ML18283B816

Forwarding Endorsement No. 33, 34, 35 & 36 to NF-198

ML18283B816
Person / Time
Site:	Browns Ferry
Issue date:	01/20/1977
From:	Duck J Nuclear Insurance Consultants
To:	Saltzman J Office of Nuclear Reactor Regulation
References
Download: ML18283B816 (10)

Text

1221 Avenue of the Americas New York, New Y~020 Telephone 212 99~1 January 20, 1977.

Mr. Jerome Saltzman-Deputy Chief Office of Antitrust 8. Indemnity Nuclear Reactor Regulation Nuclear Regulatory Commission Washington, D.

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Isi,oiaiory Docket File.$0 MSGR/~s Tennessee Valley Authority Brown's Ferry Nuclear Plant NELIA Policy NF-198 Endorsements No.33 34, 35 and"36

Dear Jerry:

Enclosed are eight certified copies each of Endorsements Ho. 33, 34, 35 and 36 to NF-198.

Very truly yours, ohn R. Duck, Jr.

JRD mah Encs.

CC:

E. J.

Brooks E.

Kvaven A technical service of Marsh & McLennan, Incorporated

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p uclear Energy LiabilityInsurance NUCLEAR ENERGY LIABILITYINSURANCE ASSOCIATION AMENDMENT OF CONDITION 2 "INSPECTION'USPENSION" Facility Form It is agreed that Condition 2 "INSPECTION; SUSPENSION" is replaced by.the following:

2 INSPECTION; SUSPENSION The companies shall at any time be permitted but not obligated to inspect the facility and all operations relating thereto and to examine the insured's books and records as far as they relate to the subject matter of this insurance.

Neither'he right to make inspections and examina-tions nor the making thereof nor any advice or report resulting therefrom shall constitute an undertaking, on behalf of or for the benefit of the in-sured or others, to determine or warrant that such facility or operations are safe or healthful, or are in compliance with any law, rule or regulation.

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]1 If a representative of the companies discovers a condition which he believes to be undu'ly dangerous with respect to the nuclear energy hazard, a repre-sentative of the companies may request that such condition be corrected with-out delay.

,In the event of non-compliance with such request, a representative of the companies

may, by notice to the named insured, to any other person or organization considered by the companies to be responsible for the continuance of such dangerous condition,

.and to the United States Nuclear Regulatory Com-

'mission, suspend the insurance with respect to the named insured and such other person or organization effective 12:00 midnight of the next business day, of such Commission following the date that such Commission receives such notice.

The period of such suspension shall terminate as of the time stated in a written notice from the companies to the named insured and to each such person or organization that such condition has beell,corI;ected, igna1;eel i.e oon. Ilo lnsuran'e is air"o=r e6 hereunder.

8 Effective Date of January 1,

1977 this Endorsement 12:01 A.M. Standard Time Tennessee Valley Authority Y

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':~r" To form a part of Policy No NF-Date of Issue December 15, 1976 For the su cribing co panies Endorsement No NE-46 (1/1/77) 33 By Countersigned by General Manager

Nuclear Energy LiabilityInsurance NUCLEAR ENERGY LIABILITYINSURANCE ASSOCIATION WAIVER OF DEFENSES ENOORSEIIENT (Extraordinary Nucl ear Occurrence)

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 con-struction, 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 involved 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 reasoriably could have known, of his bodily injury or property damage and the cause thereof, but in no event more than twenty years after the date of the nuclear incident.

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.

The named insUred, acting for himself and every other insured under the po'licy, and the members of Nuclear Energy Liability Insurance Association agree as follows:

2. The waivers set for th in paragraph l. above do not apply to (a) bodily injury or proper ty 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 with the activity where the extraordinary nuclear occurrence takes place if benefi ts therefor are either payable or re-quired 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 such law.

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4 The waivers ysei Torth~ paragraph l. above shall be ef ive 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 in-jury or property damage resulting from an extraordinary nuclear occurrence, In-suring 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 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 pro-tection required of the named insured; (b) the agreement of indemnification between the named 'insured and the 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 claim-ant 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 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'ommission 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'r organization actually sustaining the bodily injury or property damage~,fqnIi aklyoi,ncludes. his assignees,:

legal. represent-nal atiVeS and Other perSOnk'jr.,O'rgan1.ZatiOnS entitled tO bring,.an, aCtia.n:fOr--go p rg'amages on account of sgjh,jtftju'rj or,. damage.,;,:.;,--

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r ement this Endorsement 12:01 A.M. Standard Time Issued to Tennessee Valle Authorit ol~

To form a part of policy No NF-198

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Date of Issue December 15 1976 For. the su cribing co panies Endorsement No 34 NE-33a (1/1/77)

By Countersigned by General Manager

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4 clear Energy LiabilityInsurance NUCLEAR ENERGY LIABILITYINSURANCE ASSOCIATION AMENDMENT OF DEFINITION OF "NUCLEAR ENERGY HAZARD" Indemnified Nuclear Facilit It is agreed that:

1. Solely with respect to an "insured shipment" to which the policy applies as proof of financial protection required by the Nuclear Regulatory Commission, subdivision (2) of the definition of "nuclear energy hazard" is amended to read:

(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 temporary storage incidental thereto, within (a) the territorial limits of the United States of Ittmeri ca, its territories or possessions, Puerto Rico or the Canal Zone; or (b) international waters or airspace, provided that the nuclear material is in the course of trans-portation between two points located within the territorial limits described in (a) above and there are no deviations in the course of the transportation for the purpose of going to any other country,'state or nation, except a devia-tion in the course of said transportation for the purpose of going to or returning from a port or place of refuge as the result of an emergency.

2.

As used here, "financial protection" has Atomic Energy ACt of 1954, as amended.

the meaning given it in the, r

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Effective Date of this Endorsement JiUlttIU."~.~7 12:01 A.M. Standard Time Issued to Tennessee Valle Author'it

~~b97 To form a part of Policy No NF-198 For the su cribing co panies By General Manager Endorsement No NE-44 (1/1/77)

Countersigned by

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~ g uclear Energy I.iabilitylnsuranc NUCLEAR ENERGY LIABILITYINSURANCE ASSOCIATION 1)

ADVANCE PRENIUH ANO STANDARD PREHIUf1 EHDORSEflEHT 2)

CHANGES IN SUBSCRIBIHG COf'lPAHIES AND IN THEIR PROPORTIONATE LIABILITYENDORSEMENT Calendar Year 1 g77 la.

ADVANCE PREMIUM: It is agreed that the Advance Premium due the companies for the period designated above is:

324,221.25 b.

STANDARD PREMIUM AND RESERVE PREMIUM: In the absence of a change in the

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Advance Premium indicated above, it is agreed that, subject to the pro-visions of the Industry Credit Rating Plan, the Standard Premium is said Advance Premium and the Reserve Premium is:

5 244,083. 15 2.

It is agreed that with respect to bodily injury or property 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 on the reverse side of this endorsement.

b.

The policy shall be binding on such companies only.

c.

Each such company shall be liable only for its proportion of any obligation assumed or expense incurred under the policy because of such bodily injury or property damage as designat!ed on the reverse side of this endorsement.

3. It is agreed that the effective period of this endorsement is from the beginning of, the effective date of this endorsement stated helow to the close of December 3ls't of the Calendar Year designated in the caption

above, or to the time of the termination or cancellation of the policy, if sooner.

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Effective Date of zuc3,ea this Endorsement 12:01 A.M. Standard Time Issued to Tennessee Valle Autho i To form a part of Policy No Date of Issue 19!!

For the su cribing co panies By General Manager Fndorsement No HE-35 (1/1/77)

Countersigned by

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e SUBSCRIBIt!G COHPAIIIES A'.tna Casualty and Surety Co., The, 151 Farmfngton Ave., Hartford, CT 06156 Aetna Insurance

Company, 55 Elm St., Hartford, CT 16115 Allstate insurance Co., 8324 Skokfe Blvd., Skokie, IL 60076 American ltome Assurance Co.,

102 Hafden La., ttew York, t!Y 10005 American ttotorfsts Insurance Co., Long Grove, IL 60045 Centennial Insurance Co., 45 Hall St.,

llew York, IIY 10005 Corrw.rcfal Union Insurance

Company, One Beacon St., Boston, HA OZIIYI Continental Casualty Co.,

Ct!A Plaza,

Chicaan, IL 60RRS Continental Insurance Company, The., 80 Itaiden La.,

Hew York, IIY 10038 Federal Insurance Co..

Sl John F.

Kennedy Pkwy... %hart Hills, tIJ 07070 Fireman's Fund insurance Co., 3333 California St.,

San Francisco, Ch 54119 General Accident Fire and Life Assurance Corp., Ltd., 414 Walnut.St., Philadelphia, P

Great i4'zrfcan Insurance Co.,

500 Walnut St., Cincinnati, ON 45201 Gulf Insurance Co., 3015 Cedar Springs, Dallas, TX 75221 Hanover Insurance Co., The, 440 Lincoln St., Worcester, IIA 01605 Hartford Accident and Indemnity Co.. Hartford Plaza, Hartford, CT 06115

'artford Steam Boiler Inspection and Insurance Co., The, 55 Prospect St., Hartford, Home Indemnity Co., The, 59 Ifaiden La., ttew York, tIY 10030 Insurance Company of North.America, 1605 Arch St., Philadelphia, PA 19101 Itsryland Casualty Co.,

P.O.

BOX 1228, Baltimore, tS 212'13 IhnarCh InSuranCe CO.

Of OhfO, The, 19 ReCtOr St.,

ttew YOrk, !IY 10104 Northwestern.'Iatfonal Insurance Co.,

731 ttorth Jackson St.. tiflwaukee, HI 532n2

'Pacific Indemnity Co.,

3ZOO Itilshfre Boulevard, Los Angeles, CA 90154 Peerless Insurance Co., 62 Itaple Ave., Keene, ttew Hampshire 03431

'hoenix Assurance Company of Itew York, 80 ttafden La, 'tew York, IIY 10138 Providence Washington Insurance Co., 20 Itashfngton Place, Providence, Ri n?o03 Puritan Insurance

Company, 1515 Sumer St., Stamford

~ CT nRgn5 Reliance Insurance

Company, 4 Penn Center Plaza, Philadelphia, PA lq103 Royal Globe Insurance Co.,

150 Hflliam St.,

ttew York, IIY 10038 St.

Paul Fire and tfarfnelnsurance Co., 385 Washington St., St. Paul, IL'I 5510?.

Seaboard. Surety Co.,

95 William St.,

Itew York, tlY 10030 secure fty Insurance corv?any of Hartford, 1050 Asylum Ave., Hartford.

GT OGlnl State Farm Fire'and Casualty

Company, 112 East Ifashington St., Bloomington, IL 61701 Transamerica Insurance Co.,

1150 So. Olive St.,

Los Angeles, CA 50115 Travelers indemnity Company,

The, One Tower Square, Hartford, CT 06115 United States Fidelity and Guaranty Co., P.O.

BOX 1130, Baltimore, HO 21203 United States Fire Insurance Co., tladfson Ave. at Canfield Rd., tforristown, thl 07o60 Zurich Insurance Co., ill West Jackson Blvd., Chicano, IL 60604 A 19105 CT 06112 PROPORTION OF 101".

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