ML19305A463

Forwards Supplemental Limit of Liability Endorsement to Policy NF-220,effective 790501.Supplemental Limit Does Not Apply to Events Re 790328 TMI Incident

ML19305A463
Person / Time
Site:	Three Mile Island
Issue date:	06/18/1979
From:	Bardes C AMERICAN NUCLEAR INSURERS
To:	Saltzman J Office of Nuclear Reactor Regulation
References
NUDOCS 7906250294
Download: ML19305A463 (3)

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SURT C.PROOM,CPCU Proudent June 18, 1979 Mr. Jerome Saltzman Deputy Chief Office of Antitrust & Indemnity Directorate of Licensing United States Nuclear Regulatory Commission Vashington, DC 20545 Supplemental Limit of Liability (ApplicaMe to Unit I)

Three Mile Island Nuclear Station Policy No. NF-220

Dear Mr. Saltzman:

Enclosed for your information is a copy of the endorsement language which ,

will be used to supplement the current limit of liability under policy NF-220 covering Metropolitan Edison Company's Three Mile Island Nuclear Station. The intent is to make this endorsement effective May 1,1979.

. The language of the endorsement was adopted in order to assure our pool's participants that the supplemental limit will only apply to those events in no way connected with the ongoing situation at Three Mile Island Unit 2 which began on March 28, 1979.

Once the status of Unit 2 is fully normalized to our satisfaction, extension of the supplemental limit's application to cover subsequent activities at Unit 2 may be reconsidered.

It is my understanding that MAELU will be utilizing a similar endorsement on their olicy MF-73 covering the same location.

,7[e'ry tr ly' yours, f

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! R.\ ar e Vice resydent, Liability Underwriting CRB/je (7

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cc: Messrs. O'Connell, Fullwood, Bollman 790625029y 7

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Supplemental Limit of Liability Endorsement (Applicable to Unit 1 Nuclear Reactor)

Whereas there are two nuclear reactors at the location designated in Item 3 of the declarations known respectively as the Unit 1 nuclear reactor and the Unit 2 nuclear reactor; and Whereas the limit of liability stated in Item 4 of the declarations of the policy-as amended by Endorsements No.15, 20 and .31 applies jointly and not severally to bodily injury and property damage caused by the nuclear energy hazard and arising out of the ownership, operation, maintenance or use of both nuclear reactors, together with all of the premises, land, buildings, and structures comprisi.ng the facility described in Item 3 of the declarations of the policy and all property and operations at the locations designated therein, and Whereas such limit of liability, as amended, is reduced by each payment made by the companies for any loss or expense covered by the policy, all as more particularly l provided by Condition 3 of the policy and Endorsements No.15, 20 and 31 and Whereas, the companies are willing to supplement such portion of such limit as may now or in the future be available with respect to loss or expense arising out 1

of the ownership, operation, maintenance or use of the Unit 1 nuclear reactor after '

giving affect to the provisions of Condition 3 and Endorsements No.15, 20 and 31.

Now therefore it is agreed that:

1. In the event the past or future payments by the companies for loss or  !

expense covered by the policy exhaust the limit of liability stated in l

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'Page 2 Item 4 of the declarations, as amended by Endorsements 15, 20 and 31, the limit of the companies' liability shall be increased by $ 15,500,000 ,

but only with respect to obligations assumed or expenses incurred because of bodily injury or property damage (1) caused, during the period from May 1,1979 to the date of termination of the policy, by the nuclear energy hazard and (2) arising out of the ownership, operation, maintenance or use of the Unit 1 nuclear reactor. .

2. Each payment made by the companies after this supplemental limit of liability becomes effective shall reduce such limit by the amount of such payment in the manner provided in Condition 3.

3. The provisions of this endorsement shall not operate to , restore the original limit of liability stated in Item 4 of the declarations or any of the limits of liability stated in Endorsements 15, 20 and 31.

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