ML19308A783

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Forwards Endorsements 29,30 & 31 to Maelu Policy MF-61
ML19308A783
Person / Time
Site: Oconee  
Issue date: 03/15/1977
From: House D
DUKE POWER CO.
To: Saltzman J
Office of Nuclear Reactor Regulation
References
NUDOCS 7912110760
Download: ML19308A783 (6)


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DUIm POWER COMPANY P.O. BOX 2178 GENEllAL OFFICES TELEPHONE: AREA 704 422 SOUTH CHURCH STREET CIIAI:Lo'rrE. N. C. 28242 March 15, 1977 f Q - 2 6 9/9 '7W2 9']

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Subject:

Oconee Units 1, 2&3 MAELU - Policy No. MF-61

Dear Mr. Saltzman:

Attached you will find six (6) copies each of endorsements 29, 30 and 31 to MAELU Policy No. MF-61.

Very truly yours, hhb N6L D. R. House, Manager Insurance DRH/sd i

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e NUCLEAR ENERGY LIABILITY INSURANCE MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS AMENDMENT OF CONDITION 2 " INSPECTION; SUSPENSION" (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 obligat ed 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 the right to make inspections and examinations nor the making thereof nor any advice or report resulting therefrom shall consti-tute an undertaking, on behalf of or for the benefit of the insured 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.

If a representative of the companies discovers a condition which he believes to be unduly dangerous with respect to the nuclear energy hazard, a representative of the companies may request that such condition be corrected without 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 Commission, 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 pericd of such suspension shal'1 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 been corrected, Effective Date of To form a part this Endorsement January 1. 1977 af Policy No.

W-61 Duke Power Company January 24, 1977 Date of Issu-

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MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS

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4 NUCLEAR ENERGY LIABILITY INSURANCE m-MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS AMENDMENT OF DEFINITION OF " NUCLEAR ENERGY HAZARD" (Indemnified Nuclear Facility)

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 rhipment 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 territori. t limits of the United States of America, 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 transportation 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 deviation 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 the meaning given it in the Atomic Energy Act of 1954, as amended.

EKeetive Date of To fonn a part this Endorsement January 1, 1977 af Policy No.

MF-61 Duke Power Company Date of Issu, January 24, 1977 1H1$ iS 10 Cept;Fy THAT THIS IS A cyY cr Enocast t.tui ND- - - -

For the Subscribing Companies f.f t tw er EucWR ENtRGY POUCY nany rcm No. MF Ib-NO MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS smt is ;rtcRCED UNOLR THis O@ h!

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NUCLEAR ENERGY LIABILITY INSURANCE MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS WAIVER OF DEFENSES ENDORSDIENT (Extraordinary Nuclear Occurrence)

The named insured, acting for himself and every other insured under the policy the members of the Mutual Atomic Energy Liability Underwriters agree as foll, and ows:

1.

With respect to any extraordinary nuclear occurrence to which the policy applie as proof of financial protection and which (a) arises out of or results from or occurs in the course of the const 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 of the insureds, including but not limited to:

(i) negligence, (ii) contributory negligence, (iii) assumption or 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 reasonably could have known, of his bodily injury or property damage and the cause thereof, but date of the nuclear incident.in no event more than twenty years after the The waiver of any such issue or defense shall be effective regardless of whether element in the cause of action.such issue or defense may otherwise be deemed 2

The waivers set forth in paragraph 1. above do not apply to (a) bodily injury or property damage which is intentionally sustained by the claimant or which results from a nuclear incident intentionally and wrongfully caused by the claimant; (b) bodily injury sustained by any claimant who is employed et the site of and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits therefor are either payable or required to be provided under any workers' compensation or occupational disease law; (c) any claim for punitive or exemplary damages, provided, with respect to any l

claim for wrongful death under any state law which provides for damages

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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.

.,.. 3.

Tha waivers set forth in paragraph 1. above shall be effective only with respect to bodily injury or property damage to which the policy applies under its terms other than this endorsement; provided, however that with respect to bodily *.oj ury or property da= age resulting from an extraordinary nuclear occurrence, Insuring Agreement IV, " Application of Policy," shall not operate to bar coverage for bodily injury or property damage (a) which is caused during the policy period by the nuclear energy hazard and (b) which is discovered and for which written claim is made against the insured not later than twenty years after the date of the extraordinary nuclear occurrence. Such waivers shall not apply to, or prejudice the prosecution or defense of any claim or portion of claim which is not within the protection afforded under (a) the provisions of the policy applicable to the financial protection required of the named insured; (b) the agreement of indemnification between the named insured and the Nuclear Regulatory Commission made pursuant to Section 170 of the Atomic Energy Act of 1954, as amended; and (c) the limit of liability provisions of Subsection 170 e. of the Atomic Energy Act of 1954 as amended.

Such waivers shall not preclude a defense based upon the failure of the claimant'to take reasonable steps to mitigate damages.

4. Subject to all of the limitations stated in this endorsement and in the Atomic Energy Act of 1954, as caended, the waivers set forth in paragraph 1. above shall be judicially enforceable in accordance with their terms against any insured in an action to recover damages because of bodily injury or property damage to which the policy applies as proof of financial protection.
5. As used herein:

" extraordinary nuclear occurrence" means an event which the Nuclear Regulatory Cor::rission 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 meanings given them in the Atomic Energy Act of 1954,

" claimant" means the person or organization actually sustaining the as amended.

bodily injury or property damage and also include his assignees, legal represen-tatives and other persons or organizations entitled to bring an action for damages on account of such injury or damage.

Effective Date of this Endorsement January 1, 1977 To form a part af Policy No.

MF-61 Duke Power Company Date of Issue January 24, 1977 1H:3 IS TO CEKiiFY THAT TMS IS K ir : cri cr t>:oonst: tnt nc $_

For the Subscribing Companies r:,: v a tan c g cy reuct MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS

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