Section 9Sec./Art. 9

Two (2) new sections are hereby inserted between Sections 8 and 9 of Presidential Decree No. 1467, as amended, designated as Sections 8-A and 8-B, to read as follows:

"Section 8-A. A State reserve fund for catastrophic losses in the amount of Five hundred million pesos (P500,000,000) shall be created exclusively to answer for the proportion of all losses in excess of risk (pure) premiums under the Corporation's Crop Insurance Program for small farmers. The Fund shall be administered by a government financial institution to be designated by the Corporation's Board of Directors. Such sum as may be necessary for the purpose shall be funded by the National Government through the annual General Appropriations Act starting the calendar year immediately following the approval of this Act and every year thereafter until the full amount is completed.

The mechanics of claims against the fund and to what extent the Fund shall be liable shall be determined jointly by the financial institution administering the Fund, subject to the approval by the President.

"Section 8-B In order to spread the risk of the Corporation, the PCIC is hereby authorized to seek reinsurance protection whenever it may be available."