
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 7USC1506]

 
                          TITLE 7--AGRICULTURE
 
                       CHAPTER 36--CROP INSURANCE
 
Sec. 1506. General powers


(a) Succession

    The Corporation shall have succession in its corporate name.

(b) Corporate seal

    The Corporation may adopt, alter, and use a corporate seal, which 
shall be judicially noticed.

(c) Property

    The Corporation may purchase or lease and hold such real and 
personal property as it deems necessary or convenient in the transaction 
of its business, and may dispose of such property held by it upon such 
terms as it deems appropriate.

(d) Suit

    The Corporation, subject to the provisions of section 1508(j) of 
this title, 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.

(e) Bylaws and regulations

    The Corporation may adopt, amend, and repeal bylaws, rules, and 
regulations governing the manner in which its business may be conducted 
and the powers granted to it by law may be exercised and enjoyed.

(f) Mails

    The Corporation shall be entitled to the use of the United States 
mails in the same manner as the other executive agencies of the 
Government.

(g) Assistance

    The Corporation, with the consent of any board, commission, 
independent establishment, or executive department of the Government, 
including any field service thereof, may avail itself of the use of 
information, services, facilities, officials, and employees thereof in 
carrying out the provisions of this chapter.

(h) Collection and sharing of information

                   (1) Surveys and investigations

        The Corporation may conduct surveys and investigations relating 
    to crop insurance, agriculture-related risks and losses, and other 
    issues related to carrying out this chapter.

                         (2) Data collection

        The Corporation shall assemble data for the purpose of 
    establishing sound actuarial bases for insurance on agricultural 
    commodities.

                       (3) Sharing of records

        Notwithstanding section 1502(c) of this title, records submitted 
    in accordance with this chapter and section 7333 of this title shall 
    be available to agencies and local offices of the Department, 
    appropriate State and Federal agencies and divisions, and approved 
    insurance providers for use in carrying out this chapter, such 
    section 7333 of this title, and other agricultural programs.

(i) Expenditures

    The Corporation shall determine the character and necessity for its 
expenditures under this chapter and the manner in which they shall be 
incurred, allowed, and paid, without regard to the provisions of any 
other laws governing the expenditure of public funds and such 
determinations shall be final and conclusive upon all other officers of 
the Government.

(j) Settling claims

    The Corporation shall have the authority to make final and 
conclusive settlement and adjustment of any claim by or against the 
Corporation or a fiscal officer of the Corporation.

(k) Other powers

    The Corporation shall have such powers as may be necessary or 
appropriate for the exercise of the powers herein specifically conferred 
upon the Corporation and all such incidental powers as are customary in 
corporations generally.

(l) Contracts

    The Corporation may enter into and carry out contracts or 
agreements, and issue regulations, necessary in the conduct of its 
business, as determined by the Board. State and local laws or rules 
shall not apply to contracts, agreements, or regulations of the 
Corporation or the parties thereto to the extent that such contracts, 
agreements, or regulations provide that such laws or rules shall not 
apply, or to the extent that such laws or rules are inconsistent with 
such contracts, agreements, or regulations.

(m) Submission of certain information

      (1) Social security account and employer identification 
                                   numbers

        The Corporation shall require, as a condition of eligibility for 
    participation in the multiple peril crop insurance program, 
    submission of social security account numbers, subject to the 
    requirements of section 405(c)(2)(C)(iii) \1\ of title 42, and 
    employer identification numbers, subject to the requirements of 
    section 6109(f) of title 26.
---------------------------------------------------------------------------
    \1\ See References in Text note below.
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                  (2) Notification by policyholders

        Each policyholder shall notify each individual or other entity 
    that acquires or holds a substantial beneficial interest in such 
    policyholder of the requirements and limitations under this chapter.

       (3) Identification of holders of substantial interests

        The Manager of the Corporation may require each policyholder to 
    provide to the Manager, at such times and in such manner as 
    prescribed by the Manager, the name of each individual that holds or 
    acquires a substantial beneficial interest in the policyholder.

           (4) ``Substantial beneficial interest'' defined

        For purposes of this subsection, the term ``substantial 
    beneficial interest'' means not less than 5 percent of all 
    beneficial interests in the policyholder.

(n) Penalties

                        (1) False information

        If a person willfully and intentionally provides any false or 
    inaccurate information to the Corporation or to any insurer with 
    respect to an insurance plan or policy under this chapter, the 
    Corporation may, after notice and an opportunity for a hearing on 
    the record--
            (A) impose a civil fine of not to exceed $10,000 on the 
        person; and
            (B) disqualify the person from purchasing catastrophic risk 
        protection or receiving noninsured assistance for a period of 
        not to exceed 2 years, or from receiving any other benefit under 
        this chapter for a period of not to exceed 10 years.

                      (2) Assessment of penalty

        In assessing penalties under this subsection, the Corporation 
    shall consider the gravity of the violation.

(o) Actuarial soundness

           (1) Projected loss ratio as of October 1, 1995

        The Corporation shall take such actions as are necessary to 
    improve the actuarial soundness of Federal multiperil crop insurance 
    coverage made available under this chapter to achieve, on and after 
    October 1, 1995, an overall projected loss ratio of not greater than 
    1.1, including--
            (A) instituting appropriate requirements for documentation 
        of the actual production history of insured producers to 
        establish recorded or appraised yields for Federal crop 
        insurance coverage that more accurately reflect the associated 
        actuarial risk, except that the Corporation may not carry out 
        this paragraph in a manner that would prevent beginning farmers 
        (as defined by the Secretary) from obtaining Federal crop 
        insurance;
            (B) establishing in counties, to the extent practicable, a 
        crop insurance option based on area yields in a manner that 
        allows an insured producer to qualify for an indemnity if a loss 
        has occurred in a specified area in which the farm of the 
        insured producer is located;
            (C) establishing a database that contains the social 
        security account and employee identification numbers of 
        participating producers, agents, and loss adjusters and using 
        the numbers to identify insured producers, agents, and loss 
        adjusters who are high risk for actuarial purposes and insured 
        producers who have not documented at least 4 years of production 
        history, to assess the performance of insurance providers, and 
        for other purposes permitted by law; and
            (D) taking any other measures authorized by law to improve 
        the actuarial soundness of the Federal crop insurance program 
        while maintaining fairness and effective coverage for 
        agricultural producers.

           (2) Projected loss ratio as of October 1, 1998

        The Corporation shall take such actions, including the 
    establishment of adequate premiums, as are necessary to improve the 
    actuarial soundness of Federal multiperil crop insurance made 
    available under this chapter to achieve, on and after October 1, 
    1998, an overall projected loss ratio of not greater than 1.075.

                (3) Nonstandard classification system

        To the extent that the Corporation uses the nonstandard 
    classification system, the Corporation shall apply the system to all 
    insured producers in a fair and consistent manner.

(p) Regulations

    The Secretary and the Corporation are each authorized to issue such 
regulations as are necessary to carry out this chapter.

(q) Purchase of American-made equipment and products

                        (1) Sense of Congress

        It is the sense of Congress that, to the greatest extent 
    practicable, all equipment and products purchased by the Corporation 
    using funds made available to the Corporation should be American-
    made.

                       (2) Notice requirement

        In providing financial assistance to, or entering into any 
    contract with, any entity for the purchase of equipment and products 
    to carry out this chapter, the Corporation, to the greatest extent 
    practicable, shall provide to the entity a notice describing the 
    statement made in paragraph (1).

(r) Procedures for responding to certain inquiries

                       (1) Procedures required

        The Corporation shall establish procedures under which the 
    Corporation will provide a final agency determination in response to 
    an inquiry regarding the interpretation by the Corporation of this 
    chapter or any regulation issued under this chapter.

                         (2) Implementation

        Not later than 180 days after June 23, 1998, the Corporation 
    shall issue regulations to implement this subsection. At a minimum, 
    the regulations shall establish--
            (A) the manner in which inquiries described in paragraph (1) 
        are required to be submitted to the Corporation; and
            (B) a reasonable maximum number of days within which the 
        Corporation will respond to all inquiries.

               (3) Effect of failure to timely respond

        If the Corporation fails to respond to an inquiry in accordance 
    with the procedures established pursuant to this subsection, the 
    person requesting the interpretation of this chapter or regulation 
    may assume the interpretation is correct for the applicable 
    reinsurance year.

(Feb. 16, 1938, ch. 30, title V, Sec. 506, 52 Stat. 73; June 21, 1941, 
ch. 214, Sec. 2, 55 Stat. 255; Aug. 1, 1947, ch. 440, Sec. 7, 61 Stat. 
719; Aug. 25, 1949, ch. 512, Sec. 8, 63 Stat. 665; Pub. L. 96-365, title 
I, Secs. 103, 107(a), Sept. 26, 1980, 94 Stat. 1313, 1317; Pub. L. 101-
624, title XXII, Secs. 2201(a), 2202, Nov. 28, 1990, 104 Stat. 3951, 
3954; Pub. L. 102-237, title VI, Sec. 601(1), (2), Dec. 13, 1991, 105 
Stat. 1878; Pub. L. 103-66, title XIV, Sec. 1403(a), Aug. 10, 1993, 107 
Stat. 333; Pub. L. 103-354, title I, Secs. 104, 119(f)(1), Oct. 13, 
1994, 108 Stat. 3181, 3208; Pub. L. 105-185, title V, Sec. 533, June 23, 
1998, 112 Stat. 583; Pub. L. 106-224, title I, Secs. 121(b), 124(b), 
June 20, 2000, 114 Stat. 377, 378.)

                       References in Text

    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 Pub. L. 
103-296, title III, Sec. 321(a)(9)(B), Aug. 15, 1994, 108 Stat. 1536.


                               Amendments

    2000--Subsec. (h). Pub. L. 106-224, Sec. 124(b), added subsec. (h) 
and struck out heading 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). Pub. L. 106-224, Sec. 121(b), 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). Pub. L. 105-185 added subsec. (s).
    1994--Subsec. (d). Pub. L. 103-354, Sec. 119(f)(1), substituted 
``1508(j)'' for ``1508(f)'' in first sentence.
    Subsec. (j). Pub. L. 103-354, Sec. 104(2), added subsec. (j). Former 
subsec. (j) redesignated (k).
    Subsec. (k). Pub. L. 103-354, Sec. 104(1), redesignated subsec. (j) 
as (k). Former subsec. (k) redesignated (l).
    Subsec. (l). Pub. L. 103-354, Sec. 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). Pub. L. 103-354, Sec. 104(1), redesignated subsec. (l) 
as (m). Former subsec. (m) redesignated (n).
    Subsec. (n). Pub. L. 103-354, Sec. 104(1), redesignated subsec. (m) 
as (n). Former subsec. (n) redesignated (o).
    Subsec. (n)(1)(B). Pub. L. 103-354, Sec. 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). Pub. L. 103-354, Sec. 104(1), (5)(B), redesignated 
subsec. (n) as (o) and reenacted heading without change.
    Subsec. (o)(1). Pub. L. 103-354, Sec. 104(5)(B), designated existing 
provisions as par. (1) and inserted heading. Former par. (1) 
redesignated subpar. (A).
    Subsec. (o)(1)(A). Pub. L. 103-354, Sec. 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). Pub. L. 103-354, Sec. 104(5)(A), redesignated 
former par. (2) as subpar. (B).
    Subsec. (o)(1)(C). Pub. L. 103-354, Sec. 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). Pub. L. 103-354, Sec. 104(5)(A), redesignated 
former par. (4) as subpar. (D).
    Subsec. (o)(2) to (4). Pub. L. 103-354, Sec. 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). Pub. L. 103-354, Sec. 104(6), added subsecs. 
(p) to (r).
    1993--Subsec. (n). Pub. L. 103-66 added subsec. (n).
    1991--Subsec. (d). Pub. L. 102-237, Sec. 601(1), substituted 
``section 1508(f)'' for ``section 1508(c)'' and a period for semicolon 
at end.
    Subsec. (m)(1). Pub. L. 102-237, Sec. 601(2), in introductory 
provisions substituted ``willfully'' for ``wilfully'' and in subpar. (A) 
struck out ``to'' after ``exceed''.
    1990--Pub. L. 101-624, Sec. 2202(b)(1), substituted ``General 
powers'' for ``General powers of Corporation'' as section catchline and 
struck out ``The Corporation--'' before subsec. (a).
    Subsec. (a). Pub. L. 101-624, Sec. 2202(b)(2), (13), inserted 
heading and ``The Corporation'' and substituted period for semicolon at 
end.
    Subsec. (b). Pub. L. 101-624, Sec. 2202(b)(3), (13), inserted 
heading and ``The Corporation'' and substituted period for semicolon at 
end.
    Subsec. (c). Pub. L. 101-624, Sec. 2202(b)(4), (13), inserted 
heading and ``The Corporation'' and substituted period for semicolon at 
end.
    Subsec. (d). Pub. L. 101-624, Sec. 2202(b)(5), inserted heading and 
``The Corporation,''.
    Subsec. (e). Pub. L. 101-624, Sec. 2202(b)(6), (13), inserted 
heading and ``The Corporation'' and substituted period for semicolon at 
end.
    Subsec. (f). Pub. L. 101-624, Sec. 2202(b)(7), (13), inserted 
heading and ``The Corporation'' and substituted period for semicolon at 
end.
    Subsec. (g). Pub. L. 101-624, Sec. 2202(b)(8), (13), inserted 
heading and ``The Corporation,'' and substituted period for semicolon at 
end.
    Subsec. (h). Pub. L. 101-624, Sec. 2202(b)(9), (13), inserted 
heading and ``The Corporation'' and substituted period for semicolon at 
end.
    Subsec. (i). Pub. L. 101-624, Sec. 2202(b)(10), (14), inserted 
heading and ``The Corporation'' and substituted period for ``; and'' at 
end.
    Subsec. (j). Pub. L. 101-624, Sec. 2202(b)(11), (14), inserted 
heading and ``The Corporation'' and substituted period for ``; and'' at 
end.
    Subsec. (k). Pub. L. 101-624, Sec. 2202(b)(12), inserted heading and 
``The Corporation''.
    Subsec. (l). Pub. L. 101-624, Sec. 2201(a), added subsec. (l).
    Subsec. (m). Pub. L. 101-624, Sec. 2202(a), added subsec. (m).
    1980--Subsec. (c). Pub. L. 96-365, Sec. 103(1), substituted ``may 
purchase'' for ``may make contracts and purchase''. See subsec. (k) of 
this section.
    Subsec. (d). Pub. L. 96-365, Sec. 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). Pub. L. 96-365, Sec. 103(3), substituted ``use of the 
United States mails'' for ``free use of the United States mails''.
    Subsec. (h). Pub. L. 96-365, Sec. 107(a), struck out authority for 
conducting researches, surveys, and investigations relating to crop 
insurance. See section 1508(i) of this title.
    Subsec. (k). Pub. L. 96-365, Sec. 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.''


                    Effective Date of 1998 Amendment

    Pub. L. 105-185, title V, Sec. 537, June 23, 1998, 112 Stat. 584, 
provided that: ``Except as provided in section 535 [112 Stat. 583], this 
subtitle [subtitle C (Secs. 531-537) of title V of Pub. 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 Pub. 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 Pub. L. 103-354, set out 
as a note under section 1502 of this title.


                    Effective Date of 1993 Amendment

    Section 1403(c)(1) of Pub. L. 103-66 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 Pub. L. 96-365 effective Sept. 26, 1980, see section 
112 of Pub. L. 96-365, set out as a note under section 1504 of this 
title.


                               Regulations

    Section 1403(c)(2) of Pub. L. 103-66 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].''

                          Transfer of Functions

    Administration of program of Federal Crop Insurance Corporation 
transferred to Secretary of Agriculture by 1946 Reorg. Plan No. 3, 
Sec. 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.


    Required Terms and Conditions of Standard Reinsurance Agreements

    Pub. L. 106-224, title I, Sec. 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.''
    Pub. L. 105-185, title V, Sec. 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(b) of the Federal Crop Insurance Act (7 U.S.C. 1502(b)).
    ``(b) 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

    Section 118 of Pub. L. 103-354 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.).
    ``(b) 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 (b), 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.''

                  Section Referred to in Other Sections

    This section is referred to in sections 1505, 1515, 1521 of this 
title; title 26 section 6109; title 42 section 405.
