ML19326C755

Forwards Nelia Policy NF-210 W/Endorsements 1-3 & 5-7 Effective 720915

ML19326C755
Person / Time
Site:	Arkansas Nuclear
Issue date:	10/24/1972
From:	HOUSE, HOLMES & JEWELL
To:	Saltzman J US ATOMIC ENERGY COMMISSION (AEC)
References
NUDOCS 8004280689
Download: ML19326C755 (18)

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Arkansas Power & Light Company Arkansas Nuclear One Unit 1 - Docket #50-313

Dear Mr. Saltzman:

In accordance with your telephone conversation with William Cavanaugh of Arkansas Power & Light Company, I enclose a copy of the $1 million liability policy for Arkansas Nuclear One Unit 1 effective September 15, 1972.

Yours very truly, HOUSE, HOLMES & JEWELL

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Arkansas Power & Light Company Item 1. Named Insured 6th Avenue and Pine Street, Pine Bluff Arkansas 71601 Addres:

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. and continuing through Item 2. PoIIcy Period: Beginning at 12:01 A3(. on the day of the efective date of the cancelation or termination of this policy. standard time at the address of the named insured aa stated herein.

Item 3. Description of the Facility:

All of the premises including the land and all buildings and structures gt;,,

1 known as the named insured's Arkansas Nuclear One - Units 1 and 2.

Arkansas Nuclear One is located in Pope County, Arkansas aporoximatelv six (6) siles West-Northwest of Russellville, Arkansas.

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• a ys Arkansas Power & Light Company The operator of the facility is

! tem 4. The h. it of the companies' !!abiliry is $ 1,000,000 subject to at! the terms of this policy having refer-_c-em.

Itern 3. Ad'vance Premium $ 100.00

' tem 6. These declarstions and the schedules for=ina a put hereof give a complete description of the fa:ility, insofar as it relates to the nucIest no exceptions energy hazard, except as noted REBS Py & ASSOC) ATE., IN l

b September 22, 1972 By F

Date of !me 19

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.warizeo.hp:.,er:uav-This is to certify that this is a true copy of the Declarations Page and Endorsa:.ents nt= bored i thro igh 7 t,ade a part of the original Nuclear Energy Liabilit Policy (Facility Formi No. NF 9 0. No.

insurance is afforded ercunder j

eS29 Nuclest Energy Ilsbility Policy (Facility Form) 2/t/57 (Seond Revision)

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ilUCLEAR ENERGY LIABILIT's INSURAf'CE ASSOCIAT10?!

NUCLEAR ENEROY UAB!TY PZUCY (FACluTY FORM)

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AMENDMENT OF TRANSPORTATION COVERAGE (Indemnified Nuclear Facility)

It is agreed that the de6nition of " insured shipment" in Insuring Agreement IIIis amended to read:

"isured shipsest' means a shipmect of source material, special nuclest material, spent fuel or waste, herein called "materiaf," (1) to from any location except an indemniSed nuclear facility, but only if the transportation of the material is not by predetermination to be by removal of the material from a transporting conveyance for any purpose other than the continuation of its transportation, or (2) from facility to any other location, but only until the snaterial is rernoved from a transporting conveyance for any purpose other than the continuation of its transportation."

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Effective Date of this Endorsemen, September 15, 1972 To form a part of Policy No NF-210 Issued to Arkansas Power & Light Cocoany Dia oir< sue December 22, 1972 For the Subscribing Companies By 7

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q Nuclear Energy Liability fr-]ance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ABIENDATORY ENDORSE 31ENT (Facility Form)

It is agreed that:

L The first sentence of the definition of nuclear facility is amended to read:

" nuclear facility" means "the facility" as defined in any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association or by 3Iutual Atomic Energy Liability Underwriters.

IL The definition of " indemnified nuclear facility" is replaced by the following:

" indemnified nuclear facility" means (1) "the facility" as defir.e4 in any Nuclear Energy Liability Policy (Facility Form) issued by Nuciear Energy Liability Insurance Association or by AIutu:.1 Atomic Energy Liability Underwriters, or (2) anyothernuclearfacility, if financial protection is required pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, with respect to any activities or operations conducted thereat; IIL Condition 4 is replaced by the following:

LGIITATION OF LIABILITY; CO3GION OCCURRENCE Any occur-rence or series of occurrences resulting in bodily injury or property damage arising out of the. radioactive, toxic, explosive or other hazardous properties of (a) nuclear material dischnrged or dispersed from the facility ov9r a period of days, weeks, months or longer sud also arising out af such properties of other nuclear material so discharged or dis-persed from one or more other nuclear facilities insured under any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association, or (b) source material, special nuclear material, spent fuel or waste in the course of transportation for which insurance is afforded under this policy and also arising out of such properties of other source material, special nucle:.r material, spent fuel or waste in the i

course of transportation for which insurance is afforded under l

one or more other Nuclear Energy Liability Policies (Facility Form) issued by Nuclear Energy Liability Insurance Association, shall be deemed to be a common occurrence resulting in bodily injury oi property damage caused by the nuclear energy hazard.

With respect to such bodily injury and property damage (1) the total aggregate liabilit; of the members of Nuclear Energy Liability Insurance Association under all Nuclear Energy Liability Policies (Facility Form), including this policy, applicable to such common

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occurrence aby be tha sum cf tha limits of liability of-all such policies, tna limit ef'

ility cf each such policy b

ing as det-ined by Cordi-tion 3 thereof, but in no svent shall such total aggregate liability af such members exceed $46,50D,000;-(2) the total liability of the com-panies under this policy shall not exceed that proportion of the total aggregate liability of the members of Nuclear Energy Liability c

Insurance Association, as stated in clause (1) above, which (a) the limit of liability of this policy, as determined by Condition 3, bears to (b) the sum of the limits of liability of all such policies issued by such members, the limit of liability of each such policy being as determined by Condition 3 thereof.

The provisions of this condition shall not operate % increase the limit of the companies' liability under this policy.

t IV. Tha second paragraph of Condition 12 "Other Insurance" is amended to read:

"If the insured has other valid and collectible insurance (other than such concurrent insurance or any other nuclear energy liability insurance issued by Nuclear Energy Liability Insurance Associa-tion or Mutual Atomic Energy Liability Underwriters to any person or organization) applicab!e to loss or expense covered by this policy, the insurance afforded by this policy shall be excess insur-

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ance ove: such other insurance; provided, with respect to any person who is not e:nployed at and in connection with the facility, such insi.rance as is afforded by this policy for bodily injury to an employee of the insured arising out of and in the course of his employment shall be primary insurance under such other insurance."

F5ective Due of September 15, 1972 this Ecdorsemen, To form 2 put of Policy No NF~210 Imed to Arkansas Power & Tmighe (w nan -

September 22, 1972 For tbe subscribing companies Due of Issue By YWiJ~t WWQ gy$g'?"s*XSSOCl TES INC. seden) i Ab Countersigned by Ay / f> Endonement Na Facilier Form 11-61 868 84 P AGE 4. ~

etuc!MEh5rgy IHility Insuranca NUC. LEAR ENERGY LIABILITY IN514, NCE ASSOCIATION ) / INDUSTRY CRED]T RATING PLAN PREM1UM ENDORSEMENT It is agreed that Condition I of the policy is replaced by the fullowing: CONDITION L PREMIUM (1) Definiticas: With reference to the pr:mium for this policy: calendaryear;" advance premium. for any calendar year, is the estimated sta e 4 " standard premium", for any calendar in accordanc: wid the companies' ru!:s, year, is the premium for that calendar year comput Rating Plan), premiums and mmimum prem,iums applicable to this insu " reserve premium" means that portion of the standard premium paid to the specifically allocated under the Industry Credit Rating Plan for incurred losse the " reserve premium" for this po'. icy for any calendar year during which this is the amount designated as such m the Standard Premium Endorsement for year; ar " industry reserve premium", for any calendar year, is the sum of the reserve Insurance Association and Mutual Atomic Energy Lia Industry Credit Rating Plan; .mlum for that calendar year to the industry reserve p " incurred losses" means the sum of: i (1) alllosses and expenses paid by Nuclear Energy Liability Insurance Asso tual Atomic Energy Liability Und:rwriters, and (2) all res:rves for unpaid losses and expenses as estimat:d by Nucle surance Association and Mut"a' Atomic En:rgy Liability Underwriters because of obligations assumed. tad the expenses incurred in connecti by memb:rs of Nucl:ar Energy Liability Insurance Association and Mu Liability Underwriters under all Nuc!:ar En:rgy Liability Policies issue Liability Insurance Association and Mutual Atomic Energy Liability Underw ject to the Industry Credit Rating Plan; " reserve for refunds", at the end of any calendar year, is the amount by w of allindustry reserve premiums for the period from January 1,1957 throug calendar year exceeds (2) th total for the same p:riod of (a) all incurred loss the next following July 1, and (b) all reserve premium refunds made unde Rating Plan by members of Nuclear Energy Liability Insurance Association a Atomic Energy Liability Underwriters; " industry reserve premium refund,*~for any calendar y:ar, is d:ter=in:d b reserve for refunds at the end of the ninth calendar year thereafter by th: ratio of "th try reserve premium for the calendar year for which the ned ycats thereafter provid:d that th: industry reserve premium refund for any calendar shall in no eve, t be greater than the industry reserve premitun for s n (2) advante premium stated in the declarations, for the throtsh December 31 following. Ther after, at the beginning of each calenda pMicy is in fore:, the nate:d insur:d shall pay the advancs vremir:m for such y:ar raiu panies. Tb advance p em'um for each calcadar Sat.r sh.di Se s: aced in th: Ad cam n En,dorsement for such calendar year issued to the named insuced as soo prior to or aher 2: be;; inning ot such year. 985 87 PAGE 4 e g" = d ese 4 m ...w,- .mp ,.-e.i ,-_a 4%w mp ,_m .-+.+wme:-.-

- -. ~ - Nucl2 r Entergy LI:'oility In: uran: Jr NUCLEARbERGY LIA31LITY INSURANC JASSOCIAT!ON As soon as practicable aft:r each Decemb:r 31 and r.fter the termination of this policy, the standard premium for the preceding calesdar year shall b: dnally determin d and stated in the Standard Premium Endorsement for that cal:ndar year. If the standard premium so det:rmined exc::ds the advance premium previously paid for such calecdar year, the named-insured shall pay the exc:ss to th: companies; if less, the companies shall return to the nam:d insured th: excess portion paid by such insured. Tne named insured shall maintain records of the information nec:ssar'/ or premium computa-f non and shallsend copies of such records to the companies as directed, at the end of each cal-endar year, at the end of th: poIIcy period and at such other tim:s during the policy p:riod as the company may direct. 1 (3) Use of Reserve Premiums All reserve premiums paid or payable for this policy may be used by the members of Nuc!:ar Energy Liability Insurance Association to discharge their obligations with respect to incurred losses whether such losses are incurred under this policy or und:r any other policy issued by Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters. (4) Reserve Premium Refunds A portion of the reserve premium for this policy for the first ' al-c endar year of any group of ten consecutive calendar years shall be returnable to the named in-sured provided there is a reserve for refunds at the end of the tenth cale:dar year. (5) Computa: ion of Reserve' Premium Refunds *Ih reserve premium refund due the nam insured for any calendar year shall be determined by multiplying any industry reserve premium refund for such calendar year by the policy refund ratio for such calendar year. The reserve pre-mium refund for any calendar year shall be finally detennined as soon as practicab!: after July 1 of the t: nth calendar year thereafter. (6) Final Premium The final premium for this policy shall *:e the sura of the standard premiums for each calendar year, or portion thereof, during which this policy remains in force less the sum of a!! refunds of reserve premiums due the named insured under the provisions of this Condition 1. (7) Reserve Premium Refund Agreement Each member of Nuclear Energy Liability Insurance Association subscribing this policy for any calendar year, or portion th:reof, thereby agrees for its:lf, severally and not jointly, and m the respective proportion of its liability assumed under this policy for that calendar year, to return to the nam:d insured that portion of any reserve premium refund due the named insured for that calendar year, det:rmined in accord-ance with the provisions of this Condition 1. [*f}o September 15, 1972 NF-210 ent To form a part of Policy No. 12:01 A.hl. Standard Time Arkansas Power & Light Company Issued to September 22, 1972 Date of Issue For the subsen.bing companies ( N' By i 'Gendral tianager REBSA E & ASSOC 4TES. INC. Es.m.m so.. c U tr.,:a sy A m' [ - # PM 3 ,, m.. u. ~ ~~ g

Q ) Nuclear Energy Liability Insumnce ~ NUCIIAR ENERGY LIABILITY INSURANCE ASSOCIATION Waiver of Defenses Endorsement (Extraordinary Nuclear Occur ence) (FACILITY FORM) The named insured, ccting for himself and every other insured under the policy, cn Nuclear Energy Liability insurance Association agree as follows:

1. With respect to any extmordinary nuclear occ'urrence to which the policy applies cs proof of financial protection and which (a) Arises out of or results from or occurs in the course of the construction, pos or operation of the facility, or out of or results from or occurs in the course of the transportation of (b) Arises nuclear material to or from the facility, the insureds and the companies og ree to waive (1) any issue or defense as to the conduct of the claimant or the fault of the insu including, but not limited to:

(i) negligence, (ii) contributory negligence, (iii) assumption of risk, and (iv) unforeseeable intervening causes, whether involving the conduct of a third person, or on act of God, (2) ony issue or defense as to charitable or governmental immunity, and (3) any issue or defense based on any statute of limitations if suit is instituted w three years from the date on which the claimant first knew, or reasonably could havf of his bodily injury or property damage and the cause thereof, but in no event more yeon after the date of the nuclear incident. The waiver of any such issue or defense shall be effective regardless of whether su may otherwise be deemed jurisdictional or relating to on element in the cause of cetio 2. The waivers set forth in paragraph 1. above do not apply to l (a) Bodily injury or property damage which is intentiorelly sustained by the claiment or which results from a nuclear incident intentionally and wrongfully caused by the claimant; Bodily njury sustained byany claiment who is employed at the site of and in (b) i connection with the activity where the exhcordinary nuclect cccurrence tckes plcce if benefits therefor are either payable or required to be provided under any workmen's com-pensation or occupational disease law; (over)

,]Nudeor Energy Llobility Insurance. ] Nt! CLEAR ENHGY LIABILITY INSURANCE ASSOCIATION SUPPLEENTARY ENDORSDfENT WAIVER OF DEFENSES REACTOR CONSTRUCTION AT THE FACTLITY It is agreed that in construing the application of paragraph 2(b) of the Waiver of Defenses Endorsement (NE-33) with respect to an extra-ordinary nuclear occurrence occurring at the facility, a claimant who is employed at the facility in connection with the construction of a nuclear reactor with respect to which no operating license has been issued by the Atomic Energy Commission shall not be considered as employed in connection with the activity where the extraordinary nuclear occurrence takes place if: (1) the claimant is employed exclusively in connection with the construction of a nuclear reactor, including all related equipment and installations at the facility, and w (2) no operating license has been issued by the Atomic Energy Commission with respect to the nuclear reactor, and (3) the claimant is not employed in connection with the possession, storage, use or transfer of nuclear material at the facility. l Efectin Dow of September 15, 1972 NF-210 this E=done-To form a prt of Polky Na 12:01 A.M. Standad Tuce hM - Arkansu Pn ze r c: Ttoht c-me n.- 8 Dare ef hsue September 22._1972 lhh W%s ecM By g g tu g sp e w soy j,,c. A \\ bu) n EJU'i r a A-Endorsemnat N~ 5 %QQ C' h2fY4/71) .. ~

A Nedear Ensegy Liability lasumnc ~3 / MUCLEA2 ENERGY LIABILITY INSURANCE ASSOCIATICN Amendment of Condition 4 Endorsement It is agreed that with respect to bodily injury or property damage caused after the effective date of this endorsement by the nuclear energy hazard the figure $46,500,000 stated in Condition 4 of the policy is amended to read $73,625,000. -4 E!cc*in Der of September 15, 1972 NF-210 this ZodoW To forra a part of Poucy No 12:01 A M. h=ard Thne L, W.a Arbn c o c pn..n r .r. TMcht Omnon r Fu & SW %

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@/si 8k bM U/ General Moneger RESSAMFJ4 & ASSO 1AT", INC. 6 9 9- / Ith Na h w M by 7 NE-40A By t w m u t s wwm j h

.~ _ _ ,q q Nuclear Enwgy Uability Insurance NUCEAR ENHGY LIABluTY INSURANCE ASSCCIATICN Address of Nuclear Energy Liability Insurance Association Endorsement It is agreed that the address of the Nuclear Energy Liability Insurance Association appearing-in the " Company Representation" condition of the policy is amended to read: "127 John Street, New York, New York 10038" M Efecifee Does d s y_w Sentember 15, 1972 Tob aW d W & NT-?l0 12:01 A3L samadasd nnw g,,,a. Arkansas Power & Light Conmany For tbe subscribing e %,3 w Sentember 22, 1972 l By _ e c t f 9..) /( h ATES, INC. y MlW6Mp r By b? 'l 1.s ) x .NE 37A (5/1/72)

~' .~ ~ ~ ~ ~ ~ ~' ~ ~~ ~' ~ A ') ~ O i p Governing Committee. O i i O ne a ne c emei v ena s re v c m.on. C b comm.reise union in rance cu-Continented Casualty Company nucIear enargy Iiability insurance association ne continensee in rense company 127 john street, naw york, new york 10038 g,,,,,,,,,,,,,,,,,,,,,,,,,,,e,,,,,, (212) 952 1700 engineering dept. (212) 9521704 in sence Company of North Americe North Amerisen Reineurense Corporation Joseph Metrone Hoyal-Glotse insurance Comoenise o.ne<es menese, The Treseaws indommey company RE: Nuclear Energy Liability Policy Nc6 NF-210 Issued to: Arkansas Power & Light Company H Gentlemen: The nuclear energy hazard is a relatively new one to both the atomic ) industry and the insurance business. Its nature is such that injury and claims may first become apparent long af ter exposure to nuclear materials. We call your attention to Condition 5 of your policy regarding Notice of Occurrence, Claim or Suit. The provisions of this Condition are a part of the contract of insurance and, as such, must be followed. Because it will be difficult to assess accurately the full extent of nuclear incident and especially to foretell whether claims will be made, we also urge you to report.promptly any occurrence, incident, event or condition which may result in bodily injury or property damage even though it may appear that the policy does not apply thereto or that no ' claims may arise. We feel sure that your cooperation in the above respect will enable us to work with you towards minimizing injury or damage from the nuclear energy hazard and towards keeping the cost of nuclear energy liability insurance as low as possible. Yours very truly, ,M JM:PE ose h Marrone i

O q NUCi. EAR ENERGY LIABILITY PO',1CY (FACILITY FORM) The undersigned members of Nuclear Energy Liability Insurance Association, hereinafter called the " companies," each for itself severally and not jo nely, and in the respective proportions heremafter set forth, agree with the insured, named in the declarations made a part hereo of the premium and in reliance upon the staternents in the declarations and subtect to the limit of liabdity, exclusions, conditions and other terms of this policy: INSURING AGREEMENTS r I COVERAGE A - BODILY INJURY AND Pp.OPERTY DAMAGE byproduct material; LIA88UTT To pay on behalf of the insured: " source maserial," "special nuclear maserial," and " byproduct maserial" (1) all sums which the insured shall become legally obligated to pay have the sneanings given them in the Atomic Energy Act of 1934, or in as damages because of bodily inpury or property damage caused any law amendatory thereof; by the nuclear energy harard, and the companics shall defend any "fp,,r fuel" means any fuel element or fuel component, solid or liquid, suit against the insured allegina such boddy injury or property which has been used or exposed to radiation in any nuclear reactor; damage and seeking damages which are parable under the terms of this policy; but the companies may make such insestigation' ,,,,,,,,, means any waste material (1) containing byproduct material negotiarion and settlement of any claim or suit as they deem and (2) resulting from the operation by an person or organization of "Id '" any nuclear facility included within the d nition of nuclear facility under paragraph (1) or (2) thereof; (2) costs, taxed against the insured in any such suit and interest on ,,g, gjfj,,,' rneans the facdity described in the declarations and in. any sudgment therein; cludes the location desigcated in Item 3 of the declarations and all (3) premiums on appeal bonds and on bonds to release attachments property and operations at such location; such suit, but without obhgation to apply for or furnish m an such

nds, "ude Wisy'* means "the facility" as de6ned in any Nuclear Energy Liabibey Policy (Facility Form) issued by the companies or by Mutual (4) reasonable expenses, other than loss of earnings, incurred by the Atomic Energy Liabdity Underwriters. The term " nuclear facility" also msured at the companies request.

means (1) any nuclear reactor, CJVERAGE B - DAMAGE TO PROPERTY OF AN INSURED (2) any equipment or device designed or used for (a) sepanting the AWAY FROM THE FACILITY isotopes of uranium o' pletonium, (b) processing or utilizing With respect to property damage caused by the nuclear energy hazard spent fuel, or (c) handling, processing or packaging waste, to property of an insured whnh is a,way from the facility, to pay to (3) any equipment or device used for the processing, fabricating or such insured those sums which such insured would have been legallF alloy ng of special nuclear material if at any time the total amount obligated to pay as damages therefor, had such property belonged to of such material in the custody of the insured at the premises another. where such equipment or device is located consists of or contains more than 23 4 trams of plutonium or uranium 23) or any com-COVERAGE C - $UBROGATION - OFFSITE EMPLOYEES bination thereot, or more than 250 grams of uranium 235, Tath respect to boJily injury sustained by any employee of an insured (4) any structure, basin, excavation, premises or place prepared or used and caused by the nuclear energy hazard, to pay to the workmen's com-for the storage or disposal of waste, pensation carrier of such insured all sums which such carrier would and includes the site on which any of the foregoing is located, all have be", entit!cd to recover and retain as damages from another operations conducted on such site and all premises used for such rson os organiaation, had such person or organization alone been operations; Fegally responsible for such bodily injury, by reason of the rights "j,4,mnifed d,a facilisy" means acquired by subrogation the paymer t of the benefits required of such (1} "the facility" as defined in any Nuclear Ene y Liability Policy carrier unden the applica le workmen s compensation or occupational (Facility Fo,m) issued by the companies or y Atutual Atomic disease law. An employer who is a duly qualified self-insurer under Energy Liability Underwriters, or such law shall be deemed to be a workmen's compensation carrier (2) any other nuclear facility, within the meamng of this coserage. This Coverage C does not appi e bodily injury sustained by any person who is employed at an if financial protection is required pursuant to the Atomic Energy Act of in connection with the facdity. 1934, or any law amendatory thereof, with respett to any activities or operations conducted thereat; This Coverage C shall not constitute workmen's composation insurance ,,naden reutw" means any apparatus designed or used to sustain as required under the laws of any state. nuclear fission in a self-supporting chain reaction or to contain a critical mass of 6ssionable material; II (a)FINITION OF INSURED The unqual 6ed wond " insured" irxludes "nndra energy beaud" means the radioactive, toxic, explosive or other DE the named insured and (b) any other person or organization with haza.-dous properties of nuclear material, but only if respect to his legal responsibility for damages because of bodily injury (I) the nuclear material is at trie facihty or has been discharged or or property damage caused by the nuclear energy hazard. dispersed therefrom without intent to relinquish possession or Subdivision (h) above does not include as an insured the United custody thereof to any person or organization, or States of America or any of its agencies-(2) the nuclear material is in an insured shipment which is (a) in the Subsect to Condition 3 and the other provisions of this,,olicy, the course of transport.stion, including handling and temporary storage insurance applies separately to each insured against whom claim is incidental thereto, within the territorial limits of the United States made or suit as brought. of America, its territories or possessions. Puerto Rico or the Canal Zone and (b) away from any other nuclest facility; Wherever used in this policy: "I"'.'d #EIe*'es" means a shipment of source material, special nuclear III " DEFINITIONS material, spent fuel or waste, herein called material, (I) to the facil. haddy s..erary' means bodily iniu, sickness or disease, includ.ng ity from a nuclear facility owned by the United States of America, but death resulting therefrom, sustained y any person; only if the transportation of the material is not by predetermination to " property Jamere' means physical injury to or destruction or radio-be interrupted by the removal of the rnaterial from a transportmg con-active contamination of property, and loss of use of property so injured, veyance for any purpose other than the continuation of its transporta. destroyed or contaminated, and loss of use of property while evacuated tion, or (2) from the facility to any other location except an indemni-or withdrawn from use because possibly so contaminated or because of 6ed nuclear facility, but only until the material is removed from a imminent danger of such contamination; transporting conveyance for any purpose other than the continuation of "naden nascrild" means source material, special nuclear rnaterial or its transportation. N.wi=e Energy Liabdity Policy (Facility Form) 2/1/37 (Second Revision) Nar w ooo

n ) ./ a s APPLICA[ ION OF POLICY This policy applie,only to bodily injury written claim is made against the insured, not later th.n two years after or property damage (1) which is caused during the policy period by the end of the policy rieriod, the nuclest energy haaard and (2) which is discovered and for which EXCLUSIONS This peJcy does not apply: tions, in time of peace or war, of any nuclear weapon or other (a) to any obligation for which the insured or any carrier as his in. instrument of war utiliaing special nuclear materias or byproduct surer may be held liable under any workmen's compensation, un-material; employment cornpensation or disabdity benefits law, or under anY (e) to bodily injury or property darnage due to war, whether or not simdar law; declared, cied war, insurrection, rebellion or revolution, or to any (b) except with respect to liability of another assumed by the insured act or condition incident to any of the foregoing; j under contract, to bodily injury to any employee or the insured arismg out of and m the course of his emniorment by the m-(f) to property damage to any property at the location designated in Item 3 of the declarations, other than aircraft, watercraft or ve-sured; but this exclusion does not apply to, ily jnjury to any hicles licensed for highway use, provided such aircraft, watercraft person who is not employed at and in connection with the facihty if the insured has complied wuh the requirements of the apphcable or vehicles are not used in connection with the operation of the workmen s compensation or occupational disease law respecting facuity-* the securing of compensation benefits thereu br to his employers; (g) to property damage to nuclear material in the course < f transporta-(c) to liabihty assumed by the insured under contract, other than an tion to or from the facility including handling or storage incidental assumption in a contract with another of the liability of any person thereto; or organization which would be imposed by law on such person or (h) under Coverage B, to property damage due to neglect of the in-organization in the absence of an express assumption of liability; sured to use all reasonable means to save and preserve the prop-(d) to bodily injury or property damage due to the manufacturing, erty after knowledge of the occurrence resulting in such property handling or use at the location designated in item 3 of the declara.

damage, 11 CONDITIONS 1 FREMlUM De named insured shall pay the companies the advance erty damage caused during the policy period by the nuclear energy premium stated in the declarations, for the period from the edective hazard, the limit of the companies' liability stated in the declarations as date of this policy through December 31 following. Thereafter, at the the total liability of the companies for their obligations under this beginning of each calendar year while this policy is in force, the named policy and the expenses incurred by the companies in connection with insured shall pay the advance premium for such year to the ccmpanies.

such obligations, including Tne advance premium for each calendar year shall be stated in a (a) payments in settlement of claims and in satisfaction of judgments written notice given by the companies to the named insured as soon as against the insureds for damages because of bodily injury ce prop-practicabie prior to or after the beginning of euch year. erty damage, payments made under parts (2), (3) and (l) of Such advance premiums are estimated premiums only. As soon as Coverage A and payments rnade in settlement of claims under practicable after each December 31 and after the termication of this Coverages B and C; policy, the earned premium for 'he preceding premium period shall be (b) payments for expenses incurred in the investigation, negotiation, computed in accordance with the companies' rules, rates, rating plans. settlement and defense of any claim or suit, including, but not premiums and minimum nremiums applicable to this insurance. If the limited to, the cost of such services by salaried employees of the earned premium thus computed for any premium period exceeds the companies, fees and expenses of independent adjusters, attorneys' advance premium previously paid for such period, the n,med insured fees and disbursements, expenses for expert testimony, inspection shall pay the excess to the companies; if less, the companies shall re. and appraisal of property, examination, X. ray or autopsy or medi. turn to the named msured the unestned portion paid by such insured. cal expenses of any kind; The named insured shall maintain records of the information neces. (c) payments for expenss incurred by the companies in investigating sary for premium computation and shall send copies of such records to an occurrence resulting it. bodily injury or property dam:,ge or in the companies as directed, at the end of each calendar year, at the end minimizing its efects. of the pohcy penad and at such other times during the pohcy period as the companies may direct. Each payment made by the companies in discharge of their obligations under this policy or for expenses incurred in connection with such obligations shall reduce by the amount of such payment the limit of the INSPECTION: SU5 PENSION The companies shall be permitted to companies' liabdity under this policy. 2 i.upect the facshty and to examine the insured's boc,ks and records at if, during the policy period or subsequent thereto, the total of such any time, as far as they relate to the sub cct matter of ibis insurance. payments :nade by the companies shall exhaust the limit of the com. i If a representative of the companies discovers a condition whkh he panies' liability under this policy, all liability and obligations of the believes to be unduly dangerous with respect to the nuc! car energy companies under ttis policy shall thereupon terminate and shall be hazard, a representative of the companies may request that such condi. conclusively presumed to have been discharged. This policy, if not tion be corrected without delay. In the event of non<ompliance with therernfore canceled, shall thereupon automatically te: ainate, such request, a representative of the companics nuy, by notice to the Regardless of the number af years this policy shall continue in force named insured, to any other person or organization considered by the and the number of premiums which shall be payable or paid, the limit companies to be responsible for the continuance of such dangerous of the companies' liabi!.ty stated in the declarations shall not be condition, and to the United States Atomic Energy Commission, sus. cumulative from year to year. l pend the insurance with respect to the named insured and such other person or organization eHective 12:00 midnight of the next business day of such Commission following the date that such Commission LIMITATION OF LIABILITYl COMMON OCCURRENCE Any occur. A ) retcives such notice. The period of such suspension shall terminate as rence or series of occurrences resulting in bodily injury or property 4 of the time stated in a wntren notice from the companies to the named damage arising out of the radioact' e. toxic, explosive or other hazard. insured and to each such person or organization that such condition has ous properties of been corrected. (a) nuclest material discharged or dispersed from the facility over a period of days, weeks, months or longer and also arising out of LIMIT OF LIABILITY 1 TERMINATION Cll POLICY UPON EX. such properties of other nuclear snaterial so discharged or dis. 3 HAUSTION OF LIMIT Regardless of the number of persons and persed from one or more uner nuclear facilities insured by the orgamzations who are insureds under this policy, and regardless of the companies under a Nucicar Energy Liability Pohcy (Facdity number of claims made and suits brought against any or all insureds Form), or because of one or more occurrences resulting m boddy injury or prop. (b) source material, special nuclear material, spent fuel or waste in the s -.. - ~ m.._ - ~

.m_ n O fourse of transportation for which insurance is aforded under this property. De Insured shall include in the proof of loss a copy of all policy and also arising out of such properties of other source descriptions and schedules in all policies. Upon the companies' request, rnaterial, special nuclear material, spent fuel or waste in the course the insured shall furnish veri 6ed elans and specincations of any such of transportation for which insurance is afforded under one or property. The insured, as often as

• y be reasonably required, shall er.

rnore other Nuclear Energy Liabihty Policies (Facility Form) is-hibit to any person dessgnated by is : companies any or such property, sued by the companies, and submit to examinations under tath by any person named by the shall be deemed to be a common occurrence resulting in bodily injury or companies and subscribe the same; and, as often a* may be reasonably property damage caused by the nuclear energy hazard. required, shall produce for examination all books of account, records, With respect to such bodily inputy and property damsgo (1) the total bills, mvoeces and other vouchers, or certified copies thereof if originals aggregate habdity of the companies under all Nuclear Energy Liability be lost, at such reasonable time and place as may be designated by the Polarses (Facility Form), including this policy, ap c mpanies or their representatives, and shall permit extracts and copies mon occurrence shall be the sum of the limits o[licable to such com-liability of all su:h thereof to be made. policies, the limit of liability of each such policy being as determined by Condition 3 thereof, bui in no event sha'l such total aggregare lia-APPRA15AL - Coverage B In case the insured and the companies Q bdity of the compames exceed 3M500,000; (2) the total liability of shall fail to agree as to the amount of property damage, then, on the the companies under this policy shall not exceed that proportion of the written demand of either, each shall select a competer,t and disinterested totl aggregate liabdity of the companies, as stated in clause (1) above, appraiser and notify the other of the appraiser selected within twenty which (a) the limit of liabdity of this policy, as determined by Condi-days of such demand. The appraisers shall first select a competent and tion 3, bears to (b) the som of the limits of liabdity of all such policies disinterested umpire and, failing for 6fteen days to agree upon such issued by the companies, the limit of Mbility of each such policy being umpire, then, on request of the insured or the companies, such umpire as determined by Condition 3, thereof. shall be selected by a judge of a court of record in the state in which De provisions of this condition shall not operate to increase the limit the property is located. The appraisers shall then appraise each item of of the companies' liability under this policy. property damage and, failing to agree, shall submit their differences only to the urnpire. An award % writing, so itemized, of any two when nied with the cor.;2aies sha,1 determine the amount of property 5 N'ITICE OF OCCURRENCE, CLAIM OR S.UIT I.n the. event of damage. Each appraiser shall be paid by the party selecting hiin and the boddy m;ury or property damsge to which this pohcy apphes or,of expenses of the appraisal and umpire shall be naid by the parties en occurrence which may give rise to. claims therefor, written notice equally. The companies shall not be held to have ' waived any of their containing particulars sufficsent to identify the insured and also reason-sily ottainable nformation with respect to the time, place and circum-rights by any act relating to appraisal. stances rhereof, and the names and addresses of the injured and of a q amlable witnesses, shall be given by or for the insured to Nuclear SUBROGATION In the event of any payment under this policy, the (( Energy Liability insurance Association or the companies as soon as companics shall be subrogated to all t-,e insured's rights of recovery practrable. If claim is made or suit is brought agamst the insured, he therefor against any person or organization, and < insured shall ex. shall immediately forward to Nuclear Energy Liabilary Insurance Asso-ecute and deliver instruments and papers and do whatever else is ci: tion or the companies every demand, notwe, summons or other pro-necessary to secure such rights. Prior to knowledge of bodily injury or cess received by him or his representative. Property damage caused by the nuclear energy hazard the insured may waive in writing any right of recovery against any person or organiza. The in-ti n, but af ter such, knowledge the insured shall not waive or otherwise 6 A551 STANCE AND COOPERATION OF THE INSURED Prejudice any such right of recovery. sured shall coccerate with the companies and, upon the companies-request, attend nearings and trials and assist in making settlements, The companies hereby waive any rights of subrogation acquired sauring and giving evidence, obtaining the attendance of witnesses and against the United States of Amerra or any of its agencies by reason of an the conduct of any legal proceedings in connection with the subject any payment under this policy., matter of this insurance. The insured shall not, except at his own cost, . The companies do not rehnquish, by the foregoing provisions, any make any payment, assume any obligation or incur any expense. nght to restitution from the insured out of any recoveries made by the insured on account of a loss covered by this policy of any amounts to which the companies would be entitled had such provisions, or any of 7 ACTION AGAINST COMPANIE,5 - Coverages A and C No them, not been included in this pobcy. action shall lie against the companies or any of them unless, as a con. dation precedent thereto, the insured shall hcve fully complied with all the terms of this policy, nor until the amount of the insured's obligation OTHER INSURANCE If the insurance afforded by this policy for loss "I to pay shall have been finally deterrnined either by judgment against the or expense is concurrent with insurance arTorded for such loss or ex. 1 insured after actual trial or by written agreement of the insured, the pense by a Nuclear Energy Liabdity Policy (Facility Form) issued to claimant and the companies-the named insured by Mutual' Atomic Energy Liability Underwriters, Any person or organizatien or the legal representative thereof who hereinafter called " concurrent insurance," the companies shall not be has secured such judgment or written agreement shall thereafter be liable under this policy for a greater proportion of such loss or, expense entitled to recover under this policy to the extent of the insurance than the limit of liability stated in the declarations of this policy bears t the sum of such limit and the limit of liability stated in the declara-afforded by this policy. No person or organization shall have any right under this policy to join the companies or any of them as parties to any tions of such concurrent pohey. action against the insured to determine the insured's liabihty, nor shall If the insured has other valid and collectible insurance (other than the corapanies or any of them be impleaded by the insured or his legal such concurrent insurance or any other nuclear energy liability insurance representative. Dankruptcy or insolvency of the insured or of the in. assued by the companies or Mutual Atomic Energy Liability Underwrit-sured's estate shall not relieve the companies of any of their obligations ers m, any person or organization) applicable to loss or expense covered. hereunder. by this polKy, the insurance afforded by this policy shall be excess in. surance over such other insurance; provided, with respect to any person who is not employed at and in connection with the facility, such insur. o ACTION A, GAINST COMPANIES-Coverage 3 No suit or action ance as is afforded by this policy for bodily injury to an employee of i O on this policy for the recovery of any claim for proretty damage to the insured arising out of and m the course of his employment shall be which Coverage B applies shall be sustainable in any court of law or primary insurance under such other insurance. equity unless all the requirements of this policy shall have been com-plied with and unless commenced within two years after the occurrence resulting in sudi property damage. CHANGES Notice to any agent or knowledge possessed by any agent {)" or by any other person shall not effect a waiver or a change in any part of this policy or estop the companies from asserting any right under the IN1URED's DUTIES WHEN LOSS OCCURS - Coverage 5 terms of this policy; nor shall'the terms of this policy be waived or h in the event of property damage tn which Coverage B applies, the in-changed, except by endorsement issued to form a part of this policy sured shall furnish a complete inventory of the property damage executed by Nuclear Energy Liability Insurance Association on behalf claimed, showmg in detail the amount thereof. Within ninety-one days of the companies. tit:r the occurrence resulting in such prope-ty damage, unless such time is extended in writing by the companies, the insured shall render ta the companies a proof of loss, signed and sworn to by the insured, ASSIGNMnNT Assignment of interest by the named insured shall not 1 'A st ting the knowledge and belief of the insured as to the following: bind the companies until their consent is endorsed hereon; if, however, lt ident:6 cation of such occurrence; the interest of the insured in the the named insured shall die or be declared bankrupt or insolvent, this property destroyed or damaged, and the amount of each item of prop-policy shall cover such insured's legal representative, receiver or trustee erty damage claimed; all encumbrances on such ptoperty; and all other as an insured under this policy, but only with respect to his liability as i contracts of insurance, <hether valid or not, coverir; any of such such, and then only provided written notice of his appointment as legal j 1 l

• b, l

tsJ n any action cr suit rgainst the companies, servic2 of process may b... .- w r m =nuusten be made on any one of them, and such service shall be deemed ys after such appointment. valid and bmding service ors all companies. (c) Nuclear Energy Liability Insurance Association is the agent of CANCELATION This policy may be canceled by the named insured by the comparues with respec' to all matters pertaining to this insur. 15 mading to the companies and the Unated States Atomic Energy Com-ance. All notices or other ammunica: ions required by this policy massion written norece statang when, not less than thirty days thereafter. to be given to the companies may be given to such agent, at its such cancelation shall be effective. This poh,cy may be canceled by the orfice at 60 John Street, New York 38, New York with the same companies by mading to the named msured at the address shown an this forte and effect as if given directly to the companies. Any requests, pohce and to the United States Atomic Energy Commimon written nutsce demands or agreernents inade by such agent shall be deemed to statmg when, not less than ninety days thereafter, such cancelatson shall have been made direttly by the companies, be effective; provided in the event of non payment of premium or if the operator of the faality, as designated in the declarations, is replaced by another person or organiz2 tion, this polky may be canceled by the AUTHORIZATION OF NAfAED INSURED Except with respect to 1 eJ compas.ies by mading to the named insured at the address shown in compliance with the obligations imposed on the insured by Conditions A( this pubcy and to the United States Atomac Energy Commission written 5,6, 7,8,9,10 and 1I of this policy, the named insured is authorized notne stating when, not less than thirty days thereafter, such cancela-to act for every other insured in all matters pertaining to this insurance. tion shall be effective.1h mading of notke as aforesaid shall be surfiaent proof of notice. The erfative date and hour of cancelation WMMS W WHMMM MWMH,MD W WM 1Q stated in the notke shall be oac the end of the polky period. Delivery of such written notic eithe by the named insured or by the companies PROPOftTIONATE LIADILITY lly acceptance of this policy the named Av insured agrees that the members of Nuclear Energy Laabihty Insurance shall be equivalent to maitiQ,. Association liable under this pohcy, and the proportionate liability of Upon termination or cancelation of th.is policy, other than as of the each such member, may change from year to year, and further agrees end of December 31 in any year, the earned premium for the period that regardless of such changes: this polny has been in force since the preceding December 31 shall be (1) each company subscnbing this policy upon its issuance sha!! be computed in accordance with the following provisions: hable only for its stated proportion of any obligation assumed or (4) if this poh.cy - termmated, pursuant to Condition 3, by reason of expense incurred under this policy because of boddy iniury or the exhaustion of the f amit of the companies liability, all premium property damage 'aused, during the period from the effective date theretofore paid or payable shall be fully earned; of this policy to the close of December 31 next following, by the (b) if the named insured cancels, the carned premium for such period nuclear energy hazard; fer each subsequent calendar year, begin-shall be computed in accordance with the customary annual short nmg January 1 next following the effective date of this policy, the rate table and procedure, provided if the named insured cancels subscribing companies and the proportionate liabihty of each such ..I after knowledge of bodily iniury or property damage caused by the company shall be stated in an endorsement issued to form a part nudcar energy huard, all premiums theretofore paid or payable of this pobcy, July executed and attested by the General Afanager shall be fully earned; of Nuclear Energy Liabdity Insurance Association on behalf of cach such company, and maded or delivered to the narned insured; (c) if the companies carnel, the earned premium for such period shall be computed pro rata. (2) this policy shall renuin continuously in etTect from the etTective date stated in the declarations untd terminated in a:cordance with premiurn adjustment, if any, may be made either at the time cancelatnon Condition 3 or Condition 15; is effected or as soon as practkable after cancelation becomes effective, but payment or tender of unearned premium is not a condition of (3) neither the liability of any company nor the limit of liability stated in the declarations shall be cumulative from year to year. carnelation. DECLARATIONS By acceptance of this policy the named insured agrees 16 COMPANY REPRESENTATION that the statements in the declarations are the agreements and repre-1h (1) Any notice, sworn statement or proof of loss which nuy be re-sentations of the named insured, that this policy is issued in reliance quired by the provisions of this policy may be given to any one upon the truth of such representatbns and that this policy embodies a!! of the compantes. and such notice, statement or proof of loss so agreements between the named iresed and the companies or any of given shall be valid and bindmg as to all companies. their agents relating to this insurance. IN WITNYss THEREOF, each of the subscribing companies has caused this policy to be executed and attested on its behalf by the General Afanager of Nuclear Energy Liabdity Insurance Associatwn and July countersigned on the declarations page by an authorized representative. For the Subscribing Companies By N General Martsger m= .'m-e.-m.6 __m..,,

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-) }, + = e 71*1Cfpff* rWM at"1 PtnW"Fr c? tnov, aetna C4euelty 6 Suveer Company, no 10.333J17 aatna Insurense Cea.*esy 2.273t46 atletete Insuranse Ceapsey 4.091839 anettaan Insurance Company. De 1.449193 Centenatal Insurance Company .3637tt Continental Casventy Company 5.633110 Centinental Insurance Company. The 7.389043 Fapteyers Ce==erstal Unten Insurance tempany 3.319050 Federal Insurance Company 1.022963 Fireman's Fund Insurance Ccapany 2.381315 Cenirst A<stdent Fire & Life Aseurance Carperettee. Ltd.. 1.363346 4 ' o' as Indeanity Company. 1.391271 Great Aaerican taeurance Ceapany 1.136622 lianover Insurance Cenpeny. The .623141 Nortford Attident a. Indemnity Ceapany 9.092976 H4rtford $ttei Setter laspettien in Insurance Company,De .300tt4 Meme InJeantry Company. The 2.2164t3 + Insurance Ceapany of ts rth America 9.092974 o Nanhsttan Fire & Merine Ineutense Company. The .227324 Merytant C4eustty Compsny 1.7Gt933 i llenarch tasarence Ce=pany of Chte. De .227324 Newerk insierence Cevapany 426233 .j fy How Hampe%1re Insurance Ce=pany .227324 Fes titc Indemnity Ce=peny .340987 .1 Peerless taeurance Co-peny .34'078 Theents Assurnate Company of New Tork .691973 Frevidspee Washiriston Insurance Company .0A 524 7 Quaan fr.sgrance Ceepony of Amartes e.., .426233 Pattance Impurance Company 1.134622 Reyel Inde atty Cc.pany 1.59427L ssferned Insurance Company .563311 St. Paul Fire & Martog Insurance Company 3.973177 Seaboerd Surety company 454649 Securtty Insursace weepany of liartford 1.420777 Tracemrica insurance Corpsay .397818 Travelete Indemity Cempany. De 11.593543 United States ride 11ty 4. Cueranty Company 6.819732 Untted states Tire Insurance Company 2.453103 Zvetch Inevranes Company .363311 lie *72 4 l i b. \\ + " property Jew.r/v" means physical injury to or destruction or radso-be snterrupted by the removal of the material from a transporting con. active contamination of property. and loss of use of property so injured. veyance for any purpose other than the continuation of its transporta. destroyed or contaminated. and loss of use of property whde evacuated tion. or (2) from the facility to any other location except an indemni-or withdrawn from use because possibly so contaminated or because of fied nuclear facility, but only until the material is removed from a i amminent danger of such contaminataon; transporting conveyance for any purpose other than the continuation of "esdaar asaterial*' means source material, special nuclear material or its transportation. Nucleme Energy 1.iability Policy (Facility Form) 2/th7 (Second Revision) m iese -~_ ~ _ __}}