ML20024E767

Forwards Certificate M-86 to Maelu Policy 1 & Certificate N-86 to Nelia Policy 1

ML20024E767
Person / Time
Site:	Waterford
Issue date:	08/29/1983
From:	Drummond F LOUISIANA POWER & LIGHT CO.
To:	Knighton G Office of Nuclear Reactor Regulation
References
W3P83-2867, NUDOCS 8309070033
Download: ML20024E767 (13)

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Lo uisiama ! NEWCALEANS LOUIStANA POWER & LIGHT 70174-6000 . [504)38.-2345

$1EOi$sEsY$ August 29, 1983 W3P83-2867 3-A1.01.04 Director of Nuclear Reactor Regulation Attention: Mr. G.W. Knighton, Chief Licensing Branch Nu:aber 3 Division of Licensing U.S. Nuclear Regulatory Commission Washington, D.C. 20555

SUBJECT:

Waterford 3 SES Docket No. 50-382 Financial Protection and Indemnity Requirements

Dear Mr. Knighton:

In accordance with 10 CFR 140, we are providing the attached Certificates of Insurance and Bonds for Payment which provides documentation of LP&L's Secondary Financial Protection. Documentation of LP&L's Primary Financial Protection shall be provided to you by American Nuclear Insurer's shortly before fuel load.

Yours very truly,

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F.J. Drummond Manager, Engineering & Technical Services FJD/RMF/ch Attachments cc: E.L. Blake, W.M. Stevenson, J. Wilson, G.L. Constable, I. Dinitz 8309070033 830829 PDR ADOCK 05000382 [

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, , MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS THis IS TO CERilFY THAT THIS IS A TRUE COPY OR THE ORIGtNAL CERTIFICATE, BEAR!NG THE NUMBER DESIGNATED HEREON, FOR Certificate No. M- 86 INSURANCE COVERAGEUNDER THE MASTER POL Y. NUCLEAR ENERGY LIABluTY P3URANCE (SECONDARY FINANCl ROTECTION). NO Forming Part of Master INSURANCE AF D BY iS ""

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JOHNL. R0'C Policy No. 1-VICE PRES!0E .UABILITY UNDERWRITING AMERICAN NUCLEARINGUREE5 CERTIFICATE OF INSURANCE DECLARATIONS AND BOND FOR PAYMENT OF RETROSPECTIVE PREMIUMS Certificate of Insurance This is to certify that the persons and organizations designated in Item 1 o/ the Declarations are named insureds under the Master Policy -

Nuclear Energy Liability Insurance (Secondary Financial Protection),herein called the " Master Policy", issued by Mutual Atomic Energy Liability Underwriters.

Such insurance as is provided by the Master Policy applies, through this certificate, only:

(a) to the insureds identified in Items 1 and 2 of the Declarations, (b) for the certificate period stated in Item 6 of the Declarations, (c) to bodily injury or property damage (1) with respect to which the primary financial protection described in Item 4 of the Declarations would apply but for exhaustion of its limit of liability as described in Condition 6 of the Master Policy, and (2) which is caused during the certificate period stated in Item 6 of the Declarations by a nuclear incident arising out of or in connection with the nucl' ear reactor described in Item 3 of the Declarations, and MSFC-1 (1./1/83) Page 1

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(3) which is discovered and for which written claim is made against the insured not later than ten years af ter the end of the certificate period stated in Item 6 of the Declarations.

Ilowever, with respect to bodily injury or property damage caused by an extraordinary nuclear occurrence this subpara' graph

-(3) shall not operate to bar coverage for bodily' injury or property damage which is di,scIvered and for which written claim is made against the insured not later than twenty years af ter the date of the extraordinary nuclear occurrence.

Declara tions Item 1. flamed insureds and addresses:

(a) Louisiana Power & Light Company - 142 Delaronde Street, New Orleans, Louisiana 70114 Item 2. Additional insureds:

Any other person or organization who would be insured under the primary financial protection identified in Item 4 of the Declarations but for exhaustion of the limit of liability of such primary financial protection.

Item 3. Description and location of nuclear reactor: Unit 3 of the Waterford Steam Electric Station located in St. Charles Parish, Louisiana.

Item 4. (a) Identification of primary financial protection applicable to the nuclear reactor and limit (s) of liability thereof:

f(uclear Energy Liability Insurance Association's Policy itF- 263 $124,000,000 Mutual Atomic Energy Liability Underwriters' Policy MF- $36,000,000 Page 2 of Certificate flo. M-86 N .N

'a - *s',s s * (b) -The following endorsem::nts, attached to' the primary

, , financial protection policies-listed-in Item 4.(a) also apply to the insurance afforded by the Master Policy through this certificate as' though they were' attached hereto:

(1) Waiver of Defenses Endorsement (Extraordinary Nuclear Occurrence)and (2) Supplementary Endorsement - Waiver of Defenses - Reactor-ConstructionattheFacility, (c) The limits of liability provided under the primary financial protection specified in Item 4.(a) above are not shared with any other reactor. except as follows:

No Exceptions Item 5. Limits of Liability: The amount of retrospective premium actually received by the companies plus the amount of the companies' contingent liability, if any, pursuant to Conditions 2, 3 and 4 of the Master Policy.

Item 6. Certificate Period: Beginning at the sana 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 certificate becomes effective and continuing to the effective date and time of cancellation or tennination of the Master Policy or this certificate, whichever first occurs, eastern standard time.

Item 7. Maximum retrospective premium (exclusive of allowance for premium taxes) payable pursuant to Condition 2 of the Master Policy with respect to each nuclear incident: $1,125,000 Item 8. Portion of the annual premium payable for the companies' contingent liability described in Condition 4 of the Master Policy from the effective date hereof to the end of calendar year 1982 : The pro rata portion of $1,350.00 for the period from the effective date of tnis certificate to the end of the calendar' year during which such effective date occurs.

i Page 3 of Certificate No. M- 86

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BOND FOR PAYMENT OF RETROSPECT bE PREMlUMS

. Know All Men By These Presents, that the undersigned do hereby acknowledge that they are named insureds under the Master Policy described in the above Certificate of Insurance and Declarations. The named insureds do hereby covenant with and are held and'are firmly' bound to the members of Mutual Atomic Energy' Liability Underwriters. subscribing the Master Policy (here--

inaf ter 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 Master Policy, as it may_ be changed from time to time, with interest on such premiums and allowances for taxes to be computed at the rate provided in the Master Policy from the date payment thereof .is specified to be due the companies in written notice to the first named insured as provided in Condition 2 of the Master Policy.until paid;-

And it is hereby expressly agreed that copies of written notices of retro-spective 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; 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 and (2) in enforcing any of the covenants or provisions of this Bond, or any provisions of the Master Policy relating to such covenants or provisions; For the purpose of recording this agreement, a photocopy acknowledged before a flotary Public to be a true copy hereof shall be regarded as an original.

Page 4 of Certificate flo. M- 86 e6 A

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The preceding Certificate of Insurance, Declarations and Bond form a part

.of the Master Policy. Cancellation or. termination-of the Master Policy

-or the Certificate of ' Insurance shall- not. affect the named insured's

. obligations.under the policy or the Bond to pay the retrospective premiums and allowances for premium taxes, as provided in' this Certificate and Condition 2 of the Master Policy. .

IN WITNESS WHERE0F, the named insureds have caused'this Certificate, these Declarations and this Bond for Payment of Retrospective Premiums, to be signed and sealed by a duly authorized officer, to be effective as of the time and date of the inception of the Certificate period.

Attest or Witness flamed Insureds:

Louisiana Power & Light Company (flamed Insured - Type or Print)

• ) a' By if,2 M 0rI (SEAL)

• (Signature of Officer)

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Secretary and Controller (Type or Print flame & Title of Officer)

Date: February 1, 1983 (llamed Insured - Type or Print)

By (SEAL)

(Signature of Officer)

(Type or Print flame & Title of Officer)

Date:

(flamed Insured - Type or Print)

By (SEAL)

(Signa.ture of Officer)

(Type or Print flame & Title of Officer)

Date:

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C num % nf rort i fica t r. No. M- A6

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IN WITilESS WHEREOF, the companies subscribing the Master Policy have

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• caused the Certificate of Insurance and the Declarations to be signed on their behalf by Mutual Atomic Energy Liability Underwriters to be effective as of the time and date of the inception of the Certificate period, and countersigned below by a duly authorized representative.

Attest or Witness For the Subscribing Companies of MUTUAL ATOMIC EilERGY LIABILITY UNDERWRITERS N  % BY: 1 h

.AWthorized Agent Mw

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Subscribing Companies -

PROPORTIO!1' 0F' 100%

American Mutual Liability Insurance Company, Wakefield, MA 15.0000000 Employers Insuric. ice 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

., Page 6 of Certificate No. M 86

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s HUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION THIS IS TO CERTIFY THAT THIS IS A TRUE COPY OF THE ORIGINAL CERTIFICATE, BEARING THE NUMBER DEslGNATED HEREON, FOR

, INSURANCECOVERAGEUNDERTHE MASTER UCtEARENERGY Certificate No. N-86 LIABILI SURANCE (SECONDARY FINANCI PROTECTION). NO S AFFORDEO BY le ="' Forming Part of Master INSURAh _.

JOHN L Lu a policy No*- 1

' + VICE PHES T LIABILITY UNDERWRITING AMERICAN NUCLEARINSUAERS CERTIFICATE 0F INSURANCE DECLARATI0 tis AfID BOND FOR PAYMENT OF RETROSPECTIVE PREMIUMS Certificate of Insurance This is to certify that the persons and organizations designated in Item 1 of the Declarations are named insureds under the Master Policy -

Nuclear Energy Liability Insurance (Secondary Financial Protection),herein called the " Master Policy", issued by Nuclear Energy Liability Insurance Association.

Such insurance as is provided by the Master Policy applies, through this certificate, only:

(a) to the insureds identified in Items 1 and 2 of the Declarations, (b) for the certificate period stated in Item 6 of the Declarations,

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(c) to bodily injury or oroperty damace (1) with respect to which the primary financial protection-described in Item 4 of the Declarations would apply but for exhaustion of its limit of liability as described in Condition 6 of the Master Policy, and (2) which is caused during the certificate period stated in Item 6 of the Declarations by a nuclear incident arising out of or in connection with the nuclear reactor described in Item 3 of the Declarations, and NSFC-1 (13 /An 4 n.__ ,

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(3) which is discovered and for which written claim is made against the _ insured not later than ten years after the end of the certificate period stated in Item 6 of the Declarations.

However, with respect to bodily injury or property damage caused by an extraordinary nuclear occurrence this subparagraph (3) shall not operate to bar coverage for' bodily injury or property damage which is discover d and for which written claim is made against the insured not later than twenty years after the date of the extraordinary nuclear occurrence.

Declarations Item 1. ifamed insureds and addresses:

(a) Louisiana Power & Light Company - 142 Delaronde' Street, New Orleans, Louisiana 70114 .

Item 2. Additional insureds:

Any other person or organization who would be insured under the primary financial protection identified in Item 4 of the Declarations but for exhaustion of the limit of liability of such primary financial protection Item 3. Description and location of nuclear reactor: Unit 3 of the Waterford Steam Electric Station located in St. Charles Parish, Louisiana.

Item 4. (a) Identification of primary financial protection applicable to the nuclear reactor and limit (s) of liability thereof:

fluclear Energy Liability Insurance Association's Policy NF- 263 $124,000,000 Mutual Atomic Energy Liability Underwriters' Policy MF- $ 36,000,000 Page 2 of Certificate fio. fl-86 s .

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b (b) Tha following endorsements attached to the primary'-

financial' protection policies. listed in Item 4 (a) also '

apply to the insurance afforded by the Master Policy ~ through-this certificate as though they were-attached hereto:

(1) Waiver of Defenses Endorsement. (Extraordinary Nuclear Occurrence)and-(2) Supplementary Endorsementf- Waiver of Defenses - Reactor; Construction at the Facility.

-(c)' The~ limits of -liability provided under the primary- financial protection specified in Item' 4 (a) above are not shared with any other reactor except as follows:

No Exceptions Item 5. Limits of Liability: The amount of retrospective premium actually received by the companies plus the amount of the companies' con-tingent liability, if any, pursuant to Conditions 2, 3 and 4 of the Master Policy.

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Item 6. Certificate 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 certificate becomes effective and continuing to the effective date and time of cancellation or termination of the Master Policy or this f

certificate, whichever first occurs, eastern standard time.

Item 7. Maximum retrospective premium (exclusive of allowance for premium taxes) payable pursuant to Condition 2 of the Master Policy with respect to each nucl_ ear incident: $3,875,000.

Item 8. Portion of the annual premium payable for the companies' contingent ,

liability described in Condition 4 of the Master Policy from the effective date hereof to the end of calendar year 1982 : The pro rata portion of $4,650 for the period from the effective date of

! this certificate to the end of the calendar year during which such effective date occurs.

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.B0ND FOR PAYMENT OF RETROSPECTIVE-PREMIUMS Know All Men By These. Presents, that the undersigned'do'hereby acknowledge that they are named insureds under the Master. Policy described in the above

. Certificate of Insurance and Declarations. The named . insureds do hereby covenant with and are' held and are firmly bound.to.the members 'of fluclear

. Energy Liability Insurance Association subscribing the Master

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~ Policy 1(hereinafter called the " companies") to pay to the companies all.

retrospective premiums and allowances' for. premium taxes which shall become

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due and payable in accordance with the Master Policy, as it may be changed from, time to time, with interest on such premiums and allowances fo'r taxes

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to be computed at the rate provided in the Master Policy f' rom the date pay-ment thereof is specified to be due the companies in written notice to the first named insured as provided in Condition 2.of the Master Policy until paid; And it is hereby expressly agreed that copies of written notices of retro-cpective 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; And it is rurther 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, an_d 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 and (2) in enforcing any of the covenants or provisions of this Bond, or any provisions of the Master Policy relating to such covenants or provisions; For the purpose of recording this agreement, a . photocopy acknowledged before a flotary Public to be a true copy hereof shall be regarded as an original.

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_ _ _ _ _ . . , . ~ _ _ _ . _ _ . _ . . , , . _ _ - . _ , . _ _ - - . _ _ - _ . . . - - -

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,sv as The preceding Certificate of Insurance, Declarations and Bond form a part of the Master Policy. Cancellation or termination of the Master Policy or the Certificate of Insurance shall not affect the named insured's obligations under the policy or rhe Bond to pay the retrospective premiums and allowances for premium taxes, as provided in this Certificate and Condition 2 of the Master Policy.

IN WITNESS WHERE0F, the named insureds have caused this Certificate, these Declarations anu this Bond for Payment of Retr ospective Premiums, to be signed and sealed by a duly authorized officer, to be effective as of the time and date of the inception of the Certificate period.

Attest or Witness Named Insureds:

Louisiana Power & Light Company q y (Named Insured - Type or Print) s-

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,, LLb V f By b.M. AcJrI (SEAL)

(_,') / ' / (Signature of Officer) h, Secretary and Controller (Type or Print Name & Title of Officer)

Date: February 1, 1903 (Named Insured - Type or Print)

By (SEAL)

(Signature of Officer)

(Type or Print Name & Title of Officer)

Date:

(Mamed Insured - Type or Print)

By (SEAL)

(Signature of Officer)

(Type or Print Name & Title of Officer)

Date:

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IN WITNESS WHEREOF, the companies subscribing the Master Policy have ~

caused the Certificate of Insurance and the Declarations to be signed on their behalf by-the President of Nuclear Energy Liability Insurance

. Association to be effective-as of the time and date of 'the inception -

of-the Certificate period, and countersigned below by a duly authorized.

representative.

Attest'or Witness For the. Subscribing Companies of NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION s

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Burt C. Proom, President Countersigned by (Authorized Representative)

Page 6 of Certificate No. N- 86

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