LRP Premium Calculations - Exhibit 135-1

June 28, 2007

Exhibit 135-1

FCIC-Appendix III

LIVESTOCK RISK PROTECTION (LRP)
LIABILITY/PREMIUM CALCULATIONS
Edit Description

Livestock Risk Protection (LRP)
(Insurance Plan Code 81)
INSURED VALUE (LIABILITY)
INSURED_VALUE = NUMBER_HEAD * TARGET_WEIGHT * COVERAGE_PRICE * SHARE
(field 17)
(field 10)
(field 11)
(field 13)
(field 16)

TOTAL PREMIUM
TOTAL_PREMIUM = INSURED_VALUE * RATE
(field 20)
(field 17)
(field 18)

PRODUCER PREMIUM
SUBSIDY = TOTAL_PREMIUM
(field 21)
(field 20)

* Subsidy Factor
(Internal*)

PRODUCER_PREMIUM = TOTAL_PREMIUM - SUBSIDY
(field 26)
(field 20)
(field 21)

*Subsidy Factor for LRP is .130.

FCIC-APPENDIX III

135-1 - 1

RY 2008

June 28, 2007

Exhibit 135-1

FCIC-Appendix III

LIVESTOCK RISK PROTECTION (LRP)
LIABILITY/PREMIUM CALCULATIONS
Edit Description

Tag

No.
10

Picture
9(08)

Rounding
whole number

Description
Number of Head covered by the
endorsement. See Exhibit 135 notes.

11

9999.99

nearest cwt

Expected weight of the livestock, per
head.

13

9999.999

per ADM

Obtain from ADM L Suffix D. Level of
protection on a dollar per cwt basis and
result of expected ending value
multiplied by the coverage level.

16

9.999

3 decimal places

Percentage of insured interest in the
covered livestock.

17

9(10)

nearest whole
dollar

Total dollar amount of coverage
(Liability). Number of head multiplied
by target weight multiplied by the
coverage price multiplied by the insured
share.

18

.999999

per ADM

Obtain from ADM L Suffix D.

20

9(10)

nearest whole
dollar

Premium including subsidy. Insured
Value multiplied by rate.

Subsidy Factor

Internal

.999

3 decimal places

Subsidy Factor for LRP is .130.
Subsidy percent converted to factor.

21

9(10)

nearest whole
dollar

Total Premium multiplied by Subsidy
Factor.

26

9(10)

nearest whole
dollar

Premium after subsidy. Total Premium
minus Subsidy.

(Liability)

FCIC-APPENDIX III

135-1 - 2

RY 2008