Insurance Agent May Have Waived Coverage Requirements
There are several federally funded and regulated types of insurance. One of those is crop insurance, regulated by the Federal Crop Insurance Corporation (the FCIC). Because the federal government is ultimately on the hook for part of any claim, the government puts limits on what an insurer can and cannot agree to cover. Generally speaking, the insurer cannot waive those federal requirements.
On the other hand, a recent case out of the Eastern Section Court of Appeals, Simms v. Insurance Co. of North Am., demonstrates the kind of insurance requirements that the insurer can waive. In that case, the insured submitted a claim on his crops, then told his insurance agent that he was planning to bush hog the field. The agent apparently gave him permission to do so. The insurance policy, however, required him to preserve the fields so that the insurance company could perform an investigation. Because the fields were destroyed before the company inspected them, the company denied the insurance claim.
The Eastern Section ruled that the insurance agent could waive the policy provisions, even though it was federally funded and regulated insurance. The key is that the agent waived a provision of the policy, not a federal law or regulation. In other words, the insurance company can waive its own requirements for coverage, but not the federal governments requirements for coverage.
For an example where the agent waived a federal requirement, take a look at my earlier post on waiver of FEMA requirements for flood insurance.