Date & Percentage of Stepladder Coverage in Effect

Cotton Stepladder POLICY


The term "stepladder" refers to the steps by which the limit of insurance becomes effective.


On any losses occurring prior to 12:00 midnight May 20 your coverage is limited to the "Replanting" provision.


Beginning 12:01 a.m. May 21 and through midnight of June 5, 25% of the limit of insurance per acre is in effect. Beginning at 12:01 a.m. June 6 and each following day, an additional 5% becomes effective until 100% of the limit of insurance is in effect.


​Planting date regulated by law: Where last planting date is regulated by law the calendar date of May 21 will be replaced by the words, "the 21st day before the last planting date provided by law."


Loss Adjustment: We will use the individual cotton plant as the unit of measurement for determining loss.


If you are paid a percentage loss which is not determined by the replanting provision and replant: 

  1. the balance of the insurance in effect at the time of loss will be canceled with no return premium. 

  2. the insurance not in effect at the time of loss may be transferred to the new cotton crop or, upon our approval, to a substitute crop. 

  3. the amount of insurance thus transferred will thereupon constitute an amended Schedule of Insurance on the affected acreage, subject to the same, if any, Excess Over Loss provision applicable to the original Schedule of Insurance. 


​Reduction of Insurance for Subsequent Losses: The original limit of insurance per acre will be reduced by the dollar amount paid. In addition, for any Excess Over Loss provision where the deductible amount does not disappear when there is a total loss, the original limit of insurance will also be reduced by the dollar amount of the full deductible percentage.



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© 2016 by tjd