TEMP Act

The research and development must (1) evaluate the effectiveness of risk management tools with respect to low frequency and catastrophic loss weather events, and (2) result in a policy that provides protection for production loss or revenue loss.

The term policy means an insurance policy, plan of insurance, provision of a policy or plan of insurance, and related materials. Under an index policy, claim payments are generally triggered based on a predetermined index that is entirely independent of the individual farm operation (e.g., temperature level). Under such a policy, the payments are automatically triggered when the index reaches a certain level rather than when an insured farmer files a claim.