Insurance
Home›Insurance›Industry & Deals›Altman Group crop insurance case dismissed after commi…
Altman Group crop insurance case dismissed after commission schedule dispute
The court dismissed the lawsuit because the agency lacked a valid legal claim under the Declaratory Judgment Act, leaving open the possibility of a later contract case or arbitration.
A federal court dismissed a lawsuit by The Altman Group, a crop insurance agency in West Texas, against its carrier and a crop insurance regulator after the agency challenged a commission schedule change tied to federal crop insurance policies, according to Insurance Business.
The suit stemmed from a shift in Altman’s share of federal administrative and operating subsidy and loss assessment reimbursement. A 2021 schedule had set Altman’s share at 80% for policies it sold and serviced, but its portion fell to 50% in Texas after its loss ratio climbed above 90% of its base commission, eventually continuing upward.
Altman said ProAg rewrote the schedule in November 2023 and reduced Altman’s share to 5% for 2024, and it argued that the latest schedule included only ProAg’s signature. The complaint described the stakes on a $1,000,000 book: an 80% share would be worth about $160,000 per year, while a 5% share would be about $10,000.
In dismissing the case on August 24, 2026, the court found Altman’s framing did not supply a valid cause of action. While the court held Altman had standing and that the government could be sued, it ruled that the Declaratory Judgment Act does not create a standalone claim, and Altman had not alleged breach of contract, the outlet reported. The court said nothing in its ruling bars a later contract case or arbitration, Insurance Business added.