[Code of Federal Regulations]
[Title 7, Volume 6]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR457.6]

[Page 94]
 
                          TITLE 7--AGRICULTURE
 
     CHAPTER IV--FEDERAL CROP INSURANCE CORPORATION, DEPARTMENT OF 
                               AGRICULTURE
 
PART 457--COMMON CROP INSURANCE REGULATIONS--Table of Contents
 
Sec. 457.6  Good faith reliance on misrepresentation.

    Notwithstanding any other provision of the crop insurance contract, 
whenever:
    (a) A person entering into a contract of crop insurance under these 
regulations who, as a result of a misrepresentation or other erroneous 
action or advice by an agent or employee of the Corporation:
    (1) Is indebted to the Corporation for additional premiums; or
    (2) Has suffered a loss to a crop which is not insured or for which 
the insured is not entitled to an indemnity because of failure to comply 
with the terms of the insurance contract, but which the insured believed 
to be insured, or believed the terms of the insurance contract to have 
been complied with or waived; and
    (b) The Board of Directors of the Corporation, or the Manager in 
cases involving not more than $100,000.00, finds that:
    (1) An agent or employee of the Corporation did in fact make such 
misrepresentation or take other erroneous action or give erroneous 
advice;
    (2) Said insured relied thereon in good faith; and
    (3) To require the payment of the additional premiums or to deny 
such insured's entitlement to the indemnity would not be fair and 
equitable, such insured shall be granted relief the same as if otherwise 
entitled thereto. Requests for relief under this section must be 
submitted to the Corporation in writing. The Corporation reviewing 
officers must, upon application by the person claiming relief under this 
section, refer such application to the appropriate official of the 
Corporation for determination as to whether to grant relief under this 
section. Corporation reviewing officers do not have authority to grant 
relief under this section.
    (c) The reinsured companies may use arbitration panels established 
under contracts for reinsurance issued by them under the FCIC Act to 
grant relief under the same terms and conditions as contained in 
paragraphs (a) and (b) of this section or, may establish procedures to 
administratively handle relief in accordance with such terms and 
conditions.

[56 FR 1351, Jan. 14, 1991, as amended at 58 FR 58262, Nov. 1, 1993]