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| Good question. A decade ago I came across some good explantions. Truth is, its complicated. Crop Insurance is not run teh same as Progressive for example. I attached an article by KSU Ag Economist Art Barnaby. It gets a bit technical and is set againt the 2012 drought concerns, but its the best explantion of how crop insurance works I've ever came across. To your question about commissions, I also had read a good explantion written after the last agreement between the companies and RMA capped agent commissions. I think that cap arrived was around 2010. If I can find it, I'll share. If I recall correctly, agents have roughly an 8% prorated / capped commission. It effectively stops any additional money paid beyond premium generated when commodity prices (which drive premiums) exceed somewhere around $4 corn and $11 beans. So, all of the high premiums paid these last few years were based in high commodity prices. But agents did reep that increase due to the cap. On the otherhand, several commenters are correct, these new products (MP, ECO, etc) are not subject to the caps. So their commissions are 15-18ish%, I gather from talking with agents. Of course, any of those specialty private products (RpowerD, GAP, RAMP, HAIL) have their commissions set by the provider and can also approach 20%.
Attachments
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 AB_SRA.pdf (226KB - 12 downloads)
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Crop Insurance
