AFIS AFIS Livestock and Poultry Insurance 2

Question 1

What is the primary purpose of the Livestock Forage Disaster Program (LFP)?

Accepted Answer

Provide payments for forage losses on grazing lands due to drought

Answer

Compensate for livestock deaths

Answer

Cover livestock in transit

Answer

Insure feed stored in silos

Question 2

A swine producer wants coverage for pigs valued at $50 each while in transit to the processing plant. Which type of policy is most appropriate?

Accepted Answer

Livestock transit floater

Answer

Farm property policy

Answer

Commercial general liability

Answer

Crop insurance policy

Question 3

Under a livestock mortality policy, which of the following perils is typically covered?

Accepted Answer

Accidental drowning

Answer

Pre-existing conditions

Answer

Intentional slaughter

Answer

Market price decline

Question 4

What is the significance of 'humane destruction' provisions in livestock policies?

Accepted Answer

They allow coverage when an animal must be euthanized to relieve suffering from a covered injury

Answer

They exclude all intentional killings

Answer

They provide extra coverage for animals used in rodeos

Answer

They apply only to horses, not cattle

Question 5

A turkey farmer loses 5,000 birds to avian influenza confirmed by state veterinary authorities. Which program would most likely provide federal disaster assistance for this loss?

Accepted Answer

Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish (ELAP)

Answer

Livestock Indemnity Program (LIP)

Answer

Livestock Forage Disaster Program (LFP)

Answer

Whole-Farm Revenue Protection (WFRP)

Question 6

How does a 'mortality only' livestock policy differ from a 'mortality and loss of use' policy?

Accepted Answer

Mortality only pays for death; loss of use also pays if the animal can no longer perform its intended function

Answer

Mortality only covers theft; loss of use covers death

Answer

Loss of use is only available for horses

Answer

They are identical products with different names