ML19318D253

Forwards Maelu Excess Binder XB-73

ML19318D253
Person / Time
Site:	Farley
Issue date:	06/30/1980
From:	Fielder J MARSH & MCLENNAN, INC.
To:	Saltzman J Office of Nuclear Reactor Regulation
References
NUDOCS 8007080261
Download: ML19318D253 (6)

Text

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400 North Akard Strect Dallas, Texas 75201

. Telephona 214 742-1941 June 30, 1980 l

Mr. Jerome Saltzman, Chief Office of Antitrust & Indemnity Nuclear Reactor Regulation Nuclear Regulatory Commission l l

Washington, D. C. 20555 M&M Nuclear Consultants Alabama Power Company ,

J. M. Farley Nuclear Plant; Unit 2 MAELU Excess Binder #XB-73 i

Secondary Financial Protection l

Dear Mr. Saltzman:

Enclosed or your records are two certified copies of MAELU's l Excess Binder XB-73 to the Alabama Power Company's J. M. Farley Nuclear Plant, Unit #2.

Sincerely,

$W I,

Jean Fielder (Mrs.)

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l ec: Norman Horsley J. Collins jf

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Enclosure $ (

4 8 00 7 08 02(o l - g l A technical service of Marsh & McLennan, incorporated

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- Br IDER,

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INC '.UDING ,.

BINDER NO. XB 73 DECLAR .TIONS AND BOND FOR PAYMENT OF RETROSPECTIVE PREMIUMS BINDER The members of L'utual Atomic Energy Liability Underwriters, hereinafter called the " companies", subscribing this binder, each for itself, severally and not jointly, and in the respective proportions set forth herein, and the insureds named in Item 1 of the Declarations below, agree as follows:

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A. The companies 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 narties to this binder are set forth in the provisions of the Draft Master Policy, as it may be amended from time to ,

time pursu.nt 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 su-h Draft Master Policy. 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 Declarations below, (2) to bodily injury or property damage l (a) with respect to which the primary financial protection described in Item -4 below would apply but for exhaustion of its limit cf 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 .en years atter the end of such binder period; provided, hower : . that with respect to bodily injury or

. property damage caused oy an extraordinary nuclear occurrence this subparagraph (C) shall not operate to bar coverage for bodily injury or property damage 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.

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' ' - - DECL, ' tATIONS Item 1. Named insureds and addresses .

Alabama Power Company - 600 North 18th Street Birmington, Alabama 35291 e

Item 2. Additional Insureds:

Any other person or organization who would be covered under primary financial protection described in - Item 4 of this binder but for exhaustion of the limit of liaLflity of such primary financial protection.

Item 3. Description and locate,. of the nuclear reactor: Unit 2 of the-Joseph M. Farley Nuclear Plart located in Houston County, Alabama Item 4. Identification of primary financial protection applicabic to the nuclear reactor and limit of liability thereof:

Nuc1 car Energy Liability Insurance Association Policy NF- 238 $124,000,000 Mutual Atomic Energy Liability Underwriters Policy MF- 93 $36,000,000 Do other nuclear reactors share the limit of liability provided under the primary financial protection? Yes Item 5. Maximum retrospective premium (exclusive of allowance for premiuf5 taxes) payable to the companies under the Draft Master Policy with respect to each nuclear incident: .'$1 125 000 m- pegguag g w g, 49-* 4 he? 4 = .

- f Item 6. Portion of the annual premium payable for the companies' contingent liability

• described in Condition 4 of th, Draft Master Policy from the effective date l hereof to the end of calendar y nr 1978: The pro rata portion of $1,350.00 -

for the period from the effectiva date of this binder to the end of the calendar year during which such effecti te date occurs. l 1

Item 7. Limits of Liability: See Item 3 of the Declarations of the Draft Master Policy. l Item 8. Binder period: Beginning at the same time and date that the Facility Operating License issued by the United States Nuclear Regulatory Commission .

for the reactor described in Item 3 of this binder becomes effective and I 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 Know all Men By These Presents, that the undersigned do hereby acknowledge that they are named 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 " companies") 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 i~n Condition 1 of the Draft Master Policy until -

paid.

s And it is hereby expressly agreed that copies of written notices of retrospective premiums and allowances 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:c4 the liability of the named insureds for such amounts.

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 of 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.

THE 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 D_ RAFT MASTER POLICY OR THE 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.

' IN WITNESS WHEREOF, the named insureds have caused this Binder, these Declarations and this Bond for Payment of Retrospective Premiums, to be signed and scaled by ,

a duly authorized officer, to be effective a of the time and date of the inception of the binder period.

Attest or Witness Named Insureds:

Alabama Power Company (N ed Insured - Type or Print)

~/) Mx- . n/ $3 By 4 . WA (SEAL)

M (Signature of Officer)

A ' ' /_> E U.c, 9acs,aeur 4 secas e. cst.

(Type or Print Name & Title of Officer) '

Date:

s (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) .

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Date:

(Named Insured - Type or Print)

By (SEAL)

- (Signature of' Officer)

(Type or Print Name & Title of Officer)

Date:

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t IN WITNESS WHEREOF, the subscribing companies have caused the Binder and the -

Declarations to be signed on their behalf hv the Manager of Mutual Atomic Energy Liability Underwriters, to be effective as cf 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 Companiec of Mutual Atomic Energy Liability Underwriters

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()~ps.pr NwAsec Countersigned by ,

(Authorized Representative)

• Subscribing Companies PROPORTION OF 100% .,

American Mutual Liability Insurance Conipany, Wakefield, MA 15.0000000 Employers Insurance of Wausau A Mutual Company, Wausau, WI 15.0000000 Liberty Mutual Insurance Company, Boston, MA 30.0000000 Lumbermens Mutual Casualty Company, Long Giove, 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.

G' s A r, .-

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Mutual Atomic Energy Liability Underwriters V

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