What is REVCO?
ARMtech’s Revenue Coverage Option (REVCO) provides coverage by supplementing the price at which crops are insured. In the event of a revenue loss on an underlying revenue policy, REVCO may add up to 20% to the indemnity.
The amount payable for the REVCO Unit will be determined as follows: Calculate the Unit Indemnity by multiplying the underlying MPCI Revenue Protection Unit Indemnity by the REVCO Price Election Modifier multiplied by the insured’s share.
MPCI RP Loss Amount X REVCO Multiplier X Share
Total Guarantee (dollars):
Approved Yield per acre x MPCI coverage level percentage x acres x REVCO price election modifier x projected price.
- Does not provide coverage for prevented planting and replanting
- Is not available with YP polices
- Does not provide coverage for any organic, experimental, or specialty types of corn or soybeans
For each crop in a county, an insured may elect A REVCO price election modifier from 1% – 20%, in increments of 1%. The MPCI policy coverage level added to the REVCO price election modifier cannot exceed 100%.
Example: If the insured has elected an 85% coverage level on their MPCI policy, they may only elect up to a 15% price election modifier on their REVCO policy.
Corn, hybrid seed corn, and soybeans are eligible for REVCO coverage in most counties where MPCI coverage is available at 50%, 55%, 60%, 65%, 70%, 75%, 80%, and 85%. Catastrophic Coverage (CAT) is not eligible for coverage.
REVCO Loss Example
This summary is for general illustration purposes only.