1. Forms
2. FP
3. FP-DS-32

What the form is

The FP DS 32, titled Advisory Livestock Coverage Form Declarations, is a declarations page used in conjunction with the Livestock Coverage Form (e.g., FP 00 40) within the ISO (Insurance Services Office, Inc.) Farm Program. As a declarations page, it doesn't provide coverage itself but rather personalizes the associated coverage form by detailing specific information agreed upon by the insured and the insurer. This information is crucial as the coverage form often refers back to the declarations for specifics like limits, deductibles, and covered property. It's an advisory form, meaning insurance companies may use it as is or modify it to suit their specific needs.

Classes of business it applies to

This form applies to any farming or ranching operation that requires insurance coverage for livestock. This can include:

• Dairy farms
• Cattle ranches (beef or dairy)
• Hog farms
• Sheep or goat farms
• Poultry operations (though poultry may sometimes have specific endorsements or coverage forms)
• Farms with horses (other than those used for racing, which often require specialty equine mortality coverage)

Real-world example: A cattle rancher wants to insure their herd against perils like accidental shooting, drowning, or attack by wild animals. The FP DS 32 would be completed along with the Livestock Coverage Form to specify the number and type of cattle covered, the agreed value or limit per animal, and the applicable deductible.

Special considerations

• Accuracy is critical: Since the Livestock Coverage Form relies heavily on the information stated in the declarations, any errors or omissions on the FP DS 32 can lead to claim disputes or inadequate coverage.
• Scheduling vs. Blanket Coverage: The declarations will specify whether livestock is covered on a scheduled basis (each animal or class of animal listed with a specific limit) or on a blanket basis (a single limit for all covered livestock). The choice impacts how losses are valued and paid.
• Valuation: The declarations may specify how livestock will be valued at the time of loss (e.g., market value, agreed value).
• Perils Covered: While the Livestock Coverage Form outlines the perils, the declarations might note any modifications or specific perils being bought back or excluded.

Real-world example: If a farmer has a particularly valuable breeding bull, they would want to ensure it is specifically scheduled on the FP DS 32 with an appropriate limit of insurance, rather than relying on a general blanket limit that might be insufficient for its value.

Key information for agents and underwriters

• Risk Assessment: Underwriters will scrutinize the information on the FP DS 32, such as the types and numbers of animals, their intended use (e.g., breeding, dairy, meat), and existing loss prevention measures (e.g., fencing, veterinary care protocols). This helps in assessing the overall risk profile.
• Pricing: The limits of insurance, deductibles, and the specific types/classes of livestock detailed on the FP DS 32 are key factors in determining the premium for the Livestock Coverage Form.
• Coverage Gaps: Agents should review the FP DS 32 with the insured to ensure all desired livestock are appropriately covered and that the limits are adequate. For instance, if new animals are acquired, the declarations may need to be updated.
• Underwriting Guidelines: Insurers will have specific underwriting guidelines related to livestock, such as maximum values per animal they are willing to insure or specific conditions required for certain types of livestock (e.g., disease testing for newly acquired animals). The FP DS 32 helps document adherence to these guidelines.
• Related Forms: The FP DS 32 is typically used with the FP DS 30 (Advisory Farm Inland Marine Coverage Declarations - Summary Page) which provides overall policy information, and the core Livestock Coverage Form (e.g., FP 00 40).