112 STAT. 582 PUBLIC LAW 105-185-^JUNE 23, 1998 "(ii) LIMITATION.—No funds deposited in the crop insurance fund under this subparagraph may be used to compensate an approved insurance provider or agent for the deHvery of services under this subsection. "(E) WAIVER OF FEE.— The Corporation shall waive the amounts required under this paragraph for limited resource farmers, as defined by the Corporation,". (b) ADMINISTRATIVE FEE FOR ADDITIONAL COVERAGE. —Section 508(c)(10) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)(10)) is amended— (1) by striking subparagraph (A) and inserting the following: "(A) FEE REQUIRED.— Except as otherwise provided in this paragraph, if a producer elects to purchase additional coverage for a crop at a level that is less than 65 percent of the recorded or appraised average jdeld indemnified at 100 percent of the expected market price, or an equivalent coverage, the producer shall pay an administrative fee for the additional coverage. The administrative fee for the producer shall be $50 per crop per county, but not to exceed $200 per producer per county, up to a maximum of $600 per producer for all counties in which a producer has insured crops. Subparagraphs (D) and (E) of subsection (b)(5) shall apply with respect to the use of administrative fees under this subparagraph."; and (2) in subparagraph (C), by striking "$10" and inserting "$20". (c) REIMBURSEMENT FOR ADMINISTRATIVE AND OPERATING COSTS. —Section 508(k) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)) is amended by striking paragraph (4) and inserting the following: "(4) RATE.— "(A) IN GENERAL.— Except as provided in subparagraph (B), the rate established by the Board to reimburse approved insurance providers and agents for the administrative and operating costs of the providers and agents shall not exceed— "(i) for the 1998 reinsurance year, 27 percent of the premium used to define loss ratio; and "(ii) for each of the 1999 and subsequent reinsurance years, 24.5 percent of the premium used to define loss ratio. "(B) PROPORTIONAL REDUCTIONS.— ^A policy of additional coverage that received a rate of reimbursement for administrative and operating costs for the 1998 reinsurance year that is lower than the rate specified in subparagraph (A)(i) shall receive a reduction in the rate of reimbursement that is proportional to the reduction in the rate of reimbursement between clauses (i) and (ii) of subparagraph (A). ". (d) Loss ADJUSTMENT EXPENSES FOR CATASTROPHIC RISK PROTECTION.— Section 508(b) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)) is amended by adding at the end the following: "(11) Loss ADJUSTMENT.— The rate for reimbursing an approved insurance provider or agent for expenses incurred by the approved insurance provider or agent for loss adjustment in connection with a policy of catastrophic risk protection shall
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