NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES )
First Regular Session 
)
Senate
of tljf
‘22 JUL “7 P2'45
SENATE
S.B. No. 115
RECEIVED BV,
Introduced by Senator Maria Lourdes Nancy S. Binay
AN ACT STRENGTHENING THE PHILIPPINE CROP INSURANCE 
CORPORATION, REPEALING FOR THE PURPOSE PRESIDENTIAL 
DECREE NO. 1467, AS AMENDED, ENTITLED "CREATING THE 
PHILIPPINE CROP INSURANCE CORPORATION PRESCRIBING ITS 
POWERS AND ACTIVITIES, PROVIDING FOR ITS CAPITALIZATION 
AND FOR THE REQUIRED GOVERNMENT PREMIUM SUBSIDY, AND 
FOR OTHER PURPOSES"
EXPLANATORY NOTE
The Philippine Crop Insurance Corporation (PQC) is a government owned and 
controlled corporation created by virtue of Presidential Decree (PD) No. 1467. PCIC is 
an attached agency of the Department of Agriculture and Is the implementing agency 
of the government's agricultural Insurance program. Its corporate mandate is to 
provide insurance protection to the countr/s agricultural producers particularly the 
subsistence farmers, against loss of their crops and/or non-crop agricultural assets on 
account of natural calamities such as typhoons, floods, droughts, earthquakes and 
volcanic eruptions, plant pests and diseases, and/or other perils.
The Philippine Constitution mandates that the State shall provide support to 
agriculture through appropriate technology and research, and adequate financial, 
production, marketing, and other support services. In line with this constitutional 
mandate, this bill facilitates the protection of farmers and fisherfolk by providing them 
insurance protection against losses, and the promotion of the agricultural industry by 
seeking to strengthen the PQC. This proposed measure intends, among others, to 
expand the insurance coverage of PCIC and allows It to engage in index-based 
Insurance and reinsurance policies, repealing for the purpose PD No. 1467, also known 
as the Charter of the Philippine Crop Insurance Corporation, as amended by PD No. 
1733, which added penal sanctions to PD 1467, and Republic Act No. 8175 or the 
Revised Charter of the Philippine Crop Insurance Corporation Act of 1995.
This bill aims to: (1) extend insurance coverage not only to farmers but also to 
fisherfolk; (2) expand coverage to other types of crops that can be insured by the 
PCIC, from rice and corn only, to include high value commercial crops, livestock.


aquaculture and fishery, agroforestry, and forest plantations; (3) authorize the PCIC 
to extend life and accident insurance coverage for farmers, fisherfolk and their 
dependents; (4) strengthen the financial and organizational capacity of PCIC by 
increasing its authorized capital stock from P2 billion to PIO billion; (5) allows the PCIC 
to insure properties and facilities of the government used in agriculture-fishery- 
forestry projects, including reinsurance coverage underwritten by private and 
government insurance companies; and (6) increase the penalties against persons who 
institute spurious crop insurance claims or allow others to do so.
A strengthened PCIC will be able to further protect the interests of farmers and 
fisherfolk by providing them insurance protection against losses, thus, helping stabilize 
the income of agricultural producers and promoting the flow of credit in the 
countryside.
Despite the COVID-19 pandemic and the multitude of natural disasters that 
plague the country, the agriculture industry continues to perform and contribute to 
our national food security. Thus, in times of crisis, we need to help our farmers and 
fisherfolk have a sense of assurance that their livelihood Is essential, and that they 
are protected as key players in the country's recovery, growth and development.
In view of the foregoing, the immediate approval of this bill is earnestly sought.
MARIA LOURDES ifANCY S. BINAY


NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES )
First Regular Session 
)
SENA 
S.B. No.
of tl)p
*22 JUL-7 P2:45
RECEIVED BV:
Introduced by Senator Maria Lourdes Nancy S. Binay
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AN ACT
STRENGTHENING THE PHILIPPINE CROP INSURANCE CORPORATION, 
REPEALING FOR THE PURPOSE PRESIDENTIAL DECREE NO. 1467, AS 
AMENDED, ENTITLED "CREATING THE PHILIPPINE CROP INSURANCE 
CORPORATION PRESCRIBING ITS POWERS AND ACTIVITIES, PROVIDING 
FOR ITS CAPITALIZATION AND FOR THE REQUIRED GOVERNMENT 
PREMIUM SUBSIDY, AND FOR OTHER PURPOSES"
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
SECTION 1. Short Title. - This Act shall be known as the "Philippine Crop 
Insurance Corporation Act."
SEC. 2. Declaration of Policy. - It is the policy of the State to provide support 
to agriculture through adequate financial, production, marketing, and other support 
services. Towards this end, the State shall:
(a) 
Ensure food security, intensify food production, promote agricultural 
credit, and broaden the coverage of mandatory crop insurance amidst 
the recurrence of disaster and calamities, natural or otherwise, such as 
floods, typhoons, heavy rains, and drought that destroy crops, especially 
palay and other grains and crops necessary for food security;
(b) 
Alleviate the financial burden of farmers due to uncompensated losses 
arising from destruction of crops wrought by disasters and calamities, 
keep farmers away from indebtedness, enhance farmers credit standing 
and provide farmers additional government support to increase 
agricultural production;
(c) 
Assist banks and financial institutions by enhancing their capabilities to 
extend loans to farmers; and
(d) 
Strengthen the organizational capability and expand the coverage of the 
Philippine Crop Insurance Corporation in providing insurance protection


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to farmers and fisherfolk against losses arising from natural calamities, 
fortuitous events, plants and fish diseases, and pest infestations.
SEC. 3. Philippine Crop Insurance Corporation. - The Philippine Crop Insurance 
Corporation, iiereinafter referred to as the Corporation, a government-owned 
corporation established pursuant to Presidential Decree No. 1467, as amended, with 
its principal place of business in Metro Manila, shall continue to provide insurance 
protection to farmers and fisherfolk against losses arising from natural calamities, 
fortuitous events, plants and fish diseases, and pest infestations.
The Corporation shall provide insurance coverage for palay and corn crops, 
high-value commercial crops, livestock, aquaculture and fishery products, agroforestry 
crops, and forest plantations; non-crop agricultural assets such as machineries, 
equipment, transport facilities and other related infrastructure; and life and accident 
term insurance coverage for farmers and fisherfolk. The crop insurance shall cover. 
In every case, the cost of production Inputs, the value of the farmer's or fisherfolk's 
own labor and members of the household including the value of the labor of hired 
workers, and a portion of the projected value of the crops. Such insurance coverage 
shall exclude, however, losses arising from avoidable risks emanating from or due to 
the negligence malfeasance or fraud committed by the Insured or any member of the 
Immediate farm household or employee, or the failure of the insured to follow proven 
farm practices.
The Corporation shall also insure properties and facilities which are owned or 
used by government agencies involved in agri-fishery-forestry projects or activities 
and government-financed agri-fishery-forestry projects. It shall also provide 
reinsurance coverage to agri-fishery-forestry properties and facilities underwritten by 
private and government Insurance companies, and weather index-based insurance 
and reinsurance for palay and corn crops, high-value commercial crops, livestock, 
aquaculture and fishery products, agroforestry crops, and forest plantations
SEC. 4. Powers and Functions. - The Corporation shall continue to exercise the 
following powers and functions:
(a) 
Prescribe, repeal, and alter Its own by-laws;
(b) 
Adopt and use a corporate seal;
(c) 
Sue and be sued;
(d) 
Have continuous succession until dissolved by law;
(e) 
Determine its operating policies and issue such rules and regulations as 
may be necessary to implement the crop insurance scheme;
(f) 
Insure the crops of farmers, and fishpond, seaweed, oyster, or mussel 
farm of fisherfolk against loss, damage and destruction caused by 
rodents, vermin, diseases. Insects and other pests, and natural


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calamities such as typhoons, floods, droughts, earthquakes, volcanic 
eruptions; and to carry on any business necessary, related to and 
expedient for the above purpose;
(g) 
Insure in the PhOippines or abroad all or any risks of the Corporation;
(h) 
Purchase or otherwise acquire ownership and manage all parts of the 
business, property and liabilities of any person or company carrying on 
any business which the Corporation is authorized to carry on or possess;
(i) 
Acquire by purchase or otherwise acquire ownership of and to invest in, 
hold, sell, or otherwise dispose of stocks or bonds or any interest in 
either, or any obligation or evidence of Indebtedness of any corporation, 
domestic or foreign, or the bonds or other obligations or evidence of 
Indebtedness, of any person, firm or corporation; and as owner of such 
stocks, bonds or interest therein, or other obligations or evidence of 
indebtedness, to exercise the rights, powers and privileges of ownership, 
including the right to vote thereon or consent in respect thereto for any 
and all lawful purposes;
(j) 
Purchase, or otherwise acquire, sell, lease, convey, mortgage, 
encumber, and otherwise deal with any property, real or personal or any 
interest therein; extend credit on the security of real estate or movable 
property; exercise easement right or privilege over or in respect to any 
property, real or personal as may be permitted by law and as may be 
reasonable or necessary to carry out the purposes for which the 
Corporation is formed or as may or hereafter be permitted by law;
(k) 
Establish branches whenever it may be expedient and necessary; and
, (I) Generate internal funds by floating bonds, expanding the Corporation’s 
insurance lines to include agricultural guarantee loans, and extending 
coverage to other areas of agriculture, such as livestock, aquaculture, 
fishery, agroforestry, and forest plantations. In order to address 
insurance needs of the target sector and exercise all the general powers 
conferred by law upon the Corporation or incidental to the attainment of 
the objectives of the Corporation.
SEC. 5. Board of Directors. - (a) The powers of the Corporation shall be vested 
in and exercised by a Board of Directors, hereinafter referred to as the Board, 
composed of seven (7) members as follows:
(1) 
President of the Land Bank of the Philippines;
(2) 
President of the Philippine Crop Insurance Corporation;
(3) 
Secretary of Agriculture;


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(4) 
Representative from the private insurance industry to be 
nominated by the Secretary of Finance;
(5) 
Three (3) representatives from the farmers’ sector, 
preferably representing agrarian reform beneficiaries, 
cooperatives, or organizations coming from Luzon, Visayas, and 
Mindanao, who shall be selected and nominated by the different 
farmers’ organizations or cooperatives.
The respective nominees of the private insurance industry and the 
farmers’ sector shall be appointed by the President of the 
Philippanes. The chairperson of the Board shall be appointed by 
the President of the Philippines from among the members of the 
Board. The president of the Corporation shall also be 
appointed by the President of the Philippines and shall be ex officio 
vice chairperson who shall assist the chairperson and act in the 
chairperson's stead in case of the latter’s absence or Incapacity.
In case of absence or incapacity of both the chairperson and the 
vice chairperson, tiie Board shall designate a temporary 
chairperson from among its members. Except for the president of 
the Land Bank of the Philippines and the Secretary of Agriculture, 
all members of the Board, including the president of the 
Corporation, shall be appointed by the President of the Philippines 
within a reasonable period of time after the approval of this Act;
(b) The regular members of the Board may designate their respective 
alternates to attend the meetings, and act as members of the Board In 
their absence or incapacity;
(c) 
The Board shall meet regularly at least twice a month or as often as the 
exigencies of the Corporation’s affairs demand. The presence of at least 
five (5) members constitutes a quorum necessary for the transaction of 
any business. The Board may be convoked either by the chairperson or, 
in the chairperson’s absence, by the vice chairperson;
(d) 
The chairperson and the members of the Board shall each receive per 
diem pursuant to existing law for each meeting of the Board personally 
attended: Provided, That in the case of the representatives of farmers’ 
sector, the Board is authorized to determine reasonable traveling and. If 
necessary, subsistence expenses in going to and returning from the 
Board meetings to be disbursed to them in addition to their per diem.
SEC. 6. Powers and Functions of the Board of Directors. - The Board shall 
exercise the following powers and functions:
(a) Implement the provisions and purposes of this Act;


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(b) 
Formulate and adopt policies and plans, and promulgate rules and 
regulations for the management, operation and conduct of the affairs 
and business of the Corporation and, for this purpose, may limit or refuse 
Insurance in any area or on any farmer because of the risk involved or 
may expand the subject of insurance coverage to crops other than palay. 
Provided, That such coverage on other crops shall be approved by the 
President of the Philippines;
(c) 
Borrow funds from local and international financing sources or 
institutions and issue bonds up to five (5) times the value of Its 
authorized capital stock for the purpose of financing the programs and 
projects deemed vital for the attainment of the Corporation's goals and 
objectives;
(d) 
Enter Into, make, and execute contracts of any kind or nature as may be 
necessary, or incidental to the accomplishment of the purposes of the 
Corporation;
(e) 
Approve the budget of the Corporation and fix the reasonable 
compensation of its personnel: Provided, That the Board shall have 
exclusive and final authority to promote, transfer, assign or reassign 
personnel of the Corporation and these personnel actions are deemed 
made in the interest of the service and not disciplinary, any provision of 
existing law to the contrary notwithstanding;
(0 Establish policies and guidelines for employment on the basis of merit, 
technical competence and moral character, and approve a staffing 
pattern of personnel defining their powers and duties; and
(g) Exercise the general powers mentioned in Republic Act No. 11232, 
otherwise known as the "Revised Corporation Code of the Philippines," 
Insofar as these are not inconsistent or Incompatible with the provisions 
of this Act.
SEC. 7. Management - The management of the Corporation shall be vested In 
the president of the Corporation who shall be a person of known integrity and 
competence in technical and executive fields related to the purposes of this Act. The 
president of the Corporation shall be appointed by the Board and shall not be removed 
except for cause. There shall also be vice presidents as the Board may decide, to be 
appointed by the Board. The president of the Corporation shall exercise the following 
powers and duties:
(b) 
Execute and administer the policies, plans and programs, and the rules 
and regulations approved or promulgated by the Board;
(c) 
Submit for the consideration of the Board such policies, plans and 
programs deemed necessary to carry out the provisions and purposes of 
this Act;


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(d) 
Direct and supervise the operations and internal administration of the 
Corporation and, for this purpose, to delegate some or any powers and 
duties to subordinate officials; and
(e) 
Recommend to the Board the appointment, promotions, transfer, 
assignment, reassignment, demotion, dismissal and compensation of 
personnel, and to exercise such other powers and perform such other 
duties as may be directed by the Board.
SEC. 8. Who Shall be Insured. - Participation in the insurance for palay and 
other crops essential for food security, as determined by the Department of 
Agriculture, shall be compulsory upon all farmers. For other crops, participation shall 
be compulsory upon all farmers obtaining production loans under the supervised credit 
program, and optional on the part of self-financed farmers, provided they agree to 
place themselves under the supervision of agricultural production technicians.
As used In this Act, the term supervised credit program refers to the production 
credit program wherein the farmer who obtained production loans agrees in writing 
to apply proven farm practices necessary to conserve the land, improve Its fertility, 
increase its production, and abide by the approved farm plan and budget jointly 
prepared by such farmer and the duly accredited supervised credit technician.
The term supervision of agricultural production technician refers to the 
supervision undertaken by agricultural production technicians who are duly accredited 
by the appropriate government agencies concerned, as required under the supervised 
credit system.
SEC. 9. Rate of Premium, Sharing, and Amount of Indemnity. - The rate of 
premium, as well as the allocated sharing thereof of farmers, fisherfolk, lending 
institutions, the Government of the Republic of the Philippines, hereinafter referred to 
as the Government, and other parties, shall be determined by the Board: Provided, 
That the share of the Government in the premium cost In the form of premium subsidy 
shall be limited to subsistence farmers and fisherfolk: Provided, however. That each 
of these subsistence farmers is cultivating not more than seven (7) hectares of 
farmlands and each fisherfolk Is cultivating not more than five (5) hectares of fishpond, 
seaweed, oyster, or mussel farm by themselves or with the help of the labor of the 
members of their households or hired labor, the premium rate and sharing to be 
determined by the Board: Provided, further. That the premium share of the 
subsistence farmer or fisherfolk shall be reasonably affordable: Provided, furthermore. 
That the Government shall share in the premium cost only In insurance coverage 
against unforeseen and unavoidable risks such as typhoons, droughts, rainfall, 
outbreaks of pests and diseases: Provided, finally. That premium subsidy or Insurance 
benefits shall, upon the accumulation of surplus funds, be increased to such amount 
as may be determined by the Board, taking into consideration that the Corporation 
has been established not only for profit but mainly to help Filipino farmers and 
fisherfolk. The amount of indemnity shall be determined by the Board, which shall 
consider the value of the potential harvest for crops at the ripening stage of growth; 
actual cost of production inputs already applied at the time of loss per farm plan and


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budget, subject to limits stipulated in the policy contract; pro-rated cost of the 
harvested crops; the salvage value, if any, and the percentage of yield loss.
SEC. 10. Premium Subsidy. - (a) The required premium subsidy from the 
Government, as determined by the Board and approv^ by the President of the 
Philippines, shall be deemed appropriated from the funds of the National Treasury not 
otherwise appropriated, and shall be drawn, on a month-to-month cr other periodic 
basis, depending upon the actual amount of insurance underwritten by the 
Corporation. For this purpose, the Corporation shall bill the Government the sum of 
money corresponding to the computed amount of subsidy.
(b) 
Yearly projections of the premium subsidy shall be submitted by the 
Corporation to the President of the Philippines, and upon approval, shall 
be included in the Government's budgetary appropriations.
(c) 
Calamity funds earmarked by the Government shall include a certain 
percentage for crop Insurance and shall be released to and administered 
by the Corporation.
(d) 
Ten percent (10%) of the net earnings of the Philippine Charity 
Sweepstakes Office from its lotto operation shall be earmarked for the 
crop insurance program and said amount shall be directly remitted 
by the Philippine Charity Sweepstakes Office to the Corporation every 
six (6) months until the amount of Government subscription is fully 
paid.
SEC. 11. Capitai Stock. - (a) The authorized capital stock of the Corporation is 
Ten billion pesos (P10,000,000,000.00) divided into seventy-five million (75,000,000) 
common shares with a par value of One hundred pesos (PIOO.OO) each share, which 
shall be fully subscribed by the Government and twenty-five million (25,000,000) 
preferred shares with a par value of One hundred pesos (PIOO.OO).
(b) 
The common capital stock of One billion five hundred million pesos 
(Pl,500,000,000.00) having been fully paid to the Corporation, the 
balance of Six billion pesos (P6,000,000,000.00) subscribed by the 
Government shall be appropriated annually by Congress unless 
otherwise provided by existing laws.
(c) 
The preferred shares are entitled to a preference over common shares 
in any declaration of dividends. They shall also be given priority in the 
distribution of assets in the event of liquidation of the Corporation. They 
shall have the following specific features:
(1) 
Preferred as to dividends at a minimum of one and one-half percent 
(1.5%) or the prevailing three hundred sixty (360)-day treasury bill 
rate at the time of declaration of dividends, whichever is higher;
(2) 
Cumulative;


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(3) 
Nonparticipating;
(4) 
Nonvoting;
(5) 
Dividends thereon shall be exempt from income tax;
(6) 
Redeemable at the option of the Corporation at the prevailing book 
value but in no case less than par after five (5) years from issuance 
thereof; and
(7) 
Transferable.
(d) At least Five hundred million pesos (P500/000/000.00) of preferred 
shares shall be subscribed and paid for by the Land Bark of the 
Philippines. The balance of the preferred shares may be available for sale 
or subscription by the general
SEC. 12. Reserve Fund for Catastrophic Losses. - A State Reserve Fund, herein 
referred to as the Fund, for catastrophic losses In the amount of Five hundred million 
pesos (P500,000,000.00) shaB be created exclusively to answer for the proportion of 
all losses in excess of risk (pure) premium under the Corporation's Crop Insurance 
Program for small farmers and fisherfolk. The Fund may be Increased subject to the 
approval of the President of the Philippines, and shall be administered by a 
government financial institution to be designated by the Corporation's Board.
Such sum as may be necessary for the purpose shall be funded by the 
Government through the annual General Appropriations Act. The mechanics of claims 
against the Fund and to what extent the Fund shall be liable shall be determined jointly 
with the financial Institution administering the Fund, subject to the approval by the 
President of the Philippines.
SEC. 13. Reinsurance. - In order to spread the risk of the Corporation, the 
Corporation Is authorized to seek reinsurance protection whenever It may be available.
SEC. 14. Settlement of Ciaims. - (a) Claims for indemnity against the 
Corporation shall be settled by the Corporation's regional manager or the appropriate 
officer to whom the function is delegated. However, if in the opinion of the regional 
manager the claim is novel, difficult, or controversial, the matter may be elevated by 
the regional manager to the president of the Corporation for decision.
(b) 
The claimant aggrieved by the decision of the regional manager may, 
within thirty (30) days from receipt of the decision, request for 
reconsideration thereof, and if not satisfied therewith, may elevate the 
matter to the president of the Corporation;
(c) 
Any party aggrieved by a decision, order or ruling of the president of the 
Corporation may appeal said decision, order, or ruling to the 
Corporation's Board; and
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(d) Any claim not acted upon within sixty (60) days from submission of 
complete claim documents to the Corporation shall be considered 
approved.
SEC. 15. No Claim Benefits. - Any insured farmer or fisherfolk who has not filed 
any claim during the immediately preceding three (3) crop seasons, or any insured 
fishpond or fish cage operator who has not filed any claim during the immediately 
preceding three (3) harvest seasons shall be entitled to a no-cIaim benefit of at least 
ten percent (10%) of premium share paid for said crop seasons to be deposited In a 
trust fund and to be managed by the Corporation. Such trust fund may be used to 
finance premium rebate or premium credit applicable to the Immediately following 
crop seasons as determined by the Board of the Corporation.
SEC. 16, Commission on Audit - The chairperson of the Commission on Audit 
shall be the ex officio auditor of the Corporation.
SEC. 17. Legal Counsel. - The Corporation shall have its own legal department, 
the chief and members of which shall be appointed by the Board.
SEC. 18. Interagency Linkages. - To support and promote the operations 
of the Corporation, ail government departments, bureaus, agencies and 
instrumentalities, national or local, all lending Institutions, government or private, now 
or hereafter engaged in the supervised credit program to farmers and fisherfolk, and 
such other public or private entities as may be called upon by the Corporation, shall 
act as cooperating agencies to the Corporation and, for this purpose, are hereby 
directed to design their policies, programs, rules and regulations so as to attune and 
synchronize them with the objectives of the Corporation.
All lending institutions granting production loans for palay, corn and other crops under 
the supervised credit program of the Government shall automatically act as 
underwriters for and on behalf of the Corporation. As such, they shall receive and 
process applications for insurance coverage, approve those found in order, and collect 
premiums therefor. Premiums so collected, together with the premium payable by 
the lending institution itself, shall be remitted to the Corporation in the manner and 
within such period as may be prescribed by the Corporation.
SEC. 9. Utilization of Profits. - The profits of the Corporation shall be determined 
on a calendar year basis and the manner of Its distribution shall be determined by law.
SEC. 20. Exemption from Taxes. - In furtherance of the achievement of the 
purposes of this Act, the Corporation shall continue to be exempted to the extent 
allowed by national policy from ail national, provincial, municipal, and city taxes and 
assessments now enforced: Provided, That the exemption shall apply only to such 
taxes and assessments for which the Corporation itself would otherwise be liable and 
shall not apply to taxes and assessments payable by persons or other entities doing 
business with the Corporation.


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SEC. 21. Penal Provisions. - (a) Any person who, through malfeasance, 
misfeasance or nonfeasance, allows a spurious claim to be paid, including the 
claimant, shall, upon final conviction, be punished by imprisonment of not less than 
three (3) years but not more than eight (8) years or a fine of not less than One 
hundred thousand pesos (P100,000.00) but not more than Six hundred thousand 
pesos (P600,000.00), or both, at the discretion of the court. The personnei of the 
Corporation who allowed the commission of the offense shall, in addition, be dismissed 
from office, and forfeit all privileges and benefits which may accrue to such personnel.
(b) Any person or entity granting production loan for palay under the supervised 
credit program of the Government without requiring crop insurance therefor 
or having collected premiums from farmers, who falls to remit the same within 
the time and place specified in the rules and regulations of the Corporation 
shall, upon conviction, be punished by a fine not exceeding Ten thousand pesos 
(P10,000.00) or imprisonment of not exceeding six (6) months, or both, at the 
discretion of court.
(c) Any person or entity who violates any provision of this Act or any rule or 
regulation Issued for Its implementation, for which no penalty Is provided, shall 
be deemed guilty of a penal offense and, upon conviction, be punished by a 
fine not exceeding Five thousand pesos (P5,000.00) or imprisonment of two 
(2) months, or both, at the discretion of the court. Whenever any violation of 
the provisions of this Section Is committed by a corporation or association, or 
by a government office or entity, the executive officer or officers of said 
corporation, association, or government office or entity who shall have 
knowingly permitted, or failed to prevent said violation, shall be held liable as 
principal.
SEC. 22. Appiicabiiity of Presidential Decree No. 612/ as Amended. - The 
provisions of Presidential Decree No. 612, as amended, otherwise known as the 
"Insurance Code," insofar as they are not In conflict or Inconsistent with or repugnant 
to the provisions of this Act shall apply to the Corporation.
SEC. 23. Term of Existence and Periodic Review. - The Corporation's term of 
legal existence, which was set to last for fifty (50) years starting from the date of 
approval of Presidential Decree No. 1467 on June 11, 
1978, shall continue and
Is hereby affirmed. To ensure the Corporation's continuing relevance, the Board shall 
undertake periodic review of the Corporation's activities and shall submit to both 
Houses of Congress at least once a year a report which shall include, among others, 
a recommendation for improving services to the target sectors and the financial 
viability of the Corporation.
SEC. 24. Transitory Provisions. - The members of the Board representing the 
private insurance industry and the three (3) representatives from the farmers' sector 
shall, in an Interim capacity, continue to exercise their powers and functions as part 
of the Board and carry out ttie provisions of this Act without need of new appointments 
until a new Board is constituted and organized.
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To prevent disruption in the delivery of services of the Corporation pending the 
full implementation of this Act, the Corporation shall continue to operate and provide 
services to its clients while all officials and employees of the Corporation shall continue 
to perform their duties and functions, and receive their corresponding salaries and 
benefits. The approval of this Act shall not cause any demotion in rank or diminution 
of salary, benefits, and other privileges of the incumbent personnel of the Corporation: 
Provided, That qualified officers and employees may voluntarily elect for retirement 
or separation from service and are entitled to the benefits under existing laws.
SEC. 25. Separability Clause. - If any provision or part of this Act is held 
unconstitutional or invalid, the other parts or provisions not affected shall remain in 
full force and effect.
SEC. 26. Repealing Clause. - Presidential Decree No. 1467, as amended by 
Presidential Decree No. 1733, and Republic Act No. 8175 are hereby repealed. All 
other laws, executive orders, and other issuances or parts thereof inconsistent with 
this Act are hereby repealed or modified accordingly.
SEC. 27. Effectivity. - This Act shall take effect fifteen (15) days after its 
complete publication in the Official Gazette or in a newspaper of general circulation.
Approved,
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