ML19351C995

Forwards Endorsement I to Maelu Binder XB-70

ML19351C995
Person / Time
Site:	North Anna
Issue date:	10/02/1980
From:	Loving L MARSH & MCLENNAN, INC.
To:	Dinitz I Office of Nuclear Reactor Regulation
References
NUDOCS 8010080549
Download: ML19351C995 (7)

Text

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nan Marsh & McLennan, incorporated 11 South 10th St., P. O. Box 1857 Richmond, Virginia 23215 Telephone 804 649-4100 Telex 827317 October 2, 1980 Mr. Ira Dinitz Indemnity Specialist Anti-Trust and Indemnity Group Nuclear Reactor Regulations U. S. Nuclear Regulatory Comm. 1 Washington, D. C., 20555 )

RE: Virginia Electric & Power Company ]

Dear Mr. Dinitz:

l Enclosed you will find ten (10) copies of Binder I

• No . XB 70.

Trusting you will find these in order, I remain, ou s ve y t c ly,

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Larry .

L ving Vice Prd '. ent ,

s LJL: dp CC: Mr. Stewart Foulke, Manager, Insurance Dept.

Vepco jSflool S

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Bt t ' DER ,

. INCI UDING

.- BINDER NO. XB- 70 DECLARATIONS AND BOND FOR PAYMENT OF RETROSPECTIVE PREMIUMS BINDER The members of Mutual Atomic Energy Liability Underwriters", hereinafter called the " companies", subscribing this binder, each for itself, severally and not jointly, and in the respective proportions set forth herein, and the insureds named in Item 1 of the Declarations below, agree as follows:

A. The companies hereby bind insurance to the insureds nanted in Item 1 of the Declarations in accordance with the provisions of the Draft Master Policy. 1 All rights and obligations of the parties to this binder are set forth in the provisions of the Draft Master Policy. as it may be amended from time to time pursuant to its conditions or paragraph B below.

B. The term " Draft Master Policy" means the draft of the MASTER POLICY --

NUCLEAR ENERGY LIABILITY POLICY (SECONDARY FINANCIAL' PROTECTION) dated June 24, 1977 in the custody of the Nuclear Regulatory Commission, a copy of which is attached hereto, and includes all binders issued by the companies in connection with such Draft Master Policy. The Master Policy, as subsequently issued by the companies, shall cancel and replace this binder and the Draft Master Policy effective as of the time and date of the inception of the binder period.

C. Such insurance as is provided by the Draft Master Policy applies, through this binder, only:

(1) to the insureds identified in Items 1 and 2 of the Declarations below, (2) to bodily injury or property damage (a) with respect to which the primary financial protection described in Item 4 below would apply but for exhaustion of its limit of .

liability and (b) which is caused during the binder period stated in Item 8 below by the radioactive, toxic, explosive or other hazardous properties of nuclear material and (c) which is discovered and for which written claim is made against the insured not later than ten years after. the end of such binder period; provided, however, that with respect to bodily injury or property damage caused by an extraordinary nucleat- occurtence this subparagraph (C) shall not operate to bar coverage for bodily injury or property damage which is discovered and for which written claim is made against the insured not later than twenty years after the date of extraordinary nuclear occurrence.

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• . DECLA"AT2ONS

~ Item 1. . Named insureds and addresses:

(a) Virginia Electric and Power Company - P. O. Box 26666, Richmond, VA 23261 Item 2. Additional Insureds: ,

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

Itera 3. Description and location of the nuclear reactor: Unit 2 of the North Anna Power Station located in Louisa County, Virginia Item 4. Identification of primary financial protection applicable to the nuclear reactor and limit of liability thereof:

' Nuclear Energy Liability Insurance Association Policy NF- 240 $124,000,000 Mutual Atomic Energy Liability Underwriters Policy MF- 96. $ 36,000,000 Do other nuclear reactors share the limit of liability provided under the primary financial protection? Yes Item 5. Maximum retrospective premium (exclusive of allowance for premium taxes) payable to the companies under the Draft Master Policy with respect to each nuclear incident: '$1,125,000.

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g Item 6.s - Portion cf the annual premium payable for the companies' contingent liability

- described in Condition 4 of th- Draft Master Policy from tir effective date

hereof to the end of calendar var 1978

The pro rata portion of $1,350.00 for the period from the effective date of this binder to the end of the calendar year during which such effective date occurs.

Item 7. Limits of Liability: See Item 3 of the Declarations of the Draft Master Policy.

Item 8. Binder period: Beginning at the same time and date that the Facility Operating License issued by the United States Nuclear Regulatory Commission for the reactor described in Item 3 of this binder becomes effective and continuing to the effective date and time of cancelation or termination of the Draf t Master Policy or this binder, whichever first occurs, eastern standard time. .

BOND FOR PAYMENT, OF RETROSPECTIVE PREMIUMS Know all Men By These Presents, that the undersigned do hereby acknowledge that they are named insureds under the Draft Mtster Policy described in the above Binder and Declarations . The named insureds do hereby covenant with and are held and are firmly bound to the subscribing members of Mutual Atomic Energy Liability Underwriters (hereinafter called the " companies") to pay to the companies all retrospective premiums and allowances for premium taxes which shall become due and payable in accordance with the terms of the Draft Master Policy with interest on such premiums and allowances for taxes to be computed at the rate provided in the Draft Master Policy from the date payment thereof is specified to be due the companies in a written notice to the named insured, as provided in Condition 1 of the Draft Master Policy until paid.

Anci it is hereby expressly agreed that copies of written notices of retrospective premiums and allowances for premium taxes due and payable or other evidence of such amounts due and payable sworn to by a duly authorized representative of the companies shall be prima facie evidence of the fact and extent of the liability of the named insureds for such amounts. '

1 And it is further expressly agreed that the named insureds will indemnify the companies' against any and all liability, losses and expenses of whatsoever kind or nature (including but not limited to interest, court costs and counsel fees) .

which the companies may sustain or incur (1) by reason of the failure of the named insureds to comply with the covenants and provisions of this Bond or (2) in enforcing any of the covenants or provisions of this Bond, or any provisions of the Draft Master Policy relating to such covenants or provisions.

For the purpose of recording this agreement, a photocopy acknowledged before a Notary Public to be a true copy hereof shall be regarded as an original.

THE ABOVE BINDER, DECLARATIONS AND BOND FORM A PART OF THE DRAFT MASTER POLICY. CANCELATION OR TERMINATION OF THE DRAFT MASTER POLICY OR THE BINDER SHALL NOT AFFECT THE OBLIGATIONS OF THE NAMED INSUREDS l

' I UNDER THE ' DRAFT MASTER POLICY OR THE BOND TO PAY THE RETROSPECITVE PREMIUMS AND ALLOWANCES ,FOR PREMIUM TAXES WITH RESPECT TO ANY BODILY INJURY OR PROPERTY DAMAGE WHICH IS CAUSED DURING THE BINDER PERIOD.

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,* 7., . . . .t . .

- Itf WITh1SS WHEREOF, the named insuredr have caused 'this Binder, these Declarations end this Bond fcr Payment of Betrospective E'remiums, to be signed and scaled by a duly autBori::ed officer, to be effective a" of the time and date of the inception of the binder period.

Attest or Witness Named Insureds:

Vircinia Electric and Power Comoany (Named Insured - Type or Print) a, k,f}A1h am By /) -

/d$4s <v ECSEAL) s

' ) (Signature o Tlicer)

(Type or Print Name & Title of Officer)

Date:

(Named Insured - Type or Print)

By (SEAL)

(Signature of Officer)

(Type or Print Name & Title of Officer)

Date:

(Named Insured - Type or Print)

By (SEAL)

(Signature of Officer)

(Type or Print Name & Title of Officer)

Date:

(Named Insured - Type or Print)

By (SEAL)

(Signature of Officer)

~ (Type or Print Name & Title of Officer) 2 Date:

-e .

IN WITNESS WHEREOF, the subscribing comnanies have caused the Binder and the Declarations to be signed on their behalf by the Manager of Mutual Atomic Energy Liability Underwriters, to be effective as of the time and date of the inception of the binder pe'riod, and countersigned below by a duly authorized representative.

Attest or Witness For the Subscribing Companies of Mutual Atomic Energy Liability Underwriters

' By t' fb Countersigned by ~A,1M[d (Authorized 1%presentativeL_.

t Subscribing Companies PROPORTION OF 100%

American Mutual Liability Insurance Company, Wakefield, MA 15.0000000 Employers Insurance of Wausau A Mutual Company, Wausau, WI 15.0000000 Liberty Mutual Insurance Company, Boston, MA 30.0000000 Lumbermens , Mutual Casualty Company, Long Grove, IL 30.0000000 Michigan Mutual Insurance Company, Detroit, MI 5.0000000 Sentry Insurance, A Mutual Company, Stevens Point, WI 5.0000000 This is to certify that this is a true copy of the original Binder, bearing the numbe ; elesignated hereon, for insurance coverage under the DRAFT MASTER POLICY -

NUCLLAR ENERGY LIABILITY POLICY (Secondary Financial Protection) dated -

June 24,1977. No insurance is afforded by this copy.

<e .  ?^:: Y Mutual Atomic Energy Liability Underwriters

..~

Nucica r Energ. Liability Insurance .

. M UTUA L ATOMIC . ENERGY LIA DILITY IJNDERWl(ITEllS SPECIFICATION OF 151NDEll EFFECTIVE DATE AND 1211EMIUM ENDOllSEMENT It is agreert that:

1. The United States Nuclear llegulatory Commis.sio- has issued to -

the insureds named'in item 1 of the Declas ations C scrating Licens e No. NP F'-7 effective A pril 11, 1980 5

for the reactor described in llem 3 of the Declarations of the '

hinde r,

2. [ ten. 6 of the Declarations of the hinder is deleted and replaced by the following:

Item 6. Poi tion of the annual premium payable for the companics' contingent liability described in Condition 4 of the Draft Mastei- Policy f rom the effective date hereof to the end of calenda r

, yea r 1980  : $ 980.10 .

3.

Iten..H of the Declarations of the hinder is deleted and replaced i

by the_ following

Item 8. Ilinder period: Beginning _ A pril 11 1980 ,

anel continuing to the cifective date and time .

of cancelation or LerminaLion of the Draft Master l'olicy or this Ibinder, whichever first occ u rs , castern standard time.

D** 3 h D a Effective Dale of thi s Endu r *.cm en L ' A Pril 11, 1980 To form pa rt of Binder No. XD- 70 '

14:01 A. M. Standard Time 1 4

issued to Virginia Electric and Power Company '

Da t e of ! s s u e__ September 23, 1980 For the subsc ribing c'o npanies )

-2An g ily_ -

i Manager Endorsement No. I

.-i..i . r . i c o. el h e . ~ . . . .

L_ . j

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This is to certify that this is a true copy of the original endorsement, bearing the number designated hereon, for insurance coverage under the DRAFT MASTER POLICY-NUCLEAR ENERGY LIABILITY POLICY (Secondary Financial Protection). No insurance is afforded by this copy.

Mutual Atomic Er ergy Liability Underwriters e

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