The SRA also defines risk-sharing between the government and private insurance companies. Under the SRA, insurance companies may transfer some liability associated with riskier policies to the government and retain profits/losses from less risky policies. 17 This transfer of risk is accomplished through a set of reinsurance funds maintained by FCIC. Within 30 days of the sales closing dates for each crop, companies allocate each policy they sell to one of two funds that are maintained for each company by state: Assigned Risk or Commercial. (The previous SRA had three funds.) Each company then decides what proportion of premiums (and potential.
