P.R. Laws tit. 5, § 1402
A corporation which shall be known as the Puerto Rico Farm Insurance Corporation is hereby established in the Department of Agriculture of Puerto Rico, to provide farm insurance to farmers against loss or damage 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. In the case of tobacco sheds and other structures, and equipment for agricultural use in rural farms, the Puerto Rico Farm Insurance Corporation is hereby empowered to provide insurance against loss or damage caused by fire. Commercial fishing boats and their equipment shall also be covered against hurricanes, fire and any kind of maritime risks. The Puerto Rico Farm Insurance Corporation is also empowered to provide farm income insurance based on a planting plan that its Board of Directors may determine through regulations and which will allow the farmers to receive the percentage that the Puerto Rico Farm Insurance Corporation may determine of the expenses incurred at the time the loss occurs, or the percentage that the Puerto Rico Farm Insurance Corporation may determine, when the annual income received from the farm operations covered by the Farm Income Insurance under a determined planting plan is lower than the estimated income for said insurance, including the financial risk involved at the time each insured crop is sold or liquidated.
The Puerto Rico Farm Insurance Corporation may also offer farm insurance as authorized by this chapter experimentally, limiting it to a specific agricultural enterprise, sector or area for the period that the Board of Directors may deem advisable and, on the basis of the experience acquired during the experimental period fixed, the Puerto Rico Farm Insurance Corporation shall determine if it should offer such insurance generally, or if it should eliminate it. It may also offer one or any of said insurance on an experimental or permanent basis, whether individually or in a combined way, covering one or more of the risks authorized by this chapter.
History —Dec. 12, 1966, No. 12, p. 62, § 2; June 9, 1969, No. 32, p. 48, § 1; Aug. 11, 1988, No. 166, p. 718, § 3.