Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!americast.com!americast.com!americast-post Newsgroups: americast.twt.news From: americast-post@AmeriCast.Com Organization: American Cybercasting Approved: americast-post@AmeriCast.com Subject: U.S. overpaid King Ranch, audit says Date: Mon, 9 Nov 92 14:59:57 EST Message-ID: \SE A;NATION \SS (WS) \HD U.S. overpaid King Ranch, audit says \BY ASSOCIATED PRESS The storied King Ranch of Texas collected nearly $1 million in excessive crop-insurance payments backed by the federal government, Agriculture Department investigators say. An audit by USDA's Office of the Inspector General found that the south Texas ranch, larger than the state of Rhode Island, collected nearly $7.3 million in crop insurance payments in 1989 and 1990. The ranch's claims were processed by a private insurance firm, Empire Fire and Marine Insurance Co. of Omaha, Neb. According to the audit, private companies enter reinsurance agreements with the Federal Crop Insurance Corp., agreeing to market, distribute and service crop-insurance policies in exchange for a share of the premium. The FCIC assumes most of the liabilities, the audit said. The July audit on King Ranch Inc. said Empire Fire and Marine Insurance Co. made excessive payments to the ranch totaling $987,997. The company also overstated administrative expenses totaling $21,343 and collected excessive premiums from the ranch totaling $43,720, the audit said. Investigators recommended that Empire Fire and Marine reimburse the government for the excessive payments and administrative expenses. Auditors said the insurance company should also repay the ranch for the excessive premiums. Curt Starnes, corporate counsel at Empire Fire and Marine, said "these matters are being contested with FCIC" and declined further comment. A King Ranch spokesman at the company's headquarters in Houston refused to comment. This article is copyright 1992 The Washington Times. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM