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,:,.. Page 7 . . <br /> NC SERVICE AGREEMENT <br /> The Contractor will be responsible for all County losses under <br /> .r. <br /> the U.S.D.A. regulations for replacements for an <br /> g p y quarter as long <br /> � = as the County abides by the following conditions: <br /> i. All allotments of $300.00 and over and known problem cases <br /> will be sent to the DSS for pickup or by certified mail . <br /> 2. The County agency will assign participating households <br /> for either mail pickup at the DSS (or issuance office) <br /> or certified mail issuance upon the event of one <br /> replacement loss. The County may elect to use mail <br /> pickup or certified issuance for reasons other than <br /> replacement losses. <br /> 3. The County agency agrees to log such households at risk <br /> with a "3" or a "7" respectively, on the State Computer <br /> (FSIS) . <br /> 4. County agrees to adjust methods of issuances by planning <br /> with the Contractor in the event of indications of <br /> significant postal theft or client fraud. <br /> 5. When losses exceed the USDA tolerance level ( now . 5% of <br /> total quarterly issuance) , effective immediately, all <br /> issuances of $200.00 and over will be sent either certified <br /> mail or to the County for recipient pickup. <br /> 6 . The County agency agrees that the contractor. will not be <br /> obligated to insure or share in the replacement losses <br /> of those households at risk when conditions 1 ,2,3,4 & 5 <br /> listed above have not been met by the County agency. <br /> 7 . The County shall provide to the Contractor, as proof of <br /> loss, a photocopy of all signed replacement affidavits which <br /> are to be applied to the Federal tolerance level , on or <br /> about the fifteenth ( 15th) of the following month . <br /> 8. Claims will be accepted by the Contractor at the time the <br /> loss is established by the State based on written notice to <br /> the County agency. To file a claim, the County agency will <br /> forward to the Contractor copies of the letter of notice <br /> from the State and form FNS-259 for the appropriate period . <br /> Losses are not to be deducted from the service invoice. The <br /> County agency is protected against losses by private <br /> insurance, paid by Contractor. Losses will be filed with <br /> the insurance carrier and reimbursement will be sent to the <br /> County agency when received by CCI , usually within 90 days . <br />