Canada Production Insurance Regulations

Marginal note:Time for compliance

• 14 (1) A production insurance agreement entered into with a province shall provide for the establishment of a schedule, in accordance with the national certification guidelines, that sets out the deadline for meeting the requirements of section 13 for each insurance plan that is based on yield.

• Marginal note:Failure to submit documents

  (2) Until the province submits the documents required by section 13, Canada shall limit its payments toward premium and reinsurance payments under the agreement in respect of the relevant fiscal year and subsequent fiscal years to 90% of the amount otherwise payable under the agreement.

• Marginal note:Limited payments

  (3) If the province submits the documents required by section 13 but the values determined under paragraphs 13(a) and (b) exceed 1.0, payments by Canada shall be limited to the level of federal premium support provided for high-cost production coverage as set out in the agreement.

• Marginal note:No administrative procedures to prevent moral hazard

  (4) If the values determined under paragraphs 13(a) and (b) exceed 1.0 and the province cannot demonstrate that adequate administrative procedures are in place to prevent moral hazard, payments by Canada shall be based on the lower of the values determined under those paragraphs, which is deemed to be 1.0.

• Marginal note:Administrative procedures to prevent moral hazard

  (5) Subject to subsections (3) and (6), if the values determined under paragraphs 13(a) and (b) exceed 1.0 and the province can demonstrate that adequate administrative procedures are in place to prevent moral hazard, payments by Canada shall be based on the lower of the values determined under those paragraphs, which is deemed to be 1.2 if it exceeds 1.2.

• Marginal note:Methodology without bias

  (6) Despite subsection (3), if the province can demonstrate that the methodology used to determine the unit value contains no bias, only payments by Canada related to the extent that the lower of the values determined under paragraphs 13(a) and (b) exceeds 1.0 shall be limited to the level of federal premium support provided for high-cost production coverage as set out in the agreement.