South Dakota Crop Insurance Practice Exam

Which perils are covered by Crop-Hail insurance?

1. Flood and drought

2. Hail, fire, and lightning

3. Wind and tornado

4. Earthquake and pest damage

The correct answer is: Hail, fire, and lightning

Crop-Hail insurance specifically covers certain perils that can significantly impact crops, most notably hail, fire, and lightning. Hail damage is the primary concern addressed by this type of insurance, as hail can cause severe injury to crops during their growing season. Fire and lightning are also included in the coverage because they can lead to catastrophic losses as well, either by directly damaging the crops or through secondary effects, such as the burning of fields or equipment. The other options involve perils that are typically covered by different types of insurance policies. For example, flood and drought are extreme weather conditions that may affect crops, but they are generally covered under multi-peril crop insurance policies or specific water-related insurance, rather than Crop-Hail insurance. Similarly, wind and tornado damage, while also destructive, fall outside the specific purview of Crop-Hail insurance. Earthquake and pest damage are also not covered under this policy; pest damage is often included in multi-peril policies as well. Therefore, the correct choice highlights the specific perils that Crop-Hail insurance was designed to protect against.