ML20010A199

Forwards Endorsements 1-5 to ANI Policy NF-264

ML20010A199
Person / Time
Site:	Callaway
Issue date:	08/06/1981
From:	Nadel M MARSH & MCLENNAN, INC.
To:	Saltzman J Office of Nuclear Reactor Regulation
References
NUDOCS 8108110169
Download: ML20010A199 (12)

Text

222 South Riv,rsid: Plaza Chicago, Illinois 60f 05 g Telephon 312 646 /.666 August 6, 1981 m

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Mr. Jerome Saltzman, Chief /%

Office of Antitrust & Indemnity 8 3 1 !h ~9 Nuclear Reactor Regulation Ig d;

Nuclear Regulatory Commission p. H -

Washington, D. C. 20555  ; pg,10 1931 " -[l'

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RE: UNION ELECTRIC COMPANY NUCLEAR LIABILITY INSURANCE CALLAWAY NUCLEAR PLANT ANI POLICY NO. NF-264

Dear Mr. Saltzman:

On behalf of Union Electric Company enclosed please find eight certified copies of the Declarations Page of American Nuclear Insurers Policy No. NF-264 indicating this to be a true copy of the original Declarations and Endorsements numbered 1 through 5.

Very tr y yours Jk.

ershall N del Assistant Vice President MN:es Enc.

cc: Mr. Gordon Edison, Project Manager, NRR, NRC Mr. O. G. Hucker, UE Mr. J. S. Childress, M&M St. Louis

/YlO O /

.S 8108110169 810806 i I

PDR ADOCK 05000483 /

J PDR j A national service of Marsh & McLennan, incorporated

t NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION 127 John Street, New York, New York 10038 Nuclest Energy Liabihty Policy No. NF 264 (Facility Form) esci.AaATIONS hem 1. Named Insured Union Electric Company aga,,,, 1901 Gratiot St. P.O. Box 149 St. Louis, MO 63166 (No. Street Town or city State) l<em 2. Policy Period: Beginning at 12:01 A.M. on the ISt day of July 3, 81 . and continuing .hrough the e6ective date of the cancelation or termination of this policy. standard time at the address of the named insured as stated herein.

Item 3. Description of the Fuihty:

roc,iion All of the premises includino the land and all buildinas and structures of Union Electric Company's Callaway Plant (including but not limited to Units 1 and 2) situated on a site consisting of approximately 2767 acres and located approximately (5) five miles north of the Missouri River in Callaway County, Mi ssouri . The site is approximately (10) ten miles southeast of Fulton, Missouri and (80) eighty miles west of St. Louis, Missouri.

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Tyre The Operator of the facihty is hem 4 The hmit of the companies' liabihty is : 1,000,000.00 ,,si,c, ,, ,ii th, ,,,ms of 13;, pohcy ha,;n, ,,f,,,nc, 3,,,,..

Item 5. Advance Premium : 90.00 _._

Incm 6 These declarat.ons and the schedules fornna a,rart hereof give a complete descripten of the faohty, msofat ei it relates to the nuclest energy hazard, except as noted no except1ons Date of Issue July 1 ,i, 81 counteninned by dS- W This is'to certify that this is a true copy of the original 5 ^*'" "'" "'"'"'""

Declarations and Endorsements Numbered 1 through 5 and being m de a part of the Nuclear Energy L bility Policy (Facility F. .). esig ed hereong No in- rance is afforded hereunder.

we E. .

ulihr h7 (Second Revision)

Jol 1 L. Quattrocchi, Vice President - Liability Underwriting American Nuclear Insurers

Nuclear Energy Liability insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION As soon as practicable after each December 31 and after the terrsnation of this policy, the standard premium for the preceding calendar year shall be finally determined and stated in the Standard Premium Endorsement for that calendar year. If the standard premium so determined exceeds the advance premium previously paid for such calendar year, the named insured shall pay the excess to the companies; if less, the companies shall return to the r.amed insured the excess portion paid by such insured.

He named insured shall maintain records of the information necessary for premium computa-tion and shall send copies of such records to the companies as directed, at the end of each cal-endar year, at the end of the policy period and at such other times during the policy period as the company may direct.

(3) Use of Reserve Fremiun: All reserve premiums paid or payable for this policy may be used by the members of Nuclear Energy Liability Insurance Association to discharge their obligations with respect to incurred lossts-whether such losses are incurred under this policy or under any other policy issued by Nuclear Energy Liability losurance Association or Mutual Atomic Energy Liability Underwriters.

(4) Reserve Premium Refunds A portion of the reserve premium for this policy for the first cal-endar year of any group of ten consecutive calendar years shall be retumable to the named in-sured provided there is a reserve for refunds at the end of the tenth calendar year.

(5) Computation of Reserve Premium Refunds The reserve premium refund due the name 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 determined as soon as practicable after July 1 of the tenth calendar year thereafter.

(6) Final Premium ne Snal premium for this policy shall be the sum of the standard premiums for each calendar year, or portion thereof, during which this policy remains in force less the sum of all 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 thereof, thereby agrees for itself, severally and not jointly, and m the respective proportion of its liability assumed under this policy for that calendar year, to retum to the named insured that portion of any reserve premium refund due the named insured for that calendar year, determined in accord-ance with the provisions of this Condition 1.

M dAGENTS OR BRO'tER3 COPY D S'C..;iini.3 COe,w.v.iU COPY

. O MA'ILU CC."Y Effective Date of July I.1981 thi4 Endorsement To form a Part of Policy No. NF-264 12:0( A.M. Standard Time issued to Union Electric Company Date of Issue July 15.1981 For the su ribing com ies By U{) -

General Manager Endorsement No. I Countersigned by

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N:cizr En:rgy Liability Irszrrea NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION I 1

INDUSTRY CREDIT RATING PLAN ,

PREMlUM ENDORSEMENT I It is agreed that Condition 1 of the policy is replaced by the following: j CONDITION 1. 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 mmimum prennums applicable to this insurance;

" reserve premium" means that portion of the standard premium paid to the companies and specifically allocated under the Industry Credit Rating Plan for incurred losses. The amount of the " reserve premium" for this policy for any calendar year during which this policy is in force is the amount designated as such m the Standard Premium Endorsement for that 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 Underwriters and subject to the Industry Credit Rating Plan;

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

" incurred losses" means the sum of:

(1) alllosses and expenses paid by Nuclear Energy Liability Insurance Association and Mu-tual Atomic Energy Liability Underwriters, and (2) all reserves for unpaid losses and expenses as estimated by Nuclear Energy Liability In-surance Association and Mutual Atomic Energy Liability Underwriters because of obligations assumed and the expenses incurred in connection with such obligations by members of Nuclear Energy Liability Insurance Association and Mutual Atomic Energy Liability Underwriters under all Nuclear Energy Liability Policies issued by Nuclear Energy Liability Insurance Association and Mutual Atomic Energy Liability Underwriters and sub-ject to the Industry Credit Rating Plan; ,

" reserve for refunds", at the end of any calendar year, is the amount by which (1) the sum of allindustry 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) allincurred losses, valued as of I

the next following July 1, and (b) all reserve premium refunds made under the Industry Credit l Rating Plan by members of Nuclear Energy Liability Insurance Association and Mutual Atomic Energy Liability Underwriters;

" industry reserve premium refund", for any calendar year, is determined by multiplying the reserve for refunds at the end of the ninth calendar year thereafter by the ratio of the indus-try reserve 0 emium for the calendar year for which the premium refund is being determined

, to the sum of such amount and the totalindustry reserve premiums for the next nine calendar l years thereafter, provided that the industry 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 Premiums The named insured shall pay the companies the advance premium stated in the declarations, for the period from the effective date of this policy through December 31 following. Thereafter, at the beginning of each calendar year while this policy is in force, the named insured shall pay the advance premium for such year to the companies. The advance premium for each calendar year shall be stated in the Advance Pre-mium Endorsement for such calendar year issued to the named insured as soon as practicable prior to or after the beginning of such year.

....,n...

Nucisar Energy Liability insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT CALENDAR YEAR 1981 It is agreed that Item 5 cf the Declarations " Advance Premium" is amended to read:

ADVANCE PREMIUM: It is agreed that the Advance Premium due the comphnies for the period designated above is: $ 100. 00 .

I STANDARD PREMIUM AND RESERVE PcEMIUM: I*. 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:

$ 67.00 .

EIAGENTS OR BROKERS COPY O3 ,.;iir~i.'u L3... ..c:( CO?Y Fj t.i..;LU CJ?Y e t '

Effgt do, ment

,, July 1.1981 To form a part of Policy No NF-264 12.01 A.M. Standard Time 133ued to Union Electric Company _

Date of issue July 15, 1981 For the su scribing co panies By l General Mar.ager Endorsement No 2 Countersigned by __ _

NE-41

3. The waivers set forth in paragraph 1. above shall be effective only with respect to bodily injury or property damage to which the policy applies under its terms other than this endorsement; provided, however, that with respect to bodily in-Jury or property damage resulting from an extraordinary nuclear occurrence, In-suring Agreement IV, " Application of Policy", shall not operate to bar coverage for bodily injury or praperty damage (a) which is caused during the policy period by the nuclear energy hazard and (b) which is discovered and for which written claim is made against the insured not later than twenty years after the date of the extraordinary nuclear occurrence.

Such waivers shall not apply to, or prejudice the prosecution or defense of any claim or portion of claim which is not withir the protection afforded under (a) the provisions of the policy applicable to the financial pro-tection required of the named insured; (b) the agreement of indemnification between the named ' insured and the the Nuclear Regulatory Commission made pursuant to Section 170 of the Atomic Energy Act of 1954, as amended; and (c) the limit of liability provisions of Subsection 170e. of the Atomic Energy Act of 1954, as amended.

Such waivers shall not preclude a defense based upon the failure of the claim-ant to take reasonable steps to mitigate damages.

4. Subject to all of the limitations' stated in this endorsement and in the A.tomic Energy Act of 1954, as amended, the waivers set forth in paragraph 1. above shall be judicially enforceable in cr.cordance with their terms against any insured in an action to recover damages because of bodily injury or property damage to which the policy applies as proof of financial protection.

5. As used herein:

" extraordinary nucler' occurrence" means an event which the Nuclear Regulatory Commission has deterrained to be an extraordinary nuclear occurrence as defined in the Atomic Energy Act of 1954, as amended.

" financial protection" and " nuclear incident" have the meanings given them in the Atomic Energy Act of 1954, as amended. '

" claimant" means the person or organization actually sustaining the bodily i

injury or property damage and also includes his assignees, legal represent-atives and other persons or organizations entitled to bring an action for damages on account of such injury or damage.

IAGENTS OR BROKERS COPY O SUBMITTING CO /#ANY COPY Effe t e Dat ' O MAELU COPY

, , uo, ernent July 1,1981 -

2b4 io rorm a part of Policy No 12:o1 A.M. Standarc Tirne Issueo to Union Electric Company Date of Issae July 15,1981 For the su scribing co panies By ) _

/ General Manager Endorsement No 3 Countersigned by NE-33a R3VLRn90

Nucl:ar Enirgy Liability insuranc]

NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION WAIVER OF DEFENSES ENDORSEMENT (ExtraordinaryNuclearOccurrence) -

The named insured,~ acting for himself and every other insured under the policy, and the members of Nuclear Energy Liability Insurance Association agree as Tollows:

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 occurs in the course of the con-struction, 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) unforeseeable intervening causes, whether involving the conduct of a third person, or an act of God, (2) any issue or defense as to charitable er governmental immunity, and (3) any issue or defense based on any statute of limitations if suit is instituted within three years from the date on which the claimant first knew, or reasonably could have known, of his bodily injury or property damage and the cause thereof, but in no event more than twenty 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 element in the cause of action.

2. The waivers set 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 nuclear incident intentionally and wrongfully caused by the claimant; (b) bodily injury sust'ained 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 re-quired to be provided under any workmen's compensation or occupational disease law; (c) any claim for punitive or exemplary damages, provided, with respect to any claim for wrongful death under any State law which provides for l

damages only punitive in nature, this exclusion does not apply to the extent that the claimant has sustained actual damages, measured by the pecuniary injuries resulting from such death but not to exceed the '

maximum amount otherwise recoverable under such law.

NE-33a (over) i #

Nucl::r En:rgy Liability incur:nca NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION SUPPLEMENTARY ENDORSEMENT WAIVER OF DEFENSES REACTOR CONSTRUCTION AT THE FACILITY It is agreed that in construing the application of paragraph 2(b) of the WAIVER OF DEFENSES ENDORSEMENT (NE-3 % ) 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 licer.se has been issued by the Nuclear Regulatory Commission shall not be considered as employed in connection with the activity where the extraordinary nuclear i l

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 (2) no operating license has been issued by the Nuclear Regulatory Commission with respect to the nuclear reactor, and k

r (3) the*clai'mlnt is not employed in connection with the possession, storage, use c.' transfer of nuclear material at the facility.

l AGENTS OR BROKERS COPY O SUB'AITTING COMPANY COPY O MAELU COPY Effective Date of this Endorsement Julyl,1981 To form a part 'of Policy No ,F-264 d

12:01 A.M. Standard Time -

Issued to Union Electric Company '

Data of issue July 15.1981 For the su scribing co panies

. By General Manager Endorsement No 4 Countersigned by

!!E-39a (1/1/77)

_-__-_____:__-__-- a -

Nuclear Energy Liability insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION AMENDATORY ENDORSEMENT (Indemnified Nuclear Facility)

It is agreed that:

I. In Insuring Agreement III, " DEFINITIONS" A. 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 Folicy (Facility Form) issued by Nuclear Energy Liability Insurance Association or by Mutual Atomic Energy Liability Underwriters.

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

" indemnified nuciear facility" means (1) "the facility" as defined in any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association or by Mutual Atomic Energy Liability Underwriters, or (2) any other nuclear facility, 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

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thereat; C. Solely with respect to an " insured shipment" to which this policy applies as proof of financial protectior, required i by the Nuclear Regulatory Comission, Subdivision (2) of the definition of " nuclear energy hazard" is amended to read:

l (2) the nuclear material is in an insured shipment which is away from any other nuclear facility and is in the course of transportation, including the handling and temporary storage incidental thereto, within (a) the territorial limits of the United States of America, its territories or possessions, Puerto Rico or the Canal Zone; or (b) international waters or airspace, provided that the nuclear material is in the course of transportation between twn points located within the territorial limit, described in (a) above and there are no deviations in the course of the transportation for the purpose of going to any other country, state or nation,

except a deviation in the course of said transportation for the purpose of going to or returning from a port or place of refuge as the rtsult of an emergency D. The definition of " insured shipment" is replaced with the following:

" insured shipment" means a shipment of source material, special nuclear material, spent fuel or waste, or tailings or wastes produced by the extraction or concentration of uranium or thorium from any are processed primarily for its source material content, 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 or 2) from theother than facility the continuation to any of but other location, its transportation, only until the material is removed from a transporting conveyance for any purpose other than the continuation of its transportation.

E. As used herein, " financial protection" has the meaning given it in the Atomic Energy Act of 1954, as amended.

II. Insuring Agreement IV is replaced by the following:

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

III. Condition 2 is replaced by the following:

2 INSPECTION; SUSPENSION The companies shall at any time be permitted but r.at obligated to insptet the facility and all operations relating thereto and to examine the insured's books i and records as far as they relate to the subject of this insurance and any property insurance afforded the insured through American Nuclear' Insurers. If a representative of the companies discovers a condition which he believes to be t unduly dangerous with respect to the nuclear energy hazard, a represent. Mue of the companies may request that such condition be t.orrected without delay. In the event of non-

, compliance with such request, a representative of the companies l may, by notice to the named insured, to any other person or l organization considered by the companies to be responsible for j the continuation of such dangerous condition, and to the United l

States Nuclear Regulatory Comission, suspend this insurance with t respect to the named insured and such other person or organization effective 12:00 midnight of the next business day of such Commission g following the date that such Comission receives such notice. The period of such suspension shall terminate as of the time stated in a written notice from the companies to the named insured and to each such person or organization that such condition has been corrected.

Neither the right to make such inspections and examinations nor the making thereof nor any advice or report resulting therefrom shall constitute an undertaking, on behalf of or for the benefit of the insured or others, to determine or warrant that such facility or operations are safe or health-ful, or are in compliance with any law, rule or regulation.

In consiceration of the issuance or continuation of this policy, the insured agrees that neither the ccapanies nor any persons or organizations making such inspections or examinations on their behalf shall be liable with respect to injury to or destruction of property at the facility, or any consequential loss or expense resulting therefrom, or any loss resulting from interruption of business or manufacture, arising out of the making of or a failure to make any such inspection or examination, or any report thereon, or any such suspension of insurance, but this provision does not limit the contractual obligations of the companies under this policy or any policy affording the insured property insurance through American Nuclear Insurers.

IV. Condition 4 is replaced by the following:

4 LIMITATION OF LIABILITY; COMMON OCCURRENCE Any occurrence or series of occurrences resulting in bcdily injury or property damage arising out of the radioactive, toxic, explosive or other hazardous properties of (a) nuclear material discharged or dispersed from the facility over a period of days, weeks, months or longer and also arising out of the properties of other nuclear material so discharged or dispersed 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 i 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

nuclear material, spent fuel or waste '.n the course of transportation for which insurance is afforded under one or more other Nuclear Energy Liability Policies (Facility Fonn) issued 'by Nuclear Energy Liability Insurance Association, shall be deemed to be a common occurrence t esulting in bodily injury or property damage caused by the nuclear energy hazard.

With respect to such bodily injury and property damage (1) the total aggregate liability of the members of the Nuclear Energy Liability Insurance Association under all Nuclear Energy Lia-bility Policies (Facility Fonn), including this policy, appli-cable to such common occurrence shall be the sum of the limits of liability of all such policies, the limit of liability of each such policy being as datermined by Condition 3 thereof, but in no event shall such total aggregate liability of such members exceed $124,000,000; (2) the total liability of the NE-50 Page 3 of 4 (1/1/81) i __ - . _ _ _ _ _ _ _ _ .

companies under this policy shall not exced that proportion of the total aggregate liability of the members ot Nuclear Energy Liability 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 liabilit.y of all such policies issued by such members, the limit of liability of each sv.:h policy being as determined by Condition 3 thereof.

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

V. The second paragraph of Condition 12 "0THER INSURANCE", is amended to read:

If the insured has other valid and collectib'ie insurance (other than such concurrent insurance or any other nuclear energy liability insurance issued by Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters to any person or organization) applicable to loss or expense covered by this policy, the insurance afforded by this policy shall be excess insurance over si:ch other insurance; provided, with respect to any person who is not employed at and in connection with the facility, such insurai ce 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 insura,,ce.

VI. Paragraph (c) of Condition 16, " COMPANY REPRESENTATION", is amended to read:

(c) Nuclear Energy Liability Insurance Association is the agent of the companies with respect to all matters pertaining to this insurance. All notices or other communications required by this policy to be given to the companies may be given to such agent, at its office at The Exchange, Suite 245, 270 Farmington Avenue, Farmington, Connecticut 06032, with the same force and effect as if given directly to the companies.

Any requests, demands or agreements made by such agent shall be deemed to have been made directly by the companies.

AGENTS OR BROKERS COPY O suc.11T rlNG con 1PANY COPY O MAELU COPY i[,3['[corNm'[n't July 1 1981 To form a part of Policy No NF-264 12.01 A.M. Standard Time issued to Union Electric Company Date of Issue _ July 15. 1981 For the su scribing co panies l By

/ General Manager Endorsement No 5 countersigned by l

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