Premium Discounts and Surcharges
Premium discounts and surcharges acknowledge risk differences among customers, reducing premiums for customers without a history of repeated claims. Experience discounts and surcharges are calculated using an individual’s history of losses and a comparison of individual loss history to area losses. When an increase in the number or size of losses is experienced, the discount, if present, is reduced or the surcharge is increased.
The following crops and programs are excluded from all experience discount and surcharge calculations:
- camelina
- dryland dry beans
- honey
- hemp
- grain corn
- vegetables
- wild rice
- timothy hay
- Forage Diversification Option
- Forage Rainfall Insurance Program
- Corn Rainfall Insurance Program
- Corn Heat Unit Program
- Establishment Benefit
- Bee Mortality Insurance Program
- Fruit Tree Insurance Program
- Gopher Damage claims

How your individual claim history affects discount/surcharge:
The number of credits or debits earned will be added to the current balance. Partial credits are rounded down. Accumulated credits or debits must achieve a complete step before the discount or surcharge is adjusted.
The maximum number of both debits and credits a customer can accumulate is 16. Customers with 16 credits cannot lose their 50 per cent discount as a result of one or two year claims.
There is a one-year lag in the calculation. New contract holders will remain at zero following their first year of coverage due to this lag.