ML18054A267
| ML18054A267 | |
| Person / Time | |
|---|---|
| Site: | Palisades  |
| Issue date: | 03/01/1988 |
| From: | Frounfelker R CONSUMERS ENERGY CO. (FORMERLY CONSUMERS POWER CO.) |
| To: | Dinitz I NRC |
| References | |
| NUDOCS 8803080450 | |
| Download: ML18054A267 (45) | |
Text
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consumers
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.POWERIN&
NllCHlliAN"S PRO&RESS General Offices: 212 West Michigan Avenue, Jackson, Ml 49201 * (517) 788-0550.
March 1, 1988 Mr Ira Dinitz Mail Stop 128
. US Nuclear Regulatory Commission Washington, DC 20555 ANI POLICY CERTIFICATE NW-87 MAELU POLICY CERTIFICATE MW.-24 DOCKET NO 50-255 Attached are two copies each of the above policy certificates together with endorsements for Palisades Nuclear Plant.
These policy certificates cover the "new" master workers program with the Nuclear. Insurance Pools.
R E Frounfelker Property & Casualty -
Insurance Director aao308045o 8ao3ot*
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OC0388-1-IN02 A CMS' ENERGY COMPANY
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MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS NUCLEAR ENERGY LIABILITY POLICY (Facility Worker Form) herein called the MASTER WORKER POLICY C E R T I F I C A T E 0 F I N S U R A N C E Certificate No. J1W::..2.4 Date of Issue Feb. 4, 19 88 This is to c~rtify that the insureds named in Item 1 of the Declarations
- hereof, hereinafter call~d the "Named Insureds", have obtained insurance under the Master Worker Policy issued by Mutual Atomic Energy Liability Underwriters on behalf of its members. The insurance is subject to all of the provisions of this *"Certificate" and the Master Worker Policy.
- 1 DECLARATIONS Item 1. Named Insureds and Addresses:
Consumers Power Company 212 West Michigan Avenue Jackson, Michigan 49201 Item 2. Certificate Coverage Period:
Beginning at 12:01 a.m. January 1, 1988 and ending at the close of December 31, 1992, Eastern Standard Time, or at the time and date this Certificate is cancelled or terminated, whichever first occurs.
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Item 3. Description of the Facility:
Location:
See Endorsement No. 3.
Type: Power Reactor {Operating)
Operator of the Facility:
Consumers Power Company Item 4. Amount of Insurance Available:
The amount of insurance afforded by the Master Worker Policy through this Certificate shall be determined by Section VIII of the Master Worker Policy and all of the other provisions of the policy relating thereto.
Item 5. Advance Premium:
$ 4,837.00 2
APPLICATION OF CERTIFICATE This Certificate applies only to bodily injury to a new worker (1) which is caused during the Certificate Coverage Period by the nuclear energy hazard and (2) which is dis-covered and for which written claim is first made against an insured uhder the Certificate within th~ discovery-~eriod ot the Master Worker Policy.
3 INDUSTRY RETROSPECTIVE RATING PLAN All insurance under the Master Worker Policy is subject to the Industry Retrospective Ra ting Plan in use by the companies. No insurance is provided under this Certificate unless and until the first Named Insured has accepted in writing the Industry Retrospective Rating Plan Premium En-dorsement and a copy of the signed endorsement has been issued by the companies to form a part of this Certificate.
MMWPC-1 (1/1/88)
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IN WITNESS
- WHEREOF, the companies subscribing the Master Worker Policy hav:e caused this Certificate to be executed and attested on their behalf by the Manager of Mutual Atomic Energy Liablity Underwriters and duly countersigned by. an authorized representative.
For the Subscribing Companies of MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS J. Michael O'Connell, Manage By Countersigned by:
(Authorized Representative)
MMWPC-1 (1/1/88)
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Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS INDUSTRY RETROSPECTIVE RATING PLAN PREMIUM ENDORSEMENT It is agreed that:
- 1.
DEFINITIONS With reference to the premium for the Certificate of which this endorsement forms a part:
"Master Worker Policy" means the Master Worker Policy issued by MAELU; "Certificate Holder" means the first Named Insured in a Certificate issued to form a part of the Master Worker Policy; "advance premium", for any calendar year, is the esti-mated standard premium for that calendar year; "standard premium", for any calendar year, is the premium for that calendar year computed in accordance with the companies' rules, rates, rating plans (other than the Industry Retrospective Rating Plan), premiums and minimum premiums applicable to this insurance.
Standard premium includes elements for premium taxes, expenses, profit and contingencies, guaranteed cost insurance and estimated reserve premium. The elements of standard premium, other than for premium taxes and estimated reserve premium, are not subject to retrospec-tive adjustment; "reserve premium" means that portion of the premium for a Certificate (including reserve premium charges paid) that is specifically allocated under the Industry Retro-spective Rating Plan for ratable incurred losses; "industry reserve premium", for any period, is the sum of the reserve premiums for that period for all Certif i-cates issued to fOI'I!\\ a part of the Master Worker Policy; "retrospective adjustment ratio", for any period, is the ratio of the reserve premium for this Certificate for that period to the industry reserve premium for the same period; "incurred losses" means the sum of all:
(1) losses and expenses paid by MAELU, and
( 2) reserves for losses and expenses as estimated by
- MAELU, ME~W-1 (1/1/88)
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because of obligations assumed and expenses incurred in connection with such obligations by the members of MAELU under the Master Worker Policy; "ratable incurred Ratable incurred losses which. are insurance element losses" means 95% of incurred losses.
losses are the portion of incurred not covered by the guaranteed cost of standard premiums; "non-ratable incurred losses" means 5% of incurred losses.
Non-ratable incurred losses are the portion of incurred losses which are covered by the guaranteed cost insurance element of standard premiums; "reserve for refunds", as of any date, is the algebraic difference between:
( 1) all industry reserve premium for the period from January 1, 1988 through such date, minus (2) the total for the same period of (a) all ratable incurred losses and (b) all industry reserve pre-mium refunds made under the Industry Retrospective Rating Plan by members of MAELU; "industry reserve premium charge", for any period, means the amount determined pursuant to the provisions of Section*4 of this endorsement for payment by the Named Insureds under Certificates; "reserve premium charge" means the portion of an indus-try reserve premium charge payable by the Named Insureds under this Certificate; "industry reserve premium refund", for any period, means the amount determined pursuant to the provisions of Section 4 of this endorsement for return to the Named Insureds under Certificates; "reserve premium refund" means the portion of an indus-try reserve premium refund returnable to the Named Insureds under this Certificate.
- 2.
PAYMENT OF ADVANCE AND STANDARD PREMIUMS The Named Insureds shall pay the companies the advance premium stated in the declarations, for the period from the effective date of this Certificate through December 31 following. Thereafter, at the beginning of each calendar year while this Certificate. is in force, the Named Insureds shall pay the advance premium for such year to the companies.
ME-W-1 {l/1/88)
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The advance premium for each calendar year shall be stated in the Advance and Standard Premium Endorsement for the year issued by the companies as soon as practic-able prior to or aft~r the beginning of the year.
As soon as practicable after the end of a calendar year or the Certificate Coverage Period, the standard premium for the preceding year shall be finally determined and stated in the Advance and Standard Premium Endorsement for that year. If the standard premium exceeds the ad-vance premium paid for that year, the Named Insureds shall pay the excess to the companies; if less, the com-panies shall return to the Named Insureds the excess portion paid.
The Named Insureds shall maintain records of the inform-ation necessary for premium computation and shall send copies of such records to the companies as directed, at the end of each calendar year, at the end of the Certi-ficate Coverage Period and at such other times as the companies may direct.
- 3.
SPECIAL RESERVE ACCOUNT; USE OF RESERVE PREMIUMS MAELU shall maintain on behalf of its members a Special Reserve Account for holding collectively all reserve premiums paid for all Certificates issued, to form a part of the Master Worker Policy. Such premiums, together with any undistributed net income realized thereon after taxes and investment expenses, shall be used for the following purposes only:
( 1) to pay ratable incurred losses or, in the event ratable incurred losses are paid under the Master Worker Policy from funds advanced by the members of MAELU subscribing the policy, to reimburse such members as a matter of first priority for the funds advanced; (2) to refund any amounts so held to the Named Insureds, as provided in Section 4.
No members of MAELU and no Named Insureds shall have any individual interest in or claim upon amounts held in the Special Reserve Account, except to participate propor-tionallY, in any refund or reimbursement provided for above.
All reserve premiums paid or payable for this Certif i-cate may be used by MAELU to discharge the obligations of its members under the Master Worker Policy with re-_
spect to the above purposes and arising out of claims made under any Certificate issued to form a part of the Master Worker Policy.
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- 4.
PAYMENT OF RESERVE PREMIUM CHARGES AND REFUNDS As soon as practicable after each December 31 the com-panies will review the status of the reserve for refunds and report their findings to all Certificate Holders.
If, at any time, the companies find that there is a negative balance in the reserve for refunds and that such condition is likely to prevail, they shall deter-mine an appropriate industry reserve premium charge.
Similarly, if the companies find that there is a surplus positive balance, they shall determine an appropriate industry reserve premium refund.
The portion of an industry reserve premium charge or an industry reserve premium refund that is:
(1) payable by the Named Insureds as a reserve premium charge, or (2) due such insureds as a reserve premium refund, shall be determined by multiplying the industry reserve premium charge or the industry reserve premium refund by the retrospective adjustment ratio applicable to this certificate.
The amount of any reserve premium charge shall be stated in a Retrospective Reserve Premium Charge Endorsement.
The charge shall be paid promptly after receipt of the endorsement.
When all claims covered by the Master Worker Policy are closed the companies shall make a final review and report, and shall determine a *final industry reserve premium charge or industry reserve premium refund equal to the amount of the,balance.
- 5.
FINAL PREMIUM The final premium fpr this Certificate shall be (a) the sum of the standard premiums for each calendar year, or portion thereof, during which the Certificate remains in force plus (b) the sum of all reserve premiums, includ-ing all reserve premium charges, minus (c) the sum of all reserve premium refunds.
- 6.
RESERVE PREMIUM CHARGE AGREEMENT In consideration of (a) the participation of.Named Insureds in other Certificates subject to the Industry Retrospective Rating Plan, (b) the* undertaking of such Named Insureds to pay their appropriate share of any industry reserve premium charge and (c) the obligations assumed by the members of MAELU under the Master Worker ME-W-1 (1/1/88)
Page 4
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Policy, the Named Insureds, by acceptance of the Master Worker Policy, agree:
( 1)
That the insurance provided by the Master Worker
- .Policy applies collectively to all claims covered by the policy through
- any and all Certificates issued to form a part of the policy.
(2)
That the right of each Named Insured under a Cert-ificate to receive reserve premium refunds and the obligation of each such insured to pay reserve premiums charges applies to all claims covered by the Master Worker Policy and continues until all such claims are closed, whether or not such claims were before the inception of the Certificate or after its termination.
( 3)
To pay all reserve premium charges due promptly after receipt of the Retrospective Reserve Premium Charge Endorsement, whether or not the Certificate is terminated. Any reserve premium charge shall be overdue if not paid within 60 days of the date of the invoice for the charge.
Overdue reserve premium charges shall bear interest from the due date until paid at an annual rate equal to the sum of (a) 3% plus (b) a rate of in-terest equal to Moody's Average Public Utility Bond Yield described in the issue of Moody's Bond Survey current on the due date.
Any reserve p~emium refund due to Named Insureds under a Certi-ficate shall be used to pay any overdue reserve premium charges to such Named Insureds.
- 7.
RESERVE PREMIUM REFUND AGREEMENT Each member of MAELU subscribing the Master Worker Policy for any calendar year, or portion thereof,* with respect to which an industry reserve premium refund is determined to be payable 'thereby agrees for itself, severally and not jointly, and in the respective pro-portion of its liability assumed under the Master Worker Policy for that calendar year, to return promptly to the
. Named*** insureds. that portion of such refund** due such-
- Insureds, as determined in accordance with the provisions of this endorsement.
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Page 6 Accepted and agreed by the first Named Insured in behalf of itself and every other Named Insured stated in the Declara-tions of the Certificate of which this endorsement forms a part.
Consumers Power Company Date Nov 24, 1987 By (First Nam~~ Insured - Print or Type)
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(Signature of Authorized Officer)
RM Griswold, Vice President & Treasurer (Print or Type Name and Title of Officer)
Effective Date of To form a part of this Endorsement January l, 1988 12:01 A.M. Standard Time of Certificate No. MW-24 Issued to Consumers Power Company
.Date of Issue October 19, 1987 For the Subscribing Companies Endorsement No.
l ME-W-1 (1/1/88)
t **.
Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT CALENDAR YEAR 1988
- 1.
ADVANCE PREMIUM:
It is agreed that the Advance Premium due the companies for the period designated above is:
s 4,837.00
- 2.
STANDARD PREMIUM ANO RESERVE PREMIUM:
In the absence of a change in the Advance Premium indicated above, it is agreed that, subject to the provisions of the Indus-try Retrospective Rating Plan, the Standard Premium is said Advan~e Premium and the estimated Reserve Premium element of the Standard Premium is:
Effective Date of this Endorsement ____ _.:..J=a~nu~a~r~y"""---'l~,---'-1~98=8=----------------To form a part of Certificate No. ___ M_W_-_2_4 __ _
12:01 A.M.
~tandard Time Issued to Consumers Power Company Date of Issue February 4, 1988 For the Subscribing Companies Endorsement No.
2 HE-W-2 (l/1/88)
Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS DESCRIPTION OF THE FACILITY ENDORSEMENT It is agreed that Item 3 of the Declarations, "Description of the Facility,"
is as follows:
Location:
All of the premises including the land and all buildings and structures known as the Palisades Nuclear Plant which are enclosed within the Plant peripheral fence and the fence extending from the Plant peripheral fence which encloses the cooling towers and associated equipment of such Plant and also the intake line and discharge structure, the access road between the Plant peripheral fence and the east radwaste building fence and the land, buildings and structures within the east radwaste building peripheral fence.
Effective Date of The Palisades Nuclear 'Plant is located approximately five (5) miles south of South Haven, Michigan in Covert Township, Van Buren County, Michigan.
this Endorsement.~ _
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.To form a part of Certificate No.
MW-24 12:01 A.M. Standard Time Date of Is sue. __
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For the Subscribing Companies MUTUAL Endorsement No. ___
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c NUCLEAR ENERGY LIABILITY INSURANCE ASSOC1~!.~_0ti.~- __
NUCLEAR ENERGY LIABILITY POLICY (Facility Worker Form) herein called the MASTER WORKER POLICY
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-~ 1988 CERTIFICATE 0 F INSUR A:~:C E Certificate No.
NW-87 Date of Issue Feb. 4, 19 88 This is to certify that the insureds named in Item 1 of the Declarations
- hereof, hereinafter called the "Named Insureds", have obtained insurance under the Master Worker Policy issued by Nuclear Energy Liability Insurance Associa-tion on behalf of its members. The insurance is subject to all of the provisions of this "Certificate" and the Master Worker Policy.
1 DECLARATIONS Item 1. Named Insureds and Addresses:
Consumers Power Company 212 West Michigan Avenue Jackson, Michigan 49201.
Item 2. Certificate coverage Period:
Beginning at 12:01 a.m. January 1, 1988 and ending at the close of December 31, 1992, Eastern Standard Time, or at the time and date this Certificate is cancelled or terminated, whichever first occurs.
NMWPC-1 (1/1/88)
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Item 3. Description of the Facility:
Location:
See Endorsement No. 3.
Type:
Power Reactor (Operating)
Operator of the Facility: Consumers Power Company Item 4. Amount of Insurance Available:
The amount of insurance afforded by the Master Worker Policy through this Certificate shall be determined by Section VIII of the *Master Worker Policy and all of the other provisions of the policy relating thereto.
Item 5. Advance Premium:
$ 16' 663. 00 2
APPLICATION OF CERTIFICATE This Certificate applies only to bodily injury to a new worker (1) which is caused during the Certificate Coverage Period by the nuclear energy hazard and (2) which is dis-covered and for which written clai~ is first made against an insured under the Certificate within the discovery period of the Master Worker Policy.
3 INDUSTRY RETROSPECTIVE RATING PLAN All insurance under the Master Worker Policy is subject to the Industry Retrospective Rating Plan in use by
- the companies. No insurance is provided under this Certificate unless and until the first Named Insured has accepted in writing the Industry Retrospective Rating Plan Premium En-dorsement and a copy of the signed endorsement has been issued by the companies to form a part of this Certificate.
NMWPC-1 (1/1/88)
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IN WITNESS
- WHEREOF, the companies subscribing the Master Worker Policy have caused this* Certificate to be executed and attested on their behalf by the President of Nuclear Energy Liability Insurance Association and duly counter-signed by an authorized representative.
For the Subscribing Companies of NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION Burt c. Proom, President By Countersigned by: ~~9'~~~
(Authorized Representative)
NMWPC-1 (1/1/88)
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Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION INDUSTRY RETROSPECTIVE RATING PLAN PREMIUM ENDORSEMENT It is agreed that:
- 1.
DEFINITIONS With reference to the premium for the Certificate of which this endorsement forms a p~rt:
"Master Worker Policy" means the Master Worker Policy issued by NELIA; "Certificate Holder" means the first Named Insured in a certificate issued to form a part of the Master Worker Policy; "advance premium'~, for any calendar year, is the esti-mated standard premium for that calenda~ year; "standard premium", for any calendar year, is the pre-mium for that calendar year computed in accordance with the companies' rules, rates, rating plans {other than the Industry Retrospective Rating Plan), premiums and minimum premiums applicable to this insurance. Standard*
premium includes elements for premium taxes, expenses, prof it and contingencies, guaranteed cost insurance and estimated reserve premium. The elements of standard
- premium, other than for premium taxes and estimated reserve premium, are not subject to retrospective adjustment; "reserve premium" means that portion of the premium for a Certificate {including reserve premium charges paid) that is specifically allocated under the Industry Retro-spective Rating Plan for ratable incurred losses; "industry reserve premium", for any period, is the sum of the reserve premiums for that period for all Certif i-cates issued to form a part of the Master Worker Policy; "retrospective adjustment ratio", for any period, is the ratio of the reserve premium for this Certificate for that period to the industry reserve premium for the same period; "incurred losses" means the sum of all:
(1) losses and expenses paid by NELIA, and
{ 2) reserves for losses and expenses as estimated by
- NELIA, NE-W-1 {1/1/88)
Page 1
because of obligations assumed and expenses incurred in
' connection with such obligations by the members o_f NELIA
. unde_r the Master Worker Policy; "ratable incurred Ratable incurred losses which are insurance element losses" means 95% of incurred losses.
losses are the portion of incurred not covered by the guaranteed cost of standard premiums; "non-ratable incurred losses" means 5% of incurred losses.
Non-ratable incurred losses are the portion of incurred losses which are covered by the guaranteed cost insurance element of standard premiums; "reserve for refunds", as of any date, is the algebraic difference between:
(1) all industry reserve premium for the period from January 1, 1988 t~rough such date, minus (2) the total for the same period of (a) all ratable incurred losses and (b) all industry reserve pre-mium refunds made under the Industry Retrospective Rating Plan by members of NELIA; "industry reserve premium charge", for any period, means the amount determined pursuant to the provisions of Section 4 of this endorsement for payment by the Named, Insureds under Certificates; "reserve premium charge" means the portion of an indus-try reserve premium charge payable py the Named Insureds under this Certificate; "industry reserve premium refund", for any period, means the amount determined pursuant to the provisions of Section 4 of this endorsement for return to the Named Insureds under Certificates; "reserve premium refund" means the portion of an indus-try reserve premium refund returnable to the Named In-sureds under this Certificate.
- 2.
PAYMENT. OF ADVANCE AND STANDARD PREMIUMS The Named Insureds shall pay the companies the advance premium stated in the declarations, for the period from the effective date of this Certificate through December 31 following. Thereafter, at the beginning of each calendar year while this Certificate is in force, the Named Insureds shall pay the advance premium for such year to the companies.
. The advance premium for each calendar year shall be stated in the Advance and Standard Premium Endorsement NE-W-1 (1/1/88)
Page 2
for the year issued by the companies as soon as practic-able prior to or after the beginning of the year.
As soon as practicable after the end of a calendar year or the Certificate Coverage Period, the standard premium for the preceding year shall be finally determined and stated in the Advance and standard Premium Endorsement for that year. If the standard premium exceeds the ad-vance premium paid for that year, the Named Insureds shall pay the excess to the companies; if less, the com-panies shall* return to the Named Insureds the excess portion paid.
The Named Insureds shall maintain records of the inform-ation necessary for premium computation and shall send copies of such records to the companies as directed, at the end of each calendar year, at the end of the Certi-ficate Coverage Period and at such other times as the companies may direct.
- 3.
SPECIAL RESERVE ACCOUNT; USE OF RESERVE PREMIUMS NELIA shall maintain on behalf of its members a Special Reserve Account for holding collectively all reserve premiums paid for all Certificates issued to form a part of the Master Worker Policy. Such premiums, together with any undistributed net income realized thereon after taxes and investment expenses, shall be used for the following purposes only:
( 1) to pay ratable incurred losses or, in the event ratable incurred losses are paid under the Master Worker Policy from funds advanced by the members of NELIA subscribing the policy, to reimburse such members as a matter of first priority for the funds advanced; (2) to refund any amounts so held to the Named Insureds, as provided in Section 4.
No members of NELIA and no Named Insureds shall have any individual int*rest in or claim upon amounts held in the Special Reserve Account, except to participate propor-tionally in any refund or reimbursement provided for above.
All reserve premiums paid or payable for this Certifi-cate may be used by NELIA to discharge the obligations of its members under the Master worker Policy with re-spect to the above purposes and arising out of claims
.made under any Certificate issued to form a part of the Master Worker Policy.
NE-W-1 (1/1/88)
Page 3
- 4.
PAYMENT OF RESERVE PREMIUM CHARGES AND REFUNDS As soon as practicable after each December 31 the com-panies will review the status of the reserve for refunds and report their findings to all Certificate Holders.
If, at any time, the companies find that there is a negative balance in the reserve for refunds and that such condition is likely to prevail, they shall deter-mine. an appropriate industry reserve premium charge.
Similarly, if the companies find that there is a surplus positive balance, they shall determine an appropriate industry reserve premium refund.
The portion of an industry reserve premium charge or an industry reserve premium refund that is:
(1) payable by the Named Insureds as a reserve premium charge, or (2) due such insureds as a reserve premium refund, shall be determined by multiplying the industry reserve premium charge or the industry reserve premium refund by the retrospective adjustment ratio applicable to this Certificate.
The amount of any reserve premium charge shall be stated in a Retrospective Reserve Premium Charge Endorsement.
The charge shall be paid promptly after receipt of the endorsement.
When all claims covered by the.Master Worker Policy are clos~d the companies shall make a final review and re-port, and shall determine a final industry reserve premium charge or industry reserve premium refund equal to the amount of the balance.
- 5.
FINAL PREMIUM The final premium for this Certificate shall be (a) the sum of the standard premiums for each calendar year, or portion thereof, during which the Certificate remains in force plus (b) the sum of all reserve premiums, includ-ing all reserve premium charges, minus (c) the sum of all reserve premium refunds.
6... RE.SERVE PREMIUM CHARGE AGREEMENT In consideration of (a) the participation of Named Insureds in other Certificates subject to the Industry Retrospective Rating Plan, (b) the undertaking of such*
Named Insureds to pay their appropriate share of any industry reserve premium charge and *(c) the obligations assumed by the members of NELIA under the Master Worker NE-W-1 (1/1/88)
Page 4
t Policy, the Named Insureds, by acceptance of the Master Worker Policy, agree:.
( 1)
That the insurance provided by the Master Worker Policy applies collectively to all claims covered by the policy through any and all Certificates issued to form a part of the policy.
(2)
That the right of each Named Insured under a Cert-ificate to receive reserve premium refunds and the obligation of each such insured to pay reserve premiums charges applies to all claims covered by the Master Worker Policy and continues until all such claims are closed, whether or not such claims were before the inception of the Certificate or after ~ts termination.
( 3)
To pay all reserve premium charges due promptly after receipt of the Retrospective Reserve Premium Charge Endorsement, whether or not the Certificate is terminated. Any reserve premium charge shall be overdue if not paid within 60 days of the date of the invoice for the charge.
overdue reserve premium charges shall bear interest from the due date until paid at an annual rate equal to the sum of (a) 3% plus (b) a rate of in-terest equal to Moody's Average Public Utility Bond Yield described in the issue of Moody's Bond Survey current on the due date.
Any reserve pre-mium refund due to Named Insureds under a
Certificate shall be used to pay any overdue reserve premium charges to such Named Insureds.
- 7.
RESERVE PREMIUM REFUND AGREEMENT Each member of NELIA subscribing the Master Worker Policy for any calendar year, or portion thereof, with respect to which an industry reserve premium refund is determined to be payable thereby agrees for itself, severally and not jointly, and in the respective pro-portion of its liability assumed under the Master Worker Policy for that calendar year, to return promptly to the Named Insureds that portion of such refund due such Insureds, as determined in accordance with the provi-sions of this endorsement.
NE-W-1 (1/1/88)
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c.
Page 6 Accepted and agreed by the first Named Insured in behalf of itself and every other Named Insured stated. in the Declara-tions of the Certificate of which this endorsement forms a part.
Consumers Power Company (First Named Insured - Print or Type)
Date Nov 24, 1987 By
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(Signature of Authorized Officer)
R M Griswold, Vice President & Treasurer (Print or Type Name and Title of Officer)
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Lro.~i.. ~t9';\\1(;*.;..;c.m Effective Date of To form a part of this Endorsement January 1, 1988 of Certificate No. NW-87 12:01 A.M. Standard.Time Issued to Consumers Power Company Date of Issue October 19,,.987 For Endorsement No. _____ l ______ ~
NE-W-1 (1/1/88)
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Nuclear E.nergy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT CALENDAR YEAR 1988.
- 1.
- ADVANCE PREMIUM:
It is agreed that the Advance Premium due the companies for the period designated above is:
s 16,663. 00
- 2.
STANDARD PREMIUM AND RESERVE PREMIUM:. In the absence of a change in the Advance Premium indicated above, it is agreed that, subject to the provisions of the Indus-try Retrospective Rating Plan, the Standard Premium is said Advance Premium and the estimated Reserve Premium element of the Standard Premium is:
This Is to certify that this Is a true copy of the original Endors~~ent 13 '330. 00 baytn the endorsement number and being made part of th? Gert1f1cate
__..o~f lns~rance bearing the number desig ated hereon for insurance cov.era.~nder the Nuclear energy U lity Polley (Facility Workers Form).. o ln~~e I ff er.
John L.. attr0cchi, ca President -
a illty Underwriting American uclear Jnsurers
- Effective Date of this Endorsement __
~J~an~u=a~r_y___;,,l~*-1~9~8=8 _______ ~To form a part of Certificate No.
NW-87 12:01 A.M. Standard Time Date of Issue February 4, 1988,
Su ribing C?J'anies By __ ---l~f+/o/i __
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PRESIDENT For the Endorsement No.
2
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NE-W-2 (1/1/88)
Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION DESCRIPTION OF THE FACILITY ENDORSEMENT It is agreed that Item 3 of the Declarations, "Description of the Facility,"
is as fo 11 ows :
Location:
All of the premises including the land and all buildings and structures known as the Palisades Nuclear Plant which are enclosed within the Plant peripheral fence and the fence extending from the Plant peripheral fence which encloses the cooling towers and associated equipment of Effective Date of such Plant and also the intake line and discharge structure, the access road between the Plant peripheral fence and the east radwaste building fence and the land, buildings and structures within the east radwaste building peripheral fence~
The Palisades Nuclear Plant is located approximately five (5) miles south of South Haven, Michigan in Covert Township, Yan Burean County, Michigan.
this Endorsement January 1, 1988 To form a part of Certificate No._N_W_-_8_7 __ _
12:01 A.M. Standard Time.
Date of Issue February 4, 1988 For the~Sub eribing Companies By
____ /1,-:~
PUSIDERT countersigned Jko~~*
Endorsement No.
3
NUCLEAR ENERGY LIABILITY INSURANCE ASSOC_:I:A'.tIOt{~-----
NUCLEAR ENERGY LIABILITY POLICY (Facility Worker Form)
?: n
µ_;*
~ *.
- 1, herein called the MASTER WORKER POLICY
! t :<,'-
FEB 2 : 1988
- ~ :: '....
C E R T I F I C A T E 0 F INSUR A'.~:t E.
Certificate No.
NW-87 Date of Issue Feb. 4, 19 88 This is to certify that the insureds named in Item 1 of the Declarations
- hereof, hereinafter called the "Named Insureds", have obtained insurance under the Master Worker Policy issued by Nuclear Energy Liability Insurance Associa-tion on behalf of its members. The insurance is subject to all of the provisions of this "Certificate" and the Master Worker Policy.
1 DECLARATIONS Item 1. Named Insureds and Addresses:
Consumers Power Company 212 West Michigan Avenue Jackson, Michigan 49201 Item 2. Certificate Coverage Period:
Beginning at 12: 01 a. m. January 1, 1988 and ending at the close of December 31, 1992, Eastern Standard Time, or at the time and date this Certificate is cancelled or terminated, whichever first occurs.
NMWPC-1 (1/1/88)
Page 1
Item 3. Description of the Facility:
Location:
See Endorsement No. 3.
Type:
Power Reactor (Operating)
Operator of the Facility: Consumers Power Company Item 4. Amount of Insurance Available:
The amount of insurance afforded by the Master Worker Policy through this Certificate shall be determined by Section VIII of the Master Worker Policy and all of the other provisions of the policy relating thereto.
Item 5. Advance Premium:
$ 16,663.00 2
APPLICATION OF CERTIFICATE This Certificate applies only to bodily injury to a new worker (1) which is caused during the Certificate Coverage Period by the nuclear energy hazard and ( 2) which is dis-covered and for which written claim is first made against an insured under the Certificate within - the discove:i;-y period of __
the Master Worker Policy.
3 INDUSTRY RETROSPECTIVE RATING PLAN All insurance under the Master Worker Policy is subject to the Industry Retrospective Rating Plan in use by the companies. No insurance is provided under this Certificate unless and until the first Named Insured has accepted in writing the Industry Retrospective Rating Plan Premium En-dorsement and a copy of the signed endorsement has been issued by the companies to form a part of this Certificate.
NMWPC-1 (1/1/88)
Page 2
IN WITNESS
- WHEREOF, the companies subscribing the Master Worker Policy have caused this Certificate to be executed and attested on their behalf by the President of Nuclear Energy Liability Insurance Association and duly counter-signed by an authorized representative.
For the Subscribing Companies of NU_C_L_~AR _J;;tif.:_RGX LI_AEUJ,.J'.l'X _ JBSllMNG~ A_S_&QGI_bT_IQN __ _
Burt C. Proom, President By Countersigned by:
NMWPC-1 (1/1/88)
This is to certify that this ls a true copy of the original :Certificate bearing the number designated hereon, for I urance coverage under the Nuclear Energy Uabillty Policy (Fac!li rkers Form) herein called the M;er Worker ~oU
. afforded bythlscopy.
John L. Ou c~ce dent - Ua d~rlting American Nuc r Insurers Page 3
~**
Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION INDUSTRY RETROSPECTIVE RATING PLAN PREMIUM ENDORSEMENT It is agreed that:
- 1.
DEFINITIONS With reference to the premium for the Certificate of which 1;-h-is endorsement forms a-part:
"Master Worker Policy" means the Master Worker Policy issued by NELIA; "Certificate Holder" means the first Named Insured in a Certificate issued to form a part of the Master Worker Policy; "advance premium", for any calendar year, is the esti-mated standard premium for that calendar year; "standard premium", for any calendar year, is the pre-mium for that calendar year computed in accordance with the companies' rules, rates, rating plans (other than the Industry Retrospective Rating Plan), premiums and minimum premiums applicable to this insurance. Standard premium includes elements for premium taxes, expenses, prof it and contingencies, guaranteed cost insurance and estimated reserve premium. The elements of standard premium, other than for premium taxes and estimated reserve premium, are not subject to retrospective adjustment; "reserve premium" means that portion of the premium for a
Certificat~ (including reserve premium charges paid) that is specifically allocated under the Industry Retro-spective Rating Plan for ratable incurred losses; "industry reserve premium", for any period, is the sum of the reserve premiums for that period for all Cer~if i-cates issued to form a part of the Master Worker Policy; "retrospective adjustment ratio", for any period, is the ratio of the reserve premium for this Certificate for that period to the industry reserve premium for the same period; "incurred losses" means the sum of all:
(1) losses and expenses paid by NELIA, and
( 2) reserves for losses and expenses as estimated by
- NELIA, NE-W-1 (1/1/88)
Page 1
because of obligations assumed and expenses incurred in connection with such obligations by the members o_f NELIA under the Master Worker Policy; "ratable incurred Ratable incurred losses which are insurance element losses" means 95% of incurred losses.
losses are the portion of incurred not covered by the guaranteed cost of standard premiums; "non-ratable incurred losses" means 5% of incurred losses.
Non-ratable incurred losses are the portion of incurred losses which are covered by the guaranteed co~t
- insurance* element of s*tanaa.ra* premiums; "reserve for refunds", as of any date, is the algebraic difference between:
( 1) all industry reserve premium for the period from January 1, 1988 through such date, minus (2) the total for the same period of (a) all ratable incurred losses and (b) all industry reserve pre-mium refunds made under the Industry Retrospective Rating Plan by members of NELIA; "industry reserve premium charge", for any period, means the amount determined pursuant to the provisions of Section 4 of this endorsement for *payment by the Named Insureds under Certificates; "reserve premium charge" means the portion of an indus-try reserve premium charge payable by the Named Insureds under this Certificate; "industry reserve premium refund", for any period, means the amount determined pursuant to the provisions of Section 4 of this endorsement for return to the Named Insureds under Certificates; "reserve premium refund" means the portion of an indus-try reserve premium refund returnaple to the Named In-sureds under this.Certificate.
- 2.
PAYMENT OF ADVANCE AND STANDARD PREMIUMS The Named Insureds shall pay the companies the advance premium stated in the declarations, for the period from the effective date of this Certificate through December
~1 following. Thereafter, at-the beginning of each calendar year while this Certificate is in force, the Named Insureds shall pay the advance premium for such year to the companies.
The advance premium for each calendar year shall be stated in the Advance and Standard Premium Endorsement NE-W-1 (1/1/88)
Page 2
for the year issued by the companies as soon as practic-able prior to or after the beginning of the year.
As soon as practicable after the end of a calendar year or the Certificate Coverage Period, the standard premium for the preceding year shall be finally determined and stated in the Advance and Standard Premium Endorsement for that year. If the standard premium exceeds the ad-vance premium paid for that year, the Named Insureds shall pay the excess to the companies; if less, the com-panies shall return to the Named Insureds the excess po_rt i Qn p_a id.
The Named Insureds shall maintain records of the inform-ation necessary for premium computation and shall send copies of such records to the companies as directed, at the end of each calendar year, at the end of the Certi-ficate Coverage Period and at such other times as the companies may direct.
- 3.
SPECIAL RESERVE ACCOUNT; USE OF RESERVE PREMIUMS NELIA shall maintain on behalf of its members a Special Reserve Account for holding collectively all reserve premiums paid for all Certificates issued to form a part of the Master Worker Policy. Such premiums, together with any undistributed net income realized thereon after taxes and investment expenses, shall be used for the following purposes only:
( 1) to pay ratable incurred losses or, in the event ratable incurred losses are paid under the Master Worker Policy from funds.advanced by the members of NELIA subscribing the policy, to reimburse such members as a matter of first priority for the funds advanced; (2) to refund any amounts so held to the Named Insureds, as provided in Section 4.
No members of NELIA and no Named Insureds shall have any individual interest in or claim-upon amounts held in the.
Special Reserve Account, except to participate propor-tionally in any refund or reimbursement provided for above.
All reserve premiums paid or payable for this Certif i-cate may be used by NELIA to discharge the obligations of its members under the Master worker Policy with re-spect to the above purposes and arising out of claims made under any Certificate issued to form a part of the Master Worker Policy.
NE-W-1 (1/1/88)
Page 3
- 4.
PAYMENT OF RESERVE PREMIUM CHARGES AND REFUNDS As soon as practicable after each December 31 the com-panies will review the status of the reserve for refunds and report their findings to all Certificate Holders.
If, at any time, the companies find that there is a negative b~lance in the reserve for refunds and that such condition is likely to prevail, they shall deter-mine an appropriate industry reserve premium charge.
Similarly, if the companies find that there is a surplus positive balance, they sh al 1 d_~t~!1U_i1_'le _an _app:i;:-9pz:- i~ te industry reserve -premium "refund.
The portion of an industry reserve premium charge or an industry reserve premium refund that is:
(1) payable by the Named Insureds as a reserve premium charge, or (2) due such insureds as a reserve premium refund, shall _be determined by multiplying the industry reserve premium charge or the industry reserve premium refund by the retrospective adjustment ratio applicable to this Certificate.
The amount of any reserve premium charge shall be stated in a Retrospective Reserve Premium Charge Endorsement.
The charge shall be paid promptly after receipt of the endorsement.
When all claims covered by the Master Worker Policy are closed the companies shall make a final review and re-port, and shall determine a final industry reserve premium charge or industry reserve premium refund equal to the amount of the balance.
- 5.
FINAL PREMIUM The final premium for this Certificate shall be (a) the sum of the standard premiums for each calendar year, or portion thereof, during which the Certificate remains in force plus (b) the sum of all reserve premiums, includ-ing all reserve premium charges, minus (c) - the sum of all reserve premium refunds.
- 6.
RESERVE PREMIUM CHARGE AGREEMENT In consideration of (a) the participation of Named Insureds in oth~r Certificates subject to.the Industry Retrospective Rating Plan, (b) the undertaking of such Named Insureds to pay their appropriate share of any industry reserve premium charge and (c) the obligations assumed by the members of NELIA under the Master Worker NE-W-1 {l/1/88)
Page 4
Policy, the Named Insureds, by acceptance of the Master Worker Policy, agree:
( 1)
That the insurance provided by the Master Worker Policy applies collectiveiy to all claims covered by the policy through any and all Certificates issued to form a part of the policy.
(2)
That the right of each Named Insured under a Cert-ificate to receive reserve premium refunds and the obligation o_f each
~\\.lGh j.nsur~d _ t;o _ p~y
~~se:t:Ve premiums charges applies to all claims covered by the Master Worker Policy and continues until all such claims are closed, whether or not such claims were before the inception of the Certificate or after its termination.
( 3)
To pay.all reserve premium charges due promptly after receipt of the Retrospective Reserve Premium Charge Endorsement, whether or not the Certificate is terminated. Any reserve premium charge shall be overdue if not paid within 60 days of the date of the invoice for the charge.
overdue reserve premium charges shall bear interest from the due date until paid at an annual rate equal to the sum of (a) 3% plus (b) a rate of in-terest equal to Moody's Average Public Utility Bond Yield described in the issue of Moody's Bond survey current on the due date.
Any reserve pre-mium refund due to Named Insureds under a
Certificate shall be used to pay any overdue reserve premium charges to such Named Insureds.
- 7.
RESERVE PREMIUM REFUND AGREEMENT Each member of NELIA subscribing the Master Worker Policy for any calendar year, or portion thereof, with respect to which an industry. reserve premium refund is determined to be payable thereby -agrees for. itself, severally and not jointly, and in the respective pro-portion of its liability assumed under the Master Worker Policy for that calendar year, to return promptly to the Named Insureds that portion of such refund due such Insureds, as determined in accordance with the provi-sions of this endorsement.
NE-W-1 (1/1/88)
Page 5
Page 6 Accepted and agreed by the first Named Insured in behalf of itself and every other Named Insured stated in the Declara-tions of the Certificate of which this endorsement forms a part.
Consumers Power Company
- -(-First- -Named Insured ~ Print or Ty_p_e)
/..~_,-.-;,;//
(~
/
,# / /
--~!-,._,;(/_ *'* -e *c./
- <<( LL_/
I
./
(.-'
(Signature of Authorized Officer)
Date Nov 24, 1987 By R M Griswold, Vice Prestdent & Treasurer (Priht or Type Name and Title of Officer)
~
COl-m-~~i.:; i.;: *1-::,.
OOAi IJ.~~.i(;*r.-:f.i~T Eff~ctive Date of To form a part of this Endorsement January 1, 1988 of Certificate No. NW-87 12:01 A.M. Standard Time Issued to Consumers Power Company Date of Issue October 19, 1987 Endorsement No.
1 NE-W-1 (1/1/88)
Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT CALENDAR YEAR 1988
- 1.
ADVANCE PREMIUM:
It is agreed that the Advance Premium due the companies for the period designated above is:
s 16,663.00
- 2.
STANDARD PREMIUM ANO RESERVE PREMIUM:
In the absence of a change in the Advance Premium indicated above, it is agreed that, subject to the provisions of the Indus-try Retrospective Rating Plan, the Standard Premium is said Advance Premium and the estimated Reserve Premium element of the Standard Premium is:
Effective D*te of this Endorsement January 1. 1988 To form a part of Certificate No.
. NW-87 12:01 A.M. Standard Time Date of Issue February 4, 1988 For the Endorsement No. __
.:.2 ___
NE-W-2 (l/l/88)
Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION DESCRIPTION OF THE FACILITY ENDORSEMENT It is agreed that Item 3 of the Declarations, "Description of the Facility,"
is as fo 11 ows:
Location:
All of the premises including the land and all buildings and* structures *known *as the *Pali sades Nuclear Plant. which are enclosed within the Plant peripheral fence and the Effective Date of fence extending from the Plant peripheral fence which encloses the cooling towers and associated equipment of such Plant and also the intake line and discharge structure, the access road between the Plant peripheral fence and the east radwaste building fence and the land, buildings and structures within the east radwaste building peripheral fence~
The Palisades Nuclear Plant is located approximately five (5) miles south of South Haven, Michigan in Covert Township, Yan Burean County, Michigan.
This is to certify that this Is a true copy of th~ original Endors?~ent having the endorsement number_ and being made part of th~ Cart1f1cate of Insurance bearing the number designated her on for insurance coverage under t e Nuclear Energy Liability Pol (Fa.cillty Workers Form). No 1n*sur ce is afforded r*awi~..... ~c._.
John L. Quattro
~~si rwriting American Nuclear this Endorsement January 1, 1988 To form a part of Certificate No._N_W_-_8_7~~~
12:01 A.M. Standard Time Issued to.~~~C_o_n_su_m_e_r_s~P_o_w_er~C_o_m~p_a_ny:;._~~~~~~~..,-~~~~~~~~~~~~~~~~
Date of Issue February 4, 1988 Endorsement No.
3 Countersigned the~~ribing Companies By~~
~611;pfa~
For
MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS NUCLEAR ENERGY LIABILITY POLICY (Facility Worker Form) herein called the MASTER WORKER POLICY C E R T I F I C A T E 0 F I N S U R A N C E certiffcat-e No. - ~4
-Da:te cff--rssue Feb. 4, -- - 88 -
This is to certify that the insureds named in Item 1 of the Declarations
- hereof, hereinafter called the "Named Insureds", have obtained insurance under the Master Worker Policy issued by Mutual Atomic Energy Liability Underwriters on behalf of its.members. The insurance is subject to all of the provisions of this "Certificate" and the Master Worker Policy.
1 DECLARATIONS Item 1. Named Insureds ~nd Addresses:
Consumers Power Company 212 West Michigan Avenue Jackson, Michigan 49201 Item 2. Certificate Coverage Period:
Beginning at 12:01 a.m. January 1, 1988 and ending at the close of December 31, 1992, Eastern Standard Time, or at the time and date this Certificate is cancelled or terminated, whichever first occurs.
MMWPC-1 (1/1/88)
Page 1
\\*
Item 3. Description of the Facility:
Location: See Endorsement No. 3.
Type: Power Reactor {Operating)
Operator of the Facility:
Consumers Power Company Item 4. Amount of Insurance Available:
The amount of insurance afforded by the Master Worker Policy through this Certificate shail be determined by Section VIII of the Master Worker Policy and all of the other provisions of the policy relating thereto.
Item 5. Advance Premium:
$ 4,837. 00 2
APPLICATION OF CERTIFICATE This Certificate applies only to bodily injury to a new worker (1) which is caused during the Certificate Coverage Period by the nuclear energy hazard and (2) which is dis-covered and for which written claim is first made against an insured under the Certificate within the discovery period cf the Master Worker Policy.
3 INDUSTRY RETROSPECTIVE RATING PLAN All insurance under the Master Worker Policy is subject to the *Industry Retrospective Rating Plan in use by the companies. No insurance is provided under this Certificate unless and until the first Named Insured has accepted in writing the Industry Retrospective Rating Plan Premium En-dorsement and a copy of the signed endorsement has been issued by the companies to form a part of this Certificate.
MMWPC-1 (1/1/88)
Page 2
-IN-WITNESS
- WHEREOF, the companies subscribing the Master Worker Policy have caused this Certificate to be executed and attested on their behalf by the Manager of Mutual Atomic Energy Liablity Underwriters and duly countersigned by an authorized representative.
- For the Subscri-bi-ng Gompanies of_
MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS J. Michael O'Connell, Manage By Countersigned by:
(Authorized Representative)
MMWPC-1 (1/1/88)
Page 3
Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS INDUSTRY RETROSPECTIVE RATING PLAN PREMIUM ENDORSEMENT It is agreed that:
- 1.
DEFINITIONS With reference* to the. premJu~ J9:r the Certificate of which this endorsement forms a part:
"Master Worker Policy" means the Master Worker Policy issued by MAELU; "Certificate Holder" means the first Named Insured in a Certificate issued to form a part of the Master Worker Policy; "advance premium", for any calendar year, is the esti-mated standard premium for that calendar year; "standard premium", for any calendar year, is the premium for that calendar year computed in accordance with the companies' rules, rates, rating plans (other than the Industry Retrospective Rating Plan),
- premiums and minimum premiums applicable to this insurance.
Standard premium includes elements for premium taxes, expenses, profit and contingencies, guaranteed cost insurance and estimated reserve premium. The elements of standard premium, other than for premium taxes and estimated reserve premium, are not subject to retrospec-tive adjustment; "reserve premium" means that portion of the premium for a Certificate (including reserve premium charges paid) that is specifically allocated under the Industry Retro-spective Rating Plan for ratable incurred losses; "industry reserve premium", for any peri.od, is the sum of the reserve premiums for that period for all Certif i-cates issued to form a part of the Master Worker Policy; "retrospective adjustment ratio", for any period, is the ratio of the reserve premium for this Certificate for that period to the industry reserve premium for the same period; "incurred losses" means the sum of all:
(1) losses and expenses paid by MAELU, and
( 2) reserves *for losses and expenses as estimated by
- MAELU, ME-W-1 (1/1/88)
Page 1
because of obligations assumed and expenses incurred in connection with such obligations by the members of MAELU under the Master Worker Policy; "ratable incurred Ratable incurred losses which are insurance element losses" means 95% of incurred losses.
losses are the portion of incurred not covered by the _ guaranteed cost of standard premiums; "non-ratable incurred losses" means 5% of incurred loss-es-~ - Nen--ratable incurred losses are the portion of incurred losses which are covered by the -gua-ranteed cost insurance element of standard premiums; "reserve for refunds", as of any date, is the algebraic difference between:
_ ( 1) all industry reserve premium for the period from January 1, 1988 through such date, minus (2) the total for the same period of (a) all ratable incurred losses and (b) all industry reserve pre-mium refunds made under the Industry Retrospective Rating Plan by members of MAELU; "industry reserve premium charge", for any period, means the amount determined pursuant to the provisions of Section 4 of this endorsement for payment by the Named Insureds under Certificates; "reserve premium charge" means the portion of an indus-try reserve premium charge payable by the Named Insureds under this Certificate; "industry reserve premium refund", for any period, means the amount determined pursuant to the provisions of Section 4 of this endorsement for return' to the Named Insureds under.certificates; "reserve premium refund" means the portion of an indus-try reserve premium refund returnable to the Named.
Insureds under this Certificate.
- 2.
PAYMENT OF ADVANCE AND STANDARD PREMIUMS The Named Insureds shall pay the companies the advance premium stated in the declarations, for the period from the effective date of this Certificate through December 31 following. Thereafter, at the beginning of each calendar year while this Certificate is in force, the Named Insureds shall pay the advance premium for such year to the companies.
ME-W-1 (1/1/88)
Page 2
The advance premium for each calendar year shall be stated in the Advance and Standard Premium Endorsement for the year issued by the companies as soon as practic-able prior to or after the beginning of the year.
As soon as practicable after the end of a calendar year or the Certificate Coverage Period, the standard premium for the preceding year shall be finally determined and stated in the Advance and Standard Premium Endorsement for that year. If the standard premium exceeds the.ad-vance premium-paid - for* that. year,. the.. ~amed Insureds shall pay the excess to the companies; if less~ ehe com-panies shall return to the Named Insureds the excess portion paid.
The Named Insureds shall maintain records of the inform-ation necessary for premium computation and shall send copies of such records to the companies as directed, at the end of each calendar year, at the end of the Certi-ficate Coverage Period and at such other times as the companies may direct.
- 3.
SPECIAL RESERVE ACCOUNT; USE OF RESERVE PREMIUMS MAELU shall maintain on behalf of its members a Special
- Reserve Account for holding collectively all reserve premiums paid for all Certificates issued to form a part of the Master Worker Policy. Such premiums, together with any undistributed net income realized thereon after taxes and investment expenses, shall be used for the following purposes only:
( 1 )'
to pay ratable incurred losses or, in the event ratable incurred losses are paid under the Master Worker Policy from funds advanced by the members of MAELU subscribing the policy, to reimburse such members as a matter of first priority for the funds advanced;
( 2) t9 refund any amounts so held to the Named Insureds, as provided in Section 4.
No members of MAELU and no Named Insureds shall have any individual interest in or claim upon amounts held in th.e Special Reserve Account, except to participate propor-tionally in any refund or reimbursement provided for above.
All reserve premiums paid or payable for this Certif i-cate may be used by MAELU to discharge the obligations of its members under the Master Worker Policy with re-.
spect to the above purposes and arising out of claims made under any Certificate issued to form a part of the Master Worker Policy.
ME-W-1 (1/1/88)
Page 3
'~
- 4.
PAYMENT OF RESERVE PREMIUM CHARGES AND REFUNDS As soon as practicable after each December 31 the com-panies will review the status of the reserve for refunds and report their findings to all Certificate Holders.
If, at any time, the companies find that there is a negative balance in the reserve for refunds and that such condition is likely to prevail, they shall deter-l!l_ine an appropriate industry reserve premium charge.
Sim1iarly ;* if the companies f ing that there is a surplus positive balance, they shall determine an *appropr-ia~e industry reserve premium refund.
The portion of an industry reserve premium charge or an industry reserve premium refund that is:
(1) payable by the Named Insureds as a reserve premium charge, or (2) due such insureds as a reserve premium refund, shall be determined by multiplying the industry reserve premium charge or the industry reserve premium refund by the retrospective adjustment ratio applicable to this certificate.
The amount of any reserve premium charge shall be stated in a Retrospective Reserve Premium Charge Endorsement.
The charge shall be paid promptly after receipt of the endorsement.
When all claims covered by the Master Worker Policy are closed the companies shall make a final review and report, and shall determine a final industry reserve premium charge or industry reserve premium refund equal to the amount of the balance.
- 5.
FINAL PREMIUM The final premium for this Certificate shall be (a) the sum of the standard premiums for each calendar year, or portion thereof, during which the Certificate remains in force plus (b) the sum of all reserve premiums, includ-ing all rese-rve premium charges, minus (c) the sum of all reserve premium refunds.
- 6.
RESERVE PREMIUM CHARGE AGREEMENT In consideration of (a) the participation of Named Insureds in other Certificates subject to the Industry Retrospective Rating Plan, (b) the undertaking of such Named Insureds to pay their appropriate share of any industry reserve premium charge and (c) the obligations assumed by the members of MAELU under the Master Worker ME-W-1 (1/1/88)
Page 4
\\'
Policy, the Named Insureds, by acceptance of the Master Worker Policy, agree:
( 1)
That the insurance provided by the Master w*orker Policy applies collectively to all claims covered by the policy through any and all Certificates issued to form a part of the policy.
(2)
That the right of each Named Insured under a Cert.;..
if icate to receive reserve premium refunds and the obligation of each such insured to pay reserve premiums charges applies to all claims covered by the Master Worker.Policy. and continues until all such claims are closed, whether or *not --such cla.ims _
were before the inception of the certificate or after its termination.
(3)
To pay all reserve premium charges due promptly after receipt of the Retrospective Reserve Premium Charge Endorsement, whether or not the Certificate is terminated. Any reserve premium charge shall be overdue if not paid within 60 days of the date of the invoice for the charge.
Overdue reserve premium charges shall bear interest from the due date until paid at an annual rate equal to the sum of (a) 3% plus (b) a rate of in-terest equal to Moody's Average Public Utility Bond Yield described in the issue of Moody *_s Bond Survey current on the due date.
Any reserve premium refund due to Named Insureds under a Certi-ficate shall be used to pay any overdue reserve premium charges to such Named Insureds.
- 7.
RESERVE PREMIUM REFUND AGREEMENT Each member of MAELU subscribing the Master Worker Policy for any calendar year, or portion thereof, with respect to which an industry reserve premium refund is determined to be payable thereby agrees for itself, severally and not jointly, and in the respective pro-portion of its liability* assumed under the Master Worker Policy for that calendar year, to return promptly to the--
Named Insureds that portion of such refund due such
- Insureds, as *determined in accordance with the provisions of this endorsement.
ME-W-1 ( 1/1/88)
Page 5
.. \\)
Page 6 Accepted and agreed by the first Named Insured in behalf of itself and every other Named Insured stated in the Declara-tions of the Certificate of which this endorsement forms a part.
Consumers -Power Company (First Named Insured Print or Type)
,.. /!. :"'/ /J< *_
,,,: /
Date Nov 24, 198 7 By _ _._..::....:,,./"-*
- ~
//_/,,,..,....;....,.---"/'--/.....,,,.,_""'""/-* *_'-._-_--_* '-...,..'_---'-*----*----..,...---=--..,......,....-=------
(Signature of Authorized Officer)
RM Griswold, Vice President & Treasurer (Print or Type Name and Title of Officer)
Effective Date of To form a part of this Endorsement January l, 1988 12: Ol A.M. Standard Time of Certificate No. MH-24 Issued to Consumers Power Company Date of Issue October 19, 1987 For the Subscribing Companies Endorsement No.
1 ME-W-1 (1/1/88)
Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS ADVANCE PREMIUM ANO STANDARD PREMIUM ENDORSEMENT CALENDAR YEAR 1988
- 1.
ADVANCE PREMIUM:
It is agreed that the Advance Premium due the companies for the period designated above is:
s 4,837.00
- 2.
STANDARD PREMIUM ANO RESERVE PREMIUM:
In the absence of a change in the Advance Premium indicated above, it is agreed that, subject to the provisions of the Indus-try Retrospective Rating Plan, the Standard Premium is said Advan~e Premium and the estimated Reserve Premium element of the Standard Premium is:
Effective Date of this Endorsement~--J=a~nu~a~r~y...__,;,l~,--'-19~8~8"-------To form a part of Certificate No. __
M_W_-2_4_~
12:01 A.M. Standard Time I~sued to Consumers Power Company Date of Issue February 4, 1988 For the Subscribing Companies Endorsement No.
2
~~~~~~n~
Countersigned~~
!1E-W-2 (l/l/88)
Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS DESCRIPTION OF THE FACILITY ENDORSEMENT It is agreed that Item 3 of the Declarations, "Description of the Facility,"
is as fo 11 ows:
Location~ All of the premises including the land and all buildings and structures known as the Palisades -Nuclear Plant whic;h are enclosed within the Plant peripheral fence and the fence extending from the Plant peripheral fence which encloses the cooling towers and associated equipment of such Plant and also the intake line and discharge structure, the access road between the Plant peripheral fence and the east radwaste building fence and the land, buildings and structures within the east radwaste building peripheral fence.
The Palisades Nuclear Plant is located approximately five (5) miles south of South Haven, Michigan in Covert Township, Van Buren County, Michigan.
Effective Date of this Endorsement.~~__:J~a~n~u~a~r~y~l~*~l~9~8~8----=---=-~~~To form a part of Certificate No.
MW-24 12:01 A.M. Standard Time Date of Issue February 4, 1988
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For the Subscribing Companies MUTUAL Endorsement No.~~~3~~~-