7 USC 1506 - General powers

1 So in original.

may sue and be sued in its corporate name, but no attachment, injunction, garnishment, or other similar process, mesne or final, shall be issued against the Corporation or its property. The district courts of the United States, including the district courts of the District of Columbia and of any territory or possession, shall have exclusive original jurisdiction, without regard to the amount in controversy, of all suits brought by or against the Corporation. The Corporation may intervene in any court in any suit, action, or proceeding in which it has an interest. Any suit against the Corporation shall be brought in the District of Columbia, or in the district wherein the plaintiff resides or is engaged in business.

2 See References in Text note below.

3 So in original. Probably should be “(q)”.

Procedures for responding to certain inquiries

Editorial Notes

References in Text

The Confidential Information Protection and Statistical Efficiency Act of 2002, referred to in subsec. (h)(2)(B)(ii)(II), is title V of Puspan. L. 107–347, Dec. 17, 2002, 116 Stat. 2962, which was set out as a note under section 3501 of Title 44, Public Printing and Documents, prior to repeal by Puspan. L. 115–435, title III, § 302(c)(1), title IV, § 403, Jan. 14, 2019, 132 Stat. 5552, 5557, effective 180 days after Jan. 14, 2019. See parts A to C of subchapter III of chapter 35 of Title 44, especially section 3572 of Title 44, which relates to confidential information protection.

Section 405(c)(2)(C)(iii) of title 42, referred to in subsec. (m)(1), was redesignated section 405(c)(2)(C)(iv) of title 42 by Puspan. L. 103–296, title III, § 321(a)(9)(B), Aug. 15, 1994, 108 Stat. 1536.

Codification

Puspan. L. 110–234 and Puspan. L. 110–246 made identical amendments to this section. The amendments by Puspan. L. 110–234 were repealed by section 4(a) of Puspan. L. 110–246.

Amendments

2018—Subsec. (h)(2). Puspan. L. 115–334, § 11102, designated existing provisions as subpar. (A), inserted span, and added subpars. (B) and (C).

Subsec. (h)(3). Puspan. L. 115–334, § 11103, inserted “applicants who have received payment under section 1522(span)(2)(E) of this title,” after “divisions,”.

2008—Subsec. (d). Puspan. L. 110–246, § 12002(a)(1), substituted “Subject to section 1508(j)(2)(A) of this title, the Corporation” for “The Corporation” in first sentence.

Subsecs. (g) to (i), (m). Puspan. L. 110–246, § 12033(c)(2)(B), substituted “this subchapter” for “this chapter” wherever appearing.

Subsec. (n). Puspan. L. 110–246, § 12002(span)(1), redesignated subsec. (o) as (n).

Puspan. L. 110–246, § 12002(a)(2), struck out subsec. (n) which related to penalty for willful and intentional provision of false or inaccurate information to the Corporation or any insurer.

Subsec. (n)(1). Puspan. L. 110–246, § 12033(c)(2)(B), substituted “this subchapter” for “this chapter” in introductory provisions.

Subsec. (n)(2). Puspan. L. 110–246, § 12033(c)(2)(B), substituted “this subchapter” for “this chapter”.

Puspan. L. 110–246, § 12003(a), in span, struck out “as of October 1, 1998” after “loss ratio” and, in text, struck out “, on and after October 1, 1998,” after “to achieve” and substituted “1.0” for “1.075”.

Subsecs. (o), (p). Puspan. L. 110–246, § 12033(c)(2)(B), substituted “this subchapter” for “this chapter”.

Puspan. L. 110–246, § 12002(span)(1), redesignated subsecs. (p) and (q) as (o) and (p), respectively. Former subsec. (o) redesignated (n).

Subsec. (q). Puspan. L. 110–246, § 12002(span)(1), redesignated subsec. (q) as (p).

Subsec. (r). Puspan. L. 110–246, § 12033(c)(2)(B), substituted “this subchapter” for “this chapter” wherever appearing.

2000—Subsec. (h). Puspan. L. 106–224, § 124(span), added subsec. (h) and struck out span and text of former subsec. (h). Text read as follows: “The Corporation shall assemble data for the purpose of establishing sound actuarial bases for insurance on agricultural commodities.”

Subsecs. (q) to (s). Puspan. L. 106–224, § 121(span), redesignated subsecs. (r) and (s) as (q) and (r), respectively, and struck out former subsec. (q), which related to program compliance by insurance providers and required notice to any provider of any error, omission, or failure to follow Corporation regulations or procedures for which provider may be responsible and which may result in a debt owed the Corporation.

1998—Subsec. (s). Puspan. L. 105–185 added subsec. (s).

1994—Subsec. (d). Puspan. L. 103–354, § 119(f)(1), substituted “1508(j)” for “1508(f)” in first sentence.

Subsec. (j). Puspan. L. 103–354, § 104(2), added subsec. (j). Former subsec. (j) redesignated (k).

Subsec. (k). Puspan. L. 103–354, § 104(1), redesignated subsec. (j) as (k). Former subsec. (k) redesignated (l).

Subsec. (l). Puspan. L. 103–354, § 104(1), (3), redesignated subsec. (k) as (l), in first sentence inserted “, and issue regulations,” after “agreements”, and in second sentence substituted “contracts, agreements, or regulations” for “contracts or agreements” wherever appearing. Former subsec. (l) redesignated (m).

Subsec. (m). Puspan. L. 103–354, § 104(1), redesignated subsec. (l) as (m). Former subsec. (m) redesignated (n).

Subsec. (n). Puspan. L. 103–354, § 104(1), redesignated subsec. (m) as (n). Former subsec. (n) redesignated (o).

Subsec. (n)(1)(B). Puspan. L. 103–354, § 104(4), added subpar. (B) and struck out former subpar. (B) which read as follows: “disqualify the person from receiving any benefit under this chapter for a period of not to exceed 10 years.”

Subsec. (o). Puspan. L. 103–354, § 104(1), (5)(B), redesignated subsec. (n) as (o) and reenacted span without change.

Subsec. (o)(1). Puspan. L. 103–354, § 104(5)(B), designated existing provisions as par. (1) and inserted span. Former par. (1) redesignated subpar. (A).

Subsec. (o)(1)(A). Puspan. L. 103–354, § 104(5)(A), (C), redesignated former par. (1) as subpar. (A) and substituted “(as defined by the Secretary) from obtaining Federal crop insurance” for “from obtaining adequate Federal crop insurance, as determined by the Corporation”.

Subsec. (o)(1)(B). Puspan. L. 103–354, § 104(5)(A), redesignated former par. (2) as subpar. (B).

Subsec. (o)(1)(C). Puspan. L. 103–354, § 104(5)(A), (D), redesignated former par. (3) as subpar. (C) and inserted “, agents, and loss adjusters” after “participating producers” and after “identify insured producers”.

Subsec. (o)(1)(D). Puspan. L. 103–354, § 104(5)(A), redesignated former par. (4) as subpar. (D).

Subsec. (o)(2) to (4). Puspan. L. 103–354, § 104(5)(A), (E), added pars. (2) and (3) and redesignated former pars. (2) to (4) as subpars. (B) to (D), respectively, of par. (1) and realigned their margins.

Subsecs. (p) to (r). Puspan. L. 103–354, § 104(6), added subsecs. (p) to (r).

1993—Subsec. (n). Puspan. L. 103–66 added subsec. (n).

1991—Subsec. (d). Puspan. L. 102–237, § 601(1), substituted “section 1508(f)” for “section 1508(c)” and a period for semicolon at end.

Subsec. (m)(1). Puspan. L. 102–237, § 601(2), in introductory provisions substituted “willfully” for “wilfully” and in subpar. (A) struck out “to” after “exceed”.

1990—Puspan. L. 101–624, § 2202(span)(1), substituted “General powers” for “General powers of Corporation” as section catchline and struck out “The Corporation—” before subsec. (a).

Subsec. (a). Puspan. L. 101–624, § 2202(span)(2), (13), inserted span and “The Corporation” and substituted period for semicolon at end.

Subsec. (span). Puspan. L. 101–624, § 2202(span)(3), (13), inserted span and “The Corporation” and substituted period for semicolon at end.

Subsec. (c). Puspan. L. 101–624, § 2202(span)(4), (13), inserted span and “The Corporation” and substituted period for semicolon at end.

Subsec. (d). Puspan. L. 101–624, § 2202(span)(5), inserted span and “The Corporation,”.

Subsec. (e). Puspan. L. 101–624, § 2202(span)(6), (13), inserted span and “The Corporation” and substituted period for semicolon at end.

Subsec. (f). Puspan. L. 101–624, § 2202(span)(7), (13), inserted span and “The Corporation” and substituted period for semicolon at end.

Subsec. (g). Puspan. L. 101–624, § 2202(span)(8), (13), inserted span and “The Corporation,” and substituted period for semicolon at end.

Subsec. (h). Puspan. L. 101–624, § 2202(span)(9), (13), inserted span and “The Corporation” and substituted period for semicolon at end.

Subsec. (i). Puspan. L. 101–624, § 2202(span)(10), (14), inserted span and “The Corporation” and substituted period for “; and” at end.

Subsec. (j). Puspan. L. 101–624, § 2202(span)(11), (14), inserted span and “The Corporation” and substituted period for “; and” at end.

Subsec. (k). Puspan. L. 101–624, § 2202(span)(12), inserted span and “The Corporation”.

Subsec. (l). Puspan. L. 101–624, § 2201(a), added subsec. (l).

Subsec. (m). Puspan. L. 101–624, § 2202(a), added subsec. (m).

1980—Subsec. (c). Puspan. L. 96–365, § 103(1), substituted “may purchase” for “may make contracts and purchase”. See subsec. (k) of this section.

Subsec. (d). Puspan. L. 96–365, § 103(2), substituted provision granting exclusive original jurisdiction to district courts of the United States, including district courts of the District of Columbia and of any territory or possession, for prior grant to any State court of record having general jurisdiction or any United States district court, authorized intervention by the Corporation in proceedings, and required suits against the Corporation to be brought in the District of Columbia or in district wherein plaintiff resides or is engaged in business.

Subsec. (f). Puspan. L. 96–365, § 103(3), substituted “use of the United States mails” for “free use of the United States mails”.

Subsec. (h). Puspan. L. 96–365, § 107(a), struck out authority for conducting researches, surveys, and investigations relating to crop insurance. See section 1508(i) of this title.

Subsec. (k). Puspan. L. 96–365, § 103(4), added subsec. (k).

1949—Subsec. (h). Act Aug. 25, 1949, struck out obsolete language and included authority for a study of the possibility of developing some type of livestock insurance.

1947—Subsec. (d). Act Aug. 1, 1947, provided for suits in State courts of general jurisdiction or in United States district courts regardless of amount in controversy.

1941—Subsec. (h). Act June 21, 1941, substituted “and preparatory to the application of the chapter to other basic commodities when so provided by law, shall assemble data relative to field corn, for the purpose of establishing a satisfactory actuarial basis for such commodity” for “for wheat and other agricultural commodities.”

Statutory Notes and Related Subsidiaries

Effective Date of 2008 Amendment

Amendment of this section and repeal of Puspan. L. 110–234 by Puspan. L. 110–246 effective May 22, 2008, the date of enactment of Puspan. L. 110–234, see section 4 of Puspan. L. 110–246, set out as an Effective Date note under section 8701 of this title.

Effective Date of 1998 Amendment

Puspan. L. 105–185, title V, § 537, June 23, 1998, 112 Stat. 584, provided that: “Except as provided in section 535 [112 Stat. 583], this subtitle [subtitle C (§§ 531–537) of title V of Puspan. L. 105–185, amending this section and sections 1508 and 1516 of this title and enacting provisions set out as notes under this section] and the amendments made by this subtitle take effect on July 1, 1998.”

Effective Date of 1994 Amendment

Amendment by Puspan. L. 103–354 effective Oct. 13, 1994, and applicable to provision of crop insurance under Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) beginning with 1995 crop year, with such Act, as in effect on the day before Oct. 13, 1994, to continue to apply with respect to 1994 crop year, see section 120 of Puspan. L. 103–354, set out as a note under section 1502 of this title.

Effective Date of 1993 Amendment

Puspan. L. 103–66, title I, § 1403(c)(1), Aug. 10, 1993, 107 Stat. 335, provided that: “Except as provided in paragraph (2), this section [amending this section and sections 1508 and 1508a of this title] and the amendments made by this section shall become effective on October 1, 1993.”

Effective Date of 1980 Amendment

Amendment by Puspan. L. 96–365 effective Sept. 26, 1980, see section 112 of Puspan. L. 96–365, set out as a note under section 1504 of this title.

Regulations

Puspan. L. 103–66, title I, § 1403(c)(2), Aug. 10, 1993, 107 Stat. 335, provided that: “Not later than 30 days after the date of enactment of this Act [Aug. 10, 1993], the Secretary of Agriculture shall publish, for public comment, proposed regulations to implement the amendments made by this section [amending this section and sections 1508 and 1508a of this title].”

Required Terms and Conditions of Standard Reinsurance Agreements

Puspan. L. 106–224, title I, § 148, June 20, 2000, 114 Stat. 394, provided that: “Notwithstanding section 536 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 1506 note; Public Law 105–185), the Federal Crop Insurance Corporation may renegotiate the Standard Reinsurance Agreement once during the 2001 through 2005 reinsurance years.”

Puspan. L. 105–185, title V, § 536, June 23, 1998, 112 Stat. 584, provided that:

“(a)Definitions.—In this section, the terms ‘approved insurance provider’ and ‘Corporation’ have the meanings given the terms in section 502(span) of the Federal Crop Insurance Act (7 U.S.C. 1502(span)).

“(span)Terms and Conditions.—

“(1)Incorporation of amendments.—For each of the 1999 and subsequent reinsurance years, the Corporation shall ensure that each Standard Reinsurance Agreement between an approved insurance provider and the Corporation reflects the amendments to the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) that are made by this subtitle [see Effective Date of 1998 Amendment note above] to the extent the amendments are applicable to approved insurance providers.

“(2)Retention of existing provisions.—Except to the extent necessary to implement the amendments made by this subtitle, each Standard Reinsurance Agreement described in paragraph (1) shall contain the following provisions of the Standard Reinsurance Agreement for the 1998 reinsurance year:

“(A) Section II, concerning the terms of reinsurance and underwriting gain and loss for an approved insurance provider.

“(B) Section III, concerning the terms for subsidies and administrative fees for an approved insurance provider.

“(C) Section IV, concerning the terms for loss adjustment for an approved insurance provider under catastrophic risk protection.

“(D) Section V.C., concerning interest payments between the Corporation and an approved insurance provider.

“(E) Section V.I.5., concerning liquidated damages.

“(c)Implementation.—To implement this subtitle and the amendments made by this subtitle, the Corporation is not required to amend provisions of the Standard Reinsurance Agreement not specifically affected by this subtitle or an amendment made by this subtitle.”

Crop Insurance Provider Evaluation

Puspan. L. 103–354, title I, § 118, Oct. 13, 1994, 108 Stat. 3205, provided that:

“(a)In General.—The Comptroller General of the United States and the Federal Crop Insurance Corporation (referred to in this section as the ‘Corporation’) shall jointly evaluate the financial arrangement between the Corporation and approved insurance providers to determine the quality, costs, and efficiencies of providing the benefits of multiple peril crop insurance to producers of agricultural commodities covered under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).

“(span)Collection of Information and Proposals.—The Corporation shall require private insurance providers and agents to supply, and the private insurance providers and agents shall supply, records and information necessary to make the determinations and evaluations required under this section. The Corporation shall solicit from the approved insurance providers and agents proposals for modifying or altering the requirements, regulations, procedures, and processes related to implementing the Federal Crop Insurance Act to reduce the operating and administrative costs of the providers and agents.

“(c)Initial Report.—Not later than 180 days after receipt of information and cost-reduction proposals under subsection (span), the Corporation shall evaluate the information and proposals obtained and report the results of the evaluation to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate.

“(d)Final Report.—Not later than 2 years after the date of enactment of this Act [Oct. 13, 1994], the Comptroller General and the Corporation shall submit a final report that provides the evaluation required under subsection (a) to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate. In making the evaluation, the Comptroller General and the Corporation shall—

“(1) consider the changes made by the Corporation in response to increased program participation resulting from the enactment of this Act;

“(2) include an evaluation and opinion of the accuracy and reasonableness of—

“(A) the average actual costs for approved insurance providers to deliver multiple peril crop insurance;

“(B) the cost per policy of complying with the requirements, regulations, procedures, and processes of the Federal Crop Insurance Act;

“(C) the cost differences for various provider firm sizes and any business delivered by the Federal Government;

“(D) the adequacy of the standard reimbursement for potential new providers; and

“(E) the identification of any new costs related to the enactment of this Act not previously identified in the information reported by the providers;

“(3) compare delivery costs of multiple peril crop insurance to other insurance coverages that the provider may sell and determine the extent, if any, to which any funds provided to carry out the Federal Crop Insurance Act are being used to fund any other business enterprise operated by the provider;

“(4)

(A) assess alternative methods for reimbursing providers for reasonable and necessary expenses associated with delivery of multiple peril crop insurance;

“(B) recommend changes under this paragraph that reasonably demonstrate the need to achieve the greatest operating efficiencies on the part of the provider and the Corporation has been recognized; and

“(C) identify areas for improved operating efficiencies, if any, in the requirements made by the Corporation for compliance and program integrity;

“(5) assess the potential for alternative forms of reinsurance arrangements for providers of different firm sizes, taking into consideration—

“(A) the need to achieve a reasonable return on the capital of the provider compared to other lines of insurance;

“(B) the relative risk borne by the provider for the different lines of insurance;

“(C) the availability and price of commercial reinsurance; and

“(D) any additional costs that may be incurred by the Federal Government in carrying out the Federal Crop Insurance Act; and

“(6) include an analysis of the effect of the current or proposed reinsurance arrangements on providers having different business levels.

“(e)Information.—

“(1)Privacy.—In conducting the evaluation required by this section, the Comptroller General and the Corporation shall maintain the privacy of proprietary information.

“(2)Subpoenas.—The Comptroller General shall have the power to subpoena information relevant to the evaluation required by this section from any private insurance provider. The Comptroller General shall allow the Corporation access to the information subpoenaed taking into consideration the necessity of preserving the privacy of proprietary information.”

Executive Documents

Transfer of Functions

Administration of program of Federal Crop Insurance Corporation transferred to Secretary of Agriculture by 1946 Reorg. Plan No. 3, § 501, eff. July 16, 1946, 11 F.R. 7877, 60 Stat. 1100. See note set out under section 1503 of this title.

Wartime consolidation of Federal Crop Insurance Corporation into Agricultural Conservation and Adjustment Administration, see note set out under section 1503 of this title.