South Dakota Crop Insurance Practice Exam

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What percentage range is typically covered under MPCI?

30% to 70%
45% to 75%
50% to 85%
60% to 90%

The correct answer is: 50% to 85%

The percentage range typically covered under Multi-Peril Crop Insurance (MPCI) is between 50% to 85%. This range is established to provide policyholders with a balance between adequate coverage and premium affordability. MPCI is designed to protect producers against losses due to a variety of unforeseen circumstances, including adverse weather conditions, disease, and pest infestations. By offering coverage starting at 50%, the program ensures that farmers can receive compensation for significant losses while also allowing for higher coverage levels, up to 85%, for those who seek more comprehensive protection. This structure encourages participation among farmers, as it provides flexibility in selecting coverage levels that fit their risk management needs. The established range also reflects the actuarial data and risk analysis that supports sustainable insurance practices within the agricultural industry. The other percentage ranges do not align with the standard offerings of MPCI, making the 50% to 85% range the most accurate and relevant for this type of crop insurance.