What is the crop hail provision that allows the insurer to recover losses from a third party?

The crop hail provision that allows the insurer to recover losses from a third party is known as subrogation. This legal process enables the insurance company to seek reimbursement from another party that may be responsible for the losses. For example, if a crop insurance payout is made to a farmer for hail damage, and it is determined that the damage was caused by someone else's negligence, the insurer can invoke subrogation to pursue that third party to recover its costs.

This mechanism is crucial for the insurance industry as it helps to limit losses and maintain lower premiums for policyholders by ensuring that the responsible parties bear the financial burden of their actions. Understanding subrogation is essential for those involved in crop insurance, as it underscores the relationship between insurers, insured parties, and third-party liabilities.