ML19326C684

Forwards Endorsements 18,23 & 24 to Nelia Policy NF-210 & Endorsement 1-18 to Maelu Policy MF-74

ML19326C684
Person / Time
Site:	Arkansas Nuclear
Issue date:	09/17/1976
From:	Rueter D ARKANSAS POWER & LIGHT CO.
To:	Dinitz I Office of Nuclear Reactor Regulation
References
760927, N-116-1, NUDOCS 8004250498
Download: ML19326C684 (36)

Text

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I H EL PIN G BUILD ARKANSAS ARK ANS AS POWER & LIGHT COMPANY pO GOx 551 UTTL. AOCK. A.K ANS AS 72203.(5011371-4000 September 27, 1976

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Director of Nuclear Reactor Regulation y

ATTN: Ira Dinit::, Indemnity Specialist Antitrust and Indemnity Group

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U. S. Nuclear Regulatory Commission MI Washington, D. C.

20555 Subj ect: Arkansas Nuclear One-Units 16 2 Docket Numbers M 50-368

_ Insurance Policy endorsements Gentlemen:

Enclosed as you requested in your letter of September 7,1976, are the following:

(1) Advance Premium Endorsement and Standard Premium and Reserve Premium Endorsement Calender Year 1976 for NEL-PIA and MAELU.

(2) Policy NF-210 - a complete copy of the policy including all endorse-

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ments up to and including endorsement 23.

(3) Policy MF a complete copy of the policy including all endorse-ments up to and including endorsement 18.

Ne trust that this material will bring your files up to date.

If you have any questions, please contact us.

Very truly yours, Donald A. Rueter Manager, Licensing DAR:tw IHis DOCUMENT CONTAINS Enclosures POOR QUAUTY PAGES

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q NuIcl=r En::rgy Liability in::urence NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION

1) ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT

2) CHANGES IN SUBSCRIBING COMPANIES AND IN THEIR PROP 0RTIONATE LIABILITY ENDORSEMENT Calendar Year 1976 la. ADVANCE PREMIUM:

It is agreed that the Advance Premium due the companies for the period designated above is: $

173,600.00

b. STANDARD PREMIUM AND RESERVE PREMIUM:

In the absence of a change in the Advance Premium indicated above, it is agreed that, subject to the pro-visions of the Industry Credit Rating Plan, the Standard Prenium is said Advance Premium and the Reserve Premium is:

129,611.00 L

2.

It is agreed that with respect to bodily injury or property damage caused, during the effective period of this endorsement, by the nuclear energy hazard:

a. The word " companies" wherever used in the policy means the sub-scribing companies listed on the reverse side of this endorsement.

b. The policy shall be binding on such companies only.

c. Each such company shall be liable only for its proportion of any obligation assumed or expense incurred under the policy because of such bodily injury or property damage as designated on the reverse side of this endorsement.

3.

It is agreed that the effective period of this endorsement is to the close of December 31st of the Calendar Year designated in the caption above, or to the time of the termination or cancelation of the policy, if sooner.

(over)

Diis i's t'5 cert'ify that this is a true ~ copy 'of the brignal Endorsenent having the enderse=ent nu=ber and being ade part af t;;e : uclaar Enerj;y Liabili*y Policy (Facility Forn) as des-

' cnat e d h oo. No In rang is afforded hereunder.

Charle 9 Bard'

,L Underwriting I:aclear F.nergy Liabi ty-Froperty Insurance A: soc.

Effective Date of this Endorsement January I, 1976 To form a part of Policy No NF-210 12:01 A.M. Standard Time issued to Arlem n am n Power and 7ight Cnmpany

'Mte of issue December I.1975 For the su scribing co panies b

By it. S A7.'EN & jotre ger Endorsement No 23

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NIclear Energy Liability insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT Calendar. Year 1976 It is agreed that Items la. and lb. of Endorsement No. 23

$re amended to read:

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ADVANCE PREMIUM:

It is agreed that the Advance Premium due the companies for the period designated above is:

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STANDARD PREMIUM AND RESERVE PREMIUM:

In the absence of a change in the Advance Premium indicated above, it is agreed that, subject to the provisions of the Industry Credit Rating Plan, the Standard Premium is said Advance Premium and the Reserve Premium is:

107,267.63 Return Premium =$29,399.16

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..../ e::t nu:ber and beirs nado part cf the Nuclc.

' ' - Policy (Facility I::=1 ag da:;-

1 nated here t.... In art nga i afforded hensundur.s i

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Effective Date of

' 33"""#Y l'.1976 To form a part of Pelicy No MF-210 this Endorsement 12:01 A.M Standard Time issued to Arkansas Power and Light Company For the,,u scribing co panies Date of issue

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MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS ADVANCE PREMIUM ENDORSEMENT and STANDARD PREMIUM ENDORSEMEhT Calendar Year 1976 l

1.

ADVANCE PREMIMi It is agreed that the Advance Premium due the coc:panies for the calendar year designated above is $ 50, LOO.00 2.- STANDARD PREMIIRI AND RESERVE PREMIUM In the absence of a change in the Advance Premium indicated above, it is agreed that, subject to the provisions of the Industry Credit Rating Plan, the Standard Premium and Reserve Premium are:

Standard Premium 50,k00.00 Reserve Premium

$ J7 629.00 2

Effective Date of To form a part this Endorsement January 1, 1976 of Policy No.

MF-Th Issued to Arkansas Power & Light Company Date of Issue December Jy,1975 ynnW

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For the Subscribing Companies

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AUTHORIZED REPRESENTATIVE 1

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MUTUAL ATotilC ENERGY LIABILITY UNDERWRITER 5 919 North Michigan Avenue, Chicago I1, Illinois Nuclear Energy Liability Policy No. P.:T---

74 (Facility Form)

DECLARATIONS Item 1.

Named Insured Arkansas _.PoRer..& llsht Copany Address 6th Avenue and Pina Street, Pine Bluff Arkansas 71601 (No.

Street Town or City Staic) day or May

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Item 2.

Policy Period: Beginning at 12:01 A.M. on the loth and continuing through the effective date of the cancelation or termination of this rolicy, standard time at the address of the named imured as stated herein.

Item 3.

Description of the Facility:

Location _._. All of the premises includ_ inst the land and all buildings rd structures known as the named insured's Arkansas Nuclea" Oce - Units 1 and 2.

Arkansas Nuclear One is located in Pope County, Arkansas apprcximately_

six (6) niles West-Northwest of Russe 11M_lle, Arkansas.

Type Po'.ror R nc Enr.

The Operator of the facility ;. Arkansas Power & Light Company 2h,7&ORO subjec: to all the terms ci this poli y hasia;;

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The limit of the companies' liability is c reference thereto.

Item 5.

Advance Premium ' $

2^08.09 Item 6.

These declarations and the schedules formiag a part hereof ;;ive a complete description of the facility, insofar 2s it relates to the nuclear ener;;y hazard, excer: as noted i

1 Date of Issu, May 2h,197 4 Countersigned by E-j Authc 'i e

a Nucl. ar Energy Liabi:Iey Felicy (Fac2ity Torm) 2/1/57 (Setond Lvision)

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NUCLEAR ENERGY LIABILH'Y INSURANCE

, s7a MUTUAL ' ATOMIC DERGY LIABILITY UNDERWRITERS Waiver of Defenses Endorsement (Extraordinary Nuclear Occurrence)

(FACILITY FORM) i The named insured, acting for himself and every other insured under the policy, and l

the members of Mutual Atomic Energy Liability Underwriters agree as follows:

1. With respect to any extraordinary nuclear occurrence to which the policy applies as proof of financial protection and which (a) Arises out of or results from or cccurs in the course of the construction, i

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 the insureds, including, but not limited to:

(i) negligence, (ii) contributory negligence, (iii) assumption of risk, and (iv) unforesee'able intervening causes, whether involving the

. conduct of a third person, or an act of God, (2) any issue or defense as to charitable or governmental im= unity, and (3) any issue or defense based on any statute of limitations if suit is insti-tuted within three years from the date on which the claimant first knew, or reasonably cound have known, of his bodily injury or property damage and the cause thereof, but in no event more than ten years after the date of the nuclear incident.

The waiver of any such issue or defense shall be effective regardless of whether such issue or defense may otherwise be deemed jurisdictional or relating to an ele-ment in the cause of action.

2. The waivers see 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 nucicar incident intentionally and wrong-fully caused by the claimant; (b) Bodily injury sustained by any claimant who is employed at 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 pro-vided under any workmen's compensation or occupational disease law; (continued...)

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Waiver of Defenses E6dorsement - continued (Page 2)

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(c)

Any claim t'or punitive or exemplary damages, provided, with respect to any cla L= for wrongful death under any State law which provides for damages only punitive in nature, this exclusion does not apply to the extent that the claimantlhas sustained actual da=a.3cs. censured by the pecuniary in-juries resulting from such death but not to exceed the maximum amount other-t ise recoverable under such law.

3 The waivers set forth in paragraph 1. abovn shall be effcetive with respect to bodily injury or property da.aage to which the' policy appiles under its tec7.s other tnan this. endo rsene.nc.

Such waivers shall not apply to, or prejudice the procccution or defense of any claim or portion of claim which is not within the protection af forded under (1) The previsions of the policy applicable to the financial protection required of the named insured, (2) The agreement of inder.nification between the named insured and the

. Ato. sic En.:rgy Cor nission mada pursuants to section 170 of th2 A tcr.ic Energy Act o f 1954, as amended, cnd (3) The Ilmit of liability provisions of sub6ection 170' e. of the Atomic Energy Act of 1954, as amended.

Such waivers shall not preclude a defense based upon the f ailure of the claimant to take reasonabic steps to miti5 ate dmaages.

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4 Subject to c11 of the limitations stated in this endorse. ment and in the Atemic Energy Act cf 1954, as amended, the waivere set forth in paragraph 1. above shall he judicially enforceable in accordance with t heir terms against any insured in.'n set ton to recover darstes because of bodily injury or property demnte to which the policy applies a: proof of financial protection.

5.

As used herein:

"Extr cordinary nuclear cccurrenec" neans an event which the Atomic Energy Cor.miss ion has dutcrnined to be an extet.crdinary nuclear occurrence as defined in the Atomic Energy Act of 1954, as cmended.

(Continued.

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NUCLEAR ENERGY LIABILITY INSURANCE

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MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS Address of Mutual Atemic Energy Liability Underwriters Endorsenent It is ' agreed that the address of the Mutual Atomic Energy Liability Under-wr$tero appearing on the declarations and in the " Company Representation" con -

dition of the policy is amended to read:

"One East Wacker Drive, Chicago, Illinois 60601" t

I Effectivo Date of -

this Endorsement - May 10,1%

To o a

MF-74 ot pc} y losued to Arkansas Power & Light Company Date of Issua May 24, 1974 For the Subscribing Companica MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS Dy ft',. 4 y 3[ -

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NUCLEAR ENERGY LIABILITY INSURANCE MUTUAL ATOMIC ENERGY. LIABILITY UNDERWRITERS

_ Amendment of Name of Member Comenny Endorsement It is agreed that the name " SENTRY INSURANCE A MUTUAL COMPAIN" is substituted for " HARDWARE MUTUAL CASUALTY COMPANY" wherever it appears in the policy.

t Efi etive Date of May 10, 1971, To form a part

.4F-7g this Endorsement of Policy No.

Arkansas Power & Light Company Date of Issu, Ma7 2k.197h For th: Subscribing Companies

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s NUCLEAR ENERGY LIABILITY INSURANCE MUTUAL ATOMIC ENERGY. LIABILITY UNDERWRITERS AMENDATORY ENDORSEMENT (Aeplication of Policy)

It is agreed that Insuring Agreement IV of the policy, captioned

" Application of Policy" is amended to read es follows:

APPLICATION OF POLICY This policy applies caly to bodily injury or property da= age (1) which is caused during the policy period by the nuclear energy hazard and (2) which is discovered and for which written claim is cade against the insured, not later than ten years after the end of the policy period.

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Effective Date of To form a part this Endorsement May 10, 1974 of potje7 No, MF-7h Arkansas Power & Light Company dm May 24,1974 Date of hsu,-

Fer the Subscribing Companies MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS By

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. INDUSTRY CREDIT RATING PLAN PREMIL11 ENDORSEMENT (Cont.)

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Reservo Premium Refund Agreement.

Each me:nber.of Mutual Atomic Energy Liability Underwriters subscribing this policy for any calendar year, or portion thereof, thereby agrees for itsdif,

' severally and not jointly, awl in the respective psoportion of its liabili:y assumed cr. der this policy f ar that calendar year, to return to the.naw:d insured that portion of any reserve prcraiuas refund due the named insured fcrr that calendar year, detemined in accordance with the provisions of this Ccndition 1.

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E.)o tefent May 10, 1974

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Issued to Arkansas Power & Light Company May 24, 1974 Date of Isu:e For the Subteribing Onnpanies MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITER.",

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NUCLEAR ENERGY LIABILITY INSURANCE w.-

MUTUAL ATOMIC ENERGY LIABILITY. UNDERWRITERS INDUSTRY CREDIT RATING PLAN PREMIUM ENDORSEMENT It is agreed that Conditica 1'of the policy is replaced by the following:

CONDITIO511. PREMIUM (1) Definitions: With reference to the premium for this policy:

" advance premium", for any calendar year, is the estimated standard premium for that calendar year;

" standard premium", for any calendar year, is the premium for that calendar year computed in accordance with the companies' rules, rates, rating plans (other than the Industry Credit Rating Plan), premiums and minimum premiums applicable to this, insurance; t

" reserve premium" means that portion of the standard premium paid to the ccupanies and specifically allocated under the Industry Credit Rating Plan for incurred losses. The amcunt of the " reserve premium" for this policy fer any calendar year during which this policy is in force is the amount der-ignated as such in the Standard Premium Endorsement for thir calendar year;

" industry reserve premium", for any calendar year, is the sum of the reserve premiums for that calendar year for all Nuclear Energy Liability Policies issued by Nuclear Energy Liability Insurance Association and Mutual Atomic Energy Liability Under-writers and subject to the Industry Credit' Rating Plan;

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" policy refund. ratio", for any calendar year, is the ratio of the named insured's reserve premium for that calendar year to the industry reserve premium for that calendar year;

" incurred losses" means the sum of:

(1) all losses and expenses paid by Nuclear Energy Liab-ility Insurance Association and Mutual Atomic Energy Liability Underwriters, and (2) all reserves for unpaid losses and Expenses as estimated by Nuclear Energy Liability Insurance Association and Mutual Atomic Enargy Liability Underwriters v-

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Page 2 INDUSTRY CREDIT RATING PLAN PREMILSI ENDORSDIENT (Cont.)

because of obligations assumed and the exps.nses incurred in connection with such obligations by members of Nuclear Energy Liability Insurance Association and Mutual Atemic Energy u..bility Underwriters under all Nuclear Energy Liability Policies issued by Nuclear Energy Liability Insurance Associa-tion and Mutual Atomic Energy Liability Underwriters and subject to the Industry Credit Ra:Ing Plan;

" reserve for refunds", at the end of any calendar year, is the.

amount by which (1) the sum of all industry reserve premiums for the period from January 1, 1957 through the end of such calendar year exceeds (2) the total for the same period of (a) all incurred losses, valued as of the next folicwing July 1, and (b) all reserve pr emium refunds made under the industry Credit Racing Plan by members of Nuclear Energy Liability Insurance Association and Mutual Atomic Energy Liability Underwriters; 5

" industry reserve premium refund", for any calendar year, is determined by multiplying the reserve for refunds at the end of the ninth calendar thereafter by.the ratio of the industry reserve premium for the calendar year for which the premium refund is being determined to the sum of such amount and the

. total industry :eserve premiums for the next nine calendar years thereafter, provided that the industrf reserve premium refund for any calendar year shall in no' event be greater than the industry reserve premium for such calendar year.

(2) Payment of Advance and Standard Premiu=s. The named insured shall pay the ccmpanies the advance premium stated in tha declarations, for the period frcs the effective date of this policy through Dcce=ber 31 following.

Thereafter, at the beginning sf each calendar year while this policy is in force, the naced insured shall pay cne advance premium for such year to the companies.

The advance pre =ium :or each calendar year shall be stated in the Advance Precium Endorsement for such calendar year issued to the named insured as soon as practicalbe prior to or atter the baginning of such year.

Assoonaspracticab[eaftereachDacember31and.afterthe tarmination of thia policy, the standard premium for the preceding calendar year shall be finally determined and stated in the Standard Premium Endorseuent for that calendar

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year.

If the standard premium so deter =in2d exceeds the -

advance p:cclum previously paid for such calendar year, the named insured shall pay the excess to the c:mpanies;

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if less'..th2 companies shall ret nn to the named insured the excess portion paid by such-insured.

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Page 3 INDUSTRY CREDIT RAID'G PLAN PRDiIt'M ENDOR3DT.NT (Cont.)

The named insured shall ca:.ntain records of the inf ormation necessary for premium computation and shall send copies of such records to the cecpanies as directed, at the end of each calendar year, at the end of the policy period and at such other times during the policy period as the companies may direct.

(3) Use of Rhserve Premiums. All reserve precit.ns paid cr payable for this poll:y cay de used by the tenbers of Mutual Atomic Energy Liability Underwriters to discharge th'eir cbligations with raspace to in:urred lessas whether such losses are in-curred under this policy or under any other policy issued, by Nuclear Enargy Liability Insurance Association or Matual Atomic Energy Liability Underwriters.

(4)

Reserve Premium Refunds. A portien of the reserve prenium for this policy for tne first calendar year of any group of ten conse:.utive' calendar years shall be retu,nable to the r

r.amed insured provided there is a reserva for rerunds at the end of the tenth calendar year.

(5) Computation of Reserve Premium Refunds.

The reserve pre.mium refund due the named insured for any calendar. year shall be determined by multiplying any industry reserve prauium refund for such calendar year by the policy rerund ratio.for such calendar year.

The reserve premium refund for any calendar year shall be finally determined as soon as practicable after July 1 of the tenth calendar year thereafter.

-(6) Final Premivn. The final premiun f or this policy shall be the sum of.standled praniums for each calendar year, or portion thereof, during which this policy remains in torce less the sum of all ref nds at resene premiu=s due the named insured under the provisions a: this Ccndition 1.

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' With respect to such be<*ily *njury and property damage (1) the total aggregate liability of the t:echces of '?.itual.\\te:ic Energy,Li.at ility l'ndertiriter:: under all MucIcar Enerny Liability Policies (F.:cility Fot :t),Incli: ding th La. policy, applIca51c

' co such cor:.on.occurrcuce chall be the sunt of che l'erita of liability to all such policic:r, the limit of liabil' ty of cach such policy bein'; as.dctenai.ned by Cend L-tica 3 thereof, but in no event shall such total at:t;rcrate liability at such =enbars cxeced $13,~00,000; (2) the total liability of the co. panics undar this policy shall not e::ceed th.:t proportica of the toen1 aggregate Liabi.lity of the menbers et Mutun i Ate:.:ic Euargy Liability L'nder riters, as steccd in c1cuso (1) above, tehich (c) the IL,Lt of li:bl1Lty of this policy, as detert:Lacd by Cotdtti.:n 3, Scars to (b) the a:na of the limits at liabilI.ty of all cuch polleics issued by such rac;nber:;, the limit of

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liability of cach s.tch pol!cy being as deter.nined by Cendition 3 thereof.

Tae.provis tens of d:is condi. tion chall not cperate to inercase the liutt.of tha cenpanies ' IIabilit y under this policy.

'Ihc second paragraph of Ccadition 12 "Cther Insurance" i's c=cnded to read:

"If the insured has other valid nad collectible insurcnce (other than such ccacurrs=c insurcnce or any other r.uclear cacr;y lishility insurance 10 cued by 1:utual Atcmic 2. crpy 1.iability t*nder: riters er :;ecicar En:r;y LL ':ility Ins :rnnec Ms.. :ic.tica to any per:ca er orsa ti:stic.) ap,licable to less or enpcase cevered by this policy, the insurance efferded by this policy shall be c:: cess insurance over such oth2: insurance; previdad, t:it' renpoct to any persca %o is. not p.71cyed at 4.nd in ecn.:cetien. 1.h the f::cility, such incurence as is afforded by this policy for bcdily injury to an c=pleyee cf the insured arising cut of cnd in the ccurse of his cc pley:ent chall. be prie:ry inv. trance under such other incursace'.'

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Arkansas ~ Power & Light Company May 24,1974 De of Inr Per :he Snsritin.: C::cr.inies MUTU.'.L ATO.\\IIC ENERGY LLU;ILITY UNDERWRITP.7S By M,.

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L 6 MUCLEAR E"ERGY LIA3ILIII FO'ICT (FACILI7f FCE:')

4 It is greed that:

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The first sentedce of the definition of nuclear facility is c.caded to read:

" nuclear facility" reans "the facility" as defined in any I:uclear Energy Liability Folicy (Facility Tem) issued by ::utual A cric Energy Liability

!c.dc..triters er by ::uclear Energy Liability Insurance Associatien; II.

~he definition of "inde.nified nucicar facility" is replaced by the following:

"inde.nified nuclear facility" neans (1), "the facility" as defined in any ?::ciear Incrgy Liability Folicy (Facility Fem) is:ued by ::utual Atmic Energ-y Liability Underwriters or by I:ucicar Energy Liability Insura.ce A:sociation, or (2) any other nucicar facility, g

if financial proa.cetion is required pursuant to the Atenic Energy Act of 195h, or any la,4 E:.endatory thereof, with respect to any activities' er cperations cenducted thereat;

III,

' Condition h is replaced by the following:

LII'ITATIC:l CF LIABILITY: CCMI:0:1 CCCURP.1::03 Any occurrence or series of occur-rences reculting in bc.dily injury er,crepcrty dange arising cut of the radie-actiec, toxic, explosive or other ha:ardcuc prcperties of (a) nuclear natcrial dicchrged er disp-2rsed fren 'he facility over 'c period of da.vs weeks nen*.hs er icn;:er and also cicin cut pf such.crepertics p

a of other nuclear -aterial so dischegcd or dispersed frca ens er nore other nucicar facilitics incured under any ::uclear Energy Liability Fol-icy (Facility Forn) issued by Mutual Atenic Energy Liability Undert:riters, or (b) source naterial, special nuclear material, spent fuel or wasto in the course of transportation fer which incurance is afforded under this policy and also aricint; cut of cuch properties of other scurce natcrial, special nuclear material, spent fuel or ::asic in the course of transportatica for which insur:cico is afforded under one or rore other -:uclear Encr;y Lid:ility Folicies (Facility Forn) isuucd by ::utual Atonic Encrgy Liability Under:r.iters, shall be decmed to be a cwncn occurrence resulting in bedily injury or proprty duace enced by %c nuclear encer.y hacard.

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O NUCLEAR ENERGY LIABUlTY INSURANCE

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MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS Amendment of Transportation Coverage (Inde=nified Nuclear Facility)

It is agreed that the definition of " insured shipment" in Insuring Agreement III is amended to read:

" insured shipment" means a ship:: lent of source material, specici nuclear material, spent fuel or waste, herein called " material,"

(1) to the facility from any location except an indemnified nuclear facility, but only if the transportation of the material is not by predetemination to be interrupted by removal of the material from a transporting conveyance for any purpose other than the continuation of its transportation, or (2) from the facility to any other location, but only until the material is recoved from a transporting conveyance for any purpose other than the continuation of its transportation.

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EEcetive Date of this Endorsement May 10,1974 To fann a part af Pohey No.

g7,7g Issued to Arkansas Power & Light Company Date of Is:u, May 24, 1974 For the Subscribing Companies MUTUAL ATOMIC ENERGY LIABILI'lY UNDERWRITERS

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MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS SUPPLDZNTARY E CORSDENT

!?ARTR OF DEFENSES REACTOR CONSTFCCTION AT THE FACILITY It is agreed that in construing the application of paragraph 2 (b) of the !?aiver of Defenses Endorsement (:,2-33) with respect to an extraordinary nuclear occur-rence occurring at the facility, a clairant who is e= ployed at the facility in connection uith the constructicn of a nuclear reactor with respect to which no operating licenso has been issued by the Atomic Energy Cc==ission shall not be considered as e= ployed in connection uith the activity where the extraordinary nuclear occurrence takes place if:

(1) the claimant it ceployed exclusively in connection with the construction o' a nuc'. ear reactor, including all related equipment and installations at the facility, and (2) no operatin, licensa has been issued by the Atr=ic Energy Cct=ris-sion with respect to the nuclear reactor, and (3) the claimant is not erployed in connection with the pot ~.ess n

storage, use or transfer of nuclear material at the facility.

t Efie:tiv: D2:e of To form a part this Endonement 14ay 10,197h nf po![ey yo, MF-74 Issued to Arkancns Power & Lidht Ocenany M Y 2h' 197h De of Issr For the Subscribing Companies AIUT'UAL ATOAIIC ENERGY LIABILITY UNDERWRITERS I3Y ^

h

,-#wu 7

Endorsement No.

Coun:er gned by

.unwuno nr.usamme

)

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O

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Waiver of Defenses Endorsement - continued (Page 3)

5. (cont.inued)

'" Financial protection" and " nuclear incident" have the mentiings given them in the Atomic Energy Act of 19514, as amended.

" Claimant" means the person or organization actually sustaining the bodily injury or property damage and also includes his assia.nees, legal representa-tives and other persons or organize.tions entitled to bring an action for damages on account of such injury or damage.

t s.

EEcetive Date of May 10, 1974 T* I ""

• P2" MF-74 this Endorsement af I'chey No.

Arkansas Power te Light Co=pany Issued to May 24, 1974 Date of Issu, For the Subscribing Companies MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS By

>,, i ef E

5 SndorseErnt No.

8 Countersigned by NE-33 1/1/69 T

r,

'M NUCLEAR ENERGY LIABILITY INSURANCE

^^T.

MUTUAL' ATOMIC ENERGY LIABILITY UNDERWRITERS Actendment of Condition 4 Endorsement It is agreed that with respect to bodily injury and property damage caused af ter the effective date of this endorsement by the nuclear energy hazard the figurc $21,375,000 stated in Condition 4 of the policy 1.1 amended to read $24,750,000.

t EtTective Date of To form a part this Endorsement May 10, 197h af Policy No.

M F -711 Arkansas Power & Light Company Issued to May 21+,1974 Date of Issu, For the Subscribing Companies MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS By COPY Endorsement No.

9 Countersigned by AUTwen2rto RzPRudNTAT!Y3 TC NE 43 (1/1/74)

O q

NUCLEAR ENERGY LIABILITY INSURANCE

^T.

MUTUAL ' ATOMIC ENERGY LIABILITY UNDERWRITERS ADVANCE PREMIUtf EMEORSE!!ENT and STANDARD PREMIU:t E!!DCRSE!E!TI Calendar Year M 1.

ADVAMCE PRE'!IU?!

It is agreed that the Advance Premium due the companies for the calendar year designated above is $ 2008.93 2.

STANa\\RD PREMIUM AND RESERVE PREMIUM In the absence of a change in the Advance Premium indicated above, it is agreed that, subject to the provisions of the Industry Credig Rating Plan, the Standard Premium cnd Reserve Premium are:

Standard Premium

$ 2008.'93 Reserve Premium 13hS.90 e

Effective Date of To form a part this Endcrsem:r.t May 10, 1974 af Policy No.

MF-74 Issued to Alkansas Power & Light Company I

Date of Issue For the Subscribing Compnies MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS By 1

00PYl 10 Endorsement No.

Countersigned by Amuont to Rrnssz :TAnvs

NUCLEAR ENERGY LIABILITY INSURANCE MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS 1.

42ND}'DiT OF ADVANCE PRD!IDi D3ORSDfENT 2.

STANDARD PRD!ID' AND RESERVE PRDIIU1! ENDORSDfDiT 3.

ADDITIONAL PRD!ID! DUE 1.

Advance Precium It is agreed that the le: ended Advance Premium due the ccupanies for the calendar year 1974 is $23,136.66 2.

Standard Precium cnd Reserve Premium Subject to the provisiens of the Industry Credit Rating Plan, it is agreed that the Standard Prenius and Reserve Frenium for t*c.e calendar year desig.ated above are:

Standard Prenium $2'3,136.66

' Reserve Prceium $16,913.46 3.

AdditJonal Premiu: Due $21,127.73 I $ u t._ January 1, 1974

)g' p,[;{, a yan MF-74 f

t hsu:d ta Arkansas Poyer & Light Ccmp3ny Jun't 2 L, 1974 1h.te of 1...-

For the Subxribin: Companies MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS Uy

?

.I

.bR s

11 En lor;ement No.

Counterinnei! I,y

-a

/.cn:om.ra ne rr:.s rams

-*~*9

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e= ;es p

4 NUCLEAR ENERGY LIABILITY INSURANCE MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS ADvArca P e w 4 m e.w a m and STAIDARD PP.EMIUM T'm0RSE'CNT Calendar ' lear 1975 1.

L.DVAFCE FRE'fInt It h agreed thet the Advs. ace 2re.:tu due :ho campenice for the calendir year dcoir.x :ed above is #j.c..,J0.CC

?..

STMmARD FRn1IIT.4 AND RESERVE FREMtD' In the absence of a change in the Advance Fremium indiccted above, it is agreed that, subject to the provisions of the Industry Credit Pating Plan, the Standard "remdum cnd Rccerve Prc=4.um are:

Standcrd Premiut sy,8i0.00 Reserve Prenium

$ 3L 093.00 Effective Date of To form a part this Eudorsement Ja.uary 1, 1975 of Policy yo, T-?k Issued to Arkansas Pcecr and Eight Co.pany Dacc of Issue Decenber 31, 197b I

For the Subscriblag Coq:aniae

{

l MI!IUAL LTOMIC EUEarpt LI)21LIn* UNDE'4TAITEU By~ ~

, ;I f, 6 g V {

14*4.7a 1

g Endorsement No, 12 Countersigned by j

AUI110KIZED REFRESENIATIVE s.

e

• N

• N*9d

NUCLEAR ENERGY LIABILITY INSURANCE MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS Amendment of Condition h Endorsement It is agreed thst with respect to 'cedily injury cr.d prcpert:v d d. age caused after the effective date of this endersement by th nitalenr energ.y hev rd the figur? S'A 750,000 'teted in Cor.ditien - :.' t::e s

policy is u.: ended to read $28,125,000.

E"::tive D te of To for this Endorsement J9nuary 1, 1975 af Poh,m a part

&-7h ey No-Arkansas Pcvti & Light C:apany Da:e of br,,

Jer. nary 2 J 1075 For the Subs :ibing Ccmpanies MUTUAL ATOMIC ENERGY LIABIL'.TY UNDERWRITERS By

-q J

lC.D...73Y!

P Endernant No..- 13 Countersigned by

=-

Aurren:rw Ferass:xTar:va

..m ness /JEN & ASSOC 1.T.t.

< J MU h3B

! ' t[jj--

44 By

s NUCLFAR ENERGY LIABILITY INSURANCE MUTUAL A!EOM-ICIENERC4 Ti1*BWTYdIINDERWRITERS It is agreed that:

1.

The limit of liability stated in Item k of the declarations of the policy is a ended to read $23.125.000.

This itended limit app]ies with respect to obligations assumed or expenses ine :rre: because of bcdily injury or property Janare caused, durin6 the peried frcr; the effec-ive date cf this endorse:ent to the de.te of terninc. tion of t,he policy. by tha '.'aclcer e :ergy hazard.

2.

The limit of liabilit" ntated in Item k of the declarations end the anended limit of liability stated in para;rcph 1 al ove shalf. not be cumulative, and each pa'treet mde by the cenpundec after the effective date of this er.dcrsement for r.ny loss or expense covered by the policy sh ll reduce by the naount of such payment bot:t tne limit of liability stated in Item L of the declarac.icns and the acended limit of liability stated in raragraph 1 above, rescrdless of which limit of liability applies with.re.creet te the bodily injery or proptrty dunge cut of vnich such locs expen:e nrues.

ErTecdve Date af

.! arch 21,1975 To fon'2 2 J3"

.:F-7 h th:s Endett.une

. _of Pchey.No.

Arkansas pcVer i Light Co.

Issued to Date of Issue i.!cr;h 26. 1C75 For the Subscribio: C<smpanies MUTUAL ATOMI ENERGY LIABILCT UNDERWRITERS By n., :v. m q 3 '

3

t

!p ' q.#

Endorsement No.- lh Cc,unterigned by n-m 0 {1"N h,d,,, ac-c~~=. Mu t.r:t a

a;O

• Ne.n i 6 7

,l 4,

,4j,.,,

l s'

~

NUCLEAR ENERGY LIABILITY INSURANCE MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS 1.

AMEbTIEhT OF ADVANCE PRE!IILM EI.*DORSEE !T 2

STANDARD FRCIIUM AI;D RESERVE PREMIt'1 ENDORSE::EhT 3.

RETLT'; 's?.E'IIt?! SCE 1.

AdJance ?recitua It is r.e,rced that the Amended Advance Fcenien dia the cor$anics for the calendar year 1974 is $19,725.10 2.

Standard Prenium and Reserve Premium Subject to the provisions of the Industry Credit Rating Plan, it ic c:;rced that ths Standard Premium and Reserve Premium for the calendar year casignated above are:

• ,9' 5.10 Standard Frenien Rcserve Prc=iun bl '3I3

• N 3.

Return Fremium

$3,411.56 Eff:cti g Dv: of

.Ianuary 1, 1974 To foy,ns a pn rg_7 t, tins Ene2rstmer.t =

of Poa y he.._

I m wd to Arkansas Pcver and I.icht Cc.

Date of I:.sa!

For the Suberi'e!.ig Ccmp. ties MUTUAL ATO.'.IIC ENERGY LIABILITY UNDERWRITERS By jt y p w..

IdJT a j

15 Endor.eme.t No. _

C m.mts p.d c -

aur::om:2 Itn.to xm:va

'I.'l O A7C-O"iATC f) \\.

&& )

• ~

s NUCLEAR ENERGY LIABILITY INSURANCE MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS 1.

A!EID!EIT OF ADVAliCE PRE 4IT4 EIDOR3E'EIT 2.

STANDARD PREMIUM A?ID RESERVE PRS 4IUM EIDORSD E;T 3

ADDITIO!IAL PREMIUM DUE 1.

Advance Premius It is agreed that the Amended Advance Premium due the ec=panies for the calendar year 1975 is $Ld,h66.80 2.

Standard Premium and Reserve Premiu=

Subject to the previsions of the Industry Credit Rating Plan, it is agreed that the Standare Premium and Reserve Premium for the calender year des 1 nated above are:

6 Stand.ard Premius 3hS h66.80 Reserve Premiun

$36,159 77 3

Additional Fre=iu: Due $1,666.80 EfTective Date of To form a part this Ecdorsetnent Japu'trv 1 1075 af Policy No.

MF-7h Issued to rkansas Power and Light Co.

Date of Israe j,.

For the Subscribing Companies MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS By COPY 1,

Endorsement No.

Countersi:ned by Aurufvnto Resuaxwm RESSAT.iEN & ASSOCIATES By

NUCLEAR ENERGY LIABILITY INSURANCE

=-

MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS 1.

A!EIDMEIIT OF ADVA lCE PPS!IUM E:IDORSE!EIT 2.

STMIDARD PREMIUM AllD RESERVE PREMIUM E?IDORSE!EIT 3

ADDITIO!!AL FRE'fIU'4 EtIE 1.

Advance Premium It is agreed that the Amended Advance Premium due the companies for the calendar year 1975 is

$h9,816.80 2.

Shandard Premium and Reserve Premium Sub, ject to the provisions of the Industry Credit Rating Plan, it is agreed that the Standard Premium and Reserve Precium for the calendar year decignated above are:

Standard Premium $h9,816.80 Reserve Freniu:

03.18 5.Z 3

AdditionalPremiumDudi,350.30 Eriective Date of tha r.ndo:sement

.Tanuary 1, 1975 To form a part MF-Th af Po! Icy No.

Issued to Arkanras Power & Light Co.

April 23 1973 Date os Isw i

For the Subscribing Ccapanies MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS By "V

t C i 4*'

i i

j QUa d

6 Endorsement No.

17 Countersigned by Ar.rmonzto Buntsw ?.rryn REE3A EN & ASSOCIATES

NUCLEAR ENERGY LIABILITY INSURANCE MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS ADVANCE PREMILH ENDORSEMENT and STANDARD PREMILH ENDORSEMENT Calendar Year 1976 1.

ADVANCE PREMIlm It is agreed that the Advance Premium due the co=nanies for the calendar year designated above is $ 50,h00.00 2.

STANDAkD PREMILH AND RESERVE PREMIUM In the absence of a change in the Advance Premium indicated above, it is agreed that, subject to the provisions of the Industry Credit Rating Plan, the Standard Premium and Reserve Premium are:

Standard Premium 50,h00.00 Reserve Premium 37.699 00 Effective Date of To form a part this Endorsement Je.auary 1, 1976 of Policy No.

7 ~h Issued to Arke.nsas Power & Light Company Date of Issue December 15, 1975 4.

For the Subscribing Companies ra

., MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS By Endorsement No.

18' '

Countersigned by AUTHORIZED REPRESENTATIVE REDO "J '- r.

T/

Qr?

l.

vV

es MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS AMERICAN AIUTUAL LIABILITY INSURANCE COMPANY, Wakefield, Massachusetts EMPLOYERS hlUTUAL LIABILITY INSURANCE COMPANY OF WISCONSIN, Wausau, Wisconsin HARowARR AluTUAL CASUALTY COMPANY Stevens Point, Wisconsin LIBERTY hlUTUAL INSURANCE COMPANY, Boston, Massachusetts LUMBERMENS hlUTUAL CASUALTY COMPANY, Chicago, Illinois hlICHIGAN AIUTUAL LIABILITY COMPANY, Detroit, Michigan J

o NUCLEAR ENERGY LIABILITY POLICY (FACILITY FORM) e

O NUCLEAR ENERGY LIABILITY POLICY (FACILITY FORM)

Amendment of Transportation Coverage (Indemnified Nuclear Facility)

It is agreed that the definition of " insured shipment" in Insuring Agreement III is amended to read:

" insured shipment" means a shipment of source material, special nuclear materi I, tpent fuel or waste, herein called " material," (1) to the facility from any location except an indemnified nuclear facility, but only if the transportation of the material is not by predetermination to be interrupted by removal of the material from a transporting conveyance for any purpose other than the continuation of its transportation, or (2) from the facility to any other location, but only until the material is removed from a transporting conveyance for any purpose other than the continuation of its transportation.

-s b

i NE-1 2/1/57 3'

i INSTRUCTION: This endorsement is to be used to broaden the transportation coverage j

when the Nuclear F.nergy Liability Policy (Facility Form) is issued to 1

f an insured who is required to furnish financial protection under Section 170 of the Atomic Energy Act.

NE-1 2/1/57

~

NUCLL.R ENERGY LIABILITT JOLICY (FACILITY FORM)

O MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS AS1ERICAN MUTUAL LIABILITY INSURANCE C051PANY, Wakefield, Massachusetts E31PLOYERS hlUTUAL LIAn LITY INSURANCE C051PANY OF WISCONSIN, Wausau, Wisconsin HARDWARE MUTUAL CASUALTY COMPANY, Stevens Point, Wisconsin LIBERTY hlUTUAL INSURANCE COSTANY, Boston. Massachusetts LUhlBERMENS AIUTUAL CASUALTY COMPANY, Chicago, Illinois AllCHIGAN hlUTUAL LIAn!LITY C051PANY, Detroit, Michigan The undersigned members of mtual Atomic Energy Liability Underwriters, hereinafter called the " companies," each for itself, severally and not jointly, and in the respective proportions hereinafter set forth, agree with the insured, named in the declarations made a part hereof, in consideration of the premium and in reliance upon the statements in the declarations and subject to the limit of liability, exclusions, conditions and other terms of this policy:

INSURING AGREEMENTS A - BODlLY INJURY AND PRO PERTY DAMAGE DEFINITIONS Wherever used in this policy:

TTT I Coverage LIABILITY To pay on behalf of the i.sured:

" bodily injury" means badily injury, sickness or disease, including 111 (l) all sums which the insured shall become legal!y obligated to par death resulting therefrom, sustained by any person; as damages because of bodily injury or property damage cau ed

" property damage" means physical injury to or destruction or by the, nuclear energy hazard, and the comparu,es shall, defend radioactive contamination of property, and loss of use of property so any suit against the insured alleging such bodily mjury or injured, destroyed or contaminated, and loss of use of property while property damage and, seeking damages which are payable under evacuated or withdrawn from use because possibly so contaminated the terms of this policy; but the cornpanies may make such an*

or because of imminent danger of such contamination; vestigation, negotiation and settlement of any claim or suit as they deem expedient;

" nuclear material" means source material, special nuclear material (2) costs taxed against the insured in any such suit and Interese on or byproduct material; any judgment therein;

" source material," "special nuclear material." and " byproduct (3) premiums on appeal bonds and on bonds to release attachments material" have the meanings given them in the Atomic Energy Act in any such suit, but without obligation to apply for or furnish of 1954, or in any law amendatory thereof; such bonds;

" spent fuel" means any fuel element or fuel component, solid or (4) reasonable expenses, other than loss of earnings, incurred by the liquid, which has been used or exposed to radiation in any nuclear insured at the corapanies' request.

reactor ;

" waste" means any waste material (1) containing byproduct ma-Coverage 3-DAMAGE TO PROPERTY OF AN INSURED AWAY terial and (2) resulting from the operation by any person er organ-FROM THE FACILITY With respect to property darnage caused by ization of any nuclear facility :ne:uded within the de6n'rion of the nuclear energy hazard to property of an msured which is tway nuclear facilhy under paragraph (1) or (2) thereof; from the facility, to pay to such insured those sums which such insured would have been legally obligated to pay as damages there.

"the f acility" means the facility described in the declarations and for, had such property belonged to another.

includes the location designated in Item 3 of the declarations and all property and operations at such location; Coverage C-SUBROGATION-OFF51TE EMPLOYEES With "asclear facility" means "the facilrty" as denned in any Nuclear respect to bodily injury sustained by any employee of an insured Energy Liability Policy (Faci!ity Form) issued by the cornpanies or and caused by the nuclear energy hazard, to pay to the workmen's by Nuclear Energy Liability Insurance Association. The terrn "n.t-compensation carrier of such insured all sums which such carrier clear facility" also means would have been entitled to recover and retain as damages from another person or organization, had sucli person or organization (1) any nuclear reactor, alone been legally responsible for such bodily injury, by reason of (2) any equipment or device designed or used for (a,) separating the,sotopes of uramum or plutoniurn, (b) processing or utilia-the rights - quired by subrogation by the payment of the benefits i

i required of such carrier under the applicable workmen's compensa-ing spent tuel, or (c) handling, processmg or packag,ng waste, tion or occupational disease law. An employer who is a duly quali-(3) any equipment or device used for the processing, fabricating or 6ed self. insurer under such law shall be deemed to be a workmen's alloying of special nuclear material if at any time the total compensation carrier within the meanirig of this coverage. This amount of such material in the custody of the insured at the Coverage C does not apply to bodily injury sustained by any person premises where such equipment or device is located cnnaiats of who is employed at and M connection with the facility.

or contains more than 25 grams of plutonium or uranium 233 This Coverage C shall not constitute workmen's compensation or any combination thereof, or more than 250 grams of uranium insurance as required under the laws of any state.

235, (4) any structure, basin, excavation, premises or place prepared or used for the storage or disposal of waste, DEFINITION OF INSURED The unquali6ed word " insured" in-and includes the site on which any of the foregoing is located, all cludes (a) the narned insured and (b) any other person or organa-operations conducted on such site and all premises used for such zation with respect to his legal responsibil,ity fc damages because of bodily injury or property damage caused by.he nuclear energy operations; haaard.

" Indemnified nuclear facility" rneans Subdivision (b) above does not include as an insured the United (t) "the facility" as de6ned in any Nuclear Energy Liability Policy tates of America or any of its agencies.

(Facility Form) issued by the cornpanies or by Nuclear Energy Subject to Condition 3 and the other provisions of thir, policy, Liability Insurance Association, or the insurance applies separately to each insured against whom claim (2) any other nuclear facility, is made or suit is biought.

if financial protection is required pursuant to the Atornic Energy l

Nuclear Energy I.iability Policy (Facilier Form) 2/1/31 (Second Revisioe)

NPF 100 (2R) a.

PAGE 3

=. = -

_n

r Act af 1955, or any I;w amenditory th1reot', with respect ti any "Imur:d shipmmt" no. ins a chipment ni source material, special activities or operations conducted thereat; nudear mateiial, spent inel or wa=te, herein ca. led " material,"

(1) to the f acWty from a nuclear facWty nwned by the United "seeleer reester" means any apparatus designed or used to sustain Staen of Amenca; but only if the transportation, of the material is nuclear Ission in a self supporting chain reaction or to contain a by predetermir.ation to be interrupted by toe removal of the a nt critical mass of fissionable material.

material from a transporting conve,vance for any pu pose other than "necleer energy heaerd" rneans the radioactive, torie, explosive or the continuation of its transportation, or (2) frorn the facility to other hazardous properties of nuclear material, but only if any other location except an indemnified nuclear facility, but only until the material is removed frorn a transporting conveyance for (1) the nuclear material is at the facility or has been discharged or any purpose other than the continuation of its transportation, dispersed therefrom without intent to relinquish possession or custody thereof to any person or organization, or (2) the nuclear material is in an insured shipment which is (a) in APPLICATION QP POLICY This policy applies only to bodily TT/

the course of transportation, including handling and ternporary injury or property damage (1) which is caused during the pclicy iV storage incidental thereto, within the territorial limits of the period by the nuclear energv hazard and (2) which is discovered United States of America, its territories or possessions, Puerto and for which written claim is made against the iraured, not later Rico or the Canal Zone and (b) away from any other nuclear than two years after the end of the policy period.

facility; EXCLUSIONS This policy does met applyt handling or,use at the location designated in Item 3 of the (a) to any obligstion for which the insured or any carrier as his declarations, in time of peace, or war, of any nuclear weapon i

insurer may be held liable under any workruen s compensation, or other instrument of war utshzing special nuc ear material or unemplovment compensation or disab'ility benefits law, or under byproduct material.

any similar law; (e) to bodily injury or property damage due, to war, whether or not (b) except with respect to liability of another assumed by the in-declared, envil war, insurrection, rebellion or revolution, or to sured under contract, to bodify injury to any employee of the any act r e cdation incident to any of the foregoing, insured arising out of and in the course of his employment by the insured; but this exclusion does not apply to bodily injury (f) to property damage to any property at the location designated to any persort who is not employed at and in connection with in Item 3 of the declarations, other than aircrafr, watercraft or the facility if the insured has complied with the requirements vehicles licensed for highway use, provided such aircraft, water-of the applicable workmen's cornpensation or occupational dis-craft or vehicles are not used in connection with the operation case law respecting the securing of compensation benefits there-of the facility; under to his employees; (C) to property damage to nuclear material in the course of trans-(c) to liability assumed by the insured under contract, other than portation to or from the facility including handling or storage an assumption in a contract with another of the liability of any incidental thereto; perion or organization which would be imposed by law on such (h) under Coverage B, to property damage due to neglect of the p rson r organization in the absence of an express assumption insured to use all reasonable means to save and preserve the I'

property after knowledge of the occurrence resulting in such (d) to bodily injury or property damage due to the manufacturing, property damage.

O C O N DITIO N S The named insured shall pay the companies the advance Atomic Energy Commission, suspend the insurance with respect to 1 PREMlUMpremiurn stated in the declarations, for the period from the effective the named insured and such other person or organization effective date of this policy through December 31 following. Thereafter, at 12:00 midnight of the nae business day of su:h Commission follow-the beginning of each calendar year while this policy is in force, ing the date that such Commission receives nch notice. The period the named insured shall pay the advance premium for such year to of such suspension shall terminate as of the time stated in a written the companies. The advance premium for each calendar year shall notice from the companies to the named insured and to each such be stated in a written notice given by the companies to the named person or organization that such condition has been corrected.

icsured as soon as practicable prior to or after the beginning of suh year.

LIMIT OF LIABILITYt TERMINATION OF POLICY UPON EXi Such advance premiums are estimated premiums only., As soon HAUSTION OF LIMIT Regardless of the number of persons and f

organizations who are insureds under this policy, and regardiess of this poh,icable after each December 31 and after the termination,oey, the earned premium fc yhe preceding premium pe the number of claims made and suits hmught against any or all as, pract shall be computed,in accordance, witt, the corrqanies' rules, rates, insureds because of one or more oct...rences resulting in bodily rating plans. premiums and m,ansmum premiums applicable to,this injury or property damage caused during the policy period by the insurance, If the earned premium thus computed for any premium, nuclear energy hazard, the limit of the companies' liability stated period exceeds the advance premium previously paid for such period.

in the declarations is the total liability of the companies for their the named insured shall pay the excess to the companies; if less, the obligations under this policy and the expenses incurred by the com-companies shall return to the named insured the unearned portion panies in connection with such obligations, including (a) payments in settlement of claims and in satisfaction of judg-paid by such Insured.

The named insured shall maintain records of the information ments against the insureds for damages because of bodily injury necessary for premium computation and shall send copies of such or property damage, payments made ender parts (2), (3) and records to the companies as directed, at the end of each calendar (4) of Coverage A and payments male in settlement of claims year, at the end of the policy period and at such other times during under Coverages Il and C; the policy period as the companics may direct.

(b) payrnents for expenact incurred in the investigation, negntiativen, settlement and defense of any cidm or suit, including, but not INSPECTION; SUSPENSION The companies shall be permitted to limited to, the cost of such services,b salaried employees of the 2 inspect the f acility and to examine the insured's books and recordscompanies, fees and expenses of inJependent adjusters, attor-neys' fees and disbursements, expenses for expert testimony, at any time, as far as they relate to the subject matter of this inspection and appraisal of property, examination, X ray or insurance.

autopsy or medical expenses of any kind; If a representative of the companies discovers a condition which he believes to be unduly dancerous with respect to the nuclear (c) payments for expenses incurred by the compan,ies in investigat-ing an necurrence resulting in boddy injury or property damage energy hazard, a representative of the companies may request that such condition be corrected without delay. In the event of non.

or in minimizing its effects.

compliance with such request, a representative of the companies Each payment made by the companics in discharge nf their oblig:g 1

may, by notice to the named insured, to any other person or organi-tions under this policy or for expenses incurred in connection with ration ' considered bv the companies to be responsible for the con-such obligations shall reduce by the amount of such payment the tinuance of such dangerous condition, and to the United States limit of the companies' liability under this policy.

PAGE 4 W'-

m,,

If, during the policy period or subsequent thereto, the total of have any rigtit under this policy to join the companies or any of such payments made by the companies shall exhaust the limit of them as parties to any action against the insured to determine the the companies' liability under tais policy, all liability and obliga-insured's liability, nor shall the companies or any of them be im-tions of the cornp:nies under this policy shall thereupnn terminate pleaded by the insured nr his legal representative. llankruptcy or f and shall be conclusively presumed to have been discharged.

This msolvency of the insured or of the insured's estate shall not relieve policy, if not theretofore canceled, shall thereupon automatically the cornpanies of any of their obligations hereunder.

terminate.

force and the number of premiums which shall be payable or pa,in Regardless of the number of 3 ears this policy shall continue ACTION AGAINST COMPANIES-Coverage B No suit or ae-id, tion on this policy for the recovery of any claim for property dam-the limit of the companies' liability stated in the declarations shall age to which Coverage B applies shall be sustainable in any court not be cumulative from lear to year.

of law or equity unless all the requirements of this policy shall have been complied with and unless commenced within two years after LIMITATION OF LIABILITY; COMMON OCCURRENCE Any oc-the occurrence resulting in such property damage.

I currence or series of occurrences resulting in bodily injury or prop-n erty damage arising out of the radioactive, toxic, explosive or other INSURED'S DUTIES WHEN LOSS OCCUR 5-Coverage B In hazardous properties of the event of property damage to which Coverage B applies, the (a) nuclear material dischargel er dispersed from the facility over insured shall furnish a complete inventory of the property damage a period of days, weeks, months or longer and also arising out claimed, show8ag in detail the amount thereof. Within ninety-one of such properties of other nuclear material so discharged or days de* ine occurrence resulting in such prnperty damage, unleas dispersed from one or more other nuclear facilities insured by smh ilme is extended in writing by the companies, the insured shall the companies under a Nuclear Energy Liability Policy (Facility render to the companies a proof of loss, ngned and sworn to by Form), or the insured, stating the knowledge and belief of the insured as to (b) source snaterial, special nuclear material, spent fuel or waste in the following: identification of such occurrence; the interest of the the course of transportation for which insurance is adorded insured in the property destroyed or damaged, and the amount of under this policy and also arising out of such properties of evh item of property damage claimed; all encumbrances on such other source material, special nuclear material, spent fuel or property; and all other contracts of insurance, whether valid or not, waste in the course of transportation for which insurance is covering any of such property. The insured shall include in the adorded under one or rnore other Nuclear Energy Liability proof of Icss a copy of all descriptions and schedules in all policies.

Policies (Facility Form) issued by the companies, Upon the companies' request, the insured shall furnish verified plans shall be deerned to be a commun occurrence resulting in bodily in, and specifications of any such property. The insured, as often as jury or property damage caused by the nuclear energy hazard.

may be reasonably required, shall exhibit to any person desqnated by the companies any of such property, and submit to examinations With respect to such bodily injury and property damage (t) the under oath b any person named by the companies and subscribe rotal aggregate liability of the companies under all N,uclear Ener;:y the same; an[, as often as may be reasonably required, shall produce Liability Pohcies (Facsh,ty Form), including this policy, applicable for examination all books al account, records, bills, invoices and to such comrnon occurrence shall be the, sum of the Itmats of, liabil,ity other vouchers, or certified copies thereof if originals be lost, at of all such pohcies, the I,armt of liability of,each such policy being such reasonable time and place as may be designated by the com-as determined by Coniitton 3 thereof, but in no event shall such panies or their representatives, and shall permit extracts and copies total aggregate liability of the companies exceed $13,500,000; (2) thereof to be made*

the total liability of the cornpanies under this policy shall not exceed that proportion of the total aggregate liability cf the companies, as stated in clause (1) above, which (a) the limit of liability of this APPRAISAL-Coverage B In case the insured and the companies f policy, as determined by Condition 3, bears to (b) the sum of the shall fail to agree as to the amount of property darnage, then, on.

limits of liability of all such policies issued by the companies, the the written demand of either, each shall select a competent and limit of liability of each such policy being as determined by Con-disinterested appraiser and notify the other of the appraiser selected dition 3, thereof.

within twenty days of such cismand. The appraisers shall first The provisions of this condition shall not operate to increase the select a competent and disinterested umpire and, failing for fifteen limit of the companies' liability under this policy, days to agree upon such umpire, then, on request of the insured or the companies, such umpire sh;.ll be selected by a judge of a court

-which the property is located. The ap-5 NOTICE OF OCCURRENCE, CLAIM OR SU.lfbodily injury or prop.:rty damage to which this pol.In the event of praisers shall then appraise each item of property damage and, icy applies or of failing to agree, shall submit their differences only to the umpire.

containing particulars,surficientan occurrence which may ::ive rise to,dentify the insured and also claims therefor, writun notice An award in writing, so itemized, of any two when filed with the to i enmpanies shall determine the amount of property damage. Each reasonably obtainable information with respect to the time, place appraiser shall be paid by the karty selecting him and the expenses and circumstances thereof, and the names and addresses of the of the appraisal and um'nire s all be paid by the parties equally.

insured,to Mutual Atomic E.ergy Liabil,be given by or for the anjured and of available, t 'enesses, shall The companies shall not be held to have waived any of their rights ary Underwriters or the by an act relating to appraisal ccmpanies at soon as practicable.

If cla,m is made or suit as i

brought against the insured. he sha'l immediately forward to Mutual Atomic Energy Liability Underwriters or che companies every de-SUBROGATION In the event of any payment under this policy, mand, notice, summons or other process received by him or his the companies shall he subrogated to all the insured's rights of re-representative.

covery therefor against any person or organization, and the insured

- shall execute and deliver instruments and papers and do whatever

'I5' I'.necessary to secure such rights. Prior to knowledge of 6 ASSISTANCE AND COOPERATION OF THE IN5UREE The in-sured shall cooperate with the companies and, upon the companies, bodily injury or property damage caused by the, nucicar energy request, attend hearings and trials and anist in making settlements, hazard the insured may waive,in writing any right of recovery securing and giving evidence, obtaining the attendance of witnesses figainn any puunn or organization, but after such knowledge the and in the conduct of any Icgal proceedings in connection with the insured shall,mt waive or otherwne prcJudice any such right of subject matter of this insurance. The insured shall not, excent at

""Y "I' his own cost, make any payment, assume any obligation or iicur The enmpanies hereby waive any rights of subrngation acquired any expense.

against the United States of America or any of its agencies by reason of any payment under this policy.

No

.The enmpanies do not relinquish, by the foregoing provision *, any 7 ACTION AGAINST COMPANIES-Coverages A and C action shall lie against the companies or any of them unless, as a right, to restitution from the insured out of any recoveries made by condition precedent thereto, the insured shall have fully complied the insured on account of a loss covered by this policy of any with all the terms of this policy, nor until the amount of the in, arnpunts to which the companies,would be entitled had such pro-sured's obligation to pay shall have been finally determined either visions, or any of them, not been included in this policy, by judgment against the insured after actnal trial or by written greement of the insured, the claimant and the companies.

OTHER INSURANCE If the insurance afforded by this policy for Any person or organization or the legal rep esentative thereof loss or expense is concurrent with insurance atforded for such loss who has secured such judgment or written agreement shall there-or expense by a Nuclear Energy Liability Policy (Facility Form) after be entitled to recover under this policy to the extent of the issued to the named insured by Nuclear Energy Uability Insurance insurance afforded by this policy. No person or organidon shall Association, hereinafter called " concurrent insurance /' the companies PAGE 5

=

' sh ll not be liehl> urd.e this policy for a A

.er proporti<m af such Premium milhnement.

.iny, may be made either at thi rime can-loss er expense th:n the limit cf liability stated in tha declIrreions celation is effected or as sson as practicable after caccelation becomes cf this policy bears to the suit of such limit and the limit of lis-effective, but payment or tender of unearned premium is not a con-bility stated in the declarations of such concurrent policy.

dition of cancelation.

If the insured has other valid and callectible insurance (other e

than such concurrent insurance or any other nuclear ene cy liability insurance issued,by the companies or Nuclear Energy Liability In, COMPANY REPRESENTATION surance Association to any person or organization) applicable to (a) Any notice, sworn statement or penof of Ims which may be re. 1 loss or expense covered by this policy, the insurance afforded by this quired by the provisions of this policy may be given to any one policy shall be excess insurance over such other insurance; provided, of the compames, and such notice, statement or proof of loss so with respect to any person who is not emploved at and in con-given shall be valid and binding as to all companies.

nection with the facility, such insurance as is afforded by this policy (b) In any action or suit against the companies, service of process for bodily injury to an emplo3ee of the insured arising out of and in the course of his employment shall be primary insurance under may be made on any one of them, and such service shall be such other ansurance.

deemed valid and binding service on all companies.

(c) Stutual Atomic Energy Liability Underwriters is the agent of the companies with respect to all matters pertaining to this in-CHANGE 5 Notice to any agent or knowledge possessed by any surance. All notices or other communications required by this 13 agent or by any other person shall not edect a waiver or a change policy to be given to the companies may be given to such agent, in any part of this policy or estop the companies from asserting any at its orEce at 919 North 5fichigan Avenue, Chicago 11, Illinois right under the terms of this policy; nor shall the terms of this with the same force and efect as if given directly to the com-policy be waived or changed, except by endorsement issued to form panies. Any requests, demands or agreements made by such a part of this policy executed by Sturual Atomic Energy Liability agent shall be deemed to have been made directly by the com.

Underwriters on behalf of the companies.

panies.

A551GNMENT Assignment of interest by the named insured shall not bind the companies until their consent is endorsed hereon; if, AUTHORIZATION OF NAMED INSURED Except with respect to however, the named insured shall die or be declared bankrupt or cornpliance with the obligations imposed on the insured by Condi. "1 1g ansolvent, this pobey shall cover such insured's legal representative, tions 5, 6, 7 5, 9' to and 11 of this policy, the named insured is receiver or trustee as an insured under this policy, but only with authorized to act for every other insured in all rnatters pertaining respect to his liability as such, and then only provided written notice to this insurance.

ef his appointment as legal representative, receiver or trustee is given to the companies within ten days after such appointment.

CHANGES IN SUBSCRIBING COMPANIES AND IN THEIR PRO. *1 Q PORTIONATE LIABILITY By acceptance of this policy the named 1Q 15 by rnailing to the companies and the United States Atomic Energy OANCELATION This policy may be canceled by the named insured insured agrees that the members of Stutual Atomic Energy Liability Underwriters liable under this policy, and the proportionate liability 1%mmission written notice stating when, not less than thirty days of each such member, may change from year to year. Any such thereafter, such cancelation shall be edective. This policy may be change shall be stated in an endorsement entitled " Changes in Sub-canceled by the companies by mailing to the named insured at the scribing Companics and in Their Proportionate Liability" issued,to address shown in this policy and to the United States Atomic Energy form a part of this policy, duly executed on behalf of the companies Commission written notice stating when, not less than ninety days subscribing such endorsement and mailed or delivered to the named thereafter, such cancelation shall be effective; provided in the event insured, and the named insured further agrees that regardless of af non-payrnent of aremium or if the operator of the facility, as such changes:

designated in the declarations, is replaced by another person or (1) each company subscribing this policy upon its issuance shall beO orgaaization, this policy may be canceled by the cornpanies by mail.

liable only for its stated proportion of any obligation assumed ing to the named insured at the address shown in this policy and or expense incurred under this policy because of bodily injury to the United States Atomic Energy Commission written notice stat-or property damage caused. during the period from the edective ing when, not less than thirty days thereafter, such cancelation shall date of this policy to the efective date of the first such endorse-br effective. The mailing of notice as aforesaid shall be sufficient ment, by the nuclear energy hazard; proof of notice. The effective date and hour of cancelation stated (2) this policy shall remain continuously in efect from the efective an the notice shall become the end of the policy period. Delivery of date stated in the declarations until terminated in accordance such written notice either,bv the named insured or by the companies with Condition 3 or Condition 15; shall be equqalent to mailing.

(3) neither the liability of anball be cumulative from year to year company nor the limit of liability Upon termination or cancelation of th.is policy, other than as of stated in the declarations s the end of December 31 in any year, the earned premium for the period this policy has been in force since the preceding DecemLer 31 shall be computed in accordance with the following provisions:

DECLARATIONS By acceptance of this policy the named insured (c) if this policy is terminated, pursuant to Condition 3, by reason agrees that the statements in the declarations are the agreements and

/

of the exhaustion of the limit of the companies' liability, all representations of the named insured, that this policy is issued in premium theretofore paid or payable shall be fully earned; reliance upon the truth of such representations and that this policy (b) if the named insured cancels, the earned pr'emium for such embodies a!! agreements between the named, insured and the com-period shall be computed in accordan*ce with the customary Pames or any of their agents relating to this insurance.

annual short rate table and procedure, provided if the named insured cancels after knowledge of bodily injury or property MUTUAL POLICY CONDITION This policy is nonassessable. 'Ihe damage caused by the nuclear energy hazard, all premiums named insured is a member of each of the companies and shall par-theretofore paid or payable shall be fully earned; ticipate, to the extent and upon the condit ons fixed and determined i

(c) if the companies cancel, the earned premium for such period b3 its board of directors in accordance with the provisions of law, shall be computed pro rata.

in the distribution of dividends so fixed and determined.

P AGE 6 gg _9 4

a+e mes= = m eeumw ee-

s

• 4 fInW:Txsss Wusasor, each of the subscribing companies has caused this policy to be executed by it, attested on its behalf by an oHicer of AIutual Atomic Energy Liability Underwriters and duly countersigned on the declarations page by an authorized representative.

Suascatarno Couraniss Paoroarion or 1007, j

(1) American SIutual Liability Insurance Company To Secretary President (2) Employers 11utual Liability Insurance Company of Wisconsin Secretary President (3) Hardware AIutual Casualty Company Secretary President (4) Liberty SIutual Insurance Company Secretary President (5) Lumbermens AIutual Casualty Company Secretary Pres! dent (6) Slichigan AIutual Liability Company Secretary President

.100 %

ATTEST:

f By

AlcTuAt. Arcute Eur.acy Ltantury Unosawatrsas

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.;cS-e.

NUCLEAR ENERGY LIABILITY POLICY n

No.MF.

MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS A5tERICAN h!UTUAL b! ABILITY INSURANCE C051PANY LIBERTY hlUTUAL INSURANCE C05tPANY Wake 6 eld, Massachusetts Boston, Massachusetts E5tPoovLns hiuTUAL L Anit TY INSURANCE C051PANY LU51t1ER5 TENS hlUTUAL CASUALTY C05!PANY Chicago, Illinois Waussa, W.isconsin HARDWARE hlUTUAL CASUALTY C05tPANY SI!CIIIGAN hlUTUAL LIABILITY C05tPANY Stevens Point. Wisconsin Detroit, Michigan The named insured is hereby notined that by virtue of this policy he is a member of each of the companies and is entitled to vote either in person or by proxy at any and all meetings of each of the companies.

The annual meetings of each of the companies are held at the time and place stated herein.

This policy is nonassessable.

O NOTICE OF ANNUAL MEETINGS The annual meetings of A3:sarcAN AiuruAL Lianit TY The annual meetings of LinenTY AluTuAL Issunaus INsuRANCs COh1PANY are held at its home 00 ice in COStPANY are held at its home office in Boston, AIassa.

Wake 6 eld, Alassachusetts, on the third Wednesday of chusetts, on the second Wednesday of April in each year, Alarch in each year, at eleven o' clock in the morning.

at eleven o' clock in the morning.

The annual meetin;:s of EsiPmys.ns StuYuar, LiAniuTY The annual meetinio of 1,u3:nru3icxs Alorum. CAs-INsunases Cos PANY or Wiscoxsitt are held at its uALYY C05tPANY are held at its home oflice in Chicago, home otlice in Wausau, Wisconsin, on the third Friday of IIISois, on the third Tuesday of Alay in each year, at February in each year, at ten o' clock in the morning.

eleven o' clock in the morning.

The annual meetings of Hannwans AluTuAL Cascat.TY The annual meetings of AliciticaN AIuTuAL Lianitrry

)

CoatPANY are held at its ho.ne office in Stevens Point, Co31PANY are held at its home otlice in Detroit,11!chigan j

Wisconsin, on the third Wednesday of April in each year, on the last Thursday of Alarch in each year at 10:30 at nine o' clock in the morning.

o' clock in the morning.

.. -.