ML19259C053
| ML19259C053 | |
| Person / Time | |
|---|---|
| Site: | Sequoyah  |
| Issue date: | 06/06/1979 |
| From: | Duck J MARSH & MCLENNAN, INC. |
| To: | Saltzman J Office of Nuclear Reactor Regulation |
| References | |
| NUDOCS 7906120274 | |
| Download: ML19259C053 (6) | |
Text
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400 North Akard Street Dallas, Texas 75201 Telephone 214 742-1941 June 6, 1979 Mr. Jerome Saltzman, Chief Office of Antitrust & Indemnity Nuclear Reac*or Regulation Nuclear Rege.; tory Commission Washington, D. C. 20555 2
M&M Nuclear Consultants 1
Tennessee Valley Authority Sequoyah Nuclear Plant, Unit 1 Secondary Financial Protection MAELU Binder XB-66 Certified Copies
Dear Jerry:
Enclosed for your records are two certified copies of the Tennessee Valley Authority's Sequoyah Nuclear Plant Unit 1 MAELU Secondary Financial Protection Binder XB-66 including Declarations and Bond for Payment of Retrospective Premiums.
This binder has been duly signed, sealed and witnessed by the insured and signed, witnessed and certified by the pool.
Very truly yours,
/
2284 053 ohn R.
ue, Jr.
Assistant Vice President cc: C. R. Dodson W. Smythe J. McSweeny
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3' 7906120214 Enclosure A technical service of Marsh & McLennan, incorporated
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79P66-148755 BINDE R,
INCLUDING
. BINDER NO. XB-o6.
DECLARATIONS AND BOND FOR PAYMENT OF RETROSPECTIVE PREMIUMS BINDER The members of Mutual Atomic Energy Liability Underwriters, hereinafter called the " companies", subscribing this binder, each for itself, severally and nu jointly, and in the respective proportions set forth herein, and the insureds named in Item 1 of the Declarations below, agree as follows:
A.
The companks hereby bind insurance to the insureds named in Item 1 of the Declarations in accordance with the provisions of the Draft Master Policy.
All rights and obligations of the parties to this binder are set forth in the provisions of the Draft Master Policy, as it may be amended from time to time pursuant to its conditions or paragraph B below.
B.
The term " Draft Master Policy" means the draft of the MASTER POLICY --
NUCLEAR ENERGY LIABILITY POLICY (SECONDARY FINANCIAL PROTECTION) dated June 24, 1977 in the custody of the Nuclear Regulatory Commission, a copy of which is attached hereto, and includes all binders issued by the companies in connection with such Draft Master Poliev.
The Master Policy, as subsequently issued by the companies, shall cancel and replace this binder and the Draft Master Policy effective as of the time and date of the inception of the binder period.
C.
Such insurance as is provided by the Draft Master Policy applies, through this binder, only:
(1) to the insureds identified in Items 1 and 2 of the Dcclarations below, (2) to bodily injury or property damage (a) with respect to which the primary financial protection described in Item 4 below would apply but for exhaustion of its limit of liability and (b) which is caused during the binder period stated in Item 8 below by the radioactive, toxic, explosive or other hazardous properties of nuclear material and (c) which is discovered and for which written claim is made against the insured not later than ten years after the end of such binder period: provided, however, that with respect to bodily injury or property damage caused by an extraordinary nuclear occurrence this subparagraph (C) shall not operate to bar coverage for bodilv_
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injury or property damaga which is discovered and for which written claim is made against the insured not later than twenty years after the date of extraordinary nuclear occurrence.
DECLARATIONS Item 1.
Named insureds and addresses:
Tennessee Valley Authority - Chattanooga, Tennessee 37401-Item 2.
Additional insureds:
Any other person or organization who would be covered under primary financial protection decscribed in Item 4 of this binder but for exhaustion of the limit of liability of such primary financial protection.
Item 3.
Description and location of the nuclear reactor: Unit 1 of the Sequoyah Nuclear Plant located in Hamilton County, Tennessee Item 4.
Identification of primary financial orotection applicable to the nuclear reactor and limit of liability thereof:
Nuclear Energy Liability Insurance Association Policy NF-247 $108,500,000 Mutual Atomic Energy Liability Underwriters Policy MF-
$31.500,000 Do other nuclear reactors share the limit of liability provicied under the primary financial protection?
No, not at this time.
Item 5.
Maximum retrospective premium (exclusive of allowance for premium taxes) payable to the companies under the Draft Mastar Policy with respect to each nuclear incident: $1,125,000 Item 6.
Portion of the annual premium payable for the companies' contingent liability described in Condition 4 of the Draft Master Policy from the effective date hereof to the end of calendar year 1977: The pro rata pertion of $1,350 for the period from the effective date of this binder to the end of the calendar year during which such effective date occurs.
Item 7.
Limits of Liability:
See Item 3 of the Declarations of the Draft Master Policy.
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- Item 8.
Binder period:
Beginning at the same time and date that the Facihty Operating License issued by the United States Nuclear Regulatory Commission for the reactor described in Item 3 of this binder becomes effective and continuing to the effective date and time of cancelation or termination of the' Draft Master Policy or this binder, whichever first occurs, eastern standard time.
BOND FOR PAYMENT OF RETROSPECTIVE PREMIUMS 2
Know all Met By These Presents, that the undersigned do hereby acknowledge that they are nal. icd insureds under the Draft Master Policy described in the above Binder and Declarations. The named insureds do hereby covenant with and are held and are firmly bound to the subscribing members of Mutual Atomic Energy Liability Underwriters (hereinafter called the "companie,") to pay to the companies all retrospective premiums and allowances for premium taxes which shall become due and payable in accordance with the terms of the Draft Master Policy with interest on such premiums and allowances for taxes to be computed at the rate provided in the Draft Master Policy from the date payment thereof is specified to be due the companies in a written notice to the named insured, as provided in Condition 1 of the Draft Master Pelicy until paid.
And it is hereby expressly agreed that copies of written notices of retrospective premiums and allourances for premium taxes due and payable or other evidence of such amounts due and payable sworn to by a duly authorized representative of the companies shall be prima facie evidence of the fact and extent of the liability of the named insureds br such amounu.
And it is further expressly agreed that the named insureds will indemnify the companies against any and all liability, losses and expenses of whatsoever kind or nature (including but not limited to interest, court costs and counsel fees) which the companies may sustain or incur (1) by reason of the failure of the named insureds to comply with the covenants and provisions of this Bond or (2) in enforcing any of the covenants or provisions of this Bond, or any provisions or the Draft Master Policy relating to such covenants or provisions.
For the purpose of recording this agreement, a photocopy acknowledged before a Notary Public to be a true copy hereof shall be regarded as an original.
"HE ABOVE BINDER, DECLARATIONS AND BOND FORM A PART OF THE DRAFT MASTER POLICY.
CANCELATION OR TERMINATION OF THE DRAFT MASTER POLICY OR THE BINDER SHALL NOT AFFECT THE OBLIGATIONS OF THE NAMED INSUREDS UNDER THE DRAFT l\\iASTER POLICY OR T9E BOND TO PAY THE RETROSPECITVE PREMIUMS AND ALLOWANCES FOR PREMIUM TAXES WITh RESPECT TO ANY BODILY INJURY OR PROPERTY DAMAGE WHICH IS CAUSED DURING THE BINDER PERIOD.
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-4 IN WITNESS WHEREOF, the named insureds have caused this Binder, these Declarations and this Bond for Paymen, of ' Retrospective Premiums, to be signed and sealed by a duly authorized officer, to be effective as of the time and date of the inception of the binder period.
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Attest or Witness NAMED INSUREDS:
d Tennessee Valley Authority
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(Na ed/ sured -
me or Print)
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(SEAL)
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'/'M '773Bc By se C. Richard Dodsen.'
Contracting Officer (Type or Print Name & Title)
Date:
April 6, 1979 (Named Insured - Type or Print)
By (SEAL)
(Signature of Officer)
(Type or Print Name & Title of Officer)
Date:
(Named Insured - Type or Print)
By (SEAL)
(Signature of Officer)
(Type or Print Name & Title of Officer)
Date:
(Named Insured - Type or Print)
By (SEAL)
(Signature of Officer)
(Type or Print Name & Title of Officer)
Date:
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.- a WITNESS WHEREOF, the subscribing companies have caused the Binder and the Declarations to be signed on their behalf by the Manager of Mutual Atomic Energy Liability Underwriters, to be effective as of the time and date of the inception of the binder period, and countersigned below by a duly authorized representative.
Attest or Witness For the Subscribing Companies of Mutual Atomic Energy Liability Underwriters t
2 9/,ffbit By 6
A L x. a Theodore Geras, Secretary Countersigned by (Authorized Representative)
Subscribing Companies PROPORTION OF 100%
American Mutual Liability Insurance Company, Wakefield, MA 15.0000000 Employers Mutual Liability Insurance Company, Wausau, WI 15.0000000 Liberty Mutual Insurance Company, Boston, MA 30.0000000 Lumbermens Mutual Casualty Company, Long Grove, IL 30.0000000 Michigan Mutual Insurance Company, Detroit, MI 5.0000000 Sentry Insurance, A Mutual Company, Stevens Point, WI 5.0000000 This is to certify that this is a true copy of the original Binder, bearing the number designated hereon, for insurance coverage under the DRAFT MASTER POLICY -
NUCLEAR ENERGY LIABILITY POLICY (Secondary Financial Protection) dated June 24, 1977. No insurance is afforded by this copy.
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Mdtifal Atomic Energy Liability Underwriters