What it does
FP 12 11 appears in a carrier's farm filing as Loss Payable Provisions, and ISO's Texas farm program has its own version (FP 12 17, Texas Changes – Loss Payable Provisions). Loss payable provisions let a named lender or lessor be paid for covered loss to property in which it has an interest.
Who needs it
Farms with financed machinery, livestock or buildings where lenders require loss payee status.
Quoting and selling notes
List each lender and the financed property; some lenders require lender's loss payable terms.
Before presenting it
Ask the carrier for the specimen and read it with the farm coverage form it modifies before explaining it to the insured.
How it fits the farm policy
A farm program endorsement changes only the coverage forms named in its "this endorsement modifies" list. Everything else in the Farm Coverage Part keeps working as written: the FP 00 90 additional coverages, conditions and definitions, the causes of loss selected from FP 10 60, and the farm liability forms. When presenting a quote, list each farm endorsement with its schedule entries (insured location, building or item, limit, deductible) so the insured can see exactly where the base coverage was broadened or narrowed.
