ML17285B323
| ML17285B323 | |
| Person / Time | |
|---|---|
| Site: | Columbia  |
| Issue date: | 06/05/1990 |
| From: | Lackner S MARSH & MCLENNAN, INC. |
| To: | Dinitz I NRC |
| References | |
| NUDOCS 9006130255 | |
| Download: ML17285B323 (188) | |
Text
ACCELERATED DISTRIBUTION DEMONSTPM.TION SYSTEM REGULATORY INFORMATION DISTRIBUTION SYSTEM (RIDS)
ESSION NBR:9006130255 DOC.DATE: 90/06/05 NOTARIZED:
NO CIL:50-397 WPPSS Nuclear Project, Unit 2, Washington Public Powe AUTH.NAME AUTHOR AFFILIATION LACKNER,S.M.
Marsh
& McLennan, Inc.
RECIP.NAME RECIPIENT AFFILIATION DINITZ,I.
NRC No Detailed AffiliationGiven DOCKET 05000397
SUBJECT:
Forwards Endorsements 41-47 to NELIA Policy NF-270 Endorsements 32-38 to MAELU Policy MF-110.
DISTRIBUTION CODE:
MOOID COPIES RECEIVED:LTR ENCL J SIZE:
3 TITLE: Insurance:
Indemnity/Endorsement Agreeme ts NOTES:
RECIPIENT ID CODE/NAME INTERNAL: NRR/PMAS/PTSB12 EXTERNAL: LPDR COPIES LTTR ENCL 1
1 1
1 REG FIL NRC PDR 01 RECIPIENT COB)g+NAME COPIES LTTR ENCL 1
1 1
1 NOTE TO ALL"RIDS" RECIPIENTS:
PLEASE HELP US TO REDUCE WASTE! CONTACT THE DOCUMENT CONTROL DESK, ROOM P 1-37 (EXT. 20079) TO ELIMINATEYOUR NAMEFROM DISTRIBUTION LIPID FOR DOCUMENTS YOU DON'T NEED!
TAL NUMBER OF COPIES REQUIRED:
LTTR 4
ENCL 4
IViarshP-
+clent n
Marsh &Mcl.ennan Nuclear 222 South Riverside Plaza Chicago, Illinois60606 Telephone 312 648-6000 June 5,
1990 Nr. Ira Dinitz Insurance 8 Indemnity Policy Analyst U.
S. Nuclear Regulatory Commission Mail Stop 12E4 Washington, D.C.
20555 RE:
WASHINGTON PUBLIC POWER SUPPLY SYSTEM NUCLEAR LIABILITYINSURANCE
Dear Mr. Dinitz:
On behalf of the captioned client, enclosed are two certified copies of each of the following insurance policy documents:
Pol i c No.
NF-270 MF-110 Endorsement No.
41-47 32-38 N-91 M-91 13-14 13-14.
Please contact me if you have any questions.
- Regards, Steven M. Lackner Nuclear Consultant SNL:gc enc.
cc:
Ms. A. Narzette WPPSS Mr. D. Ashburn - M&N Seattle 9006130255 900605=
PDR ADOCK 05000397 J
f c,
I t1 CP I
Nuclear Energy Liability Insurance MUTUALATOMIC ENERGY LIASILITYUNDERWRITERS NAIVER OF DEFENSES ENDORSEMENT (Extraordinary Nuclear Occurrence)
Effective August 20,
- 1988, the named
- insured, acting for himself and every other insured under the
- policy, and the members of Nuclear Energy Liability Insurance Association agree as follows:
With respect to any extraordinary nuclear occurrence to which the policy applies as proof of financial protection and which (a) arises out of or results from or occurs in the course of the construction, possession, or operation of the facility, or (b) arises out of or results from or occurs in the course of the transportation of nuclear material to or from the facility, the insureds and the companies agree to waive (1) any issue or defense as to the conduct of the claimant or the fault of the insureds, including but, not limited to:
(i) negligence, (ii) contributory negligence, (iii) assumption of risk, and (iv) unforeseeable intervening
- causes, whether involving the conduct of a third person, or an act of God, (2) any issue or defense as to charitable or governmental immunity, and (3) any issue or defense based on any statute of limitations if suit is instituted within three years from the date on which the claimant first knew, or reasonably could have known, of his bodily injury or property damage and the cause thereof.
The waiver of any such issue or defense shall be effective regardless of whether such issue or defense may otherwise be deemed jurisdictional or relating to an element in the cause of action.
2.
The waivers set forth in paragraph 1.
above do not apply to ME-3 3b Page 1 of 3
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I
(a)
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bodily injury or property damage which is intentionally sustained.
by the claimant or which results from a
nuclear incident intentionally and wrongfully caused by the claimant; (b) bodily injury sustained by any claimant who is employed at the site of and in connection vith the activity vhere the extraordinary nuclear occurrence takes place if benefits therefor are either payable or required to be provided under any workmen' compensation or occupational disease lav; (c) any claim for punitive or exemplary
- damages, provided, with respect to any claim for wrongful death under any State lav which provides for damages only punitive in
- nature, this exclusion does not apply to the extent that the claimant has sustained actual
- damages, measured by the pecuniary injuries resulting from such death but not to exceed the maximum amount otherwise recoverable under law.
3.
The waivers set forth in paragraph 1.
above shall be effective only vith respect to bodily injury or property damage to vhich the policy applies under its terms other than this endorsement;
-provided,
- however, that vith respect to bodily injury or property damage resulting from an extraordinary nuclear occurrence, Insuring Agreement IV, "Application of Policy",
shall not operate to bar coverage for bodily injury or property damage (a) which is caused during the policy period by the nuclear energy hazard and (b) which is discovered and for which written claim is made against the insured not later than twenty (20) years after the date of the extraordinary nuclear occurrence.
Such waivers shall not apply to, or prejudice the prosecution or defense of any claim or portion of claim which is not within the protection afforded under (a) the provisions of the policy applicable to the financial protection required of the named insured; (b) the agreement of indemnification between the named insured and the Nuclear Regulatory Commission made pursuant to Section 170 of the Atomic Energy Act of
~
- 1954, as amended; and (c) the limit of liability provisions of Subsection 170e.
of the Atomic Energy Act of 1954, as amended.
Such waivers shall not preclude a defense based upon the failure of the claimant to take reasonable steps to mitigate damages.
ME-33b Page 2 of 3
I J
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4.
Q7 Sub ject to all of the limitations stated in this endorsement and in the Atomic Energy Act of
- 1954, as
- amended, the waivers set forth in paragraph 1.
above shall be judicially enforceable in accordance with their terms against any insured in an
. action to recover damages because of bodily injury or property damage to which the policy applies as proof of financial protection.
5.
As used herein:
"extraordinary nuclear occurrence" means an event which the Nuclear Regulatory Commission has determined to be an extraordinary nuclear occurrence as defined in the Atomic Energy Act of 1954, as amended.
"Financial protection" and "nuclear incident" have the meanings given them in the Atomic Energy Act of 1954, as amended.
"claimant" means the person or organization actually sustaining the bodily injury or property damage and also includes his assignees, legal representatives and other persons or organizations entitled to bring an action for damages on account of such injury or damage.
I This is to certify that this is a true copy of the original E d t having the endorsement number and being made part as des-of the Nuclear Energy Liability Policy acility Form) as es-ignate hereon. No In trance is affor d hereunder.
John L.
<attrocchi, Vice resident. Unde
.n American uclear Insurers Effective Date of ndorsement August 20, 1 988 12rot A.H. Standard time To form a part of Policy No. NF-110 Issued to Washington Public Power Supply System Date of issue February 16, 1990 For the Subscribing Companies HUTUhL ATONIC ENERGY LXABILITYUNDER By Countersigned by ME-33b Page 3 of 3
lw, I I l
I 0
Nuclear Energy Liability Insurance MUTUALATOMIC ENERGY LIABIIITY UNDERWRITERS SUPPLEMENTARY ENDORSEMENT WAIVER OF DEFENSES REACTOR CONSTRUCTION AT THE FACILITY Effective August 20, 1988, it is agreed that in construing the application of paragraph 2(b) of the WAIVER OF DEFENSES ENDORSEMENT ME-33b with respect to an extraordinary nuclear occurrence occurring at the facility,,
a claimant who is employed at the facility in connection with the construction of a nuclear reactor with respect to which no operating license has been issued by the Nuclear Regulatory Commission shall not be considered as employed in connection with the activity where the extraordinary nuclear occurrence takes place if:
(1) the claimant is employed exclusively in connection with the construction of a nuclear reactor, including all related equipment and installations at the facility, and (2) no operating license has been issued by the Nuclear Regulatory Commission with respect to the nuclear
- reactor, and (3) the claimant is not employed in connection with the possession,
- storage, use or transfer of nuclear material at the facility.
This is to certify that this is a true copy of the original Endorsement havirt'g the endorsement r mbar and being made part o! ".l!t: Nuclear Energy Liability Policy:acility Form) as des-ionatec hereon Ro b t.~t.
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ur
~'ereunder.
7
)
John L.
at trocchi, Vice President UndenNritins American Nuclear Insurers Effective Date of August 20, 1988 12r01 A.tt. Standard tine To form a part of Policy No.
MF-110 Issued to Washington Public Power Supply System D
f i February 1 6, 1 990 For the Subscribing Companies NKUAL ATOMIC EKKGT LXABILITYUNDHR By ndorsement No.
33 Countersigned by ME-39b
II 4
ag 1
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Nuclear Energy Liability Insurance MUTUALATOMIC ENERGY LIABILITYUNDERWRITERS Restriction of Com anies Obli ation to Defend Investi ate Ne otiate or Settle An Claim or Suit (Section 170 0. of the Atomic Energy Act of 1954, as amended)
Effective August 20, 1988, it is agreed that whenever, pursuant to subsection 170 0.
of the Atomic Energy Act of
- 1954, as
- amended, an appropriate U.S.
District Court determines that liability from a single nuclear incident may exceed the limit of liability under the applicable limit of liability under subsection 170 e.(1)
(A), (8) and (C) of the Atomic Energy Act of
- 1954, as
- amended, the companies obligations under Insuring Agreement I, to
- defend, investigate, negotiate or settle any claim or suit under the policy do not include any obligation that would necessitate or result in the companies incurring legal
- costs, including costs of initiating, prosecuting, investigating,
- settling, or defending claims or suits, which are not authorized for payment by a court pursuant to such subsection 170 0.
0 This is to certify that this is a true copy of the original Endorsement having the endorsement number and being made part of the Nuclear Energy Liability Policy (
cility Form) as des-ignatec hereon. No Ins rance is affor hereunder.
John L i attrocchi, Vice esident.Underw hmerican Nuclear Insurers Effective Date of August 20, 1988 12r01 A.H. Standard time To form a part of Policy No.
NF-110 Issued to Wash1n ton Pub1ic Power Supp1y System Date of issue February 16, 1990 Por the Subscribing Companies MUTUAL ATOMIC j NKIGT IZhBELXTY UNDERIKITERS dorsement No.
34 By Countersigned by ME-70
II p
n v
Q r
Nuclear Energy LIability Insurance MUTUALATOMIC ENERGY LIABILITYUNDERWRITERS WAIVE OF DEFENSES ENDORSEMENT (Extraordinary Nuclear Occurrence)
The named insured.
acting for himself and every other insured under the policy, and the members of Nuclear Energy Liability Insurance Association agree as follows:
1.
with respect to any extraordinary nuclear occurrence to which the policy applies as proof of financial protection and which (a) arises out of or results from or occurs in the course of the construction, possession, or operation of the facility, or (b) arises out of or results from or occurs in the course of the transportation of nuclear material to or from the facility, the insureds and the companies agree to waive (1) any issue or defense as to the conduct of'he claimant or the fault of the insureds, including but not limited to:
(i) negligence, (ii) contributory negligence, (iii) assumption of risk, and (iv) unforeseeable intervening
- causes, whether involving the conduct of a third person, or an act of God, (2) any issue or defense as to charitable or governmental immunity, and (3) any issue or defense based on any statute of limitations if suit is instituted within three years from the date on which the claimant first knew, or reasonably could have known, of his bodily injury or property damage and the cause thereof.
The waiver of any such issue or defense shall be effective regardless of whether such issue or defense may otherwise be deemed jurisdictional or relating to an element in the cause of action.
2 ~
to The waivers set forth in paragraph 1.
above do not ap 1
app y
(a) bodily injury, property damage or environmental damage which is intentionally sustained by the
claimant or which results from a
nuclear incident intentionally and wrongfully caused by the claimant; NE-33c (1/1/90)
Page 1 of 3
k'
(b) bodily injury sustained by any claimant who is employed at the site of and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits therefor are either payable or required to be provided under any workmen' compensation or occupational disease law:
(c) any claim for punitive or exemplary damages.
- provided, with respect to any claim for wrongful death under any State law which provides for damages only punitive in nature, this exclusion does not apply to the extent that the claimant has sustained actual
- damages, measured by the pecuniary injuries resulting from such death but not to exceed the maximum amount otherwise recoverable under law.
3.
The waivers set forth in paragraph l.
above shall be effective only with respect.
to bodily injury, property damage or environmental damage to which the policy applies under its terms other than this endorsement:
- provided, however, that with respect to bodily injury, property damage or environmental damage resulting from an extraordinary nuclear occurrence, the provisions of COVERAGES A and C of the policy providing coverage for bodily injury, property damage or environmental damage caused during the policy period by the nuclear energy hazard and which is discovered and for which written claim is made against the insured not. later than ten (10) years after the end of the policy period shall not operate to bar coverage for bodily injury, property damage or environmental damage (a) which is caused during the policy period by the nuclear energy hazard and (b) which is discovered and for which written claim is made against the insured not later than twenty (20) years after the date of the extraordinary nuclear occurrence.
Such waivers shall not apply to, or prejudice the prosecution or defense of any claim. or portion of claim which is not within the protection afforded under (a) the provisions of the policy applicable to the financial protection required of the named insured:
(b) the agreement of indemnification between the named insured and the Nuclear Regulatory Commission made pursuant to Section 170 of the Atomic Energy Act of
- 1954, as amended:
and (c) the limit of liability provisions of Subsection 170e.
of the Atomic Energy Act of 1954, as amended.
Such waivers shall not preclude a defense based upon the failure of the claimant to take reasonable steps to mitigate damages.
ME-33c (1/1/90)
Page 2 of 3
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5.
Subject to all of the limitations stated in this endorsement and in the Atomic Energy Act of
- 1954, as
- amended, the waivers set forth in paragraph 1.
above shall be judicially enforceable in accordance with their terms against any insured in an action to recover damages because of bodily injury, property damage or environmental damage to which the policy applies as proof of financial protection.
As used herein:
"extraordinary nuclear occurrence" means an event which the Nuclear Regulatory Commission has determined to be an extraordinary nuclear occurrence as defined in the Atomic Energy Act of 1954, as amended.
"Financial protection" and "nuclear incident" have the meanings given them in the Atomic Energy Act of 1954, as amended.
"claimant" means the person or organization actually sustaining, the bodily injury, property damage or environmental damage and also includes his assignees, legal representatives and other persons or organizations entitled to bring an action for damages on account of such injury or damage.
This is to certify that this is a true copy of th I
o e origina n orsement having the endorsement number and being made part of the Nuclear Energy Liability Policy f acility Form) as des-ignatec hereon. No Ins ~rance is affor
. d hereunder.
~
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John L. >i attrocchi, Vice President Unde Anierican Nuclear lnsurers Effective Date of this Endorsement January 1,
1990 12101 A.H. Standard tine To form a parr of Policy No.
NF 110-Issued to Washin ton Public Power Supply System Date of issue February 16, 1990 Por the Subscribing Companies MlfIMLATOMIC ENERGY LIhBILITYUNDERQRITERS By Endorsement No.
Countersigned by NE-33c (1/1/90)
Page 3 of 3
~i e
il 4
Nuclear Energy Liability Insurance MUTUALATOMIC ENERGY LIABILITYUNDERNRITERS SUPPLEMENTARY ENDORSEMENT WAIVER OF DEFENSES REACTOR CONSTRUCTION AT THE FACILITY It is agreed that in construing the application of paragraph 2(b) of the WAIVER OF DEFENSES ENDORSEMENT NE-33c with respect to an extraordinary nuclear occurrence occurring at the
- facility, a
claimant who is employed at the facility in connection with the construction of a
nuclear reactor with respect to which no operating license has been issued by the Nuclear Regulatory Commission shall not be considered as employed in connection wi:th the activity where the extraordinary nuclear occurrence takes place if:
(1) the claimant is employed exclusively in connection with the construction of a nuclear reactor, including all related equipment and installations at the facility, and (2}
no operating license has been issued by the Nuclear Regulatory Commission with respect to the nuclear
- reactor, and (3) the claimant is not employed in connection with the possession,
- storage, use or transfer of nuclear material at the facility.
This is to certifv that this is a true copy of the original of Endorsement having the endorsement mber and being m d art the Nuclear Energy Liability Policy acility Form) as des-ing ma e part ignatec. hereon. No lns an ereund John L:.
ittrocchl, Vice President. Underwriting American Nuclear tnsurers Effective Date of this Endorsement 12rot A.N. Standard time To form a patt oi Policy No.
Issued to Washin ton Public Power Sup ly System Date of issue February 16, 1990 For the Subscribing Companies KJTQAL ATOMIC ENERGY LIABILITYUNDER By dorsement No.~
Countersigned by ME-39c (1/1/90)
/I U
Nuclear Energy Liability insurance MUTUAL'ATOMICENERGY LlABILlTYUNDERV/RITERS AMENDATORY ENDORSEMENT (Facility Form)
Xt is agreed that:
INSURING AGREEMENT I is replaced by the following:
I COVERAGE A - LIABILITY To pay on behalf of the insured all sums which the insured shall become legally obligated to pay as covered damages because of bodily injury or property damage.
or as covered environmental cleanup costs because of environmental damage.
This Coverage applies only to bodily i j p
p rty damage or environmental damage caused durin th ro e n ury, o
p licy period by the nuclear energy
- hazard, and which is ng e
discovered and for which written claim is made against the
- insured, not later than ten (10) years after the end of the policy period.
The companies shall have the right and duty to defend any claim or suit against the insured alleging such injury or damage.
and seeking damages or costs which are payable under the terms of this policy: but the companies may make such investigation, negotiation and settlement of the claim or suit as they deem expedient.
The companies'uty to defend shall be
- limited, as described in INSURING AGREEMENT XV, if the claim or suit also seeks any of the following, which in no event shall be construed as covered by this policy:
(1) damages for on-site property damage:
(2) recovery of on-site cleanup costs or any other cleanup costs except covered environmental cleanup costs (3) performance of an insured's environmental protection obligations or on-site cleanup obligations: or (4) any other relief or recovery except
- payment, of covered damages or covered environmental cleanup I
The companies'uty to defend claims or suits ends when to CONDIT10N 3.
the limit of their liability has been exhausted aus e
pursuant with r s
-Subject to INSURING AGREEMENT IV, the companies shall respect to any claim or suit they defend, the costs es s
a
- pay, incurred in the defense, including (2) costs taxed against the insured in any such suit and interest on any judgment therein:
premiums on appeal bonds and bonds to release attachments in any such suit, but without obligation to apply for or furnish such bonds:
I I
(3) reasonable
- expenses, other than loss of earnings, incurred by the insured at the companies'equest.
COVERAGE B -
DAMAGE TO PROPERTY OF AN INSURED AWAY FROM THE FACILITY With respect.
to property damage caused during the policy period by the nuclear energy hazard to the property of an insured which is away from the facility, to pay to such insured those sums which such insured would have been legally obligated to pay as covered damages
- therefor, had such property belonged to another.
COVERAGE C - SUBROGATION - OFFSITE EMPLOYEES With respect to bodily injury caused during the policy period by the nuclear energy hazard to any employee of an
- insured, and which is discovered and for which written claim is made against the insured, not later than ten (10) years after the end of the policy period, to pay to the workmen's compensation carrier of such insured as follows:
All sums which such carrier would have been entitl d t recover and retain as damages from another person or organization, had such person or organization alone been legally responsible for such bodily injury, by reason of bethe rights acquired by subrogation by the payment f th nefits required of such carrier under the applicable workmen's compensation or occupational disease law.
An employer who is a duly qualified self-insurer under such law shall be deemed to be a workmen's compensation carrier within the meaning of this Coverage.
This Coverage does not apply to bodily injury to any person who is employed at and in connection with the facility; nor shall it constitute workmen's compensation insurance as required under the laws of any state.
INSUR1NG AGREEMENT II'is replaced by the following:
II DEFINITION OF INSURED The unqualified word "insured" includes (a) the named insured and (b) any other person or organization with respect to his legal responsibility for covered damages or i
covered environmental cleanup costs because f
b dil njury, property damage or environmental damage caused b
the nuclear energy hazard.
cause y
Subdivision (b) above does not include as an insured the United States of America or any of its agencies, except the Tennessee Valley Authority.
Subject to CONDITION 3
and the other provisions of this policy, the insurance applies separately to each insured against whom claim is made or suit is brought.
A
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i5
INSURING AGREEMENT ZIZ is replaced b
th y
e following:
III DEFINITIONS Nherever used in this policy policy.
"bodily in)ury<< means bodily in'ur si including death resultin person.
resu ng therefrom, sustained by any "covered damages" means damages because of d
t hi h thi covered damages do not incl d o
n nmental cleanup costs o
nc ude enviro "covered environmental cleanup costs" tal cl containing environmental dama t odi n
1 uc ear occurrence or a
transportation include on-site cleanup costs.
e env ronmental clea nup costs do not "disposal site" te means any structure, basin premises or place prepared as a
d disposal of waste materials of a e
1o b
d f th containing small amou t or e
disposal of waste materials oun s o nuclear material.
"environment" includes
- land, the b di nat ral r
- ources, o
es of water and or e ow the surface of the ground.
fleenvironmental cleanup costs" include f
ou o
any governmental
- decree, order or ere amages in n
er an an award of cov organization to und t k equ r ng or re u q esting a
person or for cleaning up neutralizin or er a e or a
for g o ontaining contamination b lo th f
f th w ether the contami e o e ground.
"environmental damage" means contam con amination of the environ-
"environmental protection obli at obligations of any on o
igations" include all ny person or organization (1) relating to the protection of the ec on of the environment from and mm nent danger of contamination, (2) imposed b
an y
y governmental
- laws, regulations or "extraordinary nuclear occurrence" d
man n
n ih etermined to be an ext di es Nuclear Regulator an ex raordinar y
Commission has di y
nuclear occurrence as 3
I
defined in the Atomic Energy Act of 1954, or in any law amendatory thereof.
"governmental" refers to
- federal, state and local governments and authorities, including courts, agencies and political subdivisions thereof.
"indemnified nuc1ear facility" means (2)
"the facility" as defined in any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters, or any other nuclear facility, if financial protection is required pursuant to the with Atomic Energy Act of 1954, or any law amendato y th f
respect to any activities or operations conducted r
ereo thereat.
"insured shipment" means a
shipment of source
- material, special nuclear material, spent fuel, waste, or tailings or wastes produced by the extraction or concentration of uranium or thorium from any ore processed primarily for its source material content, herein called "material,"
(1) to the facility from any location except an indemnified nuclear facility, but only if the transportation of the material is not by predeter-mination to be interrupted by removal of the material from a
transporting conveyance for any purpose.other than the continuation of-its transpor-tation, or (2) from the facility to any other location, but only until the material is removed from a
transporting, conveyance for any purpose other thorn the continuation of its transportation.
"nuclear energy hazard" means the radioactive, toxic.
explosive or other hazardous properties of nuclear material, but only if (2) the nuclear material is at the facility or has been reli discharged or dispersed therefrom without i t t t nquish possession or custody thereof to any other person or organization, or E
the nuclear material is in an insured shipment whi h away from any other nuclear facility and is in the C
course of transportation, including handling and temporary storage incidental thereto, within (a) the territorial limits of the United States of
- America, its territories or possessions, or Puerto Rico: or (b) international waters or airspace, provided that the nuclear material is in the course of transportation between two points located within
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the territorial limits described in (a) above and there is no deviation in the course of th transportation for the purpose of going to any other o
e country, state or nation, except for the purpose of going to or returning from a port or place of refuge as the result of an emergency.
"nuclear facility" means "the facility" as defined in any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters.
The term "nuclear facility" also means (1) any nuclear reactor, (2) any equipment or device designed or used for (a) separating the isotopes of uranium or plutonium, (b) processing or utilizing spent fuel, or (c) handling, processing or packaging waste, (3) any equipment or device used for the processing, fabricating or alloying of special nuclear material if at any time the total amount of such material i he custody of the insured at the premises where e
a n
such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination
- thereof, or more than 250 grams of uranium 235, (4) any structure,
- basin, excavation, premises or place prepared or used for the storage or disposal of
- waste, and includes the site on which any of the foregoing is located, all operations conducted on such site and all premises used for such operations.
"nuclear material" means source material, special nuclear material or bypr'oduct material.
"nuclear reactor" means any apparatus designed or used to sustain nuclear fission or a
self-sustaining chain material.
reaction or to contain a critical mass of fi i bl ss ona e
"an-site cleanup costs" include all loss, cost or expense arising out of on-site cleanup obligations.
"on-site cleanup obligations" include all obligations of ot any person or organization.
imposed by common 1
n aw or forherwise, to undertake or pay for monitori t ti ng, es ng cleaning up, neutralizing or containing contamination by nuclear material at the facility, whether the material is on, above or b~lcw the surface of the ground.
"on-site property damage" includes all property damage to any property at the facility, whether the property is on, above or below the surface of the
- ground, other than aircraft, watercraft or vehicles licensed for highway use,
provided such aircraft, watercraft or vehicles are not used in connection with the operation of the facility.
"property damage<<
means physical injury to or destruction or radioactive contamination of property, and loss of use of property so
- injured, destroyed or contaminated, and loss of use of property while evacuated or withdrawn from use because possibly so contaminated or because of imminent danger of contamination.
"source material,"
and "byproduct material" have the meanings given them in the Atomic Energy Act of
- 1954, or in any law amendator thereof.
amen a ory "spent fuel" means any fuel element or fuel component.,
solid or liquid.
which has been used or exposed to radiation in any nuclear reactor.
"the facility" means the facility described in the declarations and includes the location designated i It 3
0f the declaratz.ons and all property and operations at such location.
"transportation incident" means a discharge or dispersal of nuclear material from an insured shipment caus d
b ollision or upset of the transporting conveyance, or an shi accident that breaks
- open, punctures or ruptu th pping containers or containment thereon:
but only if both the discharge or dispersal and the collision, upset or accident take place away from any nuclear facility and of the t away from any disposal site, and both occur in th e
ransportation, including
- handling, and temporary storage incidental thereto.
"waste" means any waste material (1) containing, byproduct material and (2) resulting from the operation by any person or organization of any nuclear facility included within the definition of nuclear facility under paragraph (1) or (2) thereof.
4 ~
INSURING AGREEMENT IV is replaced by the following and INSURING AGREEMENT IV-A added by the "Amendment of Coverage Endorsement for Workers Claims (Facility Form "
continues to apply:
c y
orm)"
IV LIMITED DEFENSE OF PARTIALLY COVERED CLAIMS OR SUITS The following provisions apply with respect to any partially covered claim or suit for which the companies'uty to defend has been limited by INSURING AGREEMENT I:
(1)
The companies will defend the claim or suit unless the companies and the first named insured mutually agree on a different defense arrangement.
By making
~I F
L
such a defense.
the companies shall not, be considered as having waived their'ights under this policy to deny payment or reimbursement
.of the items not covered.
(2)
As soon as practicable, the first named
- insured, acting on behalf of all insureds, and the companies shall endeavor to reach an equitable arrangement for handling the defense and sharing the costs thereof.
(3)
The companies'hare of defense costs shall not exceed the portion of the total defense costs that represents the costs which would be reasonably and necessarily incurred in the defense of the claim or suit in the absence of any claim or demand for the items not covered.
(4)
The companies shall have a right to contribution from the first named insured for all defense costs as they are incurred in excess of the amount of the companies'hare, including reimbursement by the first named insured of all such excess costs paid by the companies.
(5) If the companies and the first named insured cannot dagree on the companies'hare'of defense costs th ispute shall be submitted, as a condition precedent to any right of recovery on this policy, to arbitra-tion for a final and binding resolution, as provided in Condition 19.
5 ~
In EXCLUSIONS (d) and (e),
and in all endorsements to this policy relating
- thereto, the words "bodily injury or property damage" are replaced by "bodily injury, property damage or environmental damage."
6.
EXCLUSION (f) is replaced by the following exclusion:
[This policy does not apply:]
(f) to on-site property damage; 7 ~
In CONDITION 3, and in all endorsements to this policy modifying the dollar amount of the limit of liability'tated in Item 4 of the declarations, the words "bodily injury or property damage" are replaced by "bodily injury, property damage or environmental damage."
8 ~
ln CONDITION 4, and in all endorsements to this policy modifying the dollar amount of the total aggregate liability of the companies with respect to a
common occurrence:
(a)
(b) the words "bodily injury or replaced by "bodily injury, environmental damage";
and the words "bodily injury and replaced by "bodily injury, environmental damage."
property damage" are property damage or property damage" are property damage and
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9.
Xn CONDXTXONS 5, 11, 15 and 18, and in all endorsements to this policy relating thereto, the words "bodily injury or property damage" are replaced by "bodily injury, property damage or environmental damage."
10.
CONDITION 19, DECLARATIONS, and CONDITION 20, MUTUAL POLICY CONDITION, are renumbered CONDITIONS 20 and 21.
The following CONDITION is added to the policy:
19
'ARBITRATION OF DISPUTES RELATING TO THE APPLICATION OF INSURING AGREEMENT IU All such disputes subject to paragraph (5) of XNSURXNG AGREEMENT XV shall be submitted to a Board of Arbitration (the "Board" ) for a final and binding resolution of the dispute.
There shall be two parties to the arbitration:
the first named
- insured, acting on behalf of all insureds as their duly authorized representative, and Nuclear Energy Liability Insurance Association, acting on behalf of the companies as their duly authorized representative.
Except to the extent the parties mutually agree otherwise, the following principles will apply:
(a)
The arbitration will take place in New
(b)
Either party may begin the process of arbitration b
giving, notice to the other party in writing of its on y
intention to do so and the name of the arbitrator that it has appointed.
(c)
The other party shall then appoint in writing an arbitrator, and the arbitrators shall appoint in writing an umpire before they begin the arbitration.
The umpire shall act as chairman of the Board.
(d) If a
party fails to name its arbitrator withi thirty (30) days of the other party's written n
request that it do so, the requesting party may appoint an arbitrator for the party in default.
(e) If the two arbitrators fail to agree on the selection of an umpire within thirty (30) days after they have both been appointed, each of them shall name two, of whom the other shall decline one.
The choice shall be made by drawing lots.
(f)
The arbitrators and umpire shall be executi officers or former executive officers of insurance companies licensed to do business in the United States or of'rganizations designated as the first named insured under a Nuclear Energy Liability Policy issued by Nuclear Energy Liability Insurance UAssociation or Mutual Atomic Energy Liabilit thenderwriters; provided that the current employ f
e following shall not be eligible for service emp oyees o
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f (A8i-.
without the consent of both parties:
(1) any party or likely party to the underlying claim or suit:
(2)
American Nuclear
- Insurers, MAERP Reinsurance Association or their members:
or (3) any other insurer or reinsurer which has casualty insurance or reinsurance in force on any of the foregoing which may be materially affected by the Board's decision.
Within thirty (30) days after the appointment of the
- umpire, each party shall submit its case in writing to the Board.
The Board shall determine its rules of procedure, and the nature and extent of any discovery, testimony, examination or cross-examination of witnesses and oral argument permitted.
The decision of any two members of the Board shall be final and binding on all parties.
All discovery, submissions of evidence, hearing, of witnesses and argument shall be completed within sixty (60) days of the appointment of the umpire, provided the Board may grant one extension of thirty (30) days.
The arbitrators and the umpire are not to be bound by any strict rules of legal procedure, evidence or b t legal precedents.
They shall, however be govern d y
he terms of this policy, and shall have no power
~
me to add to or change its provisions.
Subject to this admonition, they shall interpret the relevant provisions of this policy as an honorable business agreement, and shall be entitled to
- decide, in accordance with such provisions together with the other materials submitted to them, what they think is the fair and right thing to be done between the parties from a
business point of
- view, without favoring the interest of either party.
The Board shall make its award in writing within thirty (30) days after the close of the
- period, including any extension
- granted, described in paragraph (h) above.
If the Board fails to make an award within the time prescribed by paragraph (j)
- above, then unless an extension is agreed to by the
- parties, a
new arbitration shall be commenced and completed in accordance with the procedure set out in paragraphs (a) through (j) above.
The award of the Board signed by any two members shall be final, not subject to appeal and binding on all parties, including all insurers subscribing the policy and all insureds thereunder.
The award shall be treated as a matter involving interstate
- commerce, and may be filed or confirmed in any court of competent jurisdiction, state or feder 1
d gment thereon entered and enforced, in accordance ud with the law and practice of the forum.
ls
1 (m)
Unless the Board decides otherwise, each party shall pay the expenses of the arbitrator appointed by or for it, and one half of the other costs of arbitration.
(n)
Xf an arbitrator or umpire is unable or unwilling to
- act, a
new arbitrator or umpire, as the case may be, shall be appointed to act in his or her place, in accordance with the provisions set forth above.
(o)
All materials relevant to the arbitration shall be submitted to the Board in triplicate and the filing party shall send simultaneously a copy thereof to the opposing party.
12 This endorsement applies to all claims for damages,
- costs, expenses or other relief or recovery for which coverage is sought under this'olicy, and which are first made in writing, against any insured on or after the effective date
'of this endorsement stated below.
This is to certify that this is a true copy of the original Endorsement having the endorsement numb d b
'r an eing made part of the Nuclear Energy Liability Policy (F.".ility Form) as des.
ignated i ereon. No Insur nce is afforde hereunder.
John L. 4
'rocchi, Vice President.Underwrit>
~
American Nuclear Insurers 10 Effective Date of this Endorsement Januar 1> 1990 l2i01 A.M. Standard Time Issued to Washin ton Public Power Supply System Date of Issue Februar 16 1990 To form a part of Policy No, For the Subscri.bing Companies MUTUAL AToMIC ENERGY LIABILITYUND WRITERS By rsement No.
37
-71 (1/1/90)
Countersigned by Authorized Representaci.ve
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Nuclear Energy Liability Insurance MUTUALATOMIC ENERGY LIABILITYUNDERWRITERS CHANGES IN SUBSCRIBING COHPANIES AND IN THEIR PROPORTIONATE LIABILITYENDORSEMENT CALENDAR YEAR 1990 1.
It is agreed that with respect to bodily injury, property damage or environmental damage
- caused, during the effective period of this endorsement, by the nuclear energy hazard:
a.
The word "companies" wherever used in the policy means the subscribing companies listed below.
b.
The policy shall be binding on such companies only.
c.
Each such company shall be liable for its proportion, as designated
- below, of any obligation assumed or expense incurred under the policy because of such bodily in)uryp property damage or environmental damage.
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47 C~O ArkPfright Hutual Insurance Clppany 21K Eaployers Insurance of uausau, A Hutual Company 21K Liberty Mutual Insurance Cotpany 2N LINjbermens Mutual Casualty Coapany 30K 01 ~
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NOTICE OF AIOAIALIKETINGS The annual meetings of E1tpioyers Insurance of Wausau A Hutual
- Coppany, are held at its home office in IIausau, Iiisconsin, on the fourth Friday of Hay in each year, at nine o'lock in the morning.
The arvlual meetings of Arkuright Insurance Mutual Corpany are held at its home office in Ilaltham, Hassachusetts, on the second Ilechesday of March in each year, at ten-thirty o'lock in the morning.
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The annual meetings of LIfnbermens Mutual Casualty Coipany are held at its home office in Long Grove Illinois, on the third Tuesday of Hay in each year, at eleven o'lock in the morning.
The afnuai meetings of Liberty Hutual Insurance Company are held at its home office in Boston, Hassachusetts, on the third IIednesday of April in each year, at ten o'lock in the mornirg.
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0 E fec ve Date of this Endorsement Janua 1
1990 12:01 A.H. Standard time To form a part of Policy No.
MF-110 It is agreed that the effective period of this endorsement is from the beginning of the effective date of this endorsement stated below to the effective date that another "Changes In Subscribing Companies And In Their Proportionate Liability Endorsement" changes the Companies and/or their proportions as listed in this endorsement, or to the time of the termination or cancellation of the policy, if sooner.
Issued to Date of issue A ril 1 1990 For the Subscribing Companies Washin ton Public Power Su 1
System MUTUAL ATOMIC GY LIABILITYUNDERWRIT S
By Endorsement No.
38 Countersigned by
C il(
I If ~t
Nuclear Energy Llabillty Insurance MUTUALATOMIC ENERGY LIABILITYUNDERWRITERS WAIUER OF DEFENSES ENDORSEMENT (Extraordinary Nuclear Occurrence)
Effective August 20,
- 1988, the named
- insured, acting for himself and every other insured under the
- policy, and the members of Nuclear Energy Liability Insurance Association agree as follows:
1.
With respect to any extraordinary nuclear occurrence to which the policy applies as proof of financial protection and which (a) arises out of or results from or occurs in the course of the construction, possession, or operation of the facility, or (b) arises out of or results from or occurs in the course of the transportation of nuclear material to or from the facility, the insureds and the companies agree to waive (1) any issue or defense as to the conduct of the claimant or the fault of the insureds, including but not limited to:
(i)
(ii)
(iii)
(iv) negligence, contributory negligence, assumption of risk, and unforeseeable intervening
- causes, whether involving the conduct, of a third person, or an act of God, (2) any issue or defense as to charitable or governmental immunity, and (3) any issue or defense based on any statute of limitations if suit is instituted within three years from the date on which the claimant first knew, or reasonably could have known, of his bodily injury or property damage and the cause thereof.
The waiver of any such issue or defense shall be effective regardless of whether such issue or defense may otherwise be deemed jurisdictional or relating to an element in the cause of action.
2 ~
The waivers set forth in paragraph 1.
above do not apply to ME-33b Page 1 of 3
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(a) bodily injury or property damage which intentionally sustained by the claimant or which results from a
nuclear incident intentionally and wrongfully caused by the claimant; (b) bodily injury sustained by any claimant who is employed at the site of and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits therefor are either payable or required to be provided under any workmen' compensation or occupational disease law; (c) any claim for punitive or exemplary
- damages, provided, with respect to any claim for wrongful death under any State law which provides for damages only punitive in
- nature, this exclusion does not apply to the extent that the claimant has sustained actual
- damages, measured by the pecuniary injuries resulting from such death but not to exceed the maximum amount otherwise recoverable under law.
3
~
The waivers set forth in paragraph 1.
above shall be effective only with respect to bodily injury or property damage to which the policy applies under its terms other than this endorsement;
- provided, however, that with respect to bodily injury or property damage resulting from an extraordinary nuclear occurrence, Insuring Agreement IV, "Application of Policy",
shall not operate to bar coverage for bodily injury or property damage (a) which is caused during the policy period by the nuclear energy hazard and (b) which is discovered and for which written claim is made against the insured not later than twenty (20) years after the date of the extraordinary nuclear occurrence.
Such waivers shall not apply to, or prejudice the prosecution or defense of any claim or portion of claim which is not within the protection afforded under (a) the provisions of the policy applicable to the financial protection required of the named insured; (b) the agreement of indemnification between the named insured and the Nuclear Regulatory Commission made pursuant to Section 170 of the Atomic Energy Act of
- 1954, as amended; and (c) the limit of liability provisions of Subsection 170e.
of the Atomic Energy Act of 1954, as amended.
Such waivers shall not preclude a defense based upon the failure of the claimant to take reasonable steps to mitigate damages.
ME-33b Page 2 of 3
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Subject to all of the limitations stated in this
,endorsement and in the Atomic Energy Act of
- 1954, as
- amended, the waivers set forth in paragraph
- 1. above shall be judicially enforceable in accordance with their terms against any insured in an action to recover damages because of bodily injury or property damage to which the policy applies as proof of financial protection.
As used herein:
"extraordinary nuclear occurrence" means an event which the Nuclear Regulatory Commission has determined to be an extraordinary nuclear occurrence as defined in the Atomic Energy Act of 1954, as amended.
"Financial protection" and "nuclear incident" have the meanings given them in the Atomic Energy Act of 1954, as amended.
"claimant" means the.person or organization actually sustaining the bodily injury or property damage and also includes his assignees, legal representatives and other persons or organizations entitled to bring an action for damages on account, of such injury or damage.
o cert fy that this s a true co f
Endorsement ham'n th d
oPy o the original g
e endorsement number and bein ta ti y olicy (F cility Form of the Nuclear Energy Liabil't p ':
(F eing made part ignated ereon. No insurance 'f "d
. )
) "s es.
o hereunde ice President Ottderwriti John L '
'trocch~i American
~ lear Insurers Effective a e o august 20, 1988 12t01 A.tt. Standard time To form a part of Policy No. NF->10 Issued to Washington PubIic Power Supply System Date of issue February 16, 1990 For the Subscribing Companies MUTUAL ATMKC EN1RGY LIABILITYUNDER By Countersigned by ME-33b Page 3 of 3
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h.
Nuclear Energy Liability Insurance MUTUALATOMIC ENERGY LIABILITYUNDERWRITERS CHANGES IN SUBSCRIBING COMPANIES AND IN THEIR PROPORTIONATE LIABILITYENDORSEMENT CALENDAR TEAR 1990 l.
It is agreed that with respect to bodily injury, property damage or environmental damage
- caused, during the effective period of this endorsement, by the nuclear energy hazard:
a.
The word "companies" wherever used in the policy means the subscribing companies listed below.
b.
The policy shall be binding on such companies only.
c.
Each such company shall be liable for its proportion, as designated
- below, of any obligation assumed or expense incurred under the policy because of such bodily injury, property damage or environmental damage.
NOTICE OF The ataual meetings of Arkuright Insurance Hutual Company are held at its home office in 'Waltham, Massachusetts, on the seccnd Wednesday of Harch in each year, at ten-thirty o'lock in the morning.
The amuai meetings of Liberty Mutual Insurance Company are held at its home office in Boston, Hassachusetts, on the third Wednesday of April in each year, at ten o'lock in the morning.
To form a part of Policy No.
MF-110 12:01 A.H. Standard time 8 2.
It is agreed that the effective period of this endorsement is from the beginning e
of the effective date of this endorsement stated below to the effective date that another "Changes In Subscribing Companies And In Their Proportionate Liability Endorsement" changes the Companies and/or their proportions as listed in this endorsement, or to the time of the termination or cancellation of the policy, if sooner.
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Arkuright Hutual Insurance Corpany 21K Ettployers Insurance of Wausau, A Hutual Company 2IX Liberty Mutual Insurance Cottpany 2N LlfAbermens Hu'tuel Casualty Cospany 30'
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AIQQAL IEETINGS Pe The annual meetings of Ecptoyers Insurance of Wausau A Mutual 5 <
- Company, are held at its home office in Wausau, Wisconsin, on the fourth Friday of Hay in each 5$
year, at nine o'lock in the morning.
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<< o The annual meetings of Lunbermens g
ac~+0 5
Mutual Casualty Cotpany are held at its home office in Long Grove Illinois, on the third Tuesday of Hay in each year, at eleven o'lock in the morning.
Ef ec e Date of this Endorsement Januar 1
1990 Issued to Washin ton Pub1ic Power Su 1
System Date of issue A ril 1 1990 For the Subscribing Companies MUTUAL ATOMIC E GY LIABILITYUNDERVRIT S
By Endorsement No.
38 Countersigned by
Iy
%)
1 l
y Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITYINSURANCE ASSOCIATION WAIVER OF DEFENSES ENDORSEMENT (Extraordinary Nuclear Occurrence)
Effective August 20,
- 1988, the named insured, acting for himself and every other insured under the policy, and the members of Nuclear Energy Liability Insurance Association agree as follows:
1.
With respect to any extraordinary nuclear occurrence to which the policy applies as proof of financial protection and which (a) arises out of or results from or occurs in the course of the construction, possession, or operation of the facility, or (b) arises out of or results from or occurs in the course of the transportation of nuclear material to or from the facility, the insureds and the companies agree to waive (1) any issue or defense as to the conduct. of the claimant or the fault of the insureds, including but not limited to:
(i)
(ii)
(iii)
(iv) negligence, contributory negligence, assumption of risk, and unforeseeable intervening
- causes, whether involving the conduct of a third person, or an act of God, (2) any issue or defense as to charitable or governmental immunity, and (3) any issue or defense based on any statute of limitations if suit is instituted within three years from the date on which the claimant first knew, or reasonably could have
- known, of his bodily injury or property damage and the cause thereof.
The waiver of any such issue or defense shall be effective regardless of whether such issue or defense may otherwise be deemed jurisdictional or relating to an element in the cause of action.
2 ~
The waivers set forth in paragraph l. above do not apply to NE-33b Page 1 of 3
)
4
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8,
(a) bodily injury or property damage which is intentionally sustained by the claimant or which results from a
nuclear incident intentionally and wrongfully caused by the claimant; (b) bodily injury sustained by any claimant vho is employed at the site of and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits therefor are either payable or required to be provided under any workmen's compensation or occupational disease law; (c) any claim for punitive or exemplary
- damages, provided, vith respect to any claim for wrongful death under any State law which provides for damages only punitive in
- nature, this exclusion does not apply to the extent that the claimant has sustained actual
- damages, measured by the pecuniary injuries resulting from such death but not to exceed the maximum amount otherwise recoverable under law.
3
~
4
~
The waivers set forth in paragraph 1.
above shall be effective only with respect to bodily injury or property damage to which the policy applies under its terms other than this endorsement;
- provided, however, that with respect to bodily injury or property damage resulting from an extraordinary nuclear occurrence, Insuring Agreement IV, "Application of Policy", shall not operate to bar coverage for bodily injury or property damage (a) vhich is caused during the policy period by the nuclear energy hazard and (b) which is discovered and for which written claim is made against the insured not later than tventy (20) 'years after the date of the extraordinary nuclear occurrence.
Such vaivers shall not apply to, or prejudice the prosecution or defense of any claim or portion of claim, vhich is not within the protection afforded under (a) the provisions of the policy applicable to the financial protection required of the named insured; (b) the agreement of indemnification between the named insured and the Nuclear Regulatory Commission made pursuant to Section 170 of the Atomic Energy Act of
- 1954, as amended; and (c) the limit of liability provisions of Subsection 170e.
of the Atomic Energy Act of 1954, as amended.
Such waivers shall not preclude a
defense based upon the failure of the claimant to take reasonable steps to mitigate damages.
Subject to all of the limitations stated in this endorsement
. and in the Atomic Energy Act of
- 1954, as
- amended, the waivers set forth in paragraph 1.
above shall be judicially enforceable in accordance with their terms against any insured in an action to recover damages because NE-33b Page 2 of 3
'l I
5.
of bodily injury or property damage to which the policy applies as proof of financial protection.
As used herein:
"extraordinary nuclear occurrence" means an event which the Nuclear Regulatory Commission has determined to be an extraordinary nuclear occurrence as defined in the Atomic Energy Act of 1954, as amended.
"Financial protection" and "nuclear incident" have the meanings given them in the Atomic Energy Act of 1954, as amended.
"claimant" means the person or organization actually sustaining the bodily injury or property damage and also includes his assignees, legal representatives and other persons or organizations entitled to bring an action for damages on account, of such injury or damage.
This is En tort c
-.he ignate John L American to certify that this is a true copy of the original t having the endorsement number and being mad art r Energy Liability Policy acility Form) as des-a ep h~; an. No In 'an
'~ ~ for 'd hereunder.
i~
attrocchi, Vice President.Underwn ng Nuciear Inaurers Effective Date of this Endorsement
-12t01 A.tt. Standard tits To form a part of Policy No, ~'70 Issued to Mashington Publ.ic Power Supply System Date of isse February 16, 1990 For the By cribing panies esident ndorsement No.
41 Countersigned by NE-33b Page 3 of 3
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Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITYINSURANCE ASSOCIATION SUPPLEMENTARY ENDORSEMENT WAIVER OF DEFENSES REACTOR CONSTRUCTION AT THE FACILITY Effective August 20, 1988, it is agreed that in construing the application of paragraph 2(b) of the WAIVER OF DEFENSES ENDORSEMENT NE-33b with respect to an extraordinary nuclear occurrence occurring at the
- facility, a
claimant who is employed at the facility in connection with the construction of a nuclear reactor with respect to which no operating license has been issued by the Nuclear Regulatory Commission shall not be considered as employed in connection with the activity where the extraordinary nuclear occurrence takes place if:
(1) the claimant is employed exclusively in connection with the construction of a nuclear reactor, including all related equipment and installations at the facility, and (2) no operating license has been issued by.the Nuclear Regulatory Commission with respect to the nuclear
- reactor, and (3) the claimant is not employed in connection with the possession,
- storage, use or transfer of nuclear material at the facility.
This is to certify that this is a true copy of the original Endorsement having the endorsement number and being made part of the Nuclear Energy Liability Policy ( icility Form) as des-ignated hereon. No Ins n
hereunder.
4 John L.
ttrocchi, Vice President Underwriting American Nuclear insurers Effective Date'f orsement Au9ust 20s 1988 12:Ol A. H. Standard time To form a part of Policy No.
NF-270 Issued to Mashin ton Public Power Supply System Date of Issue February 16, 1990 For the s ribing
- panies, resi nt dorsement No.
42 Countersigned by NE-39b
h
/J
Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILlTYlNSURANCE ASSOCIATlON Restriction of Com anies Obli ation to Defend Investi ate Ne otiate or Settle An Claim or Suit (Section 170 0. of the Atomic Energy Act of 1954, as amended)
Effective August 20, 1988, it is agreed that whenever, pursuant to subsection 170.
0.
of the Atomic Energy Act of 1954; as
- amended, an appropriate U.S.
District Court determines that liability from a, single nuclear incident may exceed the limit of liability under the applicable limit of liability under subsection 170 e.(1)
(A),
(B) and (C) of the Atomic Energy Act of
- 1954, as
- amended, the companies obligations under Insuring Agreement. I, to
- defend, investigate, negotiate or settle any claim or suit under the policy do not include any obligation that would necessitate or result in the companies incurring legal
- costs, including costs of initiating, prosecuting, investigating,
- settling, or defending claims or suits, which are not authorized for payment by a court pursuant to such subsection 170 0.
This is to certify that.this ie a hue copy of the original Endorsement having the endorsement number and being made part of the Nuclear Energy Liability Policy (Facility Form) as des-ignated reon. No Insurance is afforded ereunder; John L.
e t
'c American lear Insurere Effective Date of Endorsement August 20.
1988 12:01 A.H. Standard time To form a part of Policy No.
NF-270 Issued to Washin ton Public Power Su 1
System Date of issue February 16, 1990 For the Su ibing Co anies By
~ Endorsement No.
43 Countersigned by NE-70
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II.
pf
Nuclear. Energy Liability Insurance NUCLEAR ENERGY LIABILITYINSURANCE ASSOCIATION WAIUER 0 DEFENSES ENDORSEMEN (Extraordinary Nuclear Occurrence)
The named
- insured, acting for himself and every other insured under the policy, and the members of Nuclear Energy Liability Insurance Association agree as follows:
1.
With respect to any extraordinary nuclear occurrence to which the policy applies as proof of financial protection and which (a) arises out of or results from or occurs in the course of the construction, possession, or operation of the facility, or (b) arises out of or results from or occurs in the course of the transportation of nuclear material to or from the facility, the insureds and the companies agree to waive (1) any issue or defense as to the conduct of the claimant or the fault of the insureds, including, but not limited to:
(i)
(ii)
(iii)
(iv) negligence, contributory negligence, assumption of risk, and unforeseeable intervening
- causes, whether involving the conduct of a third person, or an act of God, (2) any issue or defense as to charitable or governmental immunity, and (3) any issue or defense based on any statute of limitations if suit is instituted within three years from the date on which the claimant first
- knew, or reasonably could have known, of his bodily injury or property damage and the cause thereof.
The waiver of any such issue or defense shall be effective bregardless of whether such issue or defense may otherwi e deemed jurisdictional or relating to an element in the erw se cause of action.
2 4 to The waivers set forth in paragraph 1.
above do not ap 1
pp y (a) bodily injury, property damage or environmental damage which is intentionally sustained by the claimant or which results from a
nuclear incident intentionally and wrongfully caused by the claimant; NE-33c (1/1/90)
Page 1 of 3
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(b) bodily injury sustained by any claimant who is employed at the site of and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits therefor are either payable or required to be provided under any workmen' compensation or occupational disease law:
(c) any claim for punitive or exemplary
- damages, provided, with respect to any claim for wrongful death under any State law which provides for damages a
1 only punitive in
- nature, this exclusion does t
pp y to the extent that the claimant has sustained actual
- damages, measured by the pecuniary injuries resulting from such death but not to exceed the maximum amount otherwise recoverable under law.
3.
The waivers set forth in paragraph l.
above shall be effective only with respect, to bodily injury, property damage or environmental damage to which the policy applies under its terms other than this endorsement:
provided.
- however, that with respect to bodily injury, property damage or environmental damage resulting from an extraordinary nuclear occurrence, the provisions of bodil i
COVERAGES A and C of the policy providing covera f
y
- njury, property damage or environmental damage caused during the policy period by the nuclear energy hazard and which is discovered and for which written claim afte is made against the insured not later than ten (10) years
.ba er the end of the policy period shall not operat t
r coverage for bodily injury, property damage or environmental damage (a) which is caused during the policy period by the nuclear energy hazard and (b) which is discovered and for which written claim is made against the insured not later than twenty (20) years after the date of the extraordinary nuclear occurrence.
Such waivers shall not apply to, or prejudice the prosecution or defense of any claim or portion of claim which is not within the protection afforded under (a)
(b) the provisions "of the policy applicable to the financial protection required of the named insured; the agreement of indemnification between the named insured and the Nuclear Regulatory Commission made pursuant to Section 170 of the Atomic Energy Act of
- 1954, as amended:
and (c) the limit e-..liability provisions of Subsection 170e.
of the Atomic Energy Act of 1954, as amended.
Such waivers shall not preclude a defense based upon the failure of the claimant to take reasonable ste s
to mitigate damages.
NE-33c (1/1/90)
Page 2 of 3
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Subject to all of the limitations stated in this endorsement and in the Atomic Energy Act of
- 1954, as
- amended, the waivers set forth in paragraph 1.
above shall be judicially enforceable in accordance with their terms against any insured in an action to recover damages because of bodily injury, property damage or environmental damage to which the policy applies as proof of financial protection.
5.
As used herein:
"extraordinary nuclear occurrence" means an event which the Nuclear Regulatory Commission has determined to be an extraordinary nuclear occurrence as defined in the Atomic Energy Act of 1954, as amended.
"Financial protection" and "nuclear incident" have the meanings given them in the Atomic Energy Act of 1954, as amended.
"claimant" means the person or organization actually sustaining the bodily injury, property damage or environmental damage and also includes his assignees, legal representatives and other persons or organizations entitled to bring, an action for damages on account of such injury or damage.
This is to certify that this is a true copy of the origmal Endorsement having the endorsement number and being made part of the Nuclear Energy LiabilityPolicy (F ility Form) as des-
'ed reon. No Insurance is affor hereunder.
John L "h, Vice
'American uclear Irdurer'e Effective Date of this Endorsement 12:01 A. H. Standard t/me To form a part of Policy No.
Issued to Washin ton Public Power Su 1
S stem Date of Issue por the S
ribing C
- panies, si t
ndorsement No.
44 Countersigned by NE-33c (1/1/90)
Page 3 of 3
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Nuciear Energy Liabiiity Insurance NUCLEAR ENERGY LIABILITYINSURANCE ASSOCIATION SUPPLEMENTARY ENDORSEMENT WAIVER OF DEFENSES REACTOR CONSTRUCTION AT THE FACILITY It is agreed that in construing the application of paragraph 2(b),of the WAIVER OF DEFENSES ENDORSEMENT NE-33c with respect to an extraordinary nuclear occurrence occurring at the
- facility, a
claimant vho is employed at the facility in connection vith the construction of -a nuclear reactor-with respect to vhich no operating license has been issued by the Nuclear Regulatory Commission shall not be considered as employed in connection with the activity where the extraordinary nuclear occurrence takes place if:
(1) the claimant is employed exclusively in connection vith the construction of a
nuclear reactor, including all related equipment and installations at the facility, and (2) no operating. license has been issued by Che Nuclear Regulatory Commission with respect to the nuclear
- reactor, and (3) the claimant is not employed in connection with the possession,
- storage, use or transfer of nuclear material at the facility.
This is to certify that this is, a true cop> oI the original Endorsement having the endor'sement number and being made yacht
-"of th Nuclear Energy Liability Policy acTiity Form) as des-nat hereon. No l
'hereunder.
John t ttroc'cN; Vce Pres&mt
'American Nudcrtr hsueeea Effective Date of this Endorsement January 1
1990 12:01 A. HE Standard time To form a part of Policy No.
Issued to Mashin ton Public Power Su ly System Date of Issue Febroary 16, 1990 P
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b ibing Com anies, By ndorsement No.
45 NE-39c (1/1/90)
Countersigned by
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Nuclear Energy Liability surance NUCLEAR ENERGY LIABILITYINSURANCE ASSOCIATION It is agreed that:
AMENDATORY ENDORSEMENT (Facility Form) 1.
INSURING AGREEMENT I is replaced'by the following:
I COVERAGE A - LIABILITY "To pay on behalf of the insured all sums which the insured shall become legally obligated to pay as covered damages because of bodily injury or property damage.
or as covered environmental cleanup costs because of environmental damage.
This Coverage applies only to bodily injury, property damage or environmental damage caused during the policy period by the'nuclear energy
- hazard, and which is discovered and for which written claim is made against the
- insured, not later than ten (10) years after the end of the policy period.
The companies shall have the right and duty to defend any daclaim or suit against the insured alleging such injury
- mage, and seeking damages or costs which are payable under the terms of this policy: but the companies may make such investigation, negotiation and settlement of the claim or suit as they deem expedient..
The companies'uty to defend shall be
- limited, as described in INSURING AGREEMENT IV, if the claim or suit also seeks any of the following, which in no event shall be construed as covered by this policy:
(1) damages for on-site property damage:
(2) recovery of on-site cleanup costs or any other costs:
cleanup costs except covered environmental cl c eanup (3) performance of an insured's environmental protection obligations or on-site cleanup obligations: or (4) any other relief or recovery except payment.
of covered damages or covered environmental cleanu costs.
nup The companies'uty to defend claims or suits ends when the limit of their liability has been exhausted pursuant to CONDITION 3.
Subject to INSURING AGREEMENT IV, the companies shall pay, with respect to any claim or suit they defend, the costs incurred in the c'.e":ease, including (2) costs taxed against the insured in any such suit and interest on any judgment therein; premiums on appeal bonds and bonds to release attachments in any such suit, but without obligation to apply for or furnish such bonds;
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(3) reasonable
- expenses, other than loss of ear i ncurred by the insured at the companies'equest.
o earn ngs, COVERAGE B -
DAMAGE TO PROPERTY OF AN 1NSURED AWAY FROM THE FACILITY With respect to property damage caused during the policy period by the nuclear energy hazard to the property of an insured which is away from the facility, to pay to such le insured those sums which such insured would have b
gaily obligated to pay as covered damages
- therefor, had ave een such property belonged to another.
COVERAGE C - SUBROGATION - OFFSZTE'EMPLOYEES With respect to bodily injury caused during the policy period by the nuclear energy hazard to any employee of an
- insured, and which is discovered and for which written claim is made against the insured, not later than ten (10) years after the end of the policy period, to pay to the workmen's compensation carrier of such insured as follows:
All sums which such carrier would have been entitled to recover and retain as damages from another person or organization, had such person or organization alone been legally responsible for such bodily injury, by reason of the rights acquired by subrogation by the payment of the benefits required of such carrier under the applicable workmen's compensation or occupational disease law.
An employer who is a duly qualified self-insurer under such law shall be deemed to be a workmen's compensation carrier within the meaning of this Coverage.
This Coverage does not apply to bodily injury to any person who is employed at and in connection with the facility; nor shall it constitute workmen's compensation insurance as required under the laws of any state.
INSURING AGREEMENT IZ is replaced by the following:
II DEFINITION OF INSURED The unqualified word "insured" includes (a) the named insured and (b) any other person or organization with respect to his legal responsibility for covered damages or covered environmental cleanup costs becau f
b dil in'u'y. property damage or environmental damage caused b
the nuclear energy hazard.
se y
Subdivision'(b) above does not include as an insured the United States of America or any of its agencies, except the Tennessee Valley Authority.
olic the Subject to CONDITION 3
and the other provi i f
hi s ons o t s
p y,
e insurance applies separately to each insured against whom claim is made or suit is brought.
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INSURING AGREEMENT III is replaced by the following:
XXZ DEFINITIONS Wherever used in this policy:
"bodily injury" means bodily injury, sickness or disease, including death resulting therefrom, sustained b
an person.
>>covered damages" means damages because of bodily injury or property damage to which this policy applies:
but covered damages do not include environmental cleanup costs or on-site cleanup costs.
"covered environmental cleanup costs" means only those environmental cleanup costs which are incurred directly for monitoring, testing for, cleaning up, neutralizing or containing environmental damage as the result of an extraordinary nuclear occurrence or a
transportation incident: but covered environmental cleanup costs do not include on-site cleanup costs.
"disposal site" means any structure,
- basin, excavation, premises or place prepared as a
dump or site for the disposal of waste materials of a general nature, but which may also be used for the disposal of waste materials containing small amounts of nuclear material.
"environment" includes
- land, the atmosphere, and all watercourses, bodies of water and natural resources, whether on, above or below the surface of the ground.
"environmental cleanup costs" include all loss, cost or direct expense arising out of any governmental decree d
ive (other than an award of covered damages action at law) requiring or requesting a
person or mages n an organization to undertake or pay for monitoring, testing for, cleaning up, neutralizing or containing contamination of the environment, whether the contamination is on, above or below the surface of the ground.
"environmental damage" means contamination of the environ-ment by nuclear material.
"environmental protection obligations" include all obligations of any person or organization relating to the protection of the environment from and contamination or imminent danger of conta i ti n am na on, imposed by any governmental
- laws, regulations or ordinances.
"extraordinary nuclear occurrence" means an event which the United States Nuclear Regulatory Commission has determined to be an extraordinary nuclear occurrence as
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defined in the Atomic Energy Act of 1
amendatory thereof.
gy c
of 1954, or in any law "governmental" refers to federal, state a
gov t
d thoriti s i l d and political subdivisions thereof e
"indemnified nuclear facility" means (1)
"the facility" as defined in an Liability Policy (Facilit Form y
o
)
issued by Nuclear Atomic Energy Liability Underw (2) any other nuclear facility, if financial protection is re uired Atomic Energy Act of 1954 or ny o y
- xeof, thereat.
ac v ties or operations conducted "insux'ed shipment" means a shi ment o
sp ci 1 ucl ar t i 1 er a spent fuel, was or wastes produced b
th
- waste, or tailings uranium or thorium fy e extraction or concentration of its source material content h
m rom any ore processed primaxily for o
en erein called "material,"
(1) to the facility from any location e
indemnified nuclear facility. but onl purpose other than the cont an e continuation of its transpor-(2) from the facility to an other 2
o any other location, but only conveyance for an a er a is removed fro y
purpose othex'han the on o ts transportation.
"nuclear energy hazard" means explosive or th o
er hazardous ro means the radioactive, toxic i 1, b t o 1 if (1) the nuclear material is at the facilit ox'2}
the nuclear material is in a s in an insured shipment which rom any other nuclear facilit a
the United States of, Puerto Rico: or s territoriess or possessions.
or (b) international waters or airs ace p
p o transportation between t course of e ween two points located within
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the territorial limits described in (a) above and there is no deviation in the course of the transportation for the purpose of going to any other country, state or nation, except for the purpose of going to or returning from a port or place of refuge as the result of an emergency.
~'nuclear facility" means "the facility" as def ined in any
.Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters.
The term "nuclear facility" also means (1) any nuclear reactor, (2) any equipment or device designed or used for (a) separating the isotopes of uranium or plutonium, (b) processing or utilizing spent fuel, or (c) handling, processing or packaging
- waste, (3) any equipment or device used for the processing, fabricating or alloying of special nuclear material if at any time the total amount of such material in the custody of the insured at the premises where conta such equipment or device is located consi t f
ains more than 25 grams of plutonium or uranium 233 or any combination
- thereof, or more than 250 grams of uranium 235, (4) any structure,
- basin, excavation, premises or place prepared or used for the storage or disposal of
- waste, and includes the site on which any of the foregoing is located, all 'perations conducted on such site and all premises used for such operations.
"nuclear material" means source material, special nuclear material or byproduct material.
"nuclear reactor" means any apparatus designed or used to sustain nuclear fission or a
self-sustaining chain material.
reaction or to contain a critical mass of fi i o
ss enable "on-site cleanup costs" include all loss, cost or expense arising out of on-site cleanup obligations.
an erson "on-site cleanup obligations" include all obli ti o
ga ons of otherwise y
p or organization, imposed by common law
- rwise, to undertake or pay for monitoring, testing aw or for, cleaning up, neutralizing or containing contamination by nuclear material at the facility, whether the'material is on, above or below the surface of the ground.
"on-site property damage" includes all property damage to above o
any property at the facility, whether the property i or below the surface of the
- ground, other than oper y s on, aircraft, watercraft or vehicles licensed for highway use
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provided such aircraft.
watercraft or vehicles are not used in connection with the operation of the facility.
"property damage" means physical injury to or destruction or radioactive contamination of property, and loss of use of property so 3.natured, destroyed or contaminated, and loss of use of property while evacuated or withdrawn from use because possibly so contaminated or because of imminent danger of contamination.
"source material,"
and "byproduct material" have the meanings given them in the Atomic Energy Act of
- 1954, or in any law amendator thereof.
amen a ory "spent fuel" means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in any nuclear reactor.
"the facility" means the facility described in the declarations and includes the location designated in Item 3 of the declarations and all property and operations at such location.
"transportation incident" means a discharge or dispersal of nuclear material from an insured shipment caused by collision or upset of the transporting conveyance, or an accident that breaks
- open, punctures or ruptures the shipping containers or containment thereon:
but only if both the discharge or dispersal and the collision, upset or accident take place away from any nuclear facility and of the t away from any disposal site, and both occur in the cou ransportation, including handling and temporary storage incidental thereto.
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"waste" means any waste material (1) containing byproduct material and (2) resulting from the operation by any person or organization of any nuclear facility included within the definition of nuclear facility under paragraph (1} or (2) thereof.
INSURING AGREEMENT IV is replaced by the following, and INSURING AGREEMENT IV-A added by the "Amendment of Coverage Endorsement for Workers Claims (Facility Form)"
continues to apply:
IV LIMITED DEFENSE OF PARTIALLY COVERED CLAIMS OR SUITS The following provisions apply with respect t
p ally covere
." aim or suit for which the companies'rti ec o
any duty to defend has been limited by INSURING AGREEMENT I:
(1)
The companies will defend the claim or suit unless a
e the companies and the first named insured mutu 11 gr e on a different defense arrangement.
By making
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such a defense, the companies shall not be considered d
as having waived their rights under this policy t eny payment or reimbursement of the items not 0
covered.
(2)
As soon as practicable, the first named
- insured, acting on behalf of all insureds, and the companies shall endeavor to reach an equitable arrangement for handling the defense and sharing the costs thereof.
(3)
The companies'hare of defense costs shall not exceed the portion of the total defense costs that represents the costs which would be reasonably and necessarily incurred in the defense of the claim or suit in the absence of any claim or demand for the items not covered.
(4)
The companies shall have a right to contribution from the first named insured for all defense costs as they are incurred in excess of the amount of the companies'hare, including reimbursement by the first named insured of all such excess costs paid by the companies.
(5) If the companies and the first named insured cannot agree on the companies'hare of defense
- costs, the dispute shall be submitted, as a condition precedent to any right of recovery on this policy, to arbitra-tion for a final and binding resolution, as provided in Condition 19.
5.
In EXCLUSIONS (d) and (e).
and in all endorsements to this policy relating
- thereto, the words "bodily injury or property damage" are replaced by "bodily injury, property damage or environmental damage."
6.
EXCLUSION (f) is replaced by the following exclusion:
L'This policy does not apply:]
(f) to on-site property damage:
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In CONDITION 3, and in all endorsements to this policy modifying the dollar amount of the limit of liabilit stated in Item 4 of'he declarations, the words "b dil injury or property damage" are replaced by "bodily injury, property damage or environmental damage."
In CONDITION 4, and in all endorsements to this policy modifying the dollar amount of the total aggregate liability of the companies with respect to a
common occurrence:
(a)
(b) the words "bodily injury or replaced by "bodily injury, environmental damage":
and the words "bodily injury and replaced by "bodily injury, environmental damage."
property damage" are property damage or property damage" are property damage and
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In CONDITIONS 5, 11.
15 and 18, and in all e this policy relating thereto, the w
property damage" are replaced by "bodil damage or environmental damage."
CONDITION 19 ~
DECLARATIONS s renumbered CONDITION 20.
The following CONDITION is added t th e
o the policy:
19 ARBITRATION OF DISPUTES RELATING OF INSURING AGREEMENT IU All such disputes subject to paragra h
5 oard of Arbitration dispute.
a nal and binding resolution of the There shall be two parties to the arbitrat named insured
'acting on behalf of I i bilit I A
o i t th i d l th u y authorized representative.
Except to the extent the parties oth i
, th f ll i i i ng pr nciples will apply:
(a)
The arbitration will t k York. and will be governed b t a e place in New
- York, New of New York.
e y the laws of the State (b)
Either party may begin the rocess i i oti t
th oth i tenti to do d
th t it h oi t d o
so and the name of (c)
The other party shall then a
o bit to d th writing an umpire before t e arbitrators s
The umpire shall act as cha selection of an umpire within thir
(
)
ma e y drawing lots officers or former ar rators and umpire shall a
be executive op i li d t er executive offi States or of organizations desi se o
do business inn the United n
gn h
A o i tio M
Unnderwriters; provided that the cu e
a e current employees of without the conse t f b s a not be eli n
o both parties:
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(1) any party or likely party to the underlying claim or suit:
(2)
American Nuclear
- Insurers, MAERP Reinsurance Association or their members:
or (3) any other insurer or reinsurer which has casualty insurance or reinsurance in force on any of the foregoing which may be materially affected by the Board's decision.
Within thirty (30) days after the appointment of the
- umpire, each party shall submit its case in writin to the Board.
n wr ng The Board shall determine its rules of procedure, and the nature and extent of any discovery, testimony.
examination or cross-examination of witnesses and oral argument permitted.
The decision of any two all a
members of the Board shall be final and hindi p rties.
All discovery, submissions of evidence, hearing of witnesses and argument shall be completed within sixty (60) days of the appointment of the umpire, provided the Board may grant one extension of thirty (30) days.
The arbitrators and the umpire are not to be bound by any strict rules of legal procedure, evidence or legal precedents.
They shall,
- however, be governed by the terms of this policy, and shall have no power to add to or change its provisions.
Subject to this admonition, they shall interpret the relevant provisions of this policy as an honorable busine'ss agreement, and shall be entitled to
- decide, in accordance with such provisions together with the t.he other materials submitted to them what, th y thi k i fair and right thing to be done between the e
n s
parties from a
business point of
- view, without favoring the interest of either party.
The Board shall make its award in writing within thirty (30) days after the close of the
- period, including any extension
- granted, described in paragraph (h) above.
If the Board fails to make an award within the time prescribed by paragraph (j)
- above, then unless an extension is agreed to by the
- parties, a
new arbitration shall be commenced and completed in accordance with the procedure set out, in paragraphs (a) through (j) above.
The award of the Board signed by any two members shall be final, not subject. to appeal and binding on all parties, including all insurers subscribing the be tre policy and all insureds thereunder.
The aw d
h ll and ated as a matter involving interstate comme may be filed or confirmed in any court of mmerce,'ompetent, jurisdiction, state or
- federal, and judgment thereon entered and enforced, in accordance with the law and practice of the forum.
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(m)
Unless the Board decides otherwise.
each party shall pay the expenses of the arbitrator appointed by or for it and one half of the other costs of arbitration.
(n)
Xf an arbitrator or umpire is unable or unwilling to
- act, a new arbitrator or umpire, as the case may be, shall be appointed to act in his or her place, in accordance with the provisions set forth above.
(o)
All materials relevant to the arbitration shall be submitted to the Board in triplicate and the filing party shall send simultaneously a copy thereof to the opposing party.
12.
This endorsement applies to all claims for damages,
- costs, expenses or other relief or recovery for which coverage is sought under this policy, and which are first made in writing against any insured on or after the effective date of this endorsement stated below.
This is to certify that t Endorsement having the endorsement number and being made pad of the Nuclear Energy Lhbility Policy (
ity Form) as des-ignat hereon. No Ins rance is affor hereunder.
John L
'jest
'American udcnr h&nero Effective Date of this Endorsement Januar 1
1990 12:01 A.M. Standard Time
~hi P lle P
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S Date of Issue Fehruar 16 1990 For the su rabbi ng c
panies ndorsement No il'=-ll (llll90}
By Countersigned by PRESIDE T
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0 Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITYINSURANCE ASSOCIATION CHANGES IN SUBSCRISING COMPANIES ANO IN THEIR PROPORTIONATE LIABILITYENDORSEMENT CALEHOAR YEAR 1990 l.
It is agreed that with respect to bodily injury, property damage or environmental damage
- caused, during the effective period of this endorsement, by the nuclear energy hazard:
a.
The word "companies" wherever used in the policy means the subscribing companies listed below.
b.
The policy shall be binding on such companies only.
c.
Each such company shall be liable for its proportion of any obligation assumed or expense incurred under the policy because of such bodily injury, property damage or environmental damage as designated below.
2.
It is agreed that the effective period of this endorsement is from the beginning of the effective date of this endorsement stated below to the close of December 31, 1990, -or to the time of the termination or cancellation o
the policyt if sooner.
Effective Date of this Endorsement Aetna Casualty 8 Surety Co.
Alliant Insurance Company Allstate Insurance Company American Home Assurance Co.
Continental Casualty Cocpany Continental Insurance Company Federal Insurance Company General Ins. Co. of America Hanover Insurance Company Hartford Fire Insurance Co.
Highlands Insurance Company Hcme Indesnity Cotpany Ins. Co. of North America Motors Insurance Corporation Ohio Casualty Insurance Co.
Providence Washington Ins. Co.
Reliance Insurance Coapany Royal Ins. Co. of America St. Paul Fire & Marine Ins. Co.
State Farm Firm 8 Casualty Co.
Tokio Marine 8 Fire Ins. Co.
Transmnerica Insurance Co.
Travelers Indecnity Company U. S. Fire Insurance Cerpany U.S. Fidelity F Guaranty Co.
Universal Underwriters Ins. Co.
Zurich Insurance Company Total NE-90 Janua 1
1990 12:01 A. M. Standard time 12.917337X
- 1. 515634X 5.535510X 0.692369X 5.341750X 10.333870X 2.755699X 1.722312X 0.595059X 10.333870X 0.344462X 1.614667X 7.750403X 0.430578X 0.172231X 0.193760X 0.516694X 3.616855X 5.991922X 0.861156X 0.516694X 0.861156X 12.856195X 2.325121X 8.611558X
- 0. 172231X 1.420907X
- >el f'i:. sI JIj]
100.000000X PI5 a,g To form a part of Policy No."'.-'NF-270 Issued to Washin ton Pub1ic Power Su 1
S stem te of Issue A ril 1 1990 For the Subscribing Companies, B
7 i Endorsement No.
47
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Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITYINSURANCE ASSOCIATION WAIVER OF DEFENSES ENDORSEMENT (Extraordinary Nuclear Occurrence)
Effective August 20,
- 1988, the named
- insured, acting for himself and every other insured under the policy, and the members of Nuclear Energy Liability Insurance Association agree as follows:
1.
With respect to any extraordinary nuclear occurrence to which the policy applies as proof of financial protection and which (a) arises out of or results from or occurs in the course of the construction, possession, or operation of the facility, or (b) arises out of or results from or occurs in the course of the transportation of nuclear material to or fr'm the facility, the insureds and the companies agree to waive (1) any issue or defense as to the conduct of the claimant or the fault of the insureds, including but not limited to:
(i) negligence, (ii) contributory negligence, (iii) assumption of risk, and (iv) unforeseeable intervening
- causes, whether involving the conduct of a third person, or an act of God, (2) any issue or defense as to charitable or governmental immunity, and (3) any issue or defense based on any statute of limitations if suit is instituted within three years from the date on which the claimant first knew, or reasonably could have
- known, of his bodily injury or property damage and the cause thereof.
The waiver of any such issue or defense shall be effective regardless of whether such issue or defense may otherwise be deemed jurisdictional or relating to an element in the cause of action.
2.
The waivers set forth in paragraph 1.
above do not apply to NE-33b Page 1 of 3
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(a) bodily injury or property damage which is intentionally sustained by the claimant or which results from a
nuclear incident intentionally and wrongfully caused by the claimants (b) bodily injury sustained by any claimant who is employed at the site of and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits therefor are either payable or required to be provided under any workmen's compensation or occupational disease law; (c) any claim for punitive or exemplary
- damages, provided, with respect to any claim for wrongful death under any State law which provides for damages only punitive in
- nature, this exclusion does not apply to the extent that the claimant has sustained actual
- damages, measured by the pecuniary injuries resulting from such death but not to exceed the maximum amount otherwise recoverable under law.
3 ~
The waivers set forth in paragraph 1.
above shall be effective only with respect to bodily injury or property damage to which the policy applies under its terms other than this endorsement;
- provided, however, that with respect to bodily injury or property damage resulting from an extraordinary nuclear occurrence, Insuring Agreement IV, "Application of Policy", shall not operate to bar coverage for bodily injury or property damage (a) which is caused during the policy period by the nuclear energy hazard and (b) which is discovered and for which written claim is made against the insured not later than twenty (20) years after the date of the extraordinary nuclear occurrence.
Such waivers shall not apply to, or prejudice the prosecution or defense of any claim or portion of claim which is not within the protection afforded under (a) the provisions of the policy applicable to the financial protection required of the named insured; (b) the agreement of indemnification between the named insured and the Nuclear Regulatory Commission made pursuant to Section 170 of the Atomic Energy Act of
- 1954, as amended; and (c) the limit of liability provisions of Subsection 170e.
of the Atomic Energy Act of 1954, as amended.
4 ~
Such waivers sh~li 'not preclude a
defense based upon.the failure of the claimant to take reasonable steps to mitigate damages.
Subject to all of the limitations stated in this endorsement and in the Atomic Energy Act of
- 1954, as
- amended, the waivers set forth in paragraph 1.
above shall be judicially enforceable in accordance with their terms against any insured in an action to recover damages because NE-33b Page 2 of 3
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of bodily injury or property damage to which the policy applies as proof of financial protection.
5.
As used herein:
"extraordinary nuclear occurrence" means an event which the Nuclear Regulatory Commission has determined to be an extraordinary nuclear occurrence as defined in the Atomic Energy Act of 1954, as amended.
"Financial protection" and "nuclear incident" have the meanings given them in the Atomic Energy Act of 1954, as amended.
<<claimant" means the person or organization actually sustaining the bodily injury or property damage and also includes his assignees, legal representatives and other persons or'rganizations entitled to bring an action for damages on account of such injury or damage.
This is to certify that this is a true copy of the origina
'nal Endorsement having the endorsement number and being made part of the Nuclear Energy Liability Policy ( acility Form} as des-ignate hereon. No Insurance is affor d hereunder.
John L.
a troc~t,iii, ice evident.
nd American iclear Insurers Effective Date of this Endorsement August 20, 1988
-12r01 A.H.
Standard tine To form a part of Policy,No. ~~70 Issued to Washington Public Power Supply System D t f i February 16, 1990 Por the cribing panies By esident ndorsement No.
41 Countersigned by NE-33b Page 3 of 3
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0 Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITYINSURANCE ASSOCIATION SUPPLEMENTARY ENDORSEMENT WAIVER OF DEFENSES REACTOR CONSTRUCTION AT THE FACILITY Effective August 20, 1988, it is agreed that in construing the application of paragraph 2(b) of the WAIVER OF DEFENSES ENDORSEMENT NE-33b with respect to an extraordinary nuclear occurrence occurring at the
- facility, a
claimant who is employed at the facility in connection with the construction of a nuclear reactor with.respect to which no operating license has been issued by the Nuclear Regulatory Commission shall not be considered as employed in connection with the activity where the extraordinary nuclear occurrence takes place if:
(1) the claimant is employed exclusively in connection with the construction of a nuclear reactor, including all related ecfuipment and installations at the facility, and (2) no operating license has been issued by the Nuclear Regulatory Commission with respect to the nuclear
- reactor, and (3) the claimant is not employed in connection with the possession,
- storage, use or transfer of nuclear material at the facility.
Th' certif that this is a true copy of the original d bein made art Endorsement having the endorsement number and being m p
of the Nuclear Energy Liability Policy (F ici)ity Form) as des.
ignated 'reon. No Insu inc
~
hereunder.
John L.
" 'trocchi, Vice President.Underwriting American Nuclear tnsurers Effective Date'f Endorsement August 20, 1988 12r01 A. H. Standard time To form a part of Policy No.
NF-270 Issued to Washington Public Power Supply System Date of Issue February 16, 1990 For the s ribing
- panies, resi nt ndorsement No.
42 Countersigned by NE-39b
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Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITYINSURANCE ASSOCIATION Restriction of Com anies Obli ation to Defend Investi ate Ne otiate or Settle An Claim or Suit (Section 170 0. of the Atomic Energy Act of 1954, as amended)
Effective August, 20, 1988, it is agreed that whenever, pursuant to subsection 170 0.
of the Atomic Energy Act of 1954; as
- amended, an appropriate U.S.
District Court determines that liability from a single nuclear incident may exceed the limit of liability under the applicable limit of liability under subsection 170 e. (1)
(A),
(B) and (C) of the Atomic Energy Act of
- 1954, as
- amended, the companies obligations under Insuring Agreement I, to
- defend, investigate, negotiate or settle any claim or suit under the policy do not, include any obligation that would necessitate or result in the companies incurring legal
- costs, including costs of initiating, prosecuting, investigating, settling, or defending claims or suits, which are not authorized for payment by a court pursuant to such subsection 170 0.
This is to certify that this is,atrue copy of the, original Endorsement having the endorsement n
ber,'ancltbeing made part of the Nuclear Energy liability'Policy acility Form) as des-ignat hereon. No lns anemia hereunder.
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John L ttrocchi, Vice President Underwritina American Nuclear Insureis Effective Date of this Endorsement August 20, 1988 12:01 A.H. Standard time To. form a part of Policy No.
NF-270 Issued to Washin ton Public Power Su 1
S stem Date of issue February 16, 1990 For the Su ibing Co anies By ENT
. Endorsement No, 43 Countersigned by NE-70
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Nuclear Energy Llablllty Insurance NUCLEAR ENERGY LIABILITYINSURANCE ASSOCIATlON MAIVE 0
DE ENSES NDORS ME (Extraordinary Nuclear Occurrence)
The named
- insured, acting for himself and every other insured under the policy, and the members of Nuclear Energy Liability Insurance Association agree as follows:
1.
.With respect to any extraordinary nuclear occurrence to which the policy applies as proof of financial protection and which (a) arises out of or results from or occurs in the course of the construction, possession, or operation of the facility, or (b) arises out of or results from or occurs in the course of the transportation of nuclear material to or from the facility, the insureds and the companies agree to waive (l) any issue or defense as to the conduct of the claimant or the fault of the insureds, including but not limited to:
(i)
(ii)
(iii)
(iv) negligence.
contributory negligence, assumption of risk, and unforeseeable intervening
- causes, whether involving the conduct of a third person, or an act of God, (2) any issue or defense as governmental immunity, and
'I to charitable or (3) any issue or defense based on any statute of limitations if suit is instituted within three years from the date on which the claimant first knew, or reasonably could have known. of his bodily injury or property damage and the cause thereof.
The waiver of any such issue or defense shall be effe ti re gardless of whether such issue or defense may otherwise be deemed jurisdictional or relating to an element in the cause of action.
2 ~
The waivers set forth in paragraph l. above do not l
to app y (a) bodily injury, property damage or environmental damage which is intentionally sustained by the claimant or which results from a nuclear incident intentionally and wrongfully caused by the claimant:
NE-33c (1/1/90)
Page 1 of 3
l 4
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(b) bodily injury sustained by any claimant who is employed at the site of and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits therefor are either 'payable or required to be provided under any workmen' compensation or occupational disease law:
(c) any claim for punitive or exemplary
- damages, provided.
with respect to any claim for. wrongful death under any State law which provides for damages only punitive in
- nature, this exclusion does not apply to the extent that the claimant has sustained actual
- damages, measured by the pecuniary injuries resulting from such death but not to exceed the maximum amount otherwise recoverable under law.
3.
The waivers set forth in paragraph 1.
above shall be effective only with respect to bodily injury, property unde damage or environmental damage to which the policy 1'
its terms other than this endorsement; provided.
- however, that with respect to bodily injury, property damage or environmental damage resulting from an extraordinary nuclear occurrence, the provisions of COVERAGES A and C of the policy providing coverage for bodily injury, property damage or environmental damage caused during the policy period by the nuclear energy hazard and which is discovered and for which written claim is made against the insured not later than ten (10) years after the end of the policy period shall not operate to bar coverage for bodily injury, property damage or environmental damage (a) which is caused during the policy period by the nuclear energy hazard and (b} which is discovered and for which written claim is made against the insured not later than twenty (20) years after the date of the extraordinary nuclear occurrence.
Such waivers shall not apply to, or prejudice the prosecution or defense of any claim or portion of claim w'hich is not within the protection afforded under 4
(a) the provisions of the policy applicable to the financial protection required of the named insured:
(b) the agreement of indemnification between the named insured and the Nuclear Regulatory Commission made pursuant to Section 170 of the Atomic Energy Act of
- 1954, as amended:
and (c) the limit c.. liability provisions-of Subsection 170e.
of the Atomic Energy Act of 1954, as amended.
Such waivers shall not preclude a defense based upon the failure of the claimant to take reasonable ste s
to mitigate damages.
NE-33c (1/1/90}
Page 2 of 3
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Subject to all of the limitations stated in this endorsement and in the Atomic Energy Act of
- 1954, as
- amended, the waivers set forth in paragraph l. above shall be judicially enforceable in accordance with their terms against any insured in an action to recover damages because of bodily injury, property damage or environmental damage to which the policy applies as proof of financial protection.
5.
As used herein:
"extraordinary nuclear occurrence" means an event which the Nuclear Regulatory Commission has determined to be an extraordinary nuclear occurrence as defined in the Atomic Energy Act of 1954, as amended.
"Financial protection" and "nuclear incident" have the meanings given them in the Atomic Energy Act of 1954.
as amended.
"claimant" means the person or organization actually sustaining the bodily injury, property damage or environmental damage and also includes his assignees.
legal representatives and other persons or organizations entitled to bring an action for damages on account of such injury or damage.
Effective Date of this Endorsement January 1, 1990 1Z:01 A. N. Stendard time To form a part of Policy No.
"F-~70 This is to certify that this is a true copy of the originai ignated reon. No insurance is affor reunder.
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. ear lnovrers Issued to Washin ton Pub1ic Power Su 1
S stem Date of Issue Februa"y 16, 1990 por the S
ribing C
- panies, By s
dorsement No.
44 Countersigned by NE-33c (1/1/90)
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4 Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITYINSURANCE ASSOCIATION SUPPLEMENTARY ENDORSEMENT WAIVER OF DEFENSES REACTOR CONSTRUCTION AT THE FACILITY It is agreed that in construing the application of paragraph 2(b) of.the WAIVER OF DEFENSES ENDORSEMENT NE-33c vith respect to an extraordinary nuclear occurrence occurring at the facility.
a claimant who is employed at the facility in connection with the construction of a
nuclear reactor.
with respect to which no operating, license has been i'ssued by the Nuclear Regulatory Commission shall not be considered as employed in connection with the activity where the extraordinary nuclear occurrence takes place if:
(1) the claimant is employed exclusively in connection with the construction of a nuclear reactor, including all related equipment and installations at the facility, and (2) no operating license has been issued by
%he Nuclear Regulatory Commission vith respect to the nuclear
- reactor, and (3) the claimant is not employed in connection vith the possession,
- storage,
-use or transfer of nuclear material at the facility.
Effective Date of this Endorsement, John L
~ American January 1,
1990 To form a part of Policy No.
12:01 A. H. Standard time This is to certify that this is a true copy of,the original Endorsement haenj the'endorsemen't number "andbeing made part of the Nuclear Energy Liability Policy (F ility Form) as des-ignated reon. No Insurance is affor hereunder.
, Vice
'ZJ ear Iaauere Issued to Washin ton Pub1ic Power Su 1y System Date of Issue February 16, 1990 F
h S b ibing Com anies, By ndorsement No.
46 Countersigned by NE-39c (1/1/90)
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t Nuclear Ene'rgy Liability surance NUCLEAR ENERGY LIABILITYINSURANCE ASSOCIATION
't is agreed that:
AMENDATORY ENDORSEMENT (Facility Form) 1.
INSURING AGREEMENT I is replaced by the following:
I COVERAGE A - LIABILITY To pay on behalf of the insured all sums which the insured shall become legally obligated to pay as covered damages because of bodily injury or property damage, or as covered environmental cleanup costs because of environmental damage.
This Coverage applies only to bodily injury, property damage or environmental damage caused during the policy period by the nuclear energy
- hazard, and which is discovered and for which written claim is made against the
- insured, not later than ten (10) years after the end of the policy period.
The companies shall have the right and duty to defend any claim or suit against the insured alleging such injury or damage.
and seeking damages or costs which are payable under the terms of this policy: but the companies may make such investigation, negotiation and settlement of the claim or suit as they deem expedient.
The companies'uty to defend shall be
- limited, as described in INSURING AGREEMENT IV, if the claim or it 1 o seeks any of the following, which in no event shall a
m or su be construed as covered by this policy:
(1) damages for on-site property damage; (2) recovery of on-site cleanup costs or any th clea nup cost s except covered environmental cleanup n
o er costs:
(3) performance of an insured's environmental protection obligations or on-site cleanup obligations: or (4) any other relief or recovery except payment f
covered damages or covered environmental cleanu o
costs.
anup The companies'uty to defend claims or suits end h
the limit of their liability has been exhausted pursuant to CONDITION 3.
Subject to INSURING AGREEMENT IV, the companies shall pay, with respect, to any claim or suit they defend, the costs incurred in the r'.e":evse, including (2) costs taxed against the insured in any such suit and interest on any judgment therein:
premiums on appeal bonds and bonds to release attachments in any such suit, but without obligation to apply for or furnish such bonds:
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(3) reasonable
- expenses, other than loss of earnings, incurred by the insured at the compani'es'equest.
COVERAGE B -
DAMAGE TO PROPERTY OF AN INSURED AWAY FROM THE FACILITY With respect to property damage caused during the policy period by the nuclear energy hazard to the property of an insured which is away from the facility, to pay to such leinsured those sums which such insured would have b
gaily obligated to pay as covered damages
- therefor, had ave een such property belonged to another.
COVERAGE C - SUBROGATION - OFFSITE'MPLOYEES With respect to bodily injury caused during the policy period by the nuclear energy hazard to any employee of
- insured, and which is discovered and for which written claim is made against the insured, not later than ten (10) years after the end of the policy period, to pay to the workmen's compensation carrier of such insured as follows:
All sums which such carrier would have been entitled to recover and retain as damages from another person or organization, had such person or organization alone been legally responsible for such bodily injury, by reason of the rights acquired by subrogation by the payment of the benefits required of such carrier under the applicable workmen's compensation or occupational disease law.
An law sha employer who is a duly qualified self-insurer u d h
11 be deemed to be a workmen's compensation carrier within the meaning of this Coverage.
This Coverage does not apply to bodily injury to any person who is employed at and in connection with the facility; nor shall it constitute workmen's compensation insurance as required under the laws of any state.
INSURING AGREEMENT II is"replaced by the following:
II DEFINITION OF INSURED The unqualified word "insured" includes (a) the named insured and (b) any other person or organization with respect to his legal responsibility for covered damages or covered environmental cleanup costs becau e
f b dil j ry, property damage or environmental damage caused b
the nuclear energy hazard.
ause y
Subdivision'(b) above does not include as an insured the United States of America or any of its agencies.
exce t the Tennessee Valley Authority.
s.
excep Subject to CONDITION 3
and the other provisions of this policy, the insurance applies separately to each insured against whom claim is made or suit is brought.
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INSURING AGREEMENT III is replaced by the following:
XXX DEFINITIONS Wherever used in this policy:
"bodily injury>> means bodily in)ury, sickness or disease, including death resulting therefrom, sustained b
person.
>>covered damages" means damages because of bodily ingury or property damage to which this policy applies:
but covered damages do not include environmental cleanup costs or on-site cleanup costs.
"covered environmental cleanup costs" means only those environmental cleanup costs which are incurred directly for monitoring, testing for, cleaning up, neutralizing or ext containing environmental damage as the result f
raordinary nuclear occurrence or a
transportation incident: but covered environmental cleanup costs do not include on-site cleanup costs.
>>disposal site" means any structure,
- basin, excavation, premises or place prepared as a
dump or site for the disposal of waste materials of a general nature, but which may also be used for the disposal of waste materials containing small amounts of nuclear material.
"environment" includes
- land, the atmosphere, and all whethe watercourses, bodies of water and natur 1
e er on, above or below the surface of the ground.
"environmental cleanup costs" include all loss, cost or expense arising out of any governmental
- decree, order or directive (other than an award of covered damages in an action at law) requiring or requesting a
person or for organization to undertake or pay for monitorin t ti cleaning up, neutralizing, or containing contamination of the environment, whether the contamination is on, above or below the surface of the ground.
"environmental damage" means contamination of the environ-ment, by nuclear material.
"environmental protection obligations" include all obligations of any person or organization (2) relating to the protection of the environment from contamination or imminent danger of contamination, imposed by any governmental
- laws, regulations or ordinances.
the U i "extraordinary nuclear occurrence" means a
t hi n
even w
ch dete e
n ted States Nuclear Regulatory Commis i h
rmined to be an extraordinary nuclear occurrence as
r C
define in the Atomic Energy Act of 19 4
amendatory thereof.
c of 1954, or in any,law "governmental" refers to
- federal, state governments and authorities, includin c
"indemnified nuclear facility" means (1)
"the facility" as defined in an N
Liability Policy (Facilit Form 2
Atomic Energy Li bili
(
)
any other nuclear facility, if financial protection is re uired At i E
Act f 1954 ith t t ti iti thereat.
v es or operations conducted IIjnsured shipment" means a shi ment o
special nuclear t i 1 or wastes produced b
th er a spent fuel wa
- waste, or tailings uranium or thorium fy e extraction or concentration of its source material content h
i m
rom any ore processed primarily for en erein called "material,"
(1) to the facility from any location indemnified nuclear facilit transportation of th re mination to be interru ted b
e material is
- not, b
t i 1 f o t
P y
purpose other than the c
er an the continuation of its transpor-(2) from the facility to any other y other location, but only po g
p po e
oth r h n the on o ts transportation.
"nuclear energy hazard" means the explosive or oth h
o er azardous ro e e
radioactive, toxic material, but only if p
p rties of nuclear (l) the nuclear material is at the discharged or dis er ed s
possession or custod the 2
i ti y
o o
yo za on, or
(
)
the nuclear material is in an insured shipment which s territories or possessions, or (b) international waters or airs ace
- rspace, provided that transportation between t rse of een two points located within
- (
~ g t
the territorial limits described in (a) above and there is no deviation in the course of the
'ransportation for the purpose of going to any other country, state or nation, except for the purpose of going to or returning from a port or place of refuge as the result of an emergency.
"nuclear facility" means "the facility" as defined in any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Znsurance Association or Mutual Atomic Energy Liability Underwriters.
The term "nuclear facility" also means (1) any nuclear reactor, (2) any equipment or device designed or used for (a) separating the isotopes of uranium or plutonium, (b) processing or utilizing spent fuel, or (c) handling, processing or packaging
- waste, (3) any equipment or device used for the processing, fabricating or alloying of special nuclear material if at any time the total amount of such material in the custody of the insured at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof.
or more than 250 grams of uranium 235, (4) any structure,
- basin, excavation, premises or place prepared or used for the storage or disposal of
- waste, and includes the site on which any of the foregoing is located, all operations conducted on such site and all premises used for such operations.
"nuclear material" means source material, special nuclear material or byproduct material.
"nuclear reactor" means any apparatus designed or used to sustain nuclear fission or a
self-sustaining chain material.
reaction or to contain a critical mass of fi si b
ss ona le "on-site cleanup costs" include all loss, cost or expense arising out of on-site cleanup obligations.
"on-site cleanup obligations" include all obligations of any person or organization, imposed by common law or otherwise, to undertake or pay for monitorin t ti r, cleaning up, neutralizing or containing contamination by nuclear material at the facility, whether the material is on, above or below the surface of the ground.
"on-site property damage" includes all property damage to any property at the facility, whether the property is on.
above or below the surface of the
- ground, other than aircraft, watercraft or vehicles licensed for highway use, 5
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L, tt tl
provided such aircraft, watercraft or vehicles are not used in connection with the operation of the facilit "property damage" means physical injury to or destruction or radioactive contamination of property, and loss of use o
property so
- injured, destroyed or contaminated, and usloss of use of property while evacuated or withdrawn f e
because possibly so contaminated or because of rawn rom imminent danger of contamination.
"source material,"
and "byproduct material" have the meanings given them in the Atomic Energy Act of
- 1954, or in any law amend'atory thereof.
"spent fuel" means any fuel element or fuel component, solid or liquid,
.which has been used or exposed to radiation in any nuclear reactor.
"the facility" means the facility described in the declarations and includes the location designated in Item 3 of the declarations and all property and operations at such location.
"transportation incident" means a discharge or disper 1
n spersa c
nuclear material from an insured shipment caus d
b ollision or upset of the transporting conveyance, or an accident that breaks
- open, punctures or ruptu th shipping containers or containment thereon:
but only if both the discharge or dispersal and the collision, upset or accident take place away from any nuclear facility and away from any disposal site, and both occur in the course of the transportation, including handling and temporary storage incidental thereto.
"waste" means any waste material (1) containing byproduct material and (2) resulting from the operation by any person or organization of any nuclear facility included within the definition of nuclear facility under paragraph (1) or (2) thereof.
INSURING AGREEMENT IV is replaced by the following and INSURING AGREEMENT IV-A added by the "Amendment of Coverage Endorsement for Workers Claims (Facility Form) "
continues to apply:
IV LIMITED DEFENSE OF PARTIALLY COVERED CLAIMS OR SUITS The following provisions apply with respect p
ally covere; aim or suit for which the companies'rti o
any duty to defend has been limited by INSURING AGREEMENT I:
(1)
'The companies will defend the claim or suit u 1 the companies and the first named insured mutually s
un ess agree on a different defense arrangement.
By making
~ I M
Rl fA if A
such a defense, the companies shall not be considered d
as having waived their rights under this policy t eny payment or reimbursement of the items not 0
covered.
(2)
As soon as practicable, the first named
- insured, acting on behalf of all insureds, and the companies shall endeavor to reach an equitable arrangement for handling the defense and sharing the costs thereof.
(3)
The companies'hare of defense costs shall not exceed the portion of the total defense costs that represents the costs which would be reasonably and necessarily incurred in the defense of the claim or suit in the absence of any claim or demand for the items not covered.
(4)
The companies shall have a right to contribution from the first named insured for all defense costs as they are incurred in excess of the amount of the companies 'hare, including reimbursement by th f rst named insured of all such excess costs paid by i
e the companies.
(5)
Zf the companies and the first named insured cannot agree on the companies'hare of defense
- costs, the dispute shall be submitted, as a condition precedent to any right of recovery on this policy, to arbitra-tion for a final and binding resolution.
as provided in Condition 19.
In EXCLUSIONS (d) and (e), and in all endorsements to this policy relating
- thereto, the words "bodily injury or property damage" are replaced by "bodily injury, property damage or environmental damage."
6.
EXCLUSION (f) is replaced by the following exclusion:
[This policy does not apply:]
(f) to on-site property damage; In CONDITION 3, and in all endorsements to this policy modifying the dollar amount of the limit of liability stated in Item 4 of the declarations, the words "bodily injury or property damage" are replaced by >>bodily injury, property damage or environmental damage."
8 ~
In CONDITION 4, and in all endorsements to this policy modifying the dollar amount of the total aggregate liability of the companies with respect to a
common occurrence:
(a)
(b) the words "bodily injury or replaced by
>>bodily injury, environmental damage":
and the words "bodily injury and replaced by "bodily injury, environmental damage.",
property damage>>
are property damage or property damage>>
are property damage and
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10.
Xn CONDITIONS 5, 11.
15 and 18, and in all e this policy relating thereto, the w
property damage" are replaced by "bodil damage or environmental damage amage.'ONDITION 19, DECLARATIONS is renumbered CONDXTION 20.-
The following CONDXTION is added t th e
to 0he policy:
19 ARBITRATXON OF DISPUTES RELATXNG OF INSURXNG AGREEMENT IV All such disputes subject to para ra h AGREEMENT IU shall be submitted to (th "1o d") fo fi 1
d dispute.
a nal and binding resolution of the There shall be two parties to the arbit di dati bh duly authorized repre t
ng, on ehalf of all in Li bilit I Apresentative, and companies as their duly auth ssoc ation, actin y authorized representative.
Except to the - extent the artie otherwise, the followinng pr nciples will apply:
(a)
The arbitration will t k
- York, and will be governed b
th a e place in New
- York, New of New York.
me y the laws oi the State (b)
Either party may begin the rocess giving notice to the other th t. it h a
oi t. d.
(c)
The other party shall then a
o bit to d th hall
- appoint in n
e arbitrators s
The umpire shall act as cha appoint an arbitrator for the art selection of an umpire within thir ade by drawing lots.
e arbitrators and umpire shall officers or former rmer executive office s
a be executive S
companies lic d t tates or of organizations desi se o
do business in d i d
ar nergy ability 'Insurance Underwriters; provided that the cu th folio i h
1 without the conse t f b sen of both parties:
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(3) any party or likely party to the underlying claim or suit:
American Nuclear
- Insurers, MAERP Reinsurance Association or their members; or any other insurer or reinsurer which has casualty insurance or reinsurance in force on any of the foregoing which may be materially affected by the Board's decision.
Within thirty (30) days after the appointment of the
- umpire, each party shall submit its case in writin to the Board.
n wr ng The Board shall determine its rules of procedure.
and the nature and extent of any discovery, testimony, examination or cross-examination of witnesses and oral argument permitted.
The decision of any two all members of the Board shall be final and bindi parties.
All discovery, submissions of evidence, hearing of witnesses and argument shall be completed within sixty (60) days of the appointment of the umpire, provided the Board may grant one extension of thirty (30) days.
The arbitrators and the umpire are not to be bound by any strict rules of legal procedure, evidence or legal precedents.
They shall,
- however, be governed by the terms of this policy, and shall have no power to add to or change its provisions.
Subject to this admonition, they shall interpret the relevant provisions of this policy as an honorable business agreement, and shall be entitled to
- decide, in accordance with such provisions together with the the other materials submitted to them what they thi k i fair and right thing to be done between the parties from a
business point of
- view, without favoring the interest of either party.
The Board shall make its award in writing within thirty *(30) days after the close of the
- period, including any extension
- granted, described in paragraph (h) above.
If the Board fails to make an award within the time prescribed by paragraph (j)
- above, then unless an extension is agreed to by the
- parties, a
new arbitration shall be commenced and completed in accordance with the procedure set out in para ra hs (a) through (j) above.
The award of the Board signed by any.two members shall be final, not subject to appeal and binding on all parties, including all insurers subscribi th p
icy and all insureds thereunder.
The award shall be treated as a matter involving interstate comme may be filed or confirmed in any court of commerce,~
ud competent jurisdiction, state or feder 1
d j
gment thereon entered and enforced, in accordance with the law and practice of the forum.
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(m)
Unless the Board decides otherwise, each party shall pay the expenses of the arbitrator appointed by or for it and one half of the other costs of arbitration.
(n)
Xf an arbitrator or umpire is unable or unwilling to
- act, a
new arbitrator or umpire, as the case may be, shall be appointed to act in his or her place, in accordance with the provisions set forth above.
(o)
All materials relevant to the arbitration shall be submitted to the Board in triplicate and the filing party shall send simultaneously a copy thereof to the opposing, party.
l2 This endorsement applies to all claims for damages,
- costs, expenses or other relief or recovery for which coverage is sought under this policy, and which are first made in writing against any insured on or after the effective date of this endorsement stated below.
ue co of the o~ai to cert'hat '".
ger a5bAM~ +
's is o,
.""-"Q"'engzsemenf'um a
Enyose'merit havin9 ~+
1; (p 'ty FoM) a of the Nuclear En
+of teun~~t
~bTiity Po cg ignated eon. "o Insu ce m or Jobri L bI, Vge peep'dent
, Amecican gudear tnsucers 10 Effective Date of this Endorsement January 1
1990 12:01 A.M. Standard Time Pbli P
S l
S Date of Issue Feb'ar 16 1990 For the su ribing c panies By Countersigned by PRESIDENT
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Nuclear Energy Liability Insurance NUCLEAR ENERGY LlABlLlTYINSURANCE ASSOCIATION CHANGES IN SUBSCRIBING COMPANIES AND IN THEIR PROPORTIONATE LIABILITYENDORSEMEHT CALENDAR YEAR '1990 1.
It is agreed that vith respect to bodily Sn)ury, property damage or environmental damage
- caused, during the effective period of this endorsement, by the nuclear energy hazard:
a.
The word "companies" wherever used in the policy means the subscribing companies listed belov.
b.
The policy shall be binding on such companies only.
c.
Each such company shall be liable for its proportion of any obligation assumed or expense incurred under the policy because of such bodily injury, property damage or environmental damage as designated belov.
2.
It is agreed that the effective period of this endorsement is from the beginning of the effective date of this endorsement stated belov to the close of December 31, 1990, or to the time of the termination or cancellation the policy, if sooner.
Aetna Casualty 8 Surety Co.
Alliant Insurance Company Allstate Insurance Conpany American Home Assurance Co.
Continental Casualty Carpany Continental Insurance Company Federal Insurance Cocpany General Ins. Co. of America Hanover Insurance Company Hartford Fire Insurance Co.
Highlands Insurance Company Hcme Indecnity Carpany Ins. Co. of North America Motors Insurance Corporation Ohio Casualty Insurance Co.
Providence Nashington Ins. Co.
Reliance Insurance Cotpany Royal Ins. Co. of America St. Paul Fire 8 Marine Ins. Co.
State Farm Firm 8 Casualty Co.
Tokio Marine E, Fire Ins. Co.
Trans<<nerica Insurance Co.
Travelers Indernity Company U. S. Fire Insurance Company U.S. Fidelity It Guaranty Co.
Universal Underwriters Ins. Co.
Zurich Insurance Cospany Total NE-90 Effective Date of this Endorsement Janua 1
1990 12:01 A. M. Standard time 12.917337K 1.515634K 5.535510K 0.692369K 5.34175%
1D.333870K 2.75569FA 1.722312K 0.595059K 10.333870K 0.344462K 1.614667K 7.750403K 0.430578K
- 0. 172231K 0.193760K 0.516694K 3.616855K 5.991922K 0.86115N 0.516694K D.861156K 12.856195K 2.325121K 8.611558K 0.172231K 1.420907X R c.
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100.00000(C To form a part of Policy No.
N -270 Issued to Washin ton Pub1ic Power Su 1
S stem te of Issue A ril 1 1990 Por By the Subsc
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re ribing Companies, I
f Endorsement No.
47 Countersigned by
P
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Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABlLlTYlNSURANCE ASSOCiATiON ENDORSEMENT TO CERTIF1CATE NO.
Forming Part of Master Policy No.
1 Nuclear Energy Liability Insurance (Secondary Financial Protection)
It is agreed that effective. August 20, 1988:
I.)
Subparagraph (c) on Page 1 of the certificate is amended to read as follows:
(c) to bodil in'u or ro ert dama e
with respect to which the rimar financial would apply but for (i) exhaustion of its limit of liability as described in Condition 6
of the Master Policy, or (2) the application of Insuring Agreement IV, "Application of Policy" of the
~rimar financial rotection, as amended by paragraph 3
of the Waiver of Defenses Endorsement attached thereto, and which is caused during the certificate period stated in Item 6 of the Declarations by a nuclear incident arising out, of, or in connection with the nuclear reactor described in Item 3 of the Declarations, and (3) which is discovered and for which written claim is made against the insured not later than ten (10) years after the end of the certificate period stated in Item 6
of the Declarations.
- However, this subparagraph (3) shall not operate to bar coverage for bodil in'u or ro ert dama e
caused by an extraordina nuclear occurrence.
II.)
Item 4.(b) of the certificate is deleted.
III.) Item 7.
of the certificate is amended to read as follows:
NE-S-14 Page 1 of 2
l
Item 7.
Maximum retrospective premium
~exclusive of allowance for premium taxes) payable pursuant to Condition 2
of the Master Policy with respect to each nuclear incident:
$51,26,6,250.
THIS IS TO CERTIFY THAT THIS IS A TRUE COPY OF THE ORIGINAL CERTIFICATE, BEARING THE NUMBER DESIGNATED HEREON, FOR INSURANCE COVERAGE UNDER THE I'JIASTER POLICY-NUCLEAR ENERGY LIABIIITY INSURANCE.{SECONDARY FIN<<ICIALPROTECTION). NO INSURANCE IS AFFORDS B
JQN UA%0CC VICE Ph SIDENT-UNDERWRITING AMERICANNUCLEAR INSURERS Effective Date of August 20; 1988 12:01 A. H. Standard tIme To form a part of Certificate No. N-91 Issued to Washington Public Power Supply System Date of Issue Harch 23, 1990 por the S
s ribing C
- anies, I
By esid t
Countersigned by NE-S-14 Page 2 of 2
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Nuclear Energy Liability insurance NUCLEAR ENERGY LIABILlTYlNSURANCE ASSOClATION ENDORSEMENT TO CERTIFICATE NO.
N-91 FORMING PART OF MASTER POLICY NO.
1 NUCLEAR ENERGY LIABILITYINSURANCE (Secondary Financial Protection) 1 ~
2 ~
Zn paragraph (c) on Pages 1 and 2 of the certificate, and in all endorsements to the certificate relating
- thereto, the words "bodily injury or property damage" are amended to read "bodil in 'ur ro ert dama e or environmental dama e".
This endorsement applies to all claims for damages,
- costs, expenses or other relief or recovery for which coverage is sought under the policy, and which are first made in writing, against any insured on or after the effective date of this endorsement stated below.
THIS IS TO CERTIFY THAT THIS IS A TRUE COPY OF THE ORIGINAL CERTIFICATE, BEARING THE NUMBER DESIGNATED HEREON, FOR INSURANCE COVERAGE UNDER THE MASTER POLICY-NUCLEAR ENERGY IABILITYINSURANCE (SECONDAR FINANCIALPROTECTION). NO I 'SURANCE IS AF RD RY THI OPY.
N L.
A'P Vl E PRESIDENT-UNDERWRITIN AMERICAN NUCLEAR INSURERS Effective Date of this Endorsement January 1,
1990 12:Ol A. H. Standard time To form a part of Certificate No.
N-91 Issued to Washin ton Public Power Su l
S st Date of Issue March 23, 1990 For the Subs ribing Companies,
. Ir
'VPEZSID Countersigned by NE-S-18 (1/1/90)
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Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITYINSURANCE ASSOCIATION ENDORSEMENT TO CERTIFICATE NO.
Forming Part of Master Policy No.
1 Nuclear Energy Liability Insurance (Secondary Financial Protection)
It is agreed that, effective August 20, 1988:
I.)
Subparagraph (c) on Page 1 of the certificate is amended to read as follows:
(c) to bodil in'u or ro ert dama e
with respect to which the rimar financial would apply but for (i) exhaustion of its limit of liability as described in Condition 6
of the Master Policy, or (2) the application of Insuring Agreement IV, "Application of policy" of the
~rimar financial rotection, as amended by paragraph 3
of the Waiver of Defenses Endorsement attached thereto, and which is caused during the certificate period stated in Item 6 of the Declarations by a nuclear incident arising out of, or in connection with the nuclear reactor described in Item 3 of the Declarations, and (3) which is discovered and for which written claim is made against the insured not later than-ten (10) years after the end of the certificate period stated in Item 6
of the Declarations.
- However, this subparagraph (3) shall not operate to bar coverage for bodil in'u or ro ert dama e
caused by an extraordina nuclear occurrence.
II.)
Item 4.(b) of the certificate is deleted.
III.) Item 7.
of the certificate is amended to read as follows:
NE-S-14 Page 1 of 2
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a Item 7.
Maximum retrospective premium (exclusive of allowance for premium taxes) payable pursuant.
, to Condition 2
of the Master Policy with respect to each nuclear incident:
$ 51,266,250.
ATRUE
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)oHH, pEgy-UHp SURERs V(CE>>"'ciEAR AMERICAN Bffective Date of August 20, 1988 12t01 A. H. Standard time To form a part of Certificate No. N-91
.Issued to Date of Issue March 23, 1990 ribing C
- anies, i
For the S bs By esid t
Washington Public Power Supply System Bndorsement No.
Countersigned by a ~
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Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITYINSURANCE ASSOCIATION ENDORSEMENT TO CERTIFICATE NO.
N-91 FORMING PART OF MASTER POLICY NO.
1 NUCLEAR ENERGY LIABILITYINSURANCE (Secondary Financial Protection)
,1 ~
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In paragraph (c) on Pages 1 and 2 of the certificate, and in all endorsements to the certificate relating thereto, the words "bodily injury or property damage" are amended to read "bodil in'ur ro ert dama e or envi o mental dama e".
This endorsement applies to all claims for damages.
- costs, expenses or other 'relief or recovery for which coverage is sought under the policy, and which are first made in writing, against any insured on or after the effective date of this endorsement stated below.
THIS IS TO CERTIFY THAT THIS IS A TRUE COPY OF THE ORIGINAL, CERTIRCATE, BEARING THE NUMBER DESIGNATED HEREON, FOR INSURANCE COVERAGE UNDER THE MASTER POLICY-NUCLEAR ENERGY LIABILITYINSURANCE (SECONDP.
Y FINANCIALPROTECTION). NO INS "i'E IS 0 ""
< S COPY.
HNL.QUAT K C
H VICE PRESIDENT-UNDERWRITING AMERICAN NUCLEAR INSURERS Effective Date of this Endorsement January 1,
1990 12:01 A. H. Standard time To form a part of Certificate No.
N-91 Issued to Mashin ton Pub1ic Power Su 1
S st Date of Issue March 23, 1990 For the Sobs ribing Companies, Ir A
'dvaZSID Endorsement No.~
Countersigned by NE-S-18 (1/1/90)
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Nuclear Energy Liability Insurance MUTUALATOMIC ENERGY LIABILITYUNDERWRITERS ENDORSEMENT TO CERTIFICATE NO ~
Forming Part of Master Policy No.
1 Nuclear Energy Liability Xnsurance (Secondary Financial Protection)
Xt is agreed that effective August 20, 1988:
I.)
Subparagraph (c) on Page 1 of the certificate is amended to read as follows:
(c) to bodil in'u or ro ert dama e
(1) with respect to which the rimar financial 2would apply but for (i}
exhaustion of its limit of liability as described in Condition 6
of the Master Policy,.or the application of Insuring Agreement IV, "Application of Policy" of the
~rimarg financial rotection, as amended by paragraph 3
of.the Naiver of Defenses Endorsement attached thereto, and (2) which is caused during the certificate period stated in Item 6 of the Declarations by a nuclear incident arising out of, or in connection with the nuclear reactor described in Item 3 of the Declarations, and (3) which is discovered and for which written claim is made against the insured not later than ten (10) years after the end of the certificate period stated in Xtem 6
of the Declarations.
- However, this subparagraph (3} shall not operate 'to bar coverage for bodil in'u or ro ert dama e
caused by an extraordina nuclear occurrence.
II.)
Xtem 4.(b) of the certificate is deleted.
IIX.) Xtem 7.
of the certificate is amended to read as follows:
NE-S-14 Page 1 of 2
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~ a Item 7.
Maximum retrospective premium (excl'usive of allowance for premium taxes) payable pursuant to Condition 2
of the Master Policy with respect to each nuclear incident:
$ 14 883 7
0 5
ERTIFY THAT THIS IS A TRUE COPY OF THE ORIGINAL NG THE NUMBER DESIGNATED HEREON, FOR NDBI THE MAS ER POLICY-NUCLEAR ENERGY GIAL PROTEGTIONI NO LIABILTY INSURANCE (SECONDARY FIN t INSUR/;'ICE P
.D'OR L 8 dOHN 1.. i~UATTROGCHI VICE PRESIDENT-UNDERWRITING AMERICANNUCLEAR INSURERS Effective Date of this Fndorsement Auqust 20, 1988 12t01 A.H. Standard time To form a part of Certiftcate No. " pt Issued to Mashington Public Power Supply System Date of issue March 23, 1990 By t
For the Subscribing Companies MUTQhL hTOHXC 196GKT LXhBILITT ERQRIIERS Endorsement No.
13 Countersigned by ME-S-14 Page 2 of 2
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0 Nuclear Energy Liability Insurance MUTUALATOMIC ENERGY LIABILITYUNDERWRITERS ENDORSEMENT TO CERTIFICATE NO.
M-91 FORMING PART OF'ASTER POLICY NO.
1 NUCLEAR ENERGY LIABILITYINSURANCE (Secondary Financial Protection) words "bodily injury or property damage" are amended to read n ur e
ro ert dama e or v r n e ta dama e".
2.
. This endorsement applies to all claims for damages,
- costs, expenses or other relief or recovery for which coverage is sought under the policy, and which are first made in writing against any insured on or after the effective date of this endorsement stated below.
THIS IS TO CERTIFY THAT THIS IS A TRUE COPY OF THE ORIGINAL CERTIFICATE, BEARING THE NUMBER DESIGNATED HEREON, FOR INSURANCE COVERAGE UNDER TH MASTER POLICY-NUCLEAR ENERGY IABILITYINSURANCE (SECONDA i FINANCIALPROTECTION). NO Ii SURES F
R PY.
N L. QUATTROCCHI VICE PRESIDENT-UNDERWRITING AMERICANNUCLEAR INSURERS Effective Date of this Endorsement Januar 1,
1990 12:01 A.H. Standard tine To form a part of Certificate No. l1-91 Issued to ttashin ton Public Power Supply System
, Date of issue March 23, 1990 For'he Subscribing Companies KmdL dTOHIC ENERGY LIdBILITT ERQRITERS ndorsement No.
By Countersigned by ME-S-18 (1/1/90)
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Nuclear Energy Liabiity Insurance
. MUTUALATOMIC ENERGY LIABILITYUNDERNRITERS ENDORSEMENT TO CERTIFICATE NO.
Forming Part of Master Policy No.
1 Nuclear Energy Liability Xnsurance (Secondary Financial Protection)
It is agreed that effective August 20, 1988:
I.)
Subparagraph (c) on Page 1 of the certificate is amended to read as follows:
(c) to bodil in'u or ro ert dama e
(1) with respect to which the rimar financial would apply but for (i}
exhaustion of its limit of liability as described in Condition 6
of the Master Policy,-or (ii) the application of Xnsuring Agreement XV, "Application of Policy" of the
~rimar financial rotection, as amended by paragraph 3
of the Waiver of Defenses Endorsement attached thereto, and (2) which is caused during the certificate period stated in Item 6 of the Declarations by a nuclear incident arising out of, or in connection with the nuclear reactor described in Xtem 3 of the Declarations, and (3}
which is discovered and 'for which written claim is made against the insured not later than ten (10) years after the end of the certificate period stated in Item 6
of the Declarations.
- However, this subparagraph (3) shall not operate to bar coverage for bodil in'u or ro ert dama e
caused by an extraordina nuclear occurrence.
II.)
Item 4.(b) of the certificate is deleted.
III.) Item 7.
of the certificate is amended to read as follows:
ME-S-14 Page 1 of 2
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Item 7.
Maximum retrospective premium (exclusive of allowance for premium taxes) payable pursuant to Condition 2
of the Master Policy with respect to each nuclear incident:
$ 14,883,750.
THIS IS TO CERTIFY THAT THIS IS A TRUE COPY OF THE ORIGINAL CERTIFICATE, BEARING THE NUMBER DESIGNATED HEREON, FOR INSURANCE COVERAGE UNDER THE'IIIIAS~.R POLICY-NUCLEAR ENERGY LIABILI Y INSURANCE (SECONDARY FIN CIAI. PROTECTION). NO INSURA ICE ~ '"'ORn.o B
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e JOHN L.'ATTROCCHI VICE PRESIDENT-UNDERWRITING AMERICAN NUCLEAR INSURERS Effective Date of this Endorsement August 20, 1988 let:01 A.H. Sterxhrd time To form a part oK Certificate No. "
Issued to Washington Public Power Supply System Date of issue Endorsement No.
March 23, 1990 13 a
For the Subscribing Companies HUTUAL ATOMIC ENIKGY LXhBILITY ERQRITERS By Countersigned by
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'uclear Energy Liability insurance MUTUALATOMlC ENERGY LiABiLiTYUNOERNRlTERS ENDORSEMENT TO CERTIFICATE NO.
M-91 FORMING PART OF MASTER POLICY NO.
1 NUCLEAR ENERGY LIABILITYINSURANCE (Secondary Financial Protection}
1 ~
2 ~
words "bodily injury or property damage" are amended to read n ur ro ert dama e or environme ta dama e".
This endorsement applies to all claims for damages,
- costs, expenses or other relief or recovery for which coverage is sought under the policy, and which are first made in writing against any insured on or after the effective date of this endorsement stated below.
THIS IS TO CERTIFY THAT THIS IS A TRUE COPY OF THE ORIGINAL CERTIFICATE, BEARING THE NUMBER DESIGNATED HEREON, FOR INSURANCE COVERAGE UNDER THE i!ASTER POLICY-NUCLEAR ENERGY L ABILITYINSURANCE (SECONDAR' INANCIALPROTECTION). NO lb, UR AF D
i Y.
J L. QUATTR CCHI VICE PRESIDENT-UNDERWRITING AMERICAN NUCI.EAR INSURERS Effective Date of this Endorsement c
Januar 1,
1990 12:01 A.H. Starxhrd tin>>
To form a part of Certificate No. l1-91 Issued to Washin ton Pub1ic Power Supp1y System Date of issue March 23, 1990 ndorsement No.
f HE-S-18 (1/1/90)
For the Subscribing Companies MUTUAL ATOMIC ENERGY LIABILITY ERQRITERS L
By Countersigned by
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Nuclear Energy Liability Insurance MUTUAL ATOM1C ENERGY LIABlLlTYUNDERWRITERS SUPPLEMENTARY ENDORSEMENT WAIUER OF DEFENSES REACTOR CONSTRUCTION AT THE FACILITY Effective August 20, 1988, it is agreed that in construing the application of paragraph 2(b) of the NAIUER OF DEFENSES ENDORSEMENT ME-33b with respect to an extraordinary nuclear occurrence occurring at the facility,.
a claimant who is employed at the facility in connection with the construction of a nuclear reactor with respect to which no operating license has been issued by the Nuclear Regulatory Commission shall not be considered as employed in connection with the activity where the extraordinary nuclear occurrence takes place if:
(1) the claimant is employed exclusively in connection with the construction of a nuclear reactor, including all related equipment and installations at the facility, and (2) no operating license has been issued by the Nuclear Regulatory Commission with respect to the nuclear
- reactor, and (3) the claimant is not employed in connection with the possession,
- storage, use or transfer of nuclear material at the facility.
This is to certify that this is a true copy of the original Endorsement having the endorsement number and being made part of the nuclear Energy Liability Policy 1."'ilit, Form) as des-ignated lereon. No Insu micr '" ".f
-. hereunder.
John L.. ttccchi, Vice Pre&3ent Undarwri AlDcocMl Ntlclem hlavtcta Effective Date of Endorsement August 20, 1988 12tQl A.H. Standard time To form a part of Policy No.
MF-110 Issued to washington Public Power Supply System Date of issue February 16, 1990 For the Subscribing Companies NJTUAL ATOMIC ENERGY LIABILITYUNDER By ndorsement No.
33 Countersigned by HE-39b
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Nuclear Energy Liability Insurance MUTUALATOMIC ENERGY LIABILITYUNDERWRITERS Restriction of Com anies Obli ation to Defend Investi ate Ne otiate or Settle An Claim or Suit (Section 170 0. of the, Atomic Energy Act of 1954, as amended)
Effective August 20, 1988, it is agreed that whenever, pursuant to subsection 170 0.
of the Atomic Energy Act of
- 1954, as
- amended, an appropriate U.S.
- District, Court determines that liability from a single nuclear incident may exceed the limit of liability under the applicable limit of liability under subsection 170 e.(1)
(A),
(B) and (C) of the Atomic Energy Act of
- 1954, as
- amended, the companies obligations under Insuring Agreement I, to
- defend, investigate, negotiate or settle any claim or suit under the policy do not include any obligation that would necessitate or result in the companies incurring legal
- costs, including costs of initiating, prosecuting, investigating,
- settling, or defending claims or suits, which are not authorized for payment by a court pursuant to such subsection 170 0 ~
This is to certify that this is a true copy of the original Endorsement having the endorsement number and being made part of the Nuclear Energy Liability Policy (Facility Form) as des-ignate hereon. No Insurance is affor hereunder.
John L. Q a tioci i, Vlcc u~ i ~
n American uclear Insurers Effective Date of is Endorsement Au9ust 20, 1988 12rol A.H. standard time To form a part of Policy No.
MF-110 Issued to Washin ton Public Power Su ply System Date of issue February 16, 1990 For the Subscribing Companies MUTllhL ATOMIC ENERlrY LIABILITYIlNDHRVRITERS By Countersigned by ME-70
ol
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Nuclear Energy L)ability Insurance MUTUALATOMIC ENERGY LIABILITYUNDERNRITERS WAIVER OF DEFENSES E DORSEMENT (Extraordinary Nuclear Occurrence)
The named
- insured, acting for himself and every other insured under the policy, and the members of Nuclear Energy Liability Insurance Association agree as follows:
1.
With respect to any extraordinary nuclear occurrence to which the policy applies as proof of financial protection and which (a) arises out of or results from or occurs in the course of the construction, possession, or operation of the facility, or (b) arises out of or results from or occurs in the course of the transportation of nuclear material to or from the facility, the insureds and the companies agree to waive (1) any issue or defense as to the conduct of the claimant or the fault of the insureds, including but not limited to:
(i)
(ii)
(iii)
(iv) negligence, contributory negligence, assumption of risk, and unforeseeable intervening,
- causes, whether involving the conduct of a third person, or an act of God, (2) any issue or defense as to charitable or governmental immunity, and (3) any issue or defense based on any statute of limitations if suit is instituted within three years from the date on which the claimant first knew, or reasonably could have known, of his bodily injury or property damage and the cause thereof.
The waiver of any such issue or defense shall be effective regardless of whether such issue or defense may otherwise be deemed jurisdictional or relating to an element in the cause of action.
2 ~
The waivers set forth in paragraph l. above do not apply to (a) bodily injury, property damage or environmental damage which is intentionally sustained by the claimant or which results from a
nuclear incident intentionally and wrongfully caused by the claimant; ME-33c (1/1/90)
Page 1 of 3
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(b) bodily injury sustained by any claimant who is employed at the site of and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits therefor are either payable or required to be provided under any workmen' compensation or occupational disease law:
(c) any claim for punitive or exemplary
- damages, provided, with respect to any claim for wrongful death under any State law which provides for damages only punitive in nature, this exclusion does not apply to the extent that the claimant has sustained actual
- damages, measured by the pecuniary injuries resulting from such death but not to exceed the maximum amount otherwise recoverable under law.
3.
The waivers set forth in paragraph 1.
above shall be effective only with respect to bodily injury, property damage or environmental damage to which the policy applies under its terms other than this endorsement;
- provided, however, that with respect to bodily injury, property damage or environmental damage resulting from an extraordinary nuclear occurrence, the provisions of COVERAGES A and C of the policy providing coverage for bodily injury, property damage or environmental damage caused during the policy period by the nuclear energy hazard and which is discovered and for which written claim is made against the insured not later than ten (10) years after the end of the policy period shall not operate to bar coverage for bodily injury.
property damage or environmental damage (a) which is caused during the policy period by the nuclear energy hazard and (b) which is discovered and for which written claim is made against the insured not later than twenty (20) years after the date of the extraordinary nuclear occurrence.
Such waivers shall not apply to, or prejudice the prosecution or defense of any claim or portion of claim which is not within the protection afforded under (a) the provisions of the policy applicable to the financial protection required of the named insured; (b) the agreement of indemnification between the named insured and the Nuclear Regulatory Commission made pursuant to Section 170 of the Atomic Energy Act of
- 1954, as amended:
and (c) the limit of liability provisions of Subsection 170e.'f the Atomic Energy Act of 1954, as amended.
Such waivers shall not preclude a defense based upon the failure of the claimant to take reasonable steps to mitigate damages.
HE-33c (1/1/90)
Page 2 of 3
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Subject to all of the limitations stated in this endorsement and in the Atomic Energy Act of
- 1954, as
- amended, the waivers set forth in paragraph 1'.
above shall be judicially enforceable in accordance with their terms against any insured in an action to recover damages because of bodily injury, property damage or environmental damage to which the policy applies as proof of financial protection.
5.
As used herein:
"extraordinary nuclear occurrence" means an event which the Nuclear Regulatory Commission has determined to be an extraordinary nuclear occurrence as defined in the Atomic Energy Act of 1954, as amended.
"Financial protection" and "nuclear incident" have the meanings given them in the Atomic Energy Act of 1954, as amended.
"claimant" means the person or organization actually sustaining the bodily injury.
property damage or environmental damage and also includes his assignees, legal representatives and other persons or organizations entitled to bring an action for damages on account of such injury or damage.
This is to certify that this is a true copy of the original Endorsement having the endorsement number and being made part of the Nuclear Energy Liability Policy (F cility Form) as des.
ignated ereon. No Insurance is afforde hereunder.
John L u
1 occSAiA
. er-Arnerican clear 1nsurers V
Effective Date of this Endorsement January 1,
1990
'i2r01 A.H. Standard time To form a part of Policy No.
MF-110 Issued to Washin ton Public Power Supply System Date f issue February 16, 1990 For the Subscribing Companies MUIfBLLATONIC ENERGT LQLBIL'ITTUNDERQRZQKS By t
Endorsement No.
ME-33c (1/1/90}
Countersigned by Page 3 of 3
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Nuclear Energy Liability Insurance MUTUALATOMIC ENERGY LIABILITYUNDERWRITERS SUPPLEMENTARY ENDORSEMENT WAIVER OF DEFENSES REACTOR CONSTRUCTION AT THE FACILITY It is agreed that in construing the application of paragraph 2(b) of the WAIVER OF DEFENSES ENDORSEMENT NE-33c with respect to an extraordinary nuclear occurrence occurring at the
- facility, a
- claimant, who is employed at the facility in connection with the construction of a
nuclear reactor with respect to which no operating license has been issued by the Nuclear Regulatory Commission shall not be considered as employed in connection with the activity where the extraordinary nuclear occurrence takes place if:
(1) the claimant is employed exclusively in connection with the construction of a
nuclear reactor, including all related equipment and installations at the facility, and (2) no operating license has been issued by the Nuclear Regulatory Commission with respect to
'the nuclear
- reactor, and e
(3) the claimant is not employed in connection with the possession,
- storage, use or transfer of nuclear material at the facility.
I ce<<'fy that this is of the Nuclear Energy LiabilityPoli: nd "etng made part ignated hereon. No instanc~ '
iiy Form) as des.
o nst "anc~ '~
forr'.
hereunder.
4 rocchl Vjce prealdent.U John L i ttr
'can Nuclear.lnaurers Effective Date of this Endorsement January I, 1990 12:01 A.H. Standard time To form a part of Policy No, "F-110 Issued to Washin ton Pub1ic Power Su 1y System Date of issue February 16, 1990 Por the Subscribing Companies MUTUAL ATOMIC ENERGY LIABILITYUNDER dorsement No.
ME-39c (ltr1/90}
By Countersigned by
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Nuclear Energy Liability Insurance MUTUALATOMIC ENERGY LIABILITYUNDERNRITERS It is agreed that:
AMENDATORY ENDORSEMENT (Facility Form)
INSURING AGREEMENT I is replaced by the following:
I COVERAGE A - LIABILITY To pay on behalf of the insured all sums which the insured shall become legally obligated to pay as covered dama cause of bodi.ly injury or property damage, or as covered amages environmental cleanup costs because of environmental damage.
This Coverage applies only to bodily injury, property damage or environmental damage caused durin th p licy period by the nuclear energy
- hazard, and which is 0
discovered and for which wri.tten claim is made against the
- insured, not later than ten (10) years after the end of the policy period.
The companies shall have the right and duty to defend any clai.m or suit against the insured alleging such injury or
- damage, and seeking damages or costs which are payable under the terms of this policy; but the companies may make such investigation, negotiation and settlement of the claim or suit as they deem expedient.
The companies'uty to defend shall be
- limited, as described in INSURING AGREEMENT IV, if the claim or suit also seeks any of the following which in no event shall be construed as covered by this policy:
(3)
(4) damages for on-site property damage:
recovery of on-site cleanup costs or any other cleanup costs except covered environmental cleanu costs:
P performance of an insured's environmental protection obligations or on-site cleanup obligations: or any other relief or r'ecovery except payment of costs.
covered damages or covered environmental cleanup The companies'uty to defend claims or suits ends when the limit of their liability has been exhausted pursuant to CONDITION 3.
wit
-Subject to INSURING AGREEMENT IV, the companies shall h respect to any claim or suit they defend, the costs n es s a
- pay, incurred in the defense, including costs taxed against the insured in any such suit and interest on any judgment therein; premiums on appeal bonds and bonds to release attachments in any such suit, but without obligation to apply for or furnish such bonds:
4~,
(3) reasonable
- expenses, other than loss of earnings, incurred by the insured at the companies'equest.
COVERAGE B
DAMAGE TO PROPERTY OF AN INSURED AWAY FROM THE FACILITY With respect to property damage caused during the policy period by the nuclear energy hazard to the property of an insured which is away from the facility, to pay to such insured those sums which such insured would have been legally obligated to pay as covered damages
- therefor, had such property belonged to another.
COVERAGE C SUBROGATION - OFFSITE EMPLOYEES With respect to bodily injury caused during the policy period by the nuclear energy hazard to any employee of an
- insured, and which is discovered and for which written claim is made against the insured, not later than ten (10) years after the end of the policy period, to pay to the workmen's compensation carrier of such insured as follows:
All sums which such carrier would have been entitled to recover and retain as damages from another perso or a g nization, had such person or organization alone been legally responsible for such bodily injury, by reason of the rights acquired by subrogation by the payment of the benefits required of such carrier under the applicable workmen's compensation or occupational disease law.
An employer who is a duly qualified self-insurer under such law shall be deemed to be a workmen's compensation carrier within the meaning, of this Coverage.
This Coverage does not apply to bodily injury to 'any person who is employed at and in connection with the facility; nor shall it constitute workmen's compensation insurance as required under the laws of any state.
INSURING AGREEMENT II is replaced by the following:
II DEFINITION OF INSURED The unqualified word "insured" includes (a) the named insured and (b) any other person or organization with respect to his legal responsibility for covared damages or covered environmental cleanup costs because of bodily injury, property damage or environmental damage caused by the nuclear energy hazard.
Subdivision (b) above does not include as an insured the United States of America or any of its agencies, except the Tennessee Valley Authority.
Subject to CONDITION 3
and the other provisions of this policy, the insurance applies separately to each insured against whom claim is made or suit is brought.'
~ /
XNSURXNG AGREEMENT XXX is replac d b th p ace y the following:
IXI DEFINITIONS Nherever used in this policy policy.
"bodily injury" means bodily in'ur sic including death resultin t
person.
resu ng therefrom, sustained by any "covered dama es" g s means damages because of bod or property damage to which this olic a
covered damages do not include environ env ronmental cleanup costs "covered environmental cleanup costs" means environmental cleanup costs which are ly i i i o tl d extraordinary nuclear result of an incident:
but. covered r occurrence or a
transportation include on-site cleanup costs.
e env ronmental cleanu p costs do not disposal of waste materials of a e
g ral nature, but which containing small amou t f
or the disposal of waste materials moun s of nuclear material.
"environment" includes
- land, the watercourses b di he atmosphere.
and all whether on, above or bel o
es of water and natural resources, or e ow the surface of the ground.
"environmental cleanup costs" include a
f y go nmental
- decree, order er ered damages in an an an award of cove organization to und t k u r ng, or re ues q
sting a
person or for cleaning up, neutralizin or g or ning on m n b lo th f
f t w ether the contam ace o
the ground.
"environmental damage" means contam t b 1
t i 1 "environmental protection obl obligations of an on o
igations" include all any person or organization (1) relating to the protection of the enviro ot i ti o i i t
d and mm nent danger of contamination, ordinances.
p sed by any governmental la (2) im osed a
- laws, regulations or "extraordinary nuclear occurrence" means a
an ex raordinary nuclear occurrence as 3
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defined in the Atomic Energy Act of 1954, or in any law amendatory thereof.
"governmental" refers to federal, state and local governments and authorities, including courts, agencies and political subdivisions thereof.
"indemnified nuclear facility" means (2)
"the facility" as defined in any Nucleax Ener y Liability Policy (Facility Form) issued by Nuclear nergy Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters, or any other nuclear facility, if financial protection is required pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, with respect to any activities or operations conducted thereat.
"insured shipment" means a
shipment of source
- material, special nuclear material, spent fuel, waste, or tailings or wastes produced by the extraction or concentration of uranium or thorium from any ore processed primarily fox its source material content, herein called "material,"
(1) to the facility from any location except an indemnified nuclear facility,
- but, only if the transportation of the material is not by predeter-mination to be interrupted by removal of the material from a
transporting conveyance for any purpose other than the continuation of its transpor-tation, or (2) from the facility to any other location, but only until the material is removed from a transporting conveyance for any purpose other. than the continuation of its.transport'ation.
"nuclear energy hazard" means the radioactive,
- toxic, explosive ox other hazardous properties of nuclear material, but only if (1) the nuclear material is at the facility or has been discharged or dispersed therefrom without intent to relinquish possession or custody thereof to any other person or organization, or (2) the nuclear material is in an insured shipment which is away from any other nuclear facility and is in the course of transportation, including handling and temporaxy storage-incidental thereto, within (a) the territorial limits of the United States of
- America, its territories or possessions, or Puerto Rico; or
'"(b) international waters or airspace, provided that the nuclear material is in the course of transportation between two points located within
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the territorial limits described in (a) above and there is no deviation in the course of the transportation for the purpose of going to any other country, state or nation, except for the purpose of going to or returning from a port or place of refuge as the result of an emergency.
"nuclear facility" means "the facility" as defined in any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters.
The term "nuclear facility" also means (1) any nuclear reactor.
(2) any equipment or device designed or used for (a) separating the isotopes of uranium or plutonium, (b) processing or utilizing spent fuel, or (c) handling, processing or packaging waste, (3) any equipment or device used for the processing, fabricating or -alloying of special nuclear material if at any time the total amount of such material in
~
the custody of the insured at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination
- thereof, or more than 250 grams of uranium 235, (4) any structure,
- basin, excavation, premises or place prepared or used for the storage or disposal of
- waste, and includes the site on which any of the foregoing is located, all operations conducted on such site and all premises used for such operations.
"nuclear material" means source material, special nuclear material or byproduct material.
"nuclear reactor" means any apparatus designed or used to sustain nuclear fission or a
self-sustaining chain material.
reaction or to contain a critical mass f fi i b
o ss ona le "on-site cleanup costs" include all loss, cost, or expense arising out of on-site cleanup obligations.
"on-site cleanup obligations" include all obligations of ot any person or organization, imposed by common 1
mon aw or for cle
- herwise, to undertake or pay for monitori t ti leaning up, neutralizing or containing contamination by nuclear material at the facility, whether the material is on, above or zoic'a the surface of the ground.
"on-site property damage" includes all property damage to any property at the facility, whether the property is on, above or below the surface of the
- ground, other than aircraft, watercraft or vehicles licensed for highway use,
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provided such aircraft, watercraft or vehicles are not used in connection with the operation of the facility.
"property damage" means physical injury to or destruction or radioactive contamination of property, and loss of use of property so
- injured, destroyed or contaminated, and loss of use of property while evacuated or withdrawn from use because possibly so contaminated or because of imminent danger of contamination.
"source material,"
and
>>byproduct material" have the meanings given them in the Atomic Energy Act of
- 1954, or in any law amendator thereof.
en a ory
>>spent fuel>>
means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in any nuclear reactor.
"the facility" means the facility described in the declarations and includes the location designated in It 3 of the declarations and all property and operations at n
em such location.
"transportation incident" means a discharge or dispersal of nuclear material from an insured shipment caused by collision or upset of the transporting conveyance, or an accident that breaks
- open, punctures or ruptures the shipping containers or containment thereon; but only if both the discharge or dispersal and the collision, upset or accident take place away from any nuclear facility and away from any disposal site, and both occur in the course of the transportation, including handling and temporary storage incidental thereto.
4 ~
"waste" means any waste material (1) containing, byproduct material and (2) resulting from the operation by any person or organization of any nuclear facility included within the definition of nuclear facility under paragraph (1) or (2) thereof.
INSURING AGREEMENT IV is replaced by the following and INSURING AGREEMENT IV-A added by the "Amendment of Coverage Endorsement for Workers Claims (Facility Form)"
continues to apply:
IV LIMITED DEFENSE OF PARTIALLY COVERED CLAIMS OR SUITS The following provisions apply with resp t t p r ally covered claim 'or suit for which the companies'rtia duty to defend has been limited by INSURING AGREEMENT I:
(1)
The companies will defend the claim or suit unless the companies and the first named insured mutually agree on a different defense arrangement.
By making
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0 such a defense, the companies shall not be considered as having waived their rights under this policy to deny payment or reimbursement of the items not covered.
(2)
As soon as practicable, the first named
,insured, acting on behalf of all insureds, and the companies shall endeavor to reach an equitable arrangement for handling the defense and sharing the costs thereof.
(3)
The companies'hare of defense costs shall not exceed the portion of the total defense costs that represents the costs which would be reasonably and necessarily incurred in the defense of the claim or suit in the absence of any claim or demand for the items not covered.
(4)
The companies shall have a right to contribution from the first named insured for all defense costs as they are incurred in excess of the amount of the companies'hare, including reimbursement by the first named insured of all such excess costs paid by the companies.
(5) If the companies and the first named insured cannot agree on the companies'hare of defense
- costs, the dispute shall be submitted, as a condition precedent to any right of recovery on this policy, to arbitra-tion for a final and binding resolution, as provided in Condition 19.
5.
In EXCLUSIONS (d) and (e),
and in all endorsements to this policy relating
- thereto, the words "bodily injury or property damage" are replaced by "bodily injury, property damage or environmental damage."
6.
EXCLUSION (f) is replaced by the following exclusion:
[This policy does not apply:]
(f) to on-site property damage:
7 ~
In CONDITION 3, and in all endorsements to this policy modifying the dollar amount of the limit of - li bilit stated in Item 4 of the declarations, the words "bodily injury or property damage" are replaced by "bodily injury, property damage or environmental damage."
8.
In CONDITION 4, and in all endorsements to this policy modifying the dollar amount of the total aggregate liability oi the companies with respect to a
common occurrence:
(a)
(b) the words "bodily injury or replaced by "bodily injury, environmental damage":
and the words "bodily injury and replaced by "bodily injury, environmental damage."
property damage" are property damage or property damage" are property damage and
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9.
In CONDITIONS 5, 11, 15 and 18, and in all endorsements to this policy relating thereto, the vords "bodily injury or property damage" are replaced by "bodily injury, property damage or environmental damage."
10.
CONDITION 19, DECLARATIONS, and CONDITION 20, MUTUAL POLICY CONDITION, are renumbered CONDITIONS 20 and 21.
11.
The folloving CONDITION is added to the policy:
19 ARBITRATION OF DISPUTES RELATING TO ~E APPLICATION OF INSURING AGREEMENT ZV All such disputes subject to paragraph (5) of INSUR1NG AGREEMENT IV shall be submitted to a Board of Arbitration (the "Board" ) for a final and binding resolution of the dispute.
There shall be two parties to the arbitration:
the first named insured, acting on behalf of all insureds as th i duly authorized representative, and Nuclear Energy Liability Insurance Association, acting on behalf of the companies as their duly authorized representative.
Except to the extent the parties mutually agree othervise, the folloving principles will apply:
(a)
The arbitration vill take place in New
(b)
Either party may begin the process of arbitration b
giving, notice to the other party in writing of its on y
intention to do so and the name of the arbitrator that it has appointed.
(c)
The other party shall then appoint in writing an arbitrator, and the arbitrators shall appoint in writing an umpire before they begin the arbitration.
The umpire shall act as chairman of the Board.
(d) If a
party fails to name its arbitrator vithin thirty (30) days of the other party's written request that it do so, the requesting party may appoint an arbitrator for the party in default.
(e) If the two arbitrators fail to agre'e on the selection of an umpire vithin thirty (30) days after they have both been appointed, each of them shall name two, of whom'he other shall decline one.
The choice shall be made by drawing lots.
(f)
The arbitrators and umpire shall be executive officers or former executive officers of insurance companies licensed to do business in the United States or of organizations designated as the first named insured under a Nuclear Energy Liability Poli iss ued by Nuclear Energy,, Liability Insurance o
cy Association or Mutual Atomic Energy Liabilit Underwriters:
provided that the current empl y f
the fol e
o lowing shall not be eligible for service
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(g)
(h)
(i)
(j)
(k) 0 without the consent, of both parties:
(1) any party or likely party to the underlying claim or suit:
(2)
American Nuclear
- Insurers, MAERP Reinsurance Association or their members; or (3) any other insurer or reinsurer which has casualty insurance or reinsurance in force on any of the foregoing which may be materially affected by the Board's decision.
Mithin thirty (30) days after the appointment of the
- umpire, each party shall submit its case in writing to the Board.
The Board shall determine its rules of procedure, and the nature and extent of any discovery, testimony, examination or cross-examination of witnesses and oral argument permitted.
The decision of any two members of the Board shall be final and binding on all parties.
All discovery, submissions of evidence.
hearing of witnesses and argument shall be completed within sixty (60) days of the appointment of the umpire, provided the Board may grant one extension of thirty (30) 'days.
The arbitrators and the umpire are not to be bound by any strict rules of legal procedure, evidence or legal precedents.
They shall,
- however, be governed by the terms of this policy, and shall have no power to add to or change its provisions.
Subject to this admonition, they shall interpret the relevant provisions of this policy as an honorable business agreement, and shall be entitled to
- decide, in accordance with such provisions together with the other materials submitted to them, what they think is the fair and right thing to be done between the parties from a
business point of
- view, without favoring the interest of either party.
The Board shall make its award in writing within thirty (30) days after the close of the
- period, including any extension
- granted, described in paragraph (h) above.
Tf the Board fails to make an award within the time prescribed by paragraph (j)
- above, then unless an extension is agreed to by the
- parties, a
new arbitration shall be commenced and completed in accordance with the procedure set out in paragraphs (a) through (j) above.
The award of the Board signed by any two
- members, shall be final. not subject to appeal and binding on all parties, including all insurers subscribing the policy and all insureds thereunder.
The award shall be treated as a matter involving, interstate
- commerce, and may be filed or confirmed in any court of competent jurisdiction, state or
- federal, and judgment thereon entered and enforced, in accordance with the law and practice of the forum.
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(m)
Unless the Board decides otherwise, each party shall pay the expenses of the arbitrator appointed by or for it and one half of the other costs of arbitration.
(n) If an arbitrator or umpire is unable or unwilling to
- act, a new arbitrator or umpire, as the case may be,i shall be appointed to act in his or her place, in accordance with the provisions set forth above.
(o)
All materials relevant to the arbitration shall be submitted to the Board in triplicate and the filing party shall send simultaneously a copy thereof to the opposing party.
12.
This endorsement applies to all claims for damages,
- costs, expenses or other relief or recovery for which coverage is sought under this policy, and which are first made in writing against any insured on or after the effective date
'of this endorsement stated below.
This is to certify that this is a true copy of the onginal Endorsement having the endorsement number and being made part of the Nuclear Energy Liability Policy (F cilify Form) as des.
ignated hereon. No Insurance is afford hereunder.
John L.
ittrocchi, Vice resident-n erCFr' American Nuclear insurers 10 EEEective Date of this Endorsement Janual 1,
1990 12:01 A.M. Standard Time Issued to Washin ton Public Power Supp1y System Date of Issue Februar 16 1990 For the Subscribing Companies MUTUAL ATONIC EHERCY-LIABII.ITTUND WRITERS By rsement No.
37 NE-71 (1/1/90}
Countersigned by Authorized Representative
0