductible would be 15 percent (100% - 85% = 15%). Effective Date - The date associated with the beginning of insurance for a Specific Coverage Endorsement. This is the date that coverage begins. The effective date will always be the date the rates were published on the RMA website. If the Specific Coverage Endorsement was purchased and we approved it on the day following the date the rates were published on the RMA website, the effective date is still the date that the rates were published on the RMA website. End Date - The date selected by you, and stated in the Specific Coverage Endorsement, that coverage under a Specific Coverage Endorsement ends. Ending Period - The period specified by the Specific Coverage Endorsement, ending on the end