Executive Decree No. 70. Regulations to the Comprehensive Crop Insurance Law

The regulations establish that the National Insurance Institute (INS) will administer this insurance policies. In addition, it establishes that agricultural credit institutions must ensure that credit applicants take out a crop insurance policy, which will serve as collateral guarantee for the credit. The INS will determine the rates and premiums to be charged, and will form technical reserves for contingencies and ongoing risks. Furthermore, these reserves will be invested under optimal conditions of security and liquidity. The operational extension of the insurance, including geographical areas and agricultural species, will be determined annually by the INS. The insurance will cover risks such as drought, excess humidity, flood, diseases, pests, hurricane-force winds, fires, frost, hail, and volcanic eruptions, among others. The insurance will be applied in differentiated agricultural areas and each species will be insured with equal coverage. The total protected area that a farmer cultivates will be considered as one insured unit.