South Dakota Crop Insurance Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the South Dakota Crop Insurance Exam. Study smart with flashcards and multiple choice questions; all questions feature hints and detailed explanations. Ace your exam effortlessly!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Which organization is responsible for setting MPCI rates?

USDA
FCIC
RMA
EPA

The correct answer is: FCIC

The correct answer is FCIC, which stands for the Federal Crop Insurance Corporation. This organization plays a critical role in the federal crop insurance program by overseeing its functioning, including the establishment of rates for Multi-Peril Crop Insurance (MPCI). FCIC is directly involved in determining the actuarial base rates that reflect the risk associated with insuring various crops in different regions, ensuring that the rates are both adequate and equitable based on the evaluated risk factors. The role of the other organizations mentioned in the choices is different. The USDA, or United States Department of Agriculture, oversees agriculture broadly and includes the FCIC as one of its components. The Risk Management Agency (RMA), which is another choice, administers the crop insurance program and works closely with FCIC but does not set the rates itself. Finally, the Environmental Protection Agency (EPA) does not have a role in setting crop insurance rates; its focus is primarily on environmental protection and regulations. Thus, FCIC is the correct organization responsible for setting the rates for MPCI.