To: Pork Producers


This letter is to inform you of the insurance offered by Indiana Packers Corporation.

Benefits to this program include:

Immediate Claims Payment

For death losses only which occur as a result of transit, Indiana Packers will reimburse the producer along with the settlement for the remainder of the same load of hogs.

- No filing claim with underwriter.
- No waiting for claims payment.

Competitive Rate

The cost for this program will be at a base rate of $.3500 per $100 sales.  The insurance rates for each producer are reviewed semi-annually and are subject to change with written notification to each producer.  There are three levels of insurance rates:

Low Risk
$.3500 per $100 sales
Moderate Risk
$.4000 per $100 sales
High Risk
$.5000 per $100 sales

Defined Coverage

Coverage is defined for animals which die in transit only.  Any hogs that are loaded with the intent to Resale are not covered by the transit insurance (i.e.; boars, sows, small pigs, large abscesses, scars, broken legs, down hogs, etc.)  Also not included in the coverage is the mishandling of hogs, trucker negligence (i.e.; overloading, excessive beating, prodding or any other inhumane treatment of the hogs.)  All trucking companies and individuals must have a completed bill of lading accompanying each load of hogs.

Individual Producers with excessive death loss could be subject to, but not limited to the following:
- Increased premiums.
- In severe cases, dropped from the insurance program.

No Deductible
First dollar coverage.

Automatic Coverage
No reports to complete.  Values will be reported by Indiana Packers and premiums will be charged automatically.

Producer Cancellation
In the event a Producer wishes to cancel coverage, Indiana Packers Corporation will do so with a signed copy of the Insurance Cancellation Form.  Indiana Packers Corporation is not obligated to offer the Insurance Program at a specific date in the future.  Furthermore, Indiana Packers Corporation is not responsible for death or injury to livestock during transit.

Right to Cancel
Indiana Packers reserves the right to discontinue or cancel this coverage for individual producers or for group coverage with written notification.  Indiana Packers Corporation's goal is to offer the Producer a fair well maintained insurance program with maximum coverage while maintaining the lowest rates possible.

Please let us know if you have any questions.
Thank you for your support.

Suzanne Hughes
Procurement Office Manager
Indiana Packers Corporation



updated 9/16/03 sh

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