7 CFR 400.176 : Agriculture (§ 1.1 To Parts 4291-4299) — (Subparts A-F To Parts 662-699) — Regulations Of The Department Of Agriculture (Continued) (Subparts A-F To Parts 662-699) — Federal Crop Insurance Corporation, Department Of Agriculture (Subparts A-F To Parts 458-499) — General Administrative Regulations (Subparts A-F To § 400.768) — Reinsurance Agreement - Standards For Approval; Regulations For The 1997 And Subsequent Reinsurance Years (§ 400.161 To § 400.177) — State action preemptions.

(a) No policyholder shall have recourse to any state guaranty fund or similar state administered program for crop or premium losses reinsured under such Standard Reinsurance Agreement. No assessments for such State funds or programs shall be computed or levied on companies for or on account of any premiums payable on policies of Multiple Peril Crop Insurance reinsured by the Corporation.

(b) No policy of insurance reinsured by the Corporation and no claim, settlement, or adjustment action with respect to any such policy shall provide a basis for a claim of punitive or compensatory damages or an award of attorney fees or other costs against the Company issuing such policy, unless a determination is obtained from the Corporation that the Company, its employee, agent or loss adjuster failed to comply with the terms of the policy or procedures issued by the Corporation and such failure resulted in the insured receiving a payment in an amount that is less than the amount to which the insured was entitled.