2018 TPEP and TPER Guidance

07/01/17

Training and Performance Plan (TPEP) and
Training and Performance Report (TPER) Guidance
I.

PURPOSE
The TPEP and TPER outline on an annual basis the methods planned and taken by
each Company to assess and correct where appropriate the work performance of the
Company’s staff who, in turn, sell and service the FCIC-approved crop insurance
programs to producers and ranchers. This stems from the statutory requirements
stated in the Federal Crop Insurance Act (section 515).
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FEDERAL CROP INSURANCE ACT

Sec. 515

(f) DETECTION OF DISPARATE PERFORMANCE
(3) OVER SIGHT OF AGENTS AND LOSS ADJUSTERS - The Corporation
shall develop procedures to require an annual review by an approved insurance
provider of the performance of each agent and loss adjuster used by the approved
insurance provider regarding any remedial action that is determined to be
necessary as a result of the annual review of an agent or loss adjuster.
II.

CYCLE
The formation of the training plan and the evaluation report will create a cycle of
planning and implementing (TPEP), assessing and reporting (TPER), and improving
the work performance of the Company’s staff (TPEP). This cycle will cause a
dynamic in which the effectiveness of the training to staff is measured by their actual
work performance. Individuals found by the Company’s own standards as nonsatisfactory will be placed on a more rigorous training and monitoring plan to achieve
satisfactory performance. Evaluation of individual work performance is expected to
be on-going, and as such, will affect the overall effectiveness of the Company in the
delivery of the FCIC-approved crop insurance programs.
First, the TPEP will be submitted with the Company’s Plan of Operations.
Second, the subsequent TPEP will include information that demonstrates how the
results captured by the TPER affected change in the Company’s TPEP.

SECTION II. TRAINING OF AGENTS, LOSS ADJUSTERS, AND OTHER PERSONNEL
(a)

General Company Responsibilities

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(1)

The Company is responsible for establishing a “Training and Performance
Evaluation Plan” (TPEP) and submitting the TPEP in the Company’s Plan
of Operations, in accordance with Appendix II. Nothing in these
requirements precludes the Company from providing training that exceeds
these requirements.

(2)

The TPEP shall:
(A)

State the measurement standards acceptable for:
(i)

Test proficiency; and

In fulfillment of Appendix IV Sec. II (a)(2)(A)(i), the
measurement standards for testing proficiency will be an AIPadministered written Competency Test. AIPs will have access to
NCIS test questions and will use the NCIS exam or create a
competency exam of their own. Such test will be conducted
according to the RMA-accepted Competency Test rules. New
agents are required to successfully complete the Agent
Competency Test prior to selling or servicing any eligible crop
insurance contracts. New loss adjusters are required to
successfully complete the Adjuster Competency Test prior to
signing any claim under an eligible crop insurance contract. All
agents and loss adjusters are required to successfully complete the
test at least every three years. A score resulting in 70 percent or
greater is considered passing. Those new to this AIP will be
required to take the Competency Test unless we or the agent/loss
adjuster can obtain documentation from the former AIP that he/she
successfully completed said exam within the past three years.
Agent and loss adjuster Competency Test results will be
maintained in accordance with section IV (g) of the SRA.
(ii)

Satisfactory work performance.

In fulfillment of Appendix IV Sec. II (a)(2)(A)(ii):The
measurement standards for unsatisfactory work performance will
be the determination by the Company that the review and
evaluation of the individual has identified a frequency or severity
of material errors as defined in the SRA that require additional
training and/or remedial action of the individual by the Company.
Note, the definition in the SRA states, “as determined by FCIC”
however, for this requirement the definition shall also include as
determined by the company as well.

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(B)

Describe the internal control measures used to assign work and
track, monitor and evaluate work performance against the
measurement standards under subparagraph (a)(2)(A);
Provide a description of the processes and controls utilized by the
company to assign work, and to track, monitor and evaluate work
performance of individuals against the measurement standards
under subparagraph (a)(2)(A).

(C)

Describe the additional training and monitoring applicable to any
individual who fails to meet the measurement standards specified
in subparagraph (a)(2)(A);
Provide a description of the processes utilized by the company to
determine what additional training is necessary, and show how
performance will be monitored for any individual who fails to meet
the measurement standards specified in subparagraph (a)(2)(A).

(D)

Describe the training curriculum developed from subsections (b)
and (c) for:
(i)

New agents and new loss adjusters;

(ii)

Experienced agents and experienced loss adjusters;

In fulfillment of Appendix IV Sec. II (a)(2)(D)(i) & (ii), the
training curriculum for new and experienced agents and new and
experienced loss adjusters will, at a minimum, include all of the
requirements of Section II of appendix IV.
(iii)

Agents and loss adjusters with deficient work performance
to meet the standards established in subsection (a) (2) (A);
and

In fulfillment of Appendix IV Sec. II (a)(2)(D)(iii), when a
performance deficiency is determined of agents and loss adjusters,
follow up will be provided in the area of deficiency and the
agent/loss adjuster will be monitored until competency is
determined.
(iv)

Employees performing functions relating to sales and
service, loss adjustment, and underwriting.

In fulfillment of Appendix IV Sec. II (a)(2)(D)(iv), the training
curriculum for employees performing functions relating to sales

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and service, loss adjustment, and underwriting will, at a minimum,
include all of the requirements of Section II of appendix IV.
(E)

Describe the individual training for employees, agents, loss
adjusters, or other affiliates with respect to specific crops, areas,
and plans of insurance serviced by such individuals;
Provide a description of the process utilized by the company to
determine and to provide to employees, agents, loss adjusters, or
other affiliates training on specific crops, areas, and plans of
insurance serviced by such individuals.

(F)

List the names and titles of the individuals responsible for the
training under the TPEP;
In fulfillment of Appendix IV Sec. II (a)(2)(F): List the titles of the
personnel responsible for the training (i.e. Field Personnel,
Division Office Management).

(G)

Provide a timeline for training all individuals identified in
subsection (a)(2)(D)(i-iv) prior to the time the work is performed;
Provide a timeline for training all individuals identified in
subsection (a)(2)(D)(i)-(iv) includes training provided throughout
the crop year, and prior to the time the work is performed for new
agents and loss adjusters. Employee, experienced agent and
experienced loss adjuster training will be done concurrently on an
annual basis.

(H)

Describe the Company’s plan for taking corrective, follow-up, or
remedial actions when additional training does not correct the
identified deficiencies.
Provide the plan utilized by the company for determining when
additional training does not correct an identified deficiency, and
the plan for taking corrective, follow-up, or remedial actions for
these types of situations. Such actions will be documented and
implemented as applicable to the individual. For loss adjusters,
claims will not be assigned until proficiency can be proven.

(I)

Describe the procedure for the Company to maintain, retain, and
provide to FCIC upon request:
(i)

The tracking and evaluations of the historical performance
of individuals identified in subsection (a)(2)(D); and

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Provide a description of the process utilized by the company to
track and evaluate the historical performance of individuals
identified in subsection (a)(2)(D).
(ii)

Records of all corrective, follow-up, or remedial actions
taken with respect to any individual identified in subsection
(a)(2)(D).

Provide a description of the process utilized by the company to
record corrective, follow-up, or remedial actions with respect to
any individual identified in subsection (a)(2)(D).
(J)

Contain a provision to conduct such other training that may be
required by FCIC.
Provide a description of the process utilized by the company to
determine and conduct other training when required by FCIC.

(3)

An annual Training and Performance Evaluation Report (TPER) shall be
submitted with the Company’s Plan of Operations, in accordance with
Appendix II. The annual TPER shall provide:
(A)

An evaluation of each agent and loss adjuster. Such performance
evaluation shall include a review of the loss ratios associated with
such agent and loss adjuster and the number and type of any errors
or omissions related to the compliance with obligations under the
Agreement; and
Provide the results of reviews conducted on each agent/loss adjuster
identified on the anomalous agent/loss adjuster ARPA list provided by
RMA and the results of any review conducted on any agent/loss adjuster
or other person that was identified by the Company as not having a
satisfactory work performance.

(B)

A report of any remedial actions taken by the Company to correct
any error or omission or ensure compliance with the Agreement.
Provide a description of the action(s) taken by the company
relative to any individual who fails to meet the measurement
standards specified in subparagraph (a)(2)(A).

(b)

Sales Training Curriculum and Requirements
(1)

The sales training curriculum developed by the Company shall include
those eligible crop insurance contracts the Company will be selling or
servicing in the States identified in the Company’s Plan of Operations, in
accordance with Appendix II, and include at a minimum (for new agents
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and employees performing functions relating to sales or service,
comprehensive information on all of the following, and for experienced
agents and employees performing functions relating to sales or service,
comprehensive information on updates or changes in the following),
sufficient information to make such individuals proficient in:
(A)

The meaning of the terms and conditions of the Common Crop
Insurance Policy, Basic Provisions and applicable Crop Provisions,
published at 7 C.F.R. part 457, and the other available plans of
insurance such as the Group Risk Plan published at 7 C.F.R. part
407, the revenue insurance plans, pilot programs, and other plans
of insurance found on FCIC’s website at www.rma.usda.gov, and
any changes thereto;

(B)

All applicable endorsements, Special Provisions and options and
any changes thereto;

(C)

The benefits and differences between the applicable plans of
insurance specified in subparagraph (A) and their suitability to
farming conditions and operations in the relevant area;

(D)

The actuarial documents and their use;

(E)

The procedures applicable to the sales and service of eligible crop
insurance contracts and any changes thereto;

(F)

How to properly fill out and submit all applicable forms,
documents, notices and reports;

(G)

The requirements under applicable Federal civil rights statutes and
methods to encourage program participation, including, but not
limited to, participation of limited resource, women, minority, and
underserved producers or in underserved areas;

(H)

How to recognize anomalies in reported information and common
indicators of misrepresentation, fraud, waste or abuse, the process
to report such to the Company, and appropriate actions to be taken
when anomalies or evidence of misrepresentation, fraud, waste or
abuse exist;

(I)

Compliance with applicable laws and regulations governing
business conduct and ethics, including, but not limited to, rebating
prohibitions, conflicts of interest, and controlled business, etc.; and

(J)

Any other requirements as may be established by FCIC.

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(2)

(c)

The Company shall ensure the following:
(A)

Any new agent or other individual who solicits or otherwise
promotes crop insurance sales on behalf of the Company shall
participate in a structured training program on all of the items
listed in paragraph (1) before selling or servicing any eligible crop
insurance contract.

(B)

Any experienced agent shall annually complete structured training,
on updates or changes specifically related to the items listed in
paragraph (1), or that are identified by FCIC or the Company
where errors or omissions were identified during quality control
reviews or processing of the sales related documents.

(C)

All new agents shall pass a basic competency test before they can
sell or service an eligible crop insurance contract (all testing
records, including test results, shall be maintained in accordance
with section IV(g) of the Agreement). Basic competency tests
shall specifically relate to the items listed in paragraph (1) and
determine the proficiency of the individual who completed the
required training. Additionally, the Company shall review the test
results and document follow-up training for any deficiencies
identified.

(D)

All agents shall retake and pass the basic competency test (in
accordance with the standard established in subsection
(a)(2)(A)(i)) every three years.

(E)

If the agent was not employed by or did not contract with the
Company in the previous year(s), the Company shall obtain, and
make available upon request, documentation that the agent has
passed the basic competency test within the past 3 years with
another AIP.

(F)

Proficiency is established by passing a written test meeting the
standards of the TPEP, and maintaining satisfactory work
performance during the respective crop year measured against the
measurement standards established under subsection (a)(2)(A).

(G)

In addition, the agent is considered to maintain satisfactory work
performance if the results of reviews to respond to producer
complaints, State Departments of Insurance or FCIC inquiries, or
other quality control reviews identify no material errors.

Loss Adjustment Training Curriculum and Requirements

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(1)

(2)

The loss adjustment training curriculum developed by the Company shall
include those eligible crop insurance contracts which the Company will be
selling or servicing in the States, identified by the Company in its Plan of
Operations, in accordance with section V(b) of Appendix II, and include at
a minimum (for new loss adjusters, or employees performing functions
related to loss adjustment, all of the following and for experienced loss
adjusters or employees performing functions related to loss adjustment,
updates and changes), sufficient information to make such individuals
proficient in:
(A)

The items listed in subsections (b), (1), (A), (B), (C), (D), (F), (H),
(I), and (J);

(B)

The procedures applicable to loss adjustment of eligible crop
insurance contracts and any changes thereto;

(C)

How to properly verify the accuracy of the information contained
on applicable forms, documents, notices and reports;

(D)

How to properly determine the amount of production to be used for
the purposes of determining losses;

(E)

The requirements under applicable Federal civil rights statutes; and

(F)

Any other requirements as may be established by FCIC.

The Company shall ensure the following for loss adjusters or employees
that adjust or sign any claim for any eligible crop insurance contract:
(A)

Any new loss adjuster shall participate in a structured training
program on all of the items listed in paragraph (1) before signing
any claim under an eligible crop insurance contract.

(B)

Any experienced loss adjuster shall annually complete structured
training on updates or changes specifically related to the areas
listed in paragraph (1) or that are identified by FCIC or the
Company as errors or omissions discovered during quality control
reviews or processing of the loss related documents.

(C)

All new loss adjusters shall pass a basic competency test (all
testing records, including test results shall be maintained in
accordance with section IV(g) of the Agreement) before signing
any claim under an eligible crop insurance contract. Basic
competency tests shall specifically relate to the areas listed in
paragraph (1) and determine the proficiency of the individuals who
completed the required training to accurately and correctly
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determine the amount of the loss and verify applicable information.
Additionally, the Company shall review the test results and
document follow-up training initiatives for any deficiency.

(d)

(D)

All loss adjusters shall retake and pass the competency test every
three years.

(E)

If the loss adjuster was not employed by or did not contract with
the Company in the previous year(s), the Company shall obtain,
and make available upon request, documentation that the loss
adjuster has passed the basic competency test within the past 3
years with another AIP.

(F)

Proficiency is established by passing a written test meeting the
standards of the TPEP, and maintaining satisfactory work
performance during the respective crop year measured against the
measurement standards established under subsection (a)(2)(A).

(G)

In addition, the loss adjuster is considered to maintain satisfactory
work performance if the results of reviews to respond to producer
complaints, State Departments of Insurance or FCIC inquiries, or
other quality control reviews identify no material errors.

Minimum Hours of Training for Agents and Loss Adjusters
(1)

In order to sell or service any eligible crop insurance contract:
(A)

A new agent or other applicable individuals (including any other
individual who solicits or otherwise promotes crop insurance sales
on behalf of the Company) must participate in a structured training
program of at least 12 hours on all of the items listed in subsection
(b)(1).

(B)

An experienced agent or other applicable individual must annually
complete at least 3 hours of structured training on updates or
changes specifically related to the items listed in subsection (b)(1),
or that are identified by FCIC or the Company as deficient during
the quality control reviews or processing of the sales related
documents.

(C)

All agents and other applicable individuals must pass a basic
competency test before they can sell or service an eligible crop
insurance contract (all testing records, including test results, shall
be maintained in accordance with section IV(g) of the Agreement).
Basic competency tests must specifically relate to the items listed
in subsection (b)(1) and determine the proficiency of the individual
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who completed the required training to sell and service eligible
crop insurance contracts. Additionally, the Company must review
the test results and document follow-up training initiatives for any
area of identified weakness on the part of any one or more
individuals.

(2)

(D)

All agents and applicable individuals must retake and pass the
basic competency test every three years.

(E)

If the agent or other applicable individual was not employed by or
did not contract with the Company in previous years, the Company
must obtain and have available upon request, documentation that
the agent or other applicable individual has passed the basic
competency test within the past 3 years with another AIP.

In order to adjust or sign any claim for any eligible crop insurance
contract:
(A)

A new loss adjuster or other applicable individual must participate
in a structured training program of at least 60 hours on all of the
items listed in subsection (c)(1) (including at least 24 hours of
classroom training).

(B)

An experienced loss adjuster or other applicable individual must
annually complete at least 16 hours of structured training
(including at least 8 hours of classroom training), on updates or
changes specifically related to the areas listed in subsections (c)(1)
or that are identified by FCIC or the Company as deficient during
the quality control reviews or processing of the sales related
documents.

(C)

All loss adjusters and other applicable individuals must pass a
basic competency test (all testing records, including test results,
shall be maintained in accordance with section IV(g) of the
Agreement). Basic competency tests must specifically relate to the
areas listed in subsection (c)(1) and determine the proficiency of
the individuals who completed the required training to accurately
and correctly determine the amount of the loss and verify
applicable information. Additionally, the Company must review
the test results and document follow-up training initiatives for any
area of identified weakness on the part of any one or more new
loss adjusters or experienced loss adjusters.

(D)

All loss adjusters and other applicable individuals must retake and
pass the competency test every three years.

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(E)

The Company must obtain and have available upon request,
documentation for any loss adjuster or other applicable individual
that has passed the basic competency test within the past 3 years
with another AIP to fulfill the requirements of this subsection.

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