AFIS AFIS Livestock and Poultry Insurance 2 — Questions and Answers
Question 1: What is the primary purpose of the Livestock Forage Disaster Program (LFP)?
- Compensate for livestock deaths
- Provide payments for forage losses on grazing lands due to drought (Correct answer)
- Cover livestock in transit
- Insure feed stored in silos
Correct answer: Provide payments for forage losses on grazing lands due to drought
LFP provides compensation to eligible livestock producers who suffer grazing losses due to drought or fire on rangeland or pastureland.
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?
- Farm property policy
- Livestock transit floater (Correct answer)
- Commercial general liability
- Crop insurance policy
Correct answer: Livestock transit floater
A livestock transit floater provides coverage for animals while they are being transported, covering perils such as accidents, drowning, or loading/unloading injuries.
Question 3: Under a livestock mortality policy, which of the following perils is typically covered?
- Pre-existing conditions
- Intentional slaughter
- Accidental drowning (Correct answer)
- Market price decline
Correct answer: Accidental drowning
Accidental drowning is a covered peril under most livestock mortality policies, which protect against sudden and unexpected deaths from covered causes.
Question 4: What is the significance of 'humane destruction' provisions in livestock policies?
- They exclude all intentional killings
- They allow coverage when an animal must be euthanized to relieve suffering from a covered injury (Correct answer)
- They provide extra coverage for animals used in rodeos
- They apply only to horses, not cattle
Correct answer: They allow coverage when an animal must be euthanized to relieve suffering from a covered injury
Humane destruction provisions extend coverage to animals that must be euthanized to prevent suffering after sustaining a covered injury, even if the injury itself was not immediately fatal.
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?
- Livestock Indemnity Program (LIP)
- Livestock Forage Disaster Program (LFP)
- Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish (ELAP) (Correct answer)
- Whole-Farm Revenue Protection (WFRP)
Correct answer: Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish (ELAP)
ELAP provides assistance for losses due to disease including livestock, honeybees, and farm-raised fish that are not covered by other USDA programs.
Question 6: How does a 'mortality only' livestock policy differ from a 'mortality and loss of use' policy?
- Mortality only covers theft; loss of use covers death
- Mortality only pays for death; loss of use also pays if the animal can no longer perform its intended function (Correct answer)
- Loss of use is only available for horses
- They are identical products with different names
Correct answer: Mortality only pays for death; loss of use also pays if the animal can no longer perform its intended function
A mortality and loss of use policy extends coverage beyond death to include situations where the animal survives but can no longer perform its intended function, such as a breeding bull that becomes infertile.
AFIS AFIS Livestock and Poultry Insurance 2
What is the primary purpose of the Livestock Forage Disaster Program (LFP)?