Esta ley enmienda la "Farm Insurance Act of Puerto Rico" para hacer obligatoria la adquisición de un seguro catastrófico para todos los agricultores bona fide registrados en el Departamento de Agricultura o aquellos que reciben subsidios estatales. El objetivo es proteger las inversiones estatales y garantizar que los agricultores tengan una cobertura mínima contra pérdidas por desastres naturales.
(Approved July 2, 2002)
To add a new subsection
(o) to Section 4 of Act No. 12 of December 12, 1966, as amended, known as the "Farm Insurance Act of Puerto Rico", in order to empower the Puerto Rico Farm Insurance Corporation to require, on a mandatory basis, the acquisition of catastrophic insurance to all bona fide farmers registered in the Department of Agriculture or to those farmers who receive or wish to receive state subsidies.
Act No. 12 of December 12, 1966 created the Farm Insurance Corporation attached to the Department of Agriculture of Puerto Rico. Its primary function is to provide farm insurance to farmers for losses or damages to plantations, crops, animals, fowls, tobacco sheds and other structures and equipment for agricultural use in rural farms, caused by natural risks such as hurricanes, abnormal droughts and uncontrollable diseases. Said insurance also applies to maritime risks that could be suffered by commercial fishing boats and their equipments.
One of the most relevant insurances in the agricultural area is the catastrophic insurance. It is this insurance that precisely covers losses caused by the atmospheric disturbances suffered periodically by our Island. In spite of its importance, this insurance is of a voluntary nature. The annual premium of said insurance is one hundred (100) dollars. Many farmers choose not to acquire the insurance, and subsequently are subject to receiving only the emergency funds that may be appropriated by the Central
Government through the Department of Agriculture, which, when divided among all the farmers who have suffered losses in their harvests, results in a minimal amount.
An additional element that has been considered in this measure is the requirement of the catastrophic insurance for all farmers who receive state subsidies for their operations. This provision is similar to the existing version in the Federal scope, in which this insurance is required in order to obtain benefits or loans. It is necessary for farmers who receive state benefits to have this insurance because in this manner the State's funds and investments are guaranteed, obviously resulting in benefits for the farmers.
Section 1.- A new subsection
(o) is hereby added to Section 4 of Act No. 12 of December 12, 1966, as amended, known as the "Farm Insurance Act Of Puerto Rico", to read as follows: "Section 4.- Powers and Immunity (0) To require, on a mandatory basis, the acquisition of a catastrophic insurance, as minimum insurance, to all bona fide farmers duly registered in the Department of Agriculture of Puerto Rico, or to those farmers that receive state subsidies. Being it understood that if the farmer obtains the regular "By Up" insurance, any other insurance provided by the Puerto Rico Agricultural Insurance Corporation complies with the requirement of this Act.
Section 2.- This Act shall take effect immediately after its approval.
I hereby certify to the Secretary of State that the following Act No. 99 (H.B. 986) of the $3^{ ext {rd }}$ Session of the $14^{ ext {th }}$ Legislature of Puerto Rico:
AN ACT to add a new subsection
(o) to Section 4 of Act No. 12 of December 12, 1966, as amended, known as the "Farm Insurance Act of Puerto Rico", in order to empower the Puerto Rico Farm Insurance Corporation to require, on a mandatory basis, the acquisition of catastrophic insurance to all bona fide farmers registered in the Department of Agriculture or to those farmers who receive or wish to receive state subsidies, has been translated from Spanish to English and that the English version is correct.
In San Juan, Puerto Rico, today $10^{ ext {th }}$ of January of 2003.
Elba Rosa Rodríguez-Fuentes Director