Hurricane Insurance Protection – Wind Index (HIP-WI) Changes

The following changes outlined in Product Management Bulletin PM-21-038 will be effective for the 2022 and succeeding crop years for crops with a contract date of June 30, 2021 or later:

• Revised the definitions of “Adjacent County” and “County Loss Trigger”
• Added the definition of “County”
• Clarified the impact of changing coverage in subsequent crop years, and the limitations imposed on coverage resulting from said changes
• Revised the determination of eligible acres where a loss is not triggered for the insured’s county before they report their acreage from the underlying policy
• Clarified that any reduction in liability to the underlying policy will apply to the endorsement
• Clarified that only one administrative fee per crop, per county is owed for HIP-WI
• Revised the methodology for establishing triggered counties in the Hurricane Data Provisions.

In addition, RMA also released the following documents regarding HIP-WI:

• Hurricane Insurance Protection – Wind Index Handbook
• Hurricane Insurance Protection Wind – Index Endorsement
• 22-Hurricane Data Provisions