ML17223A243
| ML17223A243 | |
| Person / Time | |
|---|---|
| Site: | Saint Lucie  |
| Issue date: | 07/31/1989 |
| From: | Green T MARSH & MCLENNAN, INC. |
| To: | Dinitz I NRC |
| References | |
| NUDOCS 8908070367 | |
| Download: ML17223A243 (40) | |
Text
y.CELERATED DIQR1BUTION DEMONS+TION SYSTEM REGULATORY INFORMATION DISTRIBUTXON SYSTEM (RIDS)
ACCESSION NBR:8908070367 DOC.DATE: 89/07/31 NOTARIZED-NO FACIL:50-335 St. Lucie Plant, Unit 1, Florida Power
& Light Co.
50-389 St. Lucie Plant, Unit, 2, Florida Power
& Light Co.
AUTH.NAME AUTHOR AFFILIATION GREEN,T.
Marsh
& McLennan, Inc.
RECIP.NAME RECIPIENT AFFILIATXON DINITZ,I.
NRC No Detailed AffiliationGiven DOCKET 05000335 05000389 R
'U Forwards Endorsement 4 to NELIA Policy NW-131
& MAELU Policy MW-60.
DISTRIBUTION CODE:
M001D COPIES RECEIVED:LTR ENCL SIZE:
TITLE: Insurance:
Indemnity/Endorsement Agreements NOTES RECIPIENT ID CODE/NAME INTERNAL: NRR/PMAS/PTSB12 EXTERNAL: LPDR COPXES LTTR ENCL 1
1 1
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TOTAL NUMBER OF COPIES REQUIRED:
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~arslts 8'cgenn Marsh &McLennan Nuclear 222 South Riverside Plaza Chicago, illinois 60606 Telephone 312 6484000 July 31, 1989 Mr. Ira Dinitz Insurance
& Xndemnity Policy Analyst U.S. Nuclear Regulatory Commission Mail Stop 12E4 Washington, D.C.
20555 RE:
FLORIDA POWER
& LIGHT COMPANY NUCLEAR LIABILITYINSURANCE
Dear Mr. Dinitz:
On behalf of the captioned client, enclosed are two certified copies of each of the following insurance policy documents:
~racllit St. Lucie Polic No.
NW-131 MW-6O Endorsement No.
Please contact me if you have any questions.
- Regards, Rochelle Green Marsh
& McLennan Nuclear
/rg Enc.
cc:
Mr. S. Reynolds Florida Power
& Light Company Mr. W. A. Wegener M&M Chicago Mr. R. Carter M&MN Chicago pO01 8908070367 89073i 5
PDR ADOCK 05000335
0 0
lg t
Nuclear Energy LiabilityInsurance NUCLEAR ENERGY LIABILITYINSURANCE ASSOCIATION INDUSTRY RETROSPECTIVE RATING PLAN PREMIUM ENDORSEMENT It is agreed that Endorsement No.
1 is deleted and replaced by the following:
1.
DEFINITIONS With reference to the premium for the Certificate of which this endorsement forms a part:
"Master Worker Policy" means the Master Worker Policy issued by NELIA; "Certificate Holder" means the first Named Insured in a Certificate issued to form a part of the Master Worker Policy; "advance premium", for any calendar
- year, is the esti-mated standard premium for that calendar year; "standard premium", for any calendar
- year, is the pre-mium for that calendar year computed in accordance with the companies'ules,
- rates, rating plans (other than the Industry Retrospective Rating Plan),
premiums and minimum premiums applicable to this insurance.
Standard premium includes elements for premium taxes,
- expenses, profit and contingencies, guaranteed cost insurance and estimated reserve premium.
The elements of standard
- premium, other than for premium taxes and estimated reserve
- premium, are not subject to retrospective adjustment; "reserve premium" means that portion of the premium for a Certificate (including reserve premium charges paid) that is specifically allocated under the Industry Retro'-
spective Rating Plan for ratable incurred losses; "industry reserve premium", for any period, is the sum of the reserve premiums for that period for all Certifi-cates issued to form a part of the Master Worker Policy; "retrospective adjustment ratio", for any period, is the ratio of the reserve premium for this Certificate for that period to the industry reserve premium for the same period; incurred losses" means the sum of all:
(1) losses and expenses paid by NELIA, and (2) reserves for losses and expenses as estimated by
- NELIA, NE-W-1 (1/1/88)
Page 1
because of obligations assumed and expenses incurred in connection with such obligations by the members of NELIA under the Master Worker Policy; "ratable incurred. losses" means 95< of incurred losses.
Ratable incurred losses are the portion of incurred losses which are not covered by the guaranteed cost insurance element of standard premiums; "non-ratable incurred losses" means 5% of incurred losses.
Non-ratable incurred losses are the portion of incurred losses which are covered by the guaranteed cost insurance element of standard premiums; "reserve for refunds",
as of any date, is the algebraic difference between:
(2) all industry reserve premium for the period from January 1,
1988 through such date, minus the total for the same period of (a) all ratable incurred losses and (b) all industry reserve pre-mium refunds made under the Industry Retrospective Rating Plan by members of NELIA; "industry reserve premium charge>>,
for any period, means the amount determined pursuant to the provisions of Section 4 of this endorsement for payment by the Named Insureds under Certificates; "reserve premium charge" means the portion of an indus-try reserve premium charge payable by the Named Insureds under this Certificate; "industry reserve premium refund", for any period, means the amount determined pursuant to the provisions of Section 4 of -this endorsement for return to the Named Insureds under Certificates; "reserve premium refund" means the portion of an indus-try reserve premium refund returnable to the Named In-sureds under this Certificate.
2 ~
PAYMENT OF ADVANCE AND STANDARD PREMIUMS The Named Insureds shall pay the companies the advance premium stated in the declarations, for the period from the effective date of this Certificate through December 31 following. Thereafter, at the beginning of each calendar year while this Certificate is 'in force, the Named Insureds shall pay the advance premium for such year to the companies.
The advance premium for each calendar year shall be NE-W-1 (1/1/88)
Page 2
stated in the Advance and Standard Premium Endorsement for the year issued by the companies as soon as practic-able prior to or after the beginning of the year.
As soon as practicable after the end of a calendar year or the Certificate Coverage Period, the standard premium for the preceding year shall be finally determined and stated in the Advance and Standard Premium Endorsement for that year. If the standard premium exceeds the'd-vance premium paid for that
- year, the Named Insureds shall pay the excess to the companies; if less, the com-panies= shall return to the Named Insureds the excess portion paid.
The Named Insureds shall maintain records of the inform-ation necessary for premium computation and shall send copies of such records to the companies as directed, at the end of each calendar year, at the end of the Certi-ficate Coverage Period and at such other times as the companies may direct.
3.
SPECIAL RESERVE ACCOUNT; USE OF RESERVE PREMIUMS NELIA shall maintain on behalf of its members a Special Reserve Account for holding collectively all reserve premiums paid for all Certificates issued to form a part of the Master Worker Policy.
Such
- premiums, together with any undistributed net income realized thereon after taxes and investment
- expenses, shall be used for the following purposes only:
(1) to pay ratable incurred losses or, in the event ratable incurred losses are paid under the Master Worker Policy from funds advanced by the members of NELIA subscribing the policy, to reimburse such members as a matter of first priority for the funds advanced; (2) to refund any amounts so held to the Named
- Insureds, as provided in Section 4.
No members of NELIA and no Named Insureds shall have any individual interest in or claim upon amounts held in the Special Reserve
- Account, except to participate propor-tionally in any refund or reimbursement provided for above.
All reserve premiums paid or payable for this Certifi-cate may be used by NELIA to discharge the obligations of its members under the Master Worker Policy with re-spect to the above purposes and arising out of claims made under any Certificate issued to form a part of the Master Worker Policy.
NE-W-1 (1/1/88)
Page 3
4.
PAYMENT OF RESERVE PREMIUM CHARGES AND REFUNDS As soon as practicable after'ach December 31 the com-panies will review the status of the reserve for refunds and report their findings to all Certificate Holders.
If, at any
- time, the companies find that there is a
negative balance in the reserve for refunds and that such condition is likely to prevail, they shall deter-mine an appropriate industry reserve premium charge.
Similarly, if the companies find that there is a surplus positive
- balance, they shall determine an appropriate industry reserve premium refund.
The portion of an industry reserve premium charge or an industry reserve premium refund that is:
(1) payable by the Named Insureds as a reserve premium
- charge, or (2) due such insureds as a reserve premium refund, shall be determined by multiplying the industry reserve premium charge or the industry reserve premium refund by the retrospective adjustment ratio applicable to this Certificate.
The amount of any reserve premium charge shall be stated in a Retrospective Reserve Premium Charge Endorsement.
The charge shall be paid promptly after receipt of the endorsement.
When all claims covered by the Master Worker Policy are closed the companies shall make a final review and re-
- port, and shall determine a final industry reserve premium charge or industry reserve premium refund equal to the amount of the balance.
5.
FINAL PREMIUM The final premium for this Certificate shall be (a) the sum of the standard premiums for each calendar
- year, or portion thereof, during which the Certificate remains in force plus (b) the sum of all reserve
- premiums, includ-ing all reserve premium charges, minus (c) the sum of all reserve premium refunds.
6.
RESERVE PREMIUM CHARGE AGREEMENT In consideration of (a) the participation of Named Insureds in other Certificates subject to the Industry Retrospective Rating Plan, (b) the undertaking of such Named Insureds to pay their appropriate share of any industry reserve premium charge and (c) the obligations assumed by the members of NELIA under the Master Worker NE-W-1 (1/1/88)
Page 4
Policy, the Named Insureds, by acceptance of the Master Worker Policy, agree:
(1)
That the insurance provided by the Master Worker Policy applies collectively to all claims covered by the policy through any and all Certificates issued to form a part of the policy.
(2)
That the right of each Named Insured under a Cert-ifi.'cate to receive reserve premium refunds and the obligation of each such insured to pay reserve premiums charges applies to all claims covered by the Master Worker Policy and continues until all such claims are closed, whether or not such claims were before the inception of the Certificate or after its termination.
(3)
To pay all reserve premium charges due promptly after receipt of the Retrospective Reserve Premium Charge Endorsement, whether or not the Certificate is terminated.
Any reserve premium charge shall be overdue if not paid within 60 days of the date of the invoice for the charge.
Overdue reserve premium charges shall bear interest from the due date until paid at an annual rate equal to the sum of (a) 34 plus (b) a rate of in-terest equal to Moody's Average Public Utility Bond Yield described in the issue of Moody's Bond Survey current on the due date.
Any reserve pre-mium refund due to Named Insureds under a
Certificate shall be used to pay any overdue reserve premium charges to such Named Insureds.
7.
RESERVE PREMIUM REFUND AGREEMENT Each member of NELIA subscribing the Master Worker Policy for any calendar
- year, or portion thereof, with respect to which an industry reserve premium refund is determined to be payable thereby agrees for itself, severally and not jointly, and in the respective pro-portion of its liability assumed under the Master Worker Policy for that calendar year, to return promptly to the Named Insureds that portion of such refund due such
- Insureds, as determined in accordance with the provi-sions of this endorsement.
NE-W-1 (1/1/88)
Page 5
Page 6, Accepted and agreed by the Named Insureds as stated in the Oectarations of the Certificate of which this endorsement forms a part.
6/6/89 Oate By Florida Power a Light Company (Named Insured - Print or Type)
Signature of Authorized Office David k. Baldwin Gro Vic Print or Type Name and Tit e of Officer NE-W-1 (1/1/88)
Page 7
0te'y Florida Municipal Power Agency (Nam I sured
- Pri t or Type)
Signature or e
Officer Calvin R. Henze, General Manager Print or ype Name and Tit e of Officer A/20 1889 (Oate)
Orlando Utilities Commissio f the City of Orlando (Named or ye Si oriz d Officer uxruxwx ICE PAESID/NT Print or Type Name and Title of Offic~ar This is to certify that this is a true coP of th having the endorsement 0
b y o t e original Endorsement of insurance bearing the number made Part of the CBNficats covers e under the Nuclea
'gnated hereon for insurance Form),
o l n
nergy iabllity Policy (Facility lyoAee uattrocchi Vice p American Nuclear, Insurers res e
erwrlting Effective Date of this Endorsement 1
1988 To form a part of Certificate No.
Nfl-131 12:01 A.M. Standard Time Florida Power 8 Light Company, Florida Municipal Power
- Agency, and Orlando Issued to Utilities Commission of the City of Orlando Date of Issue Jul 27 1988 For the Sub ribing Companies By PRESIDENT Endorsement No.
4 flE-W-1 (1/1/88)
Countersigned by
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N'uclear Energy LiabilityInsurance NUCLEAR ENERGY LIABILITYINSURANCE ASSOCIATION INDUSTRY RETROSPECTIVE RATING PLAN PREMIUM ENDORSEMENT It is agreed that Endorsement No.
1 is deleted and replaced by the following:
1.
DEFINITIONS With reference to the premium for the Certificate of which this endorsement forms a part:
"Master Worker Policy" means the Master Worker Policy issued by NELIA; "Certificate Holder" means the first Named Insured in a Certificate issued to form a part of the Master Worker Policy; "advance premium", for any calendar
- year, is the esti-mated standard premium for that, calendar year; "standard premium", for any calendar
- year, is the pre-mium for that calendar year computed in accordance with the companies'ules,
- rates, rating plans (other than the Industry Retrospective Rating Plan),
premiums and minimum premiums applicable to this insurance.
Standard premium includes elements for premium taxes,
- expenses, profit and contingencies, guaranteed cost insurance and estimated reserve premium.
The elements of standard
- premium, other than for premium taxes and estimated reserve
- premium, are not subject to retrospective adjustment; "reserve premium" means that portion of the premium for a Certificate (including reserve premium charges paid) that is specifically allocated under the Industry Retro-spective Rating Plan for ratable incurred losses; "industry reserve premium", for any period, is the sum of the reserve premiums for that period for all Certifi-cates issued to form a part of the Master Worker Policy; "retrospective adjustment ratio", for any period, is the ratio of the reserve premium for this 'Certificate for that period to the industry reserve premium for the same period; "incurred losses" means the sum of all:
(1) losses and expenses paid by NELIA, and (2) reserves for losses and expenses as estimated by
- NELIA, NE-W-1 (1/1/88)
Page 1
because of obligations assumed and expenses incurred in connection with such obligations by the members of NELIA under the Master Worker Policy;
'~ratable incurred losses" means 954 of incurred losses.
Ratable incurred losses are the portion of incurred losses which are not covered by the guaranteed cost insurance element of standard premiums; "non-ratable incurred losses" means 5% of incurred losses.
Non-ratable incurred losses are the portion of incurred losses which are covered by the guaranteed cost insurance element of standard premiums; "reserve for refunds",
as of any date, is the algebraic difference between:
(2) all industry reserve premium for the period from January 1,
1988 through such date; minus the total for the same period of (a) all ratable incurred losses and (b) all industry reserve pre-mium refunds made under the Industry Retrospective Rating Plan by members of NELIA; "industry reserve premium charge", for any period, means the amount determined pursuant to the provisions of Section 4 of this endorsement for payment by the Named Insureds under Certificates; "reserve premium charge" means the portion of an indus-try reserve premium charge payable by the Named Insureds under this Certificate; "industry reserve premium refund", for any period, means the amount determined pursuant to the provisions of Section 4 of this endorsement for return to the Named Insureds under Certificates; "reserve premium refund" means the portion of an indus-try reserve premium refund returnable to the Named In-sureds under this Certificate.
2.
PAYMENT OF ADVANCE AND STANDARD PREMIUMS The Named Insureds shall pay the companies the advance premium stated in the declarations, for the period from the effective date of this Certificate through December 31 following. Thereafter, at the beginning of each calendar year while this Certificate is in force, the Named Insureds shall pay the advance premium for such year to the companies.
The advance premium for each calendar year shall be NE-W-1 (1/1/88)
Page 2
stated in the Advance and Standard Premium Endorsement for the year issued by the companies as soon as practic-able prior to or after the beginning of the year.
As soon as practicable after the end of a calendar year or the Certificate Coverage Period, the standard premium for the preceding year shall be finally determined and stated in the Advance and Standard Premium Endorsement for that year. If the standard premium exceeds the ad-vance premium paid for that
- year, the Named Insureds shall pay the excess to the companies; if less, the com-panies shall return to the Named Insureds the excess portion paid.
The Named Insureds shall maintain records of the inform-ation necessary for premium computation and shall send copies of such records to the companies as directed, at the end of each calendar year, at the end of the Certi-ficate Coverage Period and at such other times as the companies may direct.
3.
SPECIAL RESERVE ACCOUNT; USE OF RESERVE PREMIUMS NELIA shall maintain on behalf of its members a Special Reserve Account for holding collectively all reserve premiums paid for all Certificates issued to form a part of the Master Worker Policy.
Such
- premiums, together with any undistributed net income realized thereon after taxes and investment
- expenses, shall be used for the following purposes only:
(1) to pay ratable incurred losses or, in the event ratable incurred losses are paid under the'aster Worker Policy from funds advanced by the members of NELIA subscribing the
- policy, to reimburse such members as a matter of first priority for the funds advanced; (2) to refund any amounts so held to the Named
- Insureds, as provided in Section 4.
No members of NELIA and no Named Insureds shall have any individual interest in or claim upon amounts held in the Special Reserve
- Account, except to participate propor-tionally in any refund or reimbursement provided for above.
All reserve premiums paid or payable for this Certifi-cate may be used by NELIA to discharge the obligations of its members under the Master Worker Policy with re-spect to the above purposes and arising out of claims made under any Certificate issued to form a part of the Master Worker Policy.
NE-W-1 (1/1/88)
Page 3
~
~
4.
PAYMENT OF RESERVE PREMIUM CHARGES AND REFUNDS As soon as practicable after each December 31 the com-panies will review the status of the reserve for refunds and report their findings to all Certificate Holders.
If, at any time, the companies find that there is a
negative balance in the reserve for refunds and that such condition is likely to prevail, they shall deter-mine an appropriate industry reserve premium charge.
Similarly, if the companies find that there is a surplus positive
- balance, they shall determine an appropriate industry reserve premium refund.
The portion of an industry reserve premium charge or an industry reserve premium refund that is:
(1) payable by the Named Insureds as a reserve premium
- charge, or (2) due such insureds as a reserve premium refund, shall be determined by multiplying the industry reserve premium charge or the industry reserve premium refund by the retrospective adjustment ratio applicable to this Certificate.
The amount. of any reserve premium charge shall be stated in a Retrospective Reserve Premium Charge Endorsement.
The charge shall be paid promptly after receipt of the endorsement.
When all claims covered by the Master Worker Policy are closed the companies shall make a final review and re-
- port, and shall determine a final industry reserve premium charge or industry reserve premium refund equal to the amount of the balance.
5.
FINAL PREMIUM The final premium for this Certificate shall be (a) the sum of the standard premiums for each calendar
- year, or portion thereof, during which the Certificate remains in force plus (b) the sum of all reserve
- premiums, includ-ing all reserve premium
- charges, minus (c) the sum of all reserve premium refunds.
6.
RESERVE PREMIUM CHARGE AGREEMENT II In consideration of (a) the participation of Named Insureds in other Certificates subject to the Industry Retrospective Rating Plan, (b) the undertaking of such Named Insureds to pay their appropriate share of any industry reserve premium charge and (c) the obligations assumed by the members of NELIA under the Master Worker NE-W-1 (1/1/88)
Page 4
Policy, the Named Insureds, by acceptance of the Master Worker Policy, agree:
(1)
That the insurance provided by the Master Worker Policy applies collectively to all claims covered by the policy through any and all Certificates issued to form a part,'f the policy.
(2)
That the right of each Named Insured under a Cert-ificate to receive reserve premium refunds and the obligation of each such insured to pay reserve premiums charges applies to all claims covered by the Master Worker Policy and continues until all such claims are closed, whether or not such claims were before the inception of the Certificate or after its termination.
(3)
To pay all reserve premium charges due promptly after receipt of the Retrospective Reserve Premium Charge Endorsement, whether or not the Certificate is terminated.
Any reserve premium charge shall be overdue if not paid within 60 days of the date of the invoice for the charge.
Overdue reserve premium charges shall bear interest from the due date until paid at an annual rate equal to the sum of (a) 34 plus (b) a rate of in-terest equal to Moody's Average Public Utility Bond Yield described in the issue of Moody's Bond Survey current on the due date.
Any reserve pre-mium refund due to Named Insureds under a
Certificate shall be used to pay any overdue reserve premium charges to such Named Insureds.
7.
RESERVE PREMIUM REFUND AGREEMENT Each member of NELIA subscribing the Master Worker Policy for any calendar
- year, or portion thereof, with respect to which an industry reserve premium refund is determined to be payable thereby agrees for itself, severally and not jointly, and in the respective pro-portion of its liability assumed under the Master Worker Policy for that calendar year, to return promptly to the Named Insureds that portion of such refund due such
- Insureds, as determined in accordance with the provi-sions of this endorsement.
NE-W-1 (1/1/88)
Page 5
Page 6
Accepted and agreed by the Named Insureds as stated in the Declarations of the Certificate of which this endorsement forms a part.
6/6/89 Oate By Florida Power s Light Company (Named Insured - Print or Type)
S>gnature of uthorized Office David K. Baldwin Geo Vic Print or Type Name and Tit e of Officer NE-M-1 (1/1/88)
7 a Page 7
/"
~ fag 0te'y Florida Municipal Power Agency (Nam I svred
- Pri t or Type)
Signature or ed Of icer Calvin R. Henze, General Manager Print or Type Name and Tit e of Off>cer APR2 0
I98g (Oate)
Orlando Utilities Commissio f the City of Orlando (Named or e
or iz d Officer t
axrzmvs. yjcE wmosNr print or Type Name and Title of Ofrite~r This is to certify that this is a true copy of the original Endorsement having the endorsement rNmber and being made part of the Certificat of Insurance bearing the number desi nated hereon for insurance covera under the Nuclear Energy bility Policy (Facility Worffers Form).
a If%~5gce ff
'er.
I bohr L.
"at!rocchi, Vice Presiden erwrlting American huciear Insvrers Effective Date of this Endorsement Issued to 1
1988 To form a part of Certificate No.
Nil-131 12:Ol A.M. Standard Time Florida Power
& Light Company, Florida Municipal Power Agency, and Orlando Utilities Commission of the City of Orlando Date of Issue Jul 27 1988 For the Sub ribing Companies By PRESIDENT Endorsement No.
4 Countersigned by HE-W-1 (1/1/88)
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Nuclear Energy Liability Insurance MUTUALATOMIC ENERGY LIABILITYUNDERWRITERS INDUSTRY RETROSPECTIVE RATING PLAN PREMIUM ENDORSEMENT It is agreed that Endorsement No. I is deleted and replaced by the following:
DEFINITIONS With reference to the premium for the Certificate of which this endorsement forms a part:
"Master Worker Policy" means the Master Worker Policy issued by MAELU; "Certificate Holder" means the first Named Insured in a Certificate issued to form a part of the Master Worker Policy; "advance premium", for any calendar
- year, is the esti-mated standard premium for that calendar year; "standard premium",
for any calendar
- year, is the premium for that calendar year computed in accordance with the companies'ules,
- rates, rating plans (other than the Industry Retrospective Rating Plan),
premiums and minimum premiums applicable to this insurance.
Standard premium includes elements for premium
- taxes, expenses, profit and contingencies, guaranteed cost insurance and estimated reserve premium.
The elements of standard
- premium, other than for premium taxes and estimated reserve
- premium, are not subject to retrospec-tive adjustment; "reserve premium" means that, portion of the premium for a Certificate (including reserve premium charges paid) that is specifically allocated under the Industry Retro-spective Rating Flan for ratable incurred losses; "industry reserve premium", for any period, is the sum of the reserve premiums for that period for all Certifi-cates issued to form a part of the Master Worker Policy; "retrospective adjustment ratio", for any period, is the ratio of the reserve px'emium for this Certificate for that period to the industry reserve premium for the same period; "incurred losses" means the sum of all:
(1) losses and expenses paid by MAELU, and (2)
. reserves for losses and expenses as estimated by
- MAELU, MK=W-1 (1/1/88)
Page 1
because of obligations assumed and expenses incurred in connection with such obligations by the members of MAELU under the Master Worker Policy; "ratable incurred Ratable incurred losses which are
, insurance element losses" means 954 of incurred losses.
losses are the portion of incurred not covered by the guaranteed cost of standard premiums; "non-ratable incurred losses" means 5% of incurred losses.
Non-ratable incurred losses are the portion of incurred losses which are covered by the guaranteed cost insurance element of standard premiums; "reserve for refunds",
as of any date, is the algebraic difference between:
(2) all -industry reserve premium for the period from January 1,
1988 through such date, minus the total for the same period of (a) all ratable incurred losses and (b) all industry reserve pre-mium refunds made under the Industry Retrospective Rating Plan by members of MAELU; "industry reserve premium charge", for any period, means the amount determined pursuant to the provisions of Section 4 of this endorsement for payment by the Named Insureds under Certificates; "reserve premium charge" means the portion of an indus-try reserve premium charge payable by the Named Insureds under this Certificate; "industry reserve premium refund", for any period, means the amount determined pursuant to the provisions of Section 4 of this endorsement for return to the Named Insureds under Certificates; "reserve premium refund" means the portion of an indus-try reserve premium refund returnable to the Named Insureds under this Certificate.
2.
PAYMENT OF ADVANCE AND STANDARD PREMIUMS The Named Insureds shall pay the companies the advance premium stated in the declarations, for the period from the effective date of this Certificate through Dece~er 31 following. Thereafter, at the beginning of each calendar year while this Certificate is in force, the Named Insureds shall pay the advance premium for such year to the companies.
ME-W-1 (1/1/88)
Page 2
The advance premium for -each calendar year shall be stated in the Advance and Standard Premium Endorsement for the year issued by the companies as soon as practic-able prior to or after the beginning of the year.
As soon as practicable after the end of a calendar year or the Certificate Coverage
- Period, the standard premium for the preceding year shall be finally determined and stated in the Advance and Standard Premium Endorsement for that year. If the standard premium exceeds the ad-vance premium paid for that
- year, the Named Insureds shall'ay the excess to the companies; if less, the com-panies shall return to the Named Insureds the excess portion paid.
The Named Insureds shall maintain records of the inform'-
ation necessary for premium computation and shall send copies of such records to the companies as directed, at the end of each calendar year, at the end of the Certi-ficate Coverage Period and at such other times as the companies may direct.
3.
SPECIAL RESERVE ACCOUNT; USE OF RESERVE PREMIUMS MAELU shall maintain on behalf of its members a Special Reserve Account for holding collectively all reserve premiums paid for all Certificates issued to form a part of the Master Worker Policy.
Such
- premiums, together with any undistributed net income realized thereon after taxes and investment
- expenses, shall be used for the following purposes only:
(1) to pay ratable incurred losses or, in the event ratable incurred losses are paid under the Master Worker Policy from funds advanced by the members of MAELU subscribing the policy, to reimburse such members as a matter of first priority for the funds advanced; (2) to refund any amounts so held to the Named
- Insureds, as provided in Section 4.
No members of,MAELU and no Named Insureds shall have any individual interest in or claim upon amounts held in the Special Reserve
- Account, except to participate propor-tionally in any refund or reimbursement provided for above.
All reserve premiums paid or payable for this Certifi-cate may be used by MAELU to discharge the obligations of its members under the Master Worker Policy with re-.
spect to the above purposes and arising out of claims made under any Certificate issued to form a part of the Master Worker Policy.
ME-W-1 (1/1/88)
Page 3
4.
PAYMENT OF RESERVE PREMIUM CHARGES AND REFUNDS As soon as practicable after each December 31 the com-panies will review the status of the reserve for refunds and report their findings to all Certificate Holders.
If, at any time, the companies find that there is a
negative balance in the reserve for refunds and that such condition is likely to prevail, they shall deter-mine an appropriate industry reserve premium charge.
Similarly, if the companies find that there is a surplus positive
- balance, they shall determine an appropriate industry reserve premium refund.
The portion of an industry reserve premium charge or an industry reserve premium refund that is:
(1) payable by the Named Insureds as a reserve premium
- charge, or (2) due such insureds as a reserve premium refund, shall be determined by multiplying the industry reserve premium charge or the industry reserve premium refund by the retrospective adjustment ratio applicable to this Certificate.
The amount of any reserve premium charge shall be stated in a Retrospective Reserve Premium Charge Endorsement.
The charge shall be paid promptly after receipt of the endorsement.
When all claims covered by the Master Worker Policy are closed the companies shall make a final review and
- report, and shall determine a final industry reserve premium charge or industry reserve premium refund equal to the amount of the balance.
5.
FINAL PREMIUM The final premium for this Certificate shall be (a) the sum of the standard premiums for each calendar
- year, or portion thereof, during which the Certificate remains in force plus (b) the sum of all reserve
- premiums, includ-ing all reserve premium
- charges, minus (c) the sum of all reserve premium refunds.
6 ~
RESERVE PREMIUM CHARGE AGREEMENT In consideration of (a) the participation of N8ged Insureds in other Certificates sub)ect to the Industry Retrospective Rating Plan, (b) the undertaking of such Named Insureds to pay their appropriate share of any industry reserve premium charge and (c) the obligations assumed by the members of MAELU under the Master Worker ME-W-1
( 1/1/88)
Page 4
Policy, the Named Insureds, by acceptance of the Master Worker Policy, agree:
(1)
That, the insurance provided by the Master Worker Policy applies collectively to all claims covered by the policy through any and all Certificates issued to form a part of the policy.
(2)
That the right of each Named Insured under a Cert-ificate to receive reserve premium refunds and the obligation of each such insured to pay reserve premiums charges applies to all claims covered by the Master Worker Policy and continues until all such claims are closed, whether or not such claims were before the inception of the Certificate or after its termination.
(3)
To pay all reserve premium charges due promptly after receipt of the Retrospective Reserve Premium Charge Endorsement, whether or not, the Certificate is terminated.
Any reserve premium charge shall be overdue if not paid within 60 days of the date of the invoice for the charge.
Overdue reserve premium charges shall bear interest from the due date until paid at an annual rate equal to the sum of (a) 34 plus (b) a rate of in-terest equal to Moody's Average Public Utility Bond Yield described in the issue of Moody's Bond Survey current on the due date.
Any reserve premium refund due to Named Insureds under a Certi-ficate shall be used to pay any overdue reserve premium charges to such Named Insureds.
7.
RESERVE PREMIUM REFUND AGREEMENT Each member of MAELU subscribing the Master Worker Policy for any calendar
- year, or portion thereof, with respect to which an industry reserve premium refund is determined to be payable thereby agrees for itself, severally and not jointly, and in the respective pro-portion of its liability assumed under the Master Worker Policy for that calendar year, to return promptly to the Named Insureds that portion of such refund due such
- Insureds, as determined in accordance with the provisions of this endorsement.
ME-W-1 (1/1/88)
Page 5
Page 6
Accepted and agreed by the Named Insureds as stated in the Declarations of the Certificate of which this endorsement forms a part.
6/6/89 Oate By Florida Power s Light Company (Named Insured - Print or Type)
/7 Signature of Authorized Offi er David K. Baldw Print or ype Name and Title of Officer ME-W-1 (1/1/88)
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Gate By Florida Municipal Powe Agency (Ham I
ured -
rin or Type)
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Signatui e of AuthorizeU Of icer Calvin R.
Henze General Mana er Print or Type Name and Tit e of Officer APR 2 0 1S89 su
~ - ri the ity of Orlando e)
(
(Oate) na ut i
d Officer REQGAYj yJCE, P3ESIDf NT Print or Type Name and Title of Offic~er fy that this is a true copy of the original Endorsement having the endorsement ntimber and being made part of the Certificate of Insurance bearing the number des gnated hereon for insurance Form) ~
o nc i
a cover e under the Nuclear Energy iabillty Polic (Facility W rk cy ac 0
efs John uattrocchl, ice Presfd derwritlng American Nuclear. Insurers Effective Oate of To form a par t this Endorsement January ',
1988 of Certificate No.
Ml'I-6O Florida power
& Light Company, Florida liunicipal Power Agency, and Orlando Issued to ion of the Cit of Orlando 12:Ol A.M. Standard Time Date of Issue Jul 27 1988 For the Subscribing Companies MUTUhL hTOKIC ENERGY LZhSILITT ERMkITERS indorsement No.
'fi-V-1 (1/1/88)
By Countersigned by A thorized R presentative
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Nuclear Energy LiabilityInsurance MUTUAI ATOMIC ENERGY LIABILITYUNDERWRITERS pi-i~
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s INDUSTRY RETROSPECTIVE RATING PLAN PREMIUM ENDORSEMENT It is agreed that Endorsement Ho.
1 is deleted and replaced by the following:
DEFINITIONS With reference to the premium for the Certificate of which this endorsement forms a part:
"Master Worker Policy" means the Master Worker Policy issued by MAELU; "Certificate Holder" means the first Named Insured in a Certificate issued to form a part of the Master Worker Policy; "advance premium", for any calendar
- year, is the esti-mated standard premium for that calendar year; "standard premium",
for any calendar
- year, is the premium for that calendar year computed in accordance with the companies'ules,
- rates, rating plans (other than the Industry Retrospective Rating Plan),
premiums and minimum premiums applicable to this insurance.
Standard premium includes elements for premium
- taxes, expenses, profit and contingencies, guaranteed cost insurance and estimated reserve premium.
The elements of standard
- premium, other than for premium taxes and estimated reserve premium, are not subject to retrospec-tive adjustment; "reserve'remium" means that portion of the premium for a Certificate (including reserve premium charges paid) that is specifically allocated under the Industry Retro-spective Rating Plan for ratable incurred losses; "industry reserve premium", for any period, is the sum of the reserve premiums for that period for all Certifi-cates issued to form a part of the Master Worker Policy; "retrospective adjustment ratio", for any period, is the ratio of the reserve premium for this Certificate for that period to the industry reserve premium for the same period; "incurred losses" means the sum of all:
(1) losses and expenses paid by MAELU, and (2)
. reserves for losses and expenses as estimated by
- MAELU, MK=W-1
( 1/1/88 )
~ qopp'Q QQPlP/KGT Page 1
0 r
I because of obligations assumed and expenses incurred in connection with such obligations by the members of MAELU under the Master Worker Policy; "ratable incurred losses" means 95% of incurred losses.
Ratable incurred losses are the portion of incurred losses which are not covered by the guaranteed cost insurance element'of standard premiums; "non-ratable incurred losses" means 54 of incurred losses.
Non-ratable incurred losses are the portion of incurred losses which are covered by the guaranteed cost insurance element of standard premiums; "reserve for refunds",
as of any date, is the algebraic difference between:
(2) all industry reserve premium for the period from January 1,
1988 through such date, minus the total for the same period of (a) all ratable incurred losses and (b) all industry reserve pre-mium refunds made under the Industry Retrospective Rating Plan by members of MAELU; "industry reserve premium charge", for any period, means the amount determined pursuant to the provisions of Section 4 of this endorsement for payment by the Named Insureds under Certificates; "reserve premium charge" means the portion of an indus-try reserve premium charge payable by the Named Insureds under this Certificate; "industry reserve premium refund", for any period, means the amount determined pursuant to the provisions of Section 4 of this endorsement for return to the Named Insureds under Certificates; "reserve premium refund" means the portion of an indus-try reserve premium refund returnable to the Named Insureds under this Certificate.
2 ~
PAYMENT OF ADVANCE AND STANDARD PREMIUMS The Named Insureds shall pay the companies the advance premium stated in the declarations, for the period from the effective date of this Certificate through Dece~er 31 following. Thereafter, at the beginning of each calendar year while this Certificate is in force, the Named Insureds shall pay the advance premium for such year to the companies.
ME-W-1 (1/1/88)
Page 2
The advance premium for each
- calendar, year shall be stated in the Advance and Standard Premium Endorsement for the year issued by the companies as soon as practic-able prior to or after the beginning of the year.
As soon as practicable after the end of a calendar year or the Certificate Coverage
- Period, the standard premium for the preceding year shall be finally determined and stated in the Advance and Standard Premium Endorsement for that year. If the standard premium exceeds the ad-vance premium paid for that
- year, the Named Insureds shall pay the excess to the companies; if less, the com-panies shall return to the Named Insureds the excess portion paid.
The Named Insureds shall maintain records of the inform-ation necessary for premium computation and shall send copies of such records to the companies as directed, at the end of each calendar year, at the end of the Certi-ficate Coverage Period and at such other times as the companies may direct.
3.
SPECIAL RESERVE ACCOUNT) USE OF RESERVE PREMIUMS MAELU shall maintain on behalf of its members a Special Reserve Account for holding collectively all reserve premiums paid for all Certificates issued to form a part of the Master Worker Policy.
Such
- premiums, together with any undistributed net income realized thereon after taxes and investment
- expenses, shall be used for the following purposes only:
(1) to pay ratable incurred losses or, in the event ratable incurred losses are paid under the Master Worker Policy from funds advanced by the members of MAELU subscribing the policy, to reimburse such members as a matter of first priority for the funds advanced; (2) to refund any amounts so held to the Named
- Insureds, as provided in Section 4.
No members of MAELU and no Named Insureds shall have any individual interest in or claim upon amounts held in the Special Reserve
- Account, except to participate propor-tionally in any refund or reimbursement provided for above.
All reserve premiums paid or payable for this Certifi-cate may be used by MAELU to discharge the obligations of its members under the Master Worker Policy with re-.
spect to the above purposes and arising out of claims made under any Certificate issued to form a part of the Master Worker Policy.
ME-W-1 (1/1/88)
Page 3
4.
PAYMENT OF RESERVE PREMIUM CHARGES AND REFUNDS As soon as practicable after each December 31 the com-panies will review the status of the reserve for refunds and report their findings to all Certificate Holders.
If, at any time, the companies find that there is a
negative balance in the reserve for refunds and that such condition is likely to prevail, they shall deter-mine an appropriate industry reserve premium charge.
Similarly, if the companies find that there is a surplus positive
- balance, they shall determine an appropriate industry reserve premium refund.
The portion of an industry reserve premium charge or an industry reserve premium refund that is:
(1) payable by the Named Insureds as a reserve premium
- charge, or (2) due such insureds as a reserve premium refund, shall be determined by multiplying the industry reserve premium charge or the industry reserve premium refund by the retrospective adjustment ratio applicable to this Certificate.
The amount of any reserve premium charge shall be stated in a Retrospective Reserve Premium Charge Endorsement.
The charge shall be paid promptly after receipt of the endorsement.
When all claims covered by the Master Worker Policy are
, closed the companies shall make a final review and
- report, and shall determine a final industry reserve premium charge or industry reserve premium refund equal to the amount of the balance.
5.
FINAL PREMIUM The final premium for this Certificate shall be (a) the sum of the standard premiums for each calendar
- year, or portion thereof, during which the Certificate remains in force plus (b) the sum of all reserve
- premiums, includ-ing all reserve premium
- charges, minus (c) the sum of all reserve premium refunds.
6 RESERVE PREMIUM CHARGE AGREEMENT In consideration of (a) the participation of Naged Insureds in other Certificates subject to the Industry Retrospective Rating Plan, (b) the undertaking of such Named Insureds to pay their appropriate share of any industry reserve premium charge and (c) the obligations assumed by the members of MAELU under the Master Worker ME-W-1 (1/1/88)
Page 4
Policy, the Named Insureds, by acceptance of the Master Worker Policy, agree:
(1)
That the insurance provided by the Master Worker Policy applies collectively to all claims covered by the policy through any and all Certificates issued to form a part of the policy.
(2)
That the right of each Named Insured under a Cert-ificate to receive reserve premium refunds and the obligation of each
'such insured to pay reserve premiums charges applies to all claims covered by the Master Worker Policy and continues until all such claims are closed, whether or not such claims were before the inception of the Certificate or after its termination.
(3)
To pay all reserve premium charges due promptly after receipt of the Retrospective Reserve Premium Charge Endorsement, whether or not the Certificate is terminated.
Any reserve premium charge shall be overdue if not paid within 60 days of the date of the invoice for the charge.
Overdue reserve premium charges shall bear interest from the due date until paid at an annual rate equal to the sum of (a) 34 plus (b) a rate of in-terest equal to Moody's Average Public Utility Bond Yield described in the issue of Moody's Bond Survey current on the due date.
Any reserve premium refund due to Named Insureds under a Certi-ficate shall be used to pay any overdue reserve premium charges to such Named Insureds.
7 ~
RESERVE PREMIUM REFUND AGREEMENT Each member of MAELU subscribing the Master Worker Policy for any calendar
- year, or portion thereof, with respect to which an industry reserve premium refund is determined to be payable thereby agrees for itself, severally and not jointly, and in the respective pro-portion of its liability assumed under the Master Worker Policy for that calendar year, to return promptly to the Named Insureds that portion of such refund due such
- Insureds, as determined in accordance with the provisions of this endorsement.
ME-W-1 (1/1/88)
Page 5
Page 6
Accepted and agreed by the Named Insureds as stated in the Declarations of the Certificate of which this endorsement forms a part, 6/6/89 Oate By Florida Power a Light Company (Named Insured - Print or Type)
Signature of Authorized Offi er David K. Baldw Print or ype Name and Title of Officer HE-W-1 (l/1/88)
Page 7
/O.j$ /'
P'ate By Fl.orzda Nunxexpal Powe A9ency (Ham I
ured -
rin or Type) j
/
Signature of Authorizeti Off>cer in R.
Henze General Mana er Gal v Print or ype Name and Tit e of Officer the 'y o f Orlando APR 2 0 1989 (Date) a ut i
d Officer RKRVJlYJ YJCE MES!DjNT Print or Type Name and Title of Office~r bavin the end true copy of the original Endo+ ment This is to certify that this is aving the endorsement number and being made part of the Ce ifl g the number designated hereoA for Insurance ft cate coverage under the Nuclear Energy ability Policy (Facility V(orke Form). No Insurance afforded h under.
.ac orkere John Uh..
Uh..
ch nderwriting Alneric Nuclear Insurers Effective Date of this Endorsement January 1,
1988 Florida Power
& Light Company, Florida Municipa Issued to
'ion of the Cit of Orlando 12:01 A.M. Standard Time Dace of Issue Jul 27 1988 To Form a part of Certificate No.
power
- Agency, and Orlando For ehe Subscribing Companies MUTUhL hTOKKC ENERGY LIhSILITT ERlIRITERS Fndorsemene aVo.
"..E-M-l (1/ l./88)
By ii
~fj Couneersigned by A ehorired R pxeseneaeive
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