APH Hemp

Overview AvailabilityThe Actual Production History Hemp (APH Hemp) product is intended to protect the hemp crop against a reduction in yield due to insured perils.

Covered perils include:• Adverse weather conditions (eg. drought, excess precipitation, etc.)• Earthquake• Failure of the irrigation water supply (if caused by an insured peril during

the insurance period)• Fire• Insects and plant disease (assuming sufficient and proper application of

pest or disease control measures)• Wildlife• Volcanic Eruption

This policy does not cover a failure to follow requirements contained in the processor contract; an infection by mold, yeast, fungus, or similar organisms after harvest; or any damage or loss of production due to the inability to market the hemp for any reason other than actual physical damage to the hemp from one of the covered perils outlined above.

To be insurable, the hemp crop must not have levels of tetrahydrocannabinol (THC) in excess of 0.3% on a dry weight basis. Additionally, the hemp must satisfy the following requirements:• The policyholder must have a share in the crop.• The policyholder must have at least one year of history producing the crop.• The hemp must be a type listed in the actuarial documents.• The hemp must be grown under an official certification or license issued

by the applicable governing authority that permits production of hemp.• The hemp must be planted for harvest as hemp in accordance with the

requirements of the processor contract and production management practices of the processor.

• The hemp must be planted to an adapted variety and not a variety prohibited by the applicable governing authority.

Subsidiary of Sompo Holdings, Inc.

ARMtech Insurance Services, Inc. is an equal opportunity provider.

Fact SheetSales Closing Date: 3/15/20

APH Hemp is available in certain counties in Alabama, California, Colorado, Illinois, Indiana, Kansas, Kentucky, Maine, Michigan, Minnesota, Montana, New Mexico, New York, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, Tennessee, Virginia, and Wisconsin.

Important DatesFor the 2020 crop year, the Sales Clsoing Date for all counties is 3/15.

The Acreage Reporting Date is 8/15. The Cancellation date is 2/28 for California, Alabama, and North Carolina, and 3/15 for all other states in which the plan is available.

Advantages of Risk Management ToolsManagement of yield and price risk through the purchase of crop insurance transfers risk from you to others. Crop insurance protects crop investment, borrowed capital, and current savings. Crop insurance also provides collateral to lending institutions, stabilizes income, and provides an added peace of mind.

For more information, consult your crop insurance agent to obtain specific information regarding practices, options, planting dates, and other deadlines. Read the Policy Provisions before making your decision on any crop insurance product. Policy Provisions are available from your insurance agent.

This summary is for general illustration purposes only.

APH Hemp page 2

Policyholder DutiesThe policyholder must file a report of hemp acreage with their crop insurance agent by the Acreage Reporting Date. More information and specific reporting requirements will be provided by the agent.

In the event of damage or loss, the policyholder must take the following actions:

• Provide to an ARMtech loss adjuster a copy of the certification form or official license for the current crop year for the applicable insured county prior to completion of any claim.

• Protect the crop from further damage by providing sufficient care.

• Notify their crop insurance agent within 72 hours of the initial discovery of damage, but not later than 15 days after the end of the insurance period.

• Leave representative samples for each field of the damaged unit.

• If insured acreage of the insured type is damaged during the insurance period by an insured cause of loss, and the policyholder intends to harvest the acreage before the final THC level is determined by the applicable governing authority, they must provide ARMtech notice so we may inspect the damaged acreage to determine appraised production to count.

Coverage DetailsRefer to the table at right for the premium subsidy percentages and coverage levels available with an election of Basic Units. The policyholder's share of the premium will be 100%, minus the subsidy amount.

Insurance UnitsBasic, Optional, and Enterprise Units are available in select hemp counties. Premium discounts apply for Basic and Enterprise Units. Additional subsidy is available for Enterprise Units.

The policyholder may only select one coverage level for each insured type in the county insured under this policy. The coverage level, by type, must be selected on the application by the Sales Closing Date.

If the policyholder does not select a coverage level for all insurable types specified in the actuarial documents, and they plant one or more additional insurable types, the lowest coverage level selected on the application for any insurable type will apply to each additional insurable type planted.

The Catastrophic Risk Protection Endorsement (CAT) limits coverage to 50% of the average yield and 55% of the price election. The cost for CAT coverage is an administrative fee of $655, per crop, per county.