Common use of Basis for Denial Clause in Contracts

Basis for Denial. The RO will send notice addressed to the producer to the AIP through the WA ▇▇▇ system folder when a WA request is denied, and the AIP must provide the RMA generated notice to the producer. The notice of denial must state the reasons for denial and provide rights in accordance with Para. 63, as applicable. If the AIP does not provide the notice to the producer within 7 calendar days of issuance from the RO, the RO will document this as a scorecard error in accordance with Para. 66. See Exh. 6D for when appeal rights are applicable. Note: The AIP must record in the WA ▇▇▇ system the date the producer was notified of the denial. The RO will deny a WA request if any of the following apply: (1) the RO determines that adequate information is not available to establish an actuarially sound premium rate and insurance coverage for the insurable crop and acreage; (2) the crop/P/T or variety is determined not to be adapted to prevalent production conditions of the county by local agricultural experts; (3) the crop, or similar crop, was not previously grown in the county or area, or there is no evidence that a viable marketing outlet is available for the requested crop or type (e.g., if the price of safflowers is $0.08, it costs $0.04 to ship the crop to market, and it costs more than $0.04 to produce the crop, then there is no viable marketing outlet); (4) the risks are determined to be excessive in accordance with Para. 35; (5) the requested change to the terms of insurance is determined by the RO to violate sound insurance principles or create program vulnerabilities;