ML19318A065

Forwards to M&M W/Endorsements That Pools Propose to Use Binder to Implement Coverage Contained in to C Bollman.Endorsements Sent to NRC for Consideration of Financial Protection at Plant

ML19318A065
Person / Time
Site:	Crane
Issue date:	06/12/1980
From:	Quattrocchi J AMERICAN NUCLEAR INSURERS
To:	Saltzman J Office of Nuclear Reactor Regulation
References
NUDOCS 8006180408
Download: ML19318A065 (5)

Text

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\\v UABIUTY UNDERWRITING DEPARTMENT John L Ovottrocht V(e Prescent

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SURT C.PROOM,CPCU President June 12, 1980 R

IHis DOCUMENT CONTAlHS Mr. Jerome Saltzman E

Chief of Utility Finance Branch Division of Engineering POOR Qggg7y PAGES g Office of Nuclear Reactor Regulation L

U.S. Nuclear Regulatory Comission Washington, D.C.

20555 Re: Metropolitan Edison Company NELIA Policy No. NF-220

Dear Mr. Saltzman:

I have enclosed a copy of my letter of June 12th to MAM forwarding endorsements which the pools propose to use to implement the binder of coverage contained in our letter dated May 20th,1980 to Chuck Bollman. The endorsements are forwarded to you so that the NRC can consider them as part of its review of the financial protection requirements for TMI.

Very truly yours, d

i Jo,n L. Quattrocchi Vice President Liability Underwriting Department JLQ/dh Enc.

cc: Mr. C. Bollman, M&M Mr. A. Kelly, MAELU The Exhongo Suto 245/ 270 formngton Amnue/ Fo mnjon. Connect <vt 06032/003677-7VJ5 m Eng Dept.QO3)677-77kS/ TLX.No.643-029 60061gg g

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UAB!UTY UNDERWRITING DEPARTMENT T-John L Quottroccht V<e P es.oent r'_ T~k)

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SURT C.PROOM.CPCU Pieudent

• June 12,1980 1

Mr. Charles T. Bollman Vice President M&M Nuclear Consultants 1221 Avenue of the Americas New York, New York 10020 Re: Metropolitan Edison. Company NELIA Policy No. NF-220

Dear Chuck:

Enclosed are two endorsements which the pools propose to use to restore limits for Units 1 & 2 at TMI, and to add $20 million of insurance for Units 1 & 2.

The endorsements have not been formally approved by the pools' under-writing committees, but we expect to receive that approval by June 23rd without material change in the text.

MAELU will issue identical endorse-ments except for the dollar amounts.

Very truly yours, I,

r, Jdhn L. Qu'attrocchi Vice President Liability Underwriting Department JLQ/dh Enc.

cc: Mr. J. Saltzman, NRC Mr. A. Kelly, MAELU ito Enhorse Sie 245/ 270 forugton Amnue/ farmnyon. Connect <ut 06032/(203677-7305 t Erg Dept.CO3)677-7715/ TLX,Na 643-029

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Nuclear Energy Liability insuranca NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION RESTORATI0ft Or LIMIT OF LIABILITY EtlDORSEMENT (Extraordinary fluclear Occurrence)

It is agreed that:

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On or about March 28, 1979 a nuclear incident originated (hereinafter called the March 28, 1979 incident) in connection with the ownership, operation, maintenance or use of the Unit 2 nuclear reactor situated at the location designated in Item 3 of the declarations.

2.

Payments made by the companies.under this policy with respect to the March 28,1979 incident have feduced by $1,786,863 the limit of the companies' liability stated. in Item 4 of the declarations, as amended.

3.

The original limit of liability stated in Item 4 and the respective amended limits of liability stated in Endorsements 15, 20 and 31 are hereby restored to the amounts shown below but only with respect to obligations assumed or expenses incurred because of bodily injury or property damage caused by the nuclear energy hazard due to an extra-ordinary nuclear occurrence which happens during the period from the effective date of this endorsement to the date of termination of the policy and arising out of the ownership, operation, maintenance or use of one or l

more of the two nuclear reactors situated at the location designated in Item 3 of the declarations; provided however, that such extraordinary nuclear occurrence is determi.ned by the fluclear Regulatory Commission to be an " extraordinary nuclear occurrence" pursuant to the provisions of its regulations and the Atomic Energy Act of 1954, as amended, and in effect on May 1,1979:

Original limit stated in Item 4

$ 1,000,000 Limit stated in Endorsement 15 85,250,000 Limit stated in Endorsement 20 96,875,000 Limit stated in Endorsement 31 108,500,000 4.

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limits of liability,as described above and. as restored to the

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extent provided by this endorsement, shall not be cumulative; and each payment made by the companies after the effective date of this endorsement for any loss or expense covered by the policy shall reduce by the amount of such payment each of..such

% limits of liability, regardless of which limit of liability applies with respect to the bodily injury or property damage out of which such loss or expense arises.

Ellective Date of June 1,1980

, which forms a part of Policy No NF"220 _

this Endorsement 12:01 A.M. Standard Time issued to Metropolitan Edison Company, Jersey Central Power & Light Company, and Pennsylvania Electric Company g,,, g,,,,

For the SJ

cribing f panies By I

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General Manager Endorsement No Countersigned by

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NUCLEAR ENERGY LIABILITY INSURANCE T'

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NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION

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SUPPLEMENTAL LIMIT-0F LIABILITY ENDORSEMENT (Applicable Under Certain Conditions)

.Whereas,there are twe nuclear reactors at the location designated in Item 3 of the declarations known respective?y as the Unit'l nuclear reactor and the Unit

_2 nuclear reactor; and z

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 E.ad arising out of the ownership, operation, maintenance.or use of both nuclear reactors,

- together with all of the premises, land, buildings, and structures comprising the facility described in Item 3 of the declarations' of the policy and all preserty and operations at the-locations des,ignated 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 provided by Condition' 3 of ' he ' policy aniEndorsements No.15, 20 and 31; and t

Whereas,on or about March 28, 1979 a nuclear incident originated,(hereinafter called the March 28, 1979 incident),in connection with the ownership, operation, maintenance.

or use of the Unit 2 nuclear reactor; and Whereas, t'he companies are willing' to supplement under certain conditions such Lportion of such. limit as'may now or in the future be available witb respect'to

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bodily injury or property damage' caused by the nuclear energy hazard after'giving

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t affect :-to the, provisions of' Condition _3 and Endorsements No.15, 20 and 31.

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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 Item 4 of the declarations, as amended by Endorsements 15, 20 and 31, and as restored by Endorsement 43, with respect only to 1

obligations assumed or expenses incurred because of bodily injury or property damage caused dur'ing the period fnom May 1,1979 to the date of termination of the policy by the nuclear energy hazard, the limit of the companies' liability shall be increased by $15,500,000; provided, however, that this increase in the limit of'the companies'.

liability shall not apply to bodily injury or property damage arising out of the ownership, operation, ma' inte6ance or use of the Unit 2 nuclear l

reactor unless such b'odily ' injury or property damage results from a nuclear incident. which is determined by,the !!uclear Regulatory Commission to be an.'.' extraordinary nuclear occurrence" pursuant to the provisions of its regulations and the t;omic Energy Act of 1954, as amended, and in effect on May 1,1979.

2.

Each payment made by the c'ompanies after'the' effective date of this endorsement shall reduce such limit of liability and each of the companies' limits of liability, as restored by Endorsement 43, by the amount of such payment in the manner provided in Condition 3.

Effective Date of this Endorsement Jun'e.1.1980, which forms a part of Policy No. NF-220 12:01 A.M. Standard Time Issued to Metropolitan Edison Corpany, Jersey Central Power & Licht Cocaany, and Penn,sylvania Electric Company Date of Issue for the Subscribing Companies '

By:

President Endo rsement !!o.

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Countersigned by,

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