AFIS Livestock and Poultry Insurance Flashcards
6 cards from real AFIS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 AFIS Livestock and Poultry Insurance flashcards as text
Which USDA-administered program provides livestock producers with protection against unexpected losses of livestock due to disease, adverse weather, or other losses?
Answer: Livestock Indemnity Program (LIP)
The Livestock Indemnity Program (LIP) compensates livestock producers for livestock deaths in excess of normal mortality caused by adverse weather, disease, or predators.
What is 'scheduled livestock' coverage in a farm insurance policy?
Answer: Coverage for individually listed and valued animals
Scheduled livestock coverage insures individually listed animals at a specified agreed value, commonly used for high-value breeding stock or show animals.
Which coverage form is most appropriate for a poultry operation with thousands of broiler chickens?
Answer: Blanket livestock form
Blanket livestock coverage insures a large group of animals for a single aggregate limit, making it ideal for commercial poultry operations with many birds.
What does 'normal mortality' mean in the context of livestock insurance?
Answer: The expected percentage of livestock deaths from routine causes that is not covered
Normal mortality is the expected baseline death rate in a livestock operation that insurers consider routine, and losses below this threshold are typically excluded from coverage.
An AFIS candidate is advising a dairy farmer whose herd is valued at $800,000. The farmer wants protection against a catastrophic contagious disease outbreak requiring government-ordered depopulation. Which coverage is most relevant?
Answer: Catastrophic livestock mortality coverage
Catastrophic livestock mortality coverage, sometimes called 'mass mortality' or 'catastrophe' coverage, protects against large-scale herd losses from contagious disease requiring depopulation orders.
Which of the following is a common exclusion in livestock mortality insurance policies?
Answer: Intentional destruction by the insured
Intentional destruction by the insured is a standard exclusion in livestock mortality policies to prevent moral hazard.