ML20043B487

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Forwards Endorsements 29,30,31,32,33,34,37,38,39,40,41 & 42 to Nelia Certificate NF-286 & Maelu Certificate MF-119 & Endorsements 10 & 11 to Nelia Certificate N-100 & Maelu Certificate M-100
ML20043B487
Person / Time
Site: River Bend 
Issue date: 05/21/1990
From: Samuels J
MARSH & MCLENNAN, INC.
To: Dinitz I
Office of Nuclear Reactor Regulation
References
NUDOCS 9005300094
Download: ML20043B487 (45)


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2121 San Jacinto Street 1300 San latinto lower Dallas, Texas 75201 Telephone 214 979-9900 May 21, 1990 Mr. Ira Dinitz Senior Insurance Indemnity Analyst Office of Nuclear Reactor Regulation Mail Stop 12E4 U. S. Nuclear Regulatory Commission Washington, D. c. 20555 Re:

Gulf States Utilities Nuclear. Liability Insurance

Dear Mr. Dinitz:

In accordance with Title 10 Section 140.15, enclosed are two certified copies of the the following endorsements.

Poliev/ Certificate End.No NF-286/MF-119 37/29 38/30.

-39/31 40/32 41/33 42/34 N-100/M-100 10/10 11/11 These are submitted on behalf of our client, Gulf States Utilities, Inc.

Please do not hesitate to call if you have any questiont*.

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John L.

Samuels j

. Assistant Vice President JLS/pt Enclosures 00, i

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Nuclear. Energy Liability Insurance

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1 o NUCLEAR ENERGY-LIABILITY INSURANCE ASSOCIATION ENDORSEMENT TO CERTIFICATE No.

N-100 _.

FORMING PART OF MASTER POLICY NO. 1 NUCLEAR ENERGY LIABILITY INSURANCE (Secondary Financial Protection) 1.

In paragraph (c) on Pages 1 and 2 of the certificate, and in all endorsements to the certificate relating thereto, the words " bodily injury or property damage" are amended to read "bodilv in iurv, oronertv damane or environmental damane".

2.

This endorsement applies to all claims for damages.. costs, expenses or.cther relief or recovery for which coverage is sought under the policy, and which are first made in writing against any insured on or after the effective date of this endorsement stated below.

' THIS IS TO CERTIFY THAT THIS IS A TRUE COPY OF THE ORIGINAf.

CERTIFICATE, BEAR!NG THE NUMBER DESIGNATED HEREON, FOR INSURANCE COVERAGE UNDER THE MASTER POLICY-NUCLEAR ENERGY A%lTY INSURANCE (SECONDAR FINANCIAL PROTEC110N). NO 1 UA SA

{" QPY; N L. QUATTROGCHI VICE PRESIDENT UNDERWRITING AMERICAN NUCLEAR INSURERS Effective Date of this Endorsement January 1, 1990 To form a part of Certificate No. N-100 12:01 A. M. Standard time Issued to Gulf States Utilities Company and Cajun Electric Power Cooperative, Inc.

Date of Issue March 23, 1990 __

For the Subs ribing Cos anies, 4[C h By t'ransInner Endorsement No.

11 Countersigned by i

NE-S-'18.(1/1/90)

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Nuclear Energy Liability insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ENDORSEMENT TO CERTIFICATE NO.N-100 Forming Part of Master Policy.No. 1 Nuclear Energy Liability Insurance (Secondary Financial Protection)

It is agreed that effective August 20, 1988:

I.)

Subparagraph (c) on Page 1 of the certificate is amended to read as follows:

(c) to h2 slily iniury or property damaae (1) with respect to which the crimary financial protection described in Item 4 of the Declarations would apply but for (i) exhaustion of its limit of_ liability as described in Condition 6

of the Master Policy, or (ii)-

the application of Insuring Agreement IV,

" Application of-Polic of the primary financial orotection, as y"amended by paragraph 3

of the Waiver of Defenses Endorsement attached thereto, and (2) which is caused during the certificate period stated in Item 6 of the Declarations by a Dgelear incident arising out of, or in. connection with-the nuclear reactor described in Item 3 of the Declarations, and (3) which is discovered and for which written claim is made against the insured not later than ten (10) years after the end of the certificate period stated in Item 6

cf the Declarations.

However, this subparagraph (3) shall not operate to bar coverage for bodily iniurv or oronerty damaae caused by an extraordinary nuclear occurrence.

II.)

Item 4.(b) of the certificate is deleted.

III.) Item 7.

of the certificate is amended to read as follows:

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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: $51,266,250.

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d THIS IS TO CERTIFY THAT THIS IS A TRUE COPY OF THE ORIGINAL

- CERTIFICATE, BEARING THE NUMBER DESIGNATED HEREON, FOR 1

INSURANCE COVERAGE UNDER THE MASTER POLICY-NUCLEAR ENERGY l

LIA -lLITY INSURANCE (SECONDARY F ANCIAL PROTECTION), N0 '

l INS' 9ANCE IS AFF0 ED HIS Y.

JCNL,6 Ft0 VICE I ESIDENT UNDERWRITING AMERICAN NUCLEAR INSURERS l:

' Effective Date of this Endorsement __

Auaust 20. 1988 To form a part of Certificate No. N-100 12:01 A. M. Standard time Issued to -Gulf States Utilities Company and Caiun Electric Power Cooperative, Inc.

A Date of Issue-March 23, 1990 For the Subs ribing Co&panies, (t_

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. Endorsement'No.

10 Countersigned by 1

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I Aw, Nuclear Energy Liability insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS v

ENDORSEMENT TO CERTIFICATE NO. M-100 L

FORMING PART OF MASTER POLICY NO. 1 f,

NUCLEAR ENERGY LIABILITY INSURANCE (Secondary Financial Protection) m 1.

In paragraph (c) on-Pages 1 and 2 of the certificate, and.in all endorsements to - the certificate relating-thereto, the words'" bodily injury or property damage"-are amended to read "bedily i n iury, erecerty damana or gavironmental d&BRER"..

2.

This endorsement applies to all claims for damages,. costs.

c expenses or other relief or recovery for which coverage is sought ~under the policy,-and which are first made.in writing against any insured on or after the effective date of this endorsement stated below.

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THIS LS TO CERTIFY THAT THIS IS A TRUE COPY OF THE ORIGINAL 1

i CERTIFICATE, BEARING THE NUMBER DESIGNATED HEREON, FOR I

INSURANCE COVERAGE UNDER THE MASTER POLICY-NUCLEAR ENERGY L

LITY INSURANCE (SECONDARY fl \\NCIAL PROTECTION). N0 LIA IN5 ANCE IS AFFORO.D W w9 C, V.

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VICE iELIDENT-UNDERWRITING I<

AMERICAN NUCLEAR INSURERS i

L Effective Date of L

this Endorsement January 1, 1990 To form a part of Certificate No M-100 12:01 A.M.

Starderd tipe Issued to Gulf States Utilities company and Caiun Electric Power Coo 6rative. Inc.

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-Date of issue March 23,1990 For the Subscribing Companies K

MUTUAL ATOKIC ENERGY LIABILITY ERURITERS By Endorsement No.

11 Countersigned by

.ME-S-18(1/1/90)

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. t Nuclear Energy Liability insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS o

1 ENDORSEMENT TO CERTIFICATE NO.M-100 Forming Part of Master Policy No. 1 Nuclear Energy Liability Insurance (Secondary Financial Protection)

It'is agreed that effective August 20, 1988:

I.)

Subparagraph (c) - on Page 1 of the cert' ficate is amended to read.as follows:

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(c) to bodily iniury or property damaae

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(1) with respect to which the crimary financial ~

orotection described in Item 4 of the Declarations would apply but for (1) exhaustion of its limit of liability.. as described in Condition

.6 of the Master Policy, or (ii) the application of Insuring Agreement IV,

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" Application of Policy" of the crimary financial protection, as amended by paragraph 3

of the Waiver of Defenses Endorsement attached thereto, and (2) which is caused'during the certificate period stated in Item 6 of -- the Declarations by a nuclear incident L

arising out of, or in connection with the nuclear reactor described in Item 3 of the Declarations, and

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(3) which is discovered and for which written claim is L

made _against the insured not later than ten (10) years after the end of the certificate period stated in Item 6

of the Declarations.

However, this subparagraph (3) shall not operate to bar coverage for bodily iniury or orocerty damace caused by an extraordinary nuclear occurrence.

II.)

Item 4.(b) of the certificate is deleted.

III.) Item 7.

of the certificate is amended to read as follows:

I ME-S-14 Page 1 of 2 L

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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: $14,883,7 50, i

s THis IS TO CERTIFY THAT THIS IS A TRUE COPY OF THE ORIGINAL CERTIFICATE, BEARING THE NUMBER DESIGNATED HEREON, FOR -

INSURANCE COVERAGE UNDER THE MASTER POLICY NUCLEAR ENER BILITY INSURANCE (SECONDARY)flNANCIAL PROTECTION). NO I URANCE IS A DC" "Y "fcH OPY.

L' TTRefr VI PRESIDENT UNDERWRITING -

AMERICAN NUCLEAR INSURERS

' Effective Date of this-Endorsement.

Auaust 20, 1988 To form a part of Certificate No14-100 12:01 A.pt, standard time Issued to Gulf States Utilities Company and Cajun Electric Power Cooperative, Inc.

Date of issue March 23, 1990 For the Subscribing Companies NtrfDAL ATOKIC ENERGY LIABILITY ERURITERS By N

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Endorsement' No.

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Nuclear Energy Liability insurance MUTUAL ATOMIC-ENERGY LIABILITY UNDERWRITERS AMENDATORY ENDORSENENT (Facility Form)

It is. agreed that:

1.-

INSURING AGREEMENT I is replaced by the followings.

I C0VERACE A - LIABILITY To pay.on behalf of the-insured-all sums which the insured shall become legally obligated to pay as covered ~ damages because of bodily injury or property damage, or as covered:

J environmental cleanup costs because 'of environmental i

damage.

This coverage applies only to. bodily injury.

property damage or environmental damage caused during the policy.' period by the nuclear energy hazard, and which is discovered and for.which written claim is'made against the-o L

insured, not'1ater than ten (10) years after the end 'of I

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The companies sna11 have the right and duty to. defend any clain or suit against the insured alleging'such injury'or j

damage, and-seeking-damages or costs which are _ payable -

under-the' terms of this policy: but the companies may make-l such' investigation, negotiation and settlement, of-the-

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tL, claim or suit as they deem expedient.

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duty to defend shall.be limited, as

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L described'in-INSURING AGREEMENT IV, if the claim or suit;

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0 also seeks any of the following.-which in no event shall be construed as covered by this policy:

o (1) damages for on-site property damages j

- ( 2 ) -- recovery of on-site cleanup. costs-or any other-11 cleanup costs except covered environmental cleanup costst (3) performance of an insured's environmental protection -

obligations or on-site cleanup obligations or

.(4) any-other relief or recovery except payment of i

covered damages or covered environmental cleanup l

costs.

The companies'- duty to defend claims or suits ends when l'

the limit of their liability has been exhausted pursuant U

to CONDITION 3.

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' Subject-to INSURING AGREEMENT IV, the companies shall pay, j

with respect to any claim or suit they defend, the costs E

incurred in the defense, including (1) costs taxed against the insured in any such suit and interest on any judgment therein:

(2) premiums on appeal bonds and bonds to release attachments in any such suit, but without obligation to apply for or furnish such bonds

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-*1 (3) reasonable expenses, other < than loss of earnings, L

incurred by the insured at the companies' request.

h COVERACE ' B

' DAMAGE TO PROPERTY OF AN INSURED AWAY FROM THE FACILITY With respect to property damage caused during the ' policy period by the nuclear energy hazard to:-the property of-an s

insured which is away from the - facility - to pay to such insured those suas which such insured would have -- been

-legally obligated to pay as covered damages therefor, had such property belonged to another.

COVERAGE C - SURROGATION - 0FFSITE EMPLOYEES With respect to bodily' injury caused during the policy period by the nuclear energy hazard to any employee of an l

insured, and which is - discovered and for which written j

clain-is made against the insured,'not later than ten (10) years after'the end of the policy period, to pay to the workman's-compensation carrier of such insured as follows:

All suas which such carrier would have been entitled to recover--- and retain as damages from another person or organization, had such person or organization alone been-legally - responsible for such - bodily injury..- by reason of the rights 1 acquired by subrogation by the payment of the benefits required of such carrier under the applicable, workmen's - compensation or occupational disease law.

An employer' who-is a duly qualified self-insurer under such-law;shall be deemed to be a workman's' compensation carrier-within the meaning of this Coverage.

This coverage does not-apply to. bodily injury te any' person who is employed at - and in connection with the facility: nor shall it, constitute workmen's compensation

. insurance as required.under-the laws of any state.

2.

INSURING AGREEMENT II is replaced by the following:

II DEFINITION OF INSURED The unqualified word " insured" includes (a)- the named insured and (b).any other person. or organization with respect to his legal responsibility for covered damages or covered environmental cleanup costs because of bodily injury, property damage or environmental damage caused by the nuclear energy hazard, Subdivision (b) above does not include as an insured the y

United States of America or any of its agencies, except the Tennessee Valley Authority.

I Subject to CONDITION 3 and the other provisions of this policy.. the insurance applies separately to each insured against whom claim is made or suit is brought.

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INSURING. AGREEMENT III is replaced by the followingt

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s III DEFINITIONS Wherever used in this policy:

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" bodily in including. jury" means bodily injury, sickness _or disease..

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resulting_ therefrom, sustained by. a ny -

person.

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" covered ' damages" means: damages because of bodily ' i t

or property damage to which this. policy applies:.but or on-site cleanup costs. covered damages do not include environm

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" covered environmental cleanup costs" - means - only - those environmental t

cleanup costs which are incurred _ directly for monitoring.-testing-for, cleaning up, neutralizing or:.

containing environmental damage as the result of an s

extraordinary nuclear incident but occurrence or a transportation 4

include on-site cleanup costs. covered environmental cleanup costs do not i t

" disposal site" means any structure. basin. excavation.

premises or place prepared as a dump or site for the disposal of-waste materials of a general nature may also be - used for the disposal of waste natorials-

, but which p

containing small amounts of nuclear material, n

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" environment" includes

land, the atmosphere, and all i

L watercourses bodies of water and natural b

whether on, a,bove or below the surface of the ground.

resources.

" environmental cleanup costs" include all -loss expense arising out of. an

' directive - (other than an. y - governmental decree.. ' cost or

.ordor or action at. law)' requiring. award of covered damages in an i

or. requesting a person or organization to undertake 1

for.-cleaning up. neutralizing or containing contaminatior. pay lfo

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of the environment, whether the contamination is on. above on or below.the surface'of the ground.'

ment by nuclear material." environmental damage" means conta g

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" environmental a

protection' obligations of any person or organizationobligations" include all (1) relating to the protection of the environment from contamination or imminent danger of contamination, and (2) imposed by any governmental

laws, regulations or ordinances.

" extraordinary nuclear occurrence" the-United States Nuclear Regulatory Commission has meanz an event which

. determined to be an extraordinary nuclear occurrence as 3

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l defined' in" the Atomic--Energy Act of 1954, or in any law

' amendatory thereof.

" governmental" refers to federal.

state end local governments and authorities, including courts, noncies and political subdivisions thereof.

"indemnitled nuclear facility" means (1)

"the facility" as defined in any Nuclear Energy

' Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association or' Mutual Atomic Energy Liability Underwriters, or (2) any other nuclear facility, 4

if financial protection is required pursuant to the l

Atomic; Energy Act-of 1954, or any law amendatory thereof.

I with -- respect to any activities or operations conducted

. thereat.

" insured shipsont" means a shipment of source material, speciali nuclear material, spent fuel, waste, or tailings or wastes ~ produced-by the extraction - or concentration - of uranium or. thorium from any ore processed primarily for its sourceLmaterial content, herein called ~" material,#

(1) to-the-. facility from any location except an indemnified ' nucleart facility, but only if. the transportation of the material isl:not :by predeter--

mination to be interrupted by' removal of ~the material from a transporting conveyance for: any purpose other:than the continuation of.its transpor--

'tation, or (2) from thei facility to any' other location, but only_-

until - _the ' material is removed from a transporting-conveyance f or - any t purpose other thsn the continuation of its transportation.

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" nuclear energy hazard" means. the radioactive. _ toxic, explosive or. other hazardous properties of' nuclear material, but only if (1)- tho' nuclear material is at the facility or has been-discharged or dispersed therefrom without intent to relinquish: possession or custody thereof to any other person or organization, or (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 handling and temporary storage incidental thereto. within (a) the territorial limits of the United States of

America, its territories or possessions, or Puerto Ricos or (b) international waters or airspace, provided that the nuclear material is in the course of transportation between two points located within 4

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W the territorial limits described-in (a) above and there is no deviation in the course of.the transportation for the purpose of going to any'other country, state or nation, except for the purpose of going to or returning from a port or place of-refuge as the result of an emergency.

" nuclear facility" means "the facility" as defined in any Nuclear Energy Liability Policy _(Facility Form) issuedLby Nuclear. Energy Liability Insurance ' Association or Mutual Atomic Energy Liability Underwriters,

' The ters - " nuclear S,

facility" also means (1) any nuclear reactor, (2) any equipment or device designed or used for (a) separating the isotopes of. uranium _or plutonium, (b) processing or utilizing = spent fuel, or (c) handling, processing or packaging waste.

(3) any equipment or device used -for the processing, fabricating or alloying of special nuclear. material if_at any time the total amount of such material in the - custody _ of the insured - atl the premises ~ where such _ equipment or - device is located consists of : or -

contains more than 25 grams of plutonium or' uranium.

233. or - any combination thereof. or-more than 250 grams of uranium 235, (4) any; structure, basin; excavation, premises or-place :

prepared; or used for the storage ors _ disposal ;of-

waste, and ~ includes the site on-which any' of the foregoing is

=1ocated, all operations conducted on such site and all

-premises used'for such operations.

" nuclear material" means source material, special nudlear.

material or byproduct material.

" nuclear reactor" means any apparatus designed or used to sustain nuclear. fission or ' a -self-sustaining chain reaction or to contain a critical mass of fissionable.

material.

"on-site cleanup costs" include all loss, cost or expense arising out of on-site cleanup obligations.

"on-site cleanup obligations" include a111 obligations of any person or organization, imposed by common law or otherwise, to undertake or pay for monitoring, testing for, cleaning up, neutralizing or containing contamination by nuclear material at the facility, whether the material is on, above or below the surface of the ground.

"on-site property damags" includes all property damage to any property at the facility, whether the property is on, above or below the surface of the ground, other than aircraft, watercraft or vehicles licensed for highway use, 5

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'used in connection with the operation of the facility.

" property. damage" means physical injury to or destruction or radioactive contamination of property, and loss of use of property so injured, destroyad or contaminated, and-loss of use of property while evacuated or withdrawn from' L

use because possibly so contaminated or - because of:

L4 imminent danger of contamination.

" source material,"

"special nuclear material,"

and j

Atomic Energy" byproduct material have the meanings given them in Act of 1954, or in any law amendatory thereof.

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" spent fuel" means any fuel element or fuel component, 4

solid or L11guid which has been used or exposed to radiation in any n,uclear reactor, p

"the facility" means the ' facility described in the declarations and' includes the location designated in Item

'3 of the declarations and all property and operations at such location.

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" transportation ' incident" means a discharge or dispersal of nuclear material from an insured shipment cau collision' or upset. of the ' transporting conveyance, sed by accident. that breaks open, punctures ~:or ruptures the

.or.an.

shipping containers or containment thereon but only if-or accident take. place'away from any' nuclear f away from'any disposal site, and both occur in the course of the -transportation,. including. handling ~ snd storage incidental thereto.

temporary i

" waste" means.any. waste material (1) containing byproduct material and-(2) resulting-from the. operation by-any person or-organization.of any nuclear facility included within-the definition of nuclear (1) or (2) thereof.

facility under paragraph 4.

INSURING AGREEMENT IV is replaced by the following and.

INSURING AGREEMENT IV-A added ' by the

" Amendment of

'l Coverage Endorsement for Workers Claims (Facility Form)"

. continues to. apply:

IV LIMITED DEFENSE OF PARTIALLY COVERED CLA i

The following provisions apply with respect 2o any duty to defend has been limited by INSURING AG (1)

The companies will defend the claim or suit unless the companies and the first named insured mutually agree on a different defense arrangement.

By making 6

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such a defense, the companies shall'not be considered as having waived - their-rights under this policy to

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deny payment or reimbursement of the items not

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covered.

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.(2)

As soon as practicable, the first named insured, acting on behalf of all insureds, and the, companies shall endeavor to reach an equitable arrangement for handling the defense and sharing the costs thereof.

(3)

.The companies' share of defense costs shall not exceed the portion of the-total defense costs 'that u

represents the costs which would be reasonably and necessarily-incurred in the. defense of the claim. or suit in the. absence of any claim or; demand for the

' items not covered.

(4)

The companies shall have a right to contribution.

from the first named insured for all defense costs as 4

they are incurred in excess of the amount ' of the l

companies'

share, including reimbursement ' by the L

first named insured of all such excess costs paid by i

n tho' companies'.

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(5)

If the = companies and the first named insured cannot agree on the companies' share of defense costs,zthe dispute shall be submitted, as a condition precedent to any right of recovery on this policy, to arbitra-tion for a final and binding resolution, as provided I

in' Condition 19.

4 5.

In EXCLUSIONS (d) and (e), and in all endorsements to this policy relating thereto, the words

" bodily injury or property damage" are replaced by " bodily. injury, property b

damage or environmental damage."

t 6.

-EXCLUSION (f) is replaced-by the'following exclusion:

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[This policy does not apply:]

(f) to on-site property damages 7

In CONDITION 3, and in all endorsements to; this policy-i modifying the dollar amount' of the limit. of liability stated in Item 4 of the declarations. the words " bodily injury or property damage" are replaced b property damage or environmental damage."y " bodily injury, 1

8.

In CONDITION 4, and-in all endorsements to this policy modifying the dollar amount of the total aggregate liability of the companies with respect to a common i

occurrence:

1 (a) the words " bodily injury or replaced by

" bodily injury, property damage" are property damage or environmental damage": and (b) the words " bodily injury and property damage" are replaced by "bodil environmental damage.y injury, property damage and 7

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-In CONDITIONS 5, 11, 15 and 18,.and in all endorsements to

-this policy relating thereto, the words " bodily'-injury or property damage" are replaced by " bodily injury, property damage or environmental damage."

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10.

CONDITION 19, DECLARATIONS, and CONDITION. 20 MUTUAL l

POLICY CONDITION,.are renumbered CONDITIONS 20 and 21.

1 11.

The following CONDITION is added to the policy:

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19 ARBITRATION OF DISPUTES RELATING - To THE APPLICATION 1'

0F INSURING AGREEMENT IV D

L All such disputes subject to paragraph (5) of INSURINC D

AGREEMENT IV shall be submitted to a Board of Arbitration

_(the ' " Board") for a final and binding resolution of the

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dispute.

hl' There shall be:two parties to the arbitration:

the first named insured, acting on - behalf of all insureds as their duly authorized representative, and Nuclear Energy

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' Liability Insurance Association, acting on behalf of the i

companies as-their duly authorized representative.

p Except to the extent the parties autually agree otherwise, the.following principles will apply:

(a)

The arbitration will take place in New York, New York, and will.be' governed by the laws of the '. State of New York.

(b)

Either party may begin the process of arbitration by giving notice to the other party in writing of its intention to do so and the name of the arbitrator that it has appointed.

(c)

The ~ other party shall than appoint in writing an l

arbitrator,- and the -arbitrators shall appoint in l-writing an umpire before.they-begin the arbitration.

The umpire shall-act as chairman of the. Board.

(d)

If a party fails to name its arbitrator within thirty (30) days of the other party'sJ written T

request that it-do so, the requesting party may appoint an arbitrator for the party in default.

(e)

If the two arbitrators fail to agree 'on the selection. of an umpire within thirty (30) days after they have both been appointed, each of them shall l

name two, of whom the other shall decline one.

The choice shall be made by drawing lots.

(f)

The arbitrators and umpire shall be executive officers or former executive officers of insurance companies licensed to do business in the United states or of organizations designated as the first named insured under a Nuclear Energy Liability Policy issued by Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters: provided that the current employees of the following shall not be eligible for service 8

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...se s a without the consent of both parties:

(1) any party or likely party to the underlying claim or suits (2); American Nuclear. Insurers.

MAERP-Reinsurance Association or their members

_or (3) any-other insurer or reinsurer. which ' has casualty insurance or reinsurance in. force on 3

j any of the foregoing which may. be materially L

affected by the Board's decision.

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(g)

Within thirty (30) days after the appointment of the umpire, each party shall submit-its case inLwriting to the Board.

(h)

The Board shall determine its rules of procedure, and-the nature and extent of any discovery, testimony, examination or cross-examination of witnesses = and oral argument permitted.'

'The decision of. any two e

members of the Board shall be final and - binding on all parties.

All discovery. submissions.of' evidence.

hearing of witnesses and argument shall be completed.

within u m p i r e,, s i x t y (60)days of the appointment of the-provided the Board may grant one-extension of' thirty (30). days.

(i)

The arbitrators and the umpire are not to be bound by any strict rules of legal procedure, evidence or legal precedents.

They shall. however, be governed by the terms of this policy, and shall have no' power -

'to add to or change its provisions.

Subject-to this

.l admonition, they shall. interpret the relevant-1 provisions of this policy as an honorable business agreement, and shall be entitled to - decide, in accordance with such provisions together with the 4

other materials submitted to'them. what they think is the. fair and right thing to be done between the g

parties from a. business ~ point of. view, : without-L favoring the interest of either party.

l-(j)

The Board shall - make its. award. in writing within L

thirty (30) da including any.ys ' after the. close of the period..

1 extension

granted, described sin ~

paragraph (h) above.

c (k)

If the Board fails to make an award within' the time t

l prescribed by paragraph (j) above. then unices' an extension is agreed to by the: parties, c.

new

[

arbitration.shall be commenced and completed accordance with the procedure set ~ out in paragre in (a) through (j) above.

phs (1)

The award of the Board signed by any two members shall be final, not subject to appeal and binding-on all parties, including all insurers subscribing the policy-and all insureds thereunder.

The award shall be treated as a matter involving interstate commerce, and may be filad or confirmed in any court of 1

competent jurisdiction, state or

federal, and judgment thereon entered and enforced. in accordance with the law and practice of the forum.

9

ct J.,.

f~ ?

b y (_,t = ;

(m)

Unless th'e' Board decides otherwise, each party ~shall' pay the expenses of ' the - arbitrator _ appointed by or for. it and one half of-the. other costs. of.

4

' arbitration.

(n)

If an arbitrator or umpire is unable ~or unwilling to act, a new arbitrator or umpire, as the case may.be, shall-be-appointed toJact in his or her place, in:

accordance with the provisions set forth above.

(o)

All materials relevant to the arbitration shall be submitted to the BoardLin' triplicate and the filing party shall send simultaneously a copy-thereof to the opposing party.

12.

This endorsement; applies to all claims for damages, costs, expenses or other relief or recovery for which coverage is-sought under this ' policy, and which are first made in writing against any insured on or after the effective date

'of this endorsement stated below.

Thk is to Endorserpent having the endorscertdy that this ignated M con No Iof the Ngdear Energv Liabny P of the original

~

oicy (Fa Jmn L Qu

- i$nsura me i-ordec ity Form) as des p tt -

ereunder.

s xch A

Amdan Nudw Insermt Vu Prd&cnt Underwrit it 10 Effective Date of

.this' Endorsement _

January 1, 1990 12:01 A.M. Standard Time To form a part of Policy No MF-119 lasued,to.

Gulf States Utilities Company and Cajun Electric Power Cooperative, Inc.

Date of Issue February 16, 1990 For the Subscribing Companies MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS BY_

k m

Endorsement No.

34 countersigned by _

ME-71 (1/1/90)

Authorized Representative

4 W

. w 1
w. +

Nuclear Energy Liability insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS

+

SUPPLEMENTARY ENDORSEMENT WAIVER OF DEFENSES REACTOR CONSTRUCTION AT THE FACI M i

It is agreed. that in' construing :the application of paragraph 2 (b) ' of the WAIVER OF ~ DEFENSES ENDORSEMENT : NE-33c with respect to an extraordinary 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-Nuclear Regulatory Commission shall not-be. considered-a s-employed in connection with the activity where the extraordinary-nuclear. occurrence takes place-if; 4,>

(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 i

(3) the. claimant is not employed in connection with the j

possession,

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

d This is to certify that this is a true copy of the origin of the iudear Energy Liability Policj art Mnated wrcon. No Ins nce is affor. hereunder.

l D,

]

a.+o L t s.

%-rv ve e amud a i

m Ao a g e K.a. m b h ers Effective Date of this Endorsement January 1, 1990 J

To fore a part of Policy No. MF-119 12:01 A.M.

Standard time

-Issued to

-Gulf States (Jt111 ties Company and Cajun Electric Power Cooperative, Inc.

Date of issue February 16, 1990 For the Subscribing Companies MUrDAL ATONIC ENERGY LIABILITY IBIDER By 8

L

. Endorsement No.

33 countersigned by ME-39c (1/1/90)

)

~

+ v.73 k:

Nuclear Energy Liability insurance MUTUAL: ATOMIC ENERGY UABluTY UNDERWRITERS

.-WAIVER'OF DEFENSES ENDORSEMENT (Extraordinary Nuclear Occurrence)

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

v 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 construction, 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 'or governmental immunity, and (3)' -any larue 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.

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 cause of action.

in the 2.

The waivers set forth in paragraph 1. above do not apply to (a)

, bodily

injury, property damage or environmental l

damage which is intentionally sustained by the

{

i claimant or which results from a nuclear incident intentionally and wrongfully caused by the claimant:

1ME-33c (1/1/90)

Page 1 of 3

  1. y : $ -.

1

+n 1

(b)-

bodily injury sustained by any claimant who. is

~

. employed at the site of and in connection with the i

~

activity where the extraordinary nuclear occurrence-takes place if benefits therefor are either payable or required to be provided under any workmen's compensation or occupational disease law a

1 J

(c) any claim for punitive o r.

exemplary

damages, L
provided, with respect to any. claim for wrongful-1 death under any State law which provides.for-damages only. punitive in nature.- this exclusion does: not:

L apply.to the extent.that the claimant has sustained L

actual damages, measured by the pecuniary injuries-

[

resulting from such death but not to exceed ~ the maximum amount otherwise recoverable under law.

i, P

1 3.

The waivers set forth in paragraph 1.

above shall.'be effective only with respect to bodily injury, property damage or_ environmental damage-to which the policy applies-under its terms other.than this endorsements l

however,.that with. respect to bodily injury, provided, L

damage or environmental damage resulting from an property l

extraordinary nuclear occurrence, the provisions of L

COVERAGES A and C of ' the policy providing coverage for-bodily' injury,. property ; damage or environmental damaga caused during the policy period - by the nuclear ' energy hazard and which is discovered and for which written claim l

is. made against the insured not later than ten (10) years af ter the, end of the policy period shall not operate to bar coverage for bodily -' injury, property-damage ~ or environmental damage

-(a) -which is caused. during tho' 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 (20) years after the

-date of the extraordinary' nuclear occurrence.

1-Such. waivers shall not apply to, or-prejudice the l,

prosecution.or defanse of any claim or portion of claim

-(

l' which is not within the protection afforded under l

q (a) the provisions of the policy applicable to the

~

financial protection required of the named insured:

J (b) the agreement of indemnification between the named insured and the Nuclear Regulatory Commission made pursuant to Section 170 of the Atomic Energy Act of l

1954, as amended: and (c) the limit of liability provisions of Subsection 170e.

i of the Atomic Energy Act of 1954, as amended.

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

i

.ME-33c.(1/1/90)

Page 2 of 3

~

r ff J

i

.4 m.

'4 Subject to all of the limitations stated in this 17Q endorsement and in the Atomic Energy Act of 1954, as amended the waivers set forth in paragraph 1. above shall be judicially enforceable in accordance with their terms against any. insured in an action to recover damages because of bodily injury, property damage or environmental damage to which the policy applies as proof of financial protection.

5.

As used herein:

" extraordinary nuclear occurrence" means an event which the Nuclear Regulatory Commission has determined 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

injury, property damage or environmental damage and also includes his assignees.

legal representatives and other persons or organizations entitled to bring an action for damages on account of such injury or damage.

This is to certify that this la a true cop, of the o*iginal Endorsernent having the endorsement numbor and being mads part of the Nudcar Energy Liabihty Policy ( ~ cility Fotm) as des.

p ignated icreon. No 1;tsugne ' =" ".homundn.

J 1 '

3.

[Cc

,,:, m,n n,

n s

Effective Date of this' Endorsement January 1, 1990 To form a part of Policy No. MF-119 i

12:01 A.M. Standsed time

, Issued to.

Gulf States Utilities Company and Cajun Electric Power Cooperative. Inc.

i Ti Date of issue February 16, 1990 For the Subscribing Cospanies I

NtFFUAL ATOKIC EXERGY LIABILITY IEEDERVRITERS

~

By

<S.

??

y vr m Endorsement No.

32 Countersigned by NE-33c(1/1/90)

Page 3 of 3

U 1

I Nuclear Energy Liability insurance i

)

MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS i

i Restriction of Comeanies Oblication to Defend.

)

Investicate. Neactiate or Settle Any Claim or Suit (Section 170 0. of the Atomic Energy Act of 1954, as amended) t Effective August 20, 1988, it is agreed that whenever, pursuant l

to subsection 170 0.

of the Atomic Energy Act of 1954 ne l

amended, an appropriate U.S.

District Court determines,that liability from a single nuclear incident may exceed the limit of-l liability under the applicable limit of liability under j

subsection 170 e.(1) (A), (B) and (C) of the Atomic Energy Act of i

1954, as
amended, the companies obligations under Insuring Agreement I,

to defend, investigate, negotiate or settle any claim or suit under the policy do not include any obligation that would necessitate or result in the companies incurring legal

costs, including costs of initiating, investigating, settling, or defending claims or su: prosecuting,

.ts, which are not authorized for payment by a court pursuant to such subsection 170 0.

i This is to certify that this is a true copy of the original Endorsement having the endorsement number and being made part i

of the h odcar Energy Liabliity Policy (F ility Form) as des-ignated ercon. No insurmee is afforde hereunder.

'nnhi, Vrc Pnwoent Unde & - /

I

.k,bn I.

(,

rwnt g

Anwrxan Huckw beurtts i

Effective Date of this Endorsement August 20, 1988 To form a part of Policy No. MF-119 L

12:01 A.M. Standard time i

Issued to Gulf States Utilities Company and Cajun Electric Power Cooperative, Inc.

Date of issoe February 16, 1990 For the Subscribing Companies NUTUAL ATOKIC ENERGY LIABILITY WWEEURITELI By

  • T.

Endorsement No.-

31 countersigned by s

ME-70

n kT i

. Nuclear Energy LiabilRy insurance i

MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS l

SUPPLEMENTARY ENDORSEMENT WAIVER OF DEFENSES REACTOR CONSTRUCTION AT THE FACILITY I

Effective August 20, 1988, it is agreed that in construing the application of paragraph 2(b) of the WAIVER OF DEFENSES 1

ENDORSEMENT ~ ME-33b with respect to an extraordinary nuclear I

occurrence occurring at the

facility, a

claimant who is.

i 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 Nuclear Regulatory Commission shall not 4

be considered as employed in connection with the activity where j

the extraordinary nuclear occurrence takes place if:

1 (1) the claimant is employed exclusively zu connection l

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 (3) the claimant is not employed in connection with the possession,

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

This is to certriv that this is a true copy of the original Endorsement having the endorsernent number and being made p of the Nudcar Encicy Liability Poky (Facihty Form) as des-ignatt I hereon. No lasurance is affor d hereunder.

~!

3 i ~

John. ( ufI h

MO Ameron ladear hwurers Effective Date of this Endorsement August 20, 1988 I

To form a part of Policy No. MF-119 12:01 A.M.

standard time Issued to Gulf States Utilities Com,. ny and Cajun Electric Power Cooperative, Inc.

t L

l Date of issue February 16, 1990 For the Subscribing companies MlffUAL ATONIC BtERGY LIDILITY IBGER By w A 1 y,y Endorsement No.

30 countersigned by l-L ME.39b L

.n m

g.,.

1 i

^

Nuclear Energy Wabietty insurance MUTUAL ATOMIC ENERGY UABluTY UNDERWRITERS i

I 1

WAIVER OF DEFENSES ENDORSEM1'NT j

(Extraordinary Nuclear occurrence) l Effective August 20,

1988, the named insured, acting for himself and every other insu red under the policy, and the i

members Of Nuclear Energy Liability I.nsurance Association agree as followst h

1.

With respect to any extraordinary nuclear occurrance to

{

which the' policy applies as proof of financial protection and which 5

(a) arises out'of or results froe or occurs in the course of the construction, possession, or operation of the facility, or l;

(b) arises out of or results from or occurs in the course of the transportation of nuclear material to or from the facility, 1

the insureds and the companies agree to waive

(

L (1) any -issue or defense as to the conduct of the-claimant or the fault of the insureds, -including but

}

not liruited tot f

(1) negligence, i

(ii) contributory negligence, (iii) assun.ption 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 cParitable or-governmental immunity, and-(3) any issue or defense based on any statute of l-limitations if suit is instituted within three years it 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.

The waiver of any such issue or defanse shall be effective o

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 i

?

ME-33b Page 1 of 3

{,..

(a) bodily injury or property damage which is intentionally sustained by the claimant or which i

results from a nuclear incident intentionally and 1

wrongfully caused by the claimant; (b) bodily injury sustained by any claimant who is employed at the site of and in connection with the i

activity where the extraordinary nuclear occurrence takes place if benefits therefor are either payable or required to be provided under any workmen's I

compensation or occupational disease law; I

(c) any claim for punitive or. exemplary

damages, w
provided, with respect to any claim for wrongful death under any State law which provides for damages i

only punitive in nature, this exclusion does not apply to the extent that the claimant has sustained

)

y actual damages, measured by the pecuniary injuries 1

1

^

resulting from such death but not to exceed the maximum amount otherwise recoverable under law.

3.

The waivers set forth in paragraph 1.

above shall be l

effective only with respect to bodily injury or property damage to which the policy applies under Its terms other j

s-than.this endorsement;

provided, however, that with respect to bodily injury or property damage resulting from an extraordinary nuclear occurrence, Insuring Agreement L

IV,

" Application of Policy",

shall not operate to bar L

coverage-for bodily injury or property 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 (20) years after the date of the extuordinary -nuclear occurrence.

Such waivers shall not apply to, or prejudice the prosecution or defense of any claim or portion of claim which is not within the protection afforded under (a) the provisions of the policy applicable to the l

financial protection required of the named insured; i

(b) the agreement of indemnification between the named insured and the Nuclear Regulatory Commission made pursuant to section 170 of the Atomic Energy Act of 1954, as amended; and f

H (c) the limit of liability provisions of subsection 170e.

I of the Atomic Energy Act of 1954, as amended.

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

b ME-33b Page 2 of 2

L a

o a

  • 4.

Subjoct to all of the limitations stated in this endorsement and in the Atomic Energy Act of

1954, as amended, the waivers set forth in paragraph 1. above shall be judicially enforceable in accordance 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 nuclear occurrence" means an event which the Nuclear Regulatory Commission has determined 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 injury or. property damage and also includes his assignees, legal representatives and other persons or organizations entitled to bring an action for damages on account of such injury or damage.

l

'lhls b to certify that this is a true copy of the of the Nadear Energy Liab0ity Policy (F original

[

Ignateqhereon. No insurance is affon -

hereunder.

John L,,ndco... % [. I A L L 2

\\

/strous vaclear Insuwts

J Effective Date of this Endorsement August 20. M88 To. form a part of Policy No. _ MF-119 12:01 A.M.

Stanoard time i

Gulf States Utilities Company and Cajun E4ctric Power Cooperative Inc.

Issued to l

Date of issue Februa ry - 16, 1990 For the subscribing companies MirrDAL ATOKIC EMDtGY LIABILITY IEtDER By Endorsement No.

29 Countersigned by -

i i

ME-33b Page 3 of 3 o

l r.

q Nucl ar Energy LI:bility Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION i

i 4

AxEwoAToRY ENoomsEntwT (Facility Form)

It is agreed that:

1.

INSURING AGREEMENT I is replaced by the following:

I COVERAGE A - LIABILITY f

To pay on behalf of the insured all sums which the insured shall become legally obligated to pay as covered damages bec.tuse of bodily injury or property damage, or as covered l

environmental cleanup costs because of environmental damage.

This Coverage applies only to bodily injury.

property damage or environmental damage caused during the policy period by the nuclear energy hazard, and which is discovered and for which written claim is made against the insured, not later than ten (10) years after the and of 1

the policy period.

The companies shall have the right and duty to defend any claim or suit against the insured alleging such injury or damage, and seeking damages or costs which are payable under the terms.of this policya but the companies may make i

such investigation, negotiation and settlement of the claim or suit as they deem expedient.

The companies' duty to defend shall be

limited, as described in INSURING AGREEMENT IV, if the claim or suit also seeks any of the following,- which in no event shall be construed as covered by this policy:

i (1)'

damages for on-site property damage:

(2) recovery of on-site cleanup costs oc any other cleanup costs costat ~

except covered environmental cleanup (3) performance of an insured's environmental protection I

obligations or on-site cleanup obligationst or (4) any other relief or recovery except payment of E

covered damages or covered environmental cleanup-H costs.

The companies' duty to defend claims or suits ends when the limit of their liability has been exhausted pursuant to CONDITION 3.

Subject to INSURING AGREEMENT IV. the companies shall pay, with respect to any claim or suit they defend, the costs incurred in the defense, including (1) costs taxed against the insured in any such suit and interest on any judgment therein:

(2) premiums on ' appeal bonds and bonds to release attachments in any such suit, but without obligation to apply for or furnish such bonds:

n a4__

q t.

k:

'0 (3) reasonable expenses, other than loss of earnings, l

incurred by the insured at the companies' request.

COVERADE B - DAMAGE To PROPERTY OF AN INSURED ANAY FROM p

THE FACILITY l

i With respect to property damage caused during the policy i

period by the nuclear energy hazard to the property of an insured which is away from the facility, to pay to such insured those sums which such insured would have been i

legally obligated to pay as covered damages therefor had such property belonged to another.

i c0VERACE C - SURROGATION - 0FFSITE EMPLOYEES With respect to bodily injury caused 'during the policy l

period by the nuclear energy hazard to any employee of an insured, and which is discovered and for which written claim is made against the insured, not later than ten (10) years af ter the end of the policy period. to pay to the workmen's compensation carrier of such insured as follows:

All suas which such carrier would have been entitled to recover and retain as damages from another person or t

organization. had such person or organization alone been legally responsible for such bodily injury, by reason of the rights acquired by subrogation by the payment of the g

benefits. required i

of such carrier under the applicable workmen's compensation or occupational disease law.

An employer who is a duly qual! fled self-insurer under such law shall be deemed to be a workmen's compensation carrier within the meaning of this coverage.

3 t

This Coverage does not apply to bodily injury to any person who is employed at and in connection with the facility: nor shall it constitute workmen's compensation insurance as required under the laws of any state.

2.

INSURING AGREEMENT II is replaced by the following:

'I Il DEFINITION OF INSURED The unqualified word " insured" includes (a) the named l

insured and (b) any other person or organization with respect to his legal responsibility for covered damages or L

covered environmental cleanup costs because of bodily l

injury, property damage or environmental damage caused by the nuclear energy hazard.

Subdivision (b) abpve does not include as an insured the United. States of America or any of its agencies. except the Tennessee Valley Authority.

Subject to CONDITION 3 and the other provisions of this policy. the insurance applies separately to each insured against whom claim is made or suit is brought.

i 2

l F

o 3.

INSURING AGREEMENT III is replaced by the following:

III DEFINITIONS Wherever used in this policy:

" bodily injury" means bodily injury, sickness or disease, including death resulting therefrom, sustained by any person.

" covered damages" means damages because of bodily injury or property damage to which this policy applies:

but covered damages do not include environmental cleanup costs-or on-site cleanup costn,

" covered environmental cleanup costs" means only those environmental cleanup costs which are incurred directly for-monitoring, testing for, cleaning up.. neutralizing or containing environmental damage as the result. of an extraordinary nuclear occurrence or a transportation incidents but covered environmental cleanup costs do not include on-site-cleanup costs.

" disposal site" means any structure, basin, excavation, premises or place prepared as a dump or site for the disposal of waste nacerials of a general nature, but which also be used for the disposal of wute materials may containing small amounts of nuclear material l

" environment" includes

land, t.he = atmosphere, and all watercourses, bodies of water and natural resources.

[

whether.on, above or below the surface of the ground.

" environmental cleanup costs" include all loss, cost or

)

expense arising out of any governmental decree, order or directive (other than an award of covered damages in an action at law) requiring or requesting a person or orgcnization to undertake or pay for monitoring, testing for, cleaning up, neutralizing or containing contamination of the environment. whether the contamination is on, above or below the surface of the ground.

" environmental damage" means contamination of the environ-ment by nuclear material.

" environmental protection obligations" include all obligations of any person or organization (1) relating to the protection of the environment from

)

E contamination or imminent danger of contamination.

l and (2) imposed by any governmental laws.

regulations or L

ordinances.

i

" extraordinary nuclear occurrence" means an event which l'

the United States Nuclear Regulatory Commission has determined to be an extrcordinary nuclear occurrence as 3

p, defined in the Atomic Energy Act of 1954 or in any law amendatory thereof.

" governmental" refers to

federal, state and local governments and authorities.

including courts, agencias and political subdivisions thereof.

"indemnifled nuclear facility" means

.(1)

"ths facility" as defined in any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters. or (2) any other nuclear feaility, 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.

" insured shipment" means a shipment of source material, special nuclear material, spent fuel, waste, or tailings or wastes produced by the extraction or concentration of uranium.or thorium from any ora 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 predeter-mination to be interrupted by removal of the material from a transporting conveyance for any purpose other than the continuation of:its transpor-tation. or (2) from the facility to any other location, but only until the material is removed from a transporting corveyance for any purpose other than the cor.*.inuation of its transportation.

" nuclear energy hazard"

.eens the radioactive,

toxic, explosive or other hazardous properties of nuclear material, but only if (1) the nuclear material is at the facility or has been discharged or dispersed therefrom without intent to relinquish possession or custody thereof to any other person or organization, or (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 handling and

-temporary storage incidental thereto, within (a) the territorial limits of the United States of America.

its territories or possessions, or Puerto Ricot or (b) international waters or airspace, provided that the nuclear material is in the course of transportation between two points located within 4

l.

}

I,.

'l the territorial 1.'.niit s described in (a) above and there is no deviation in the course of.the l

transportation for the purpose of going to any other i

country. state or nation, except for the purpose of j

going to or returning from a as the result of an emergency. port or place of refuge

" nuclear facility" means "the facility" as defined in any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association or Mutual i

Atomic Energy Liability Underwriters.

The term " nuclear i

facility" also means (1) any nuclear reactor.

(2) any equipment or device designed or used for (a) separating the isotopes of uranium or plutonium.

)

(b) processing or utilizing spent fuel, or (c) handling, processing or packaging waste.

j (3) any equipment or device used for the processing.

(

fabricating or alloying of special nuclear material if at any time the total amount of such material in q

L the custody of the insured at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams of uranium 235 (4) any structure, basin, excavation. premises or place prepared or used for the storage or disposal of wente.

and includes the site on which any of the foregoing is located, all operations conducted on such site and all premises used for such operations.

" nuclear material" means source material, special nuclear material or byproduct material.

" nuclear reactor" means any apparatus designed or used to l

' sustain nuclear fission or a self-sustaining chain reaction or to contain a critical mass of fissionable

-material, i

"on-site cleanup costs". include all loss, cost or expense.

arising out of on-site cleanup obligations.

"on-site cleanup obligations" include all obligations of any person or organization, imposed by common law or otherwise, to undertake or pay for monitoring, testing for, cleaning up, neutralizing or containing contamination

~by nuclear material at the facility, whether the material i

is on, above or below the surface of the ground.

"on-site property damage" includes all property damage to any property at the facility, whether the property is on.

-above or below the surface of the ground, other than aircraft, watercraft or vehicles licensed for highway use.

5

~ ~

F

~

}

provided such aircraft, watercraft or vehicles are not used in connection with the operation of the facility, i

" property damage" means physical injury to or destruction or radioactive contamination of property, and loss of use i

of property so injured, destroyed or contaminated, and i

loss of use of property while evacuated or withdrawn from use because possibly so contaminated or because of imminent danger of contamination.

" source aterial "

" rpecial nuclear material,"

and

" byproduct material" have the meanings given them in the i

Atomic Energy Act of 1954, or in any law amendatory thereof.

i

" spent fuel" means any fuel element or fuel component,

)

solid or liquid, which has been used or exposed to radiation in any nucleer reactor.

"the facility" means the facility described in the declarations and includes the locatica designated in Item 3 of the declarations and all property and operations at such location.

" transportation incident" means a discharge or dispersal of nuclear material from an insured shipment ' caused by collision or upset of the transporting conveyance, or an accident that breaks open, punctures or ruptures the i

shipping containers or containment thereont but only if both the discharge or dispersal and the collision, upset l

5

-or accident take place away from any nuclear' facility and away from any disposal site, and both occur in the course of the ' t.ransportation, including handling and temporary

'i storage incidental thereto.

" waste" means any w @ e material (1) containing btc.oduct material and (2) resulting tion the operation by any person or organization of any nuclear facility included within the definition of nuclear facility under paragraph (1) or (2) thereof.

4.

INSURING aCREEMENT IV is replaced by the following and INSURING AGREEMENT IV-A added by the

" Amendment of j

Coverage Endorsement for Workers Claims (Facility Form)"

continues to applyt

^

IV LIMITED DEFENSE OF PARTIALLY COVERED CLAIMS OR SUITS The. following provisions apply with respect to any t

partially covered claim or suit for which the companies' c8uty_to defend has been limited by INSURING AGREEMENT It

' (1)

The companies will defend the claim or suit unless the companies and the first named insured mutually agree on e different defense arrangement.

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such a defense. the companies shall not be considered j

as having waived their rights under this policy to

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deny payment or reimbursement of the items not covered.

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(2)

As soon as practicable, the first named insured, acting. on behalf of all insureds, and the: companies shall endeavor to reach an equitable arrangement for

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q handling the defense and shar:.ng the costs thereof.

(3)

The. companies '

share of defense costs shall not i

exceed the portion of the total defense costs that represents the costs which would be reasonably and necessarily incurred in the defense of the claim or j

suit in the absence of any claim or demand for the i

items not covac.sd.

(4)

The companies ' shall have. a right to contribution j

from the first named insured for all defense costs as they are ~ incurred in excess of the amount of the t

companies'

share, including reimbursement by the first named insured of all such excess costs paid by the companies.

(5)- If the companies and the first named insured cannot i

agree on the companies' share of defense costs. the dispute shall be submitted. as a condition precedent to any right of recovery on this policy, to arbitra-tion for a final and binding resolution, as provided in condition 19.

i 5.

In EXCLUSIONS (d) and (e), and in all endorsements to this policy relatir,7. thereto.

the words

" bodily injury or property damage" are replaced by dbodily injury, property damage or environmental damage."

6.

EXCLUSION (f) is replaced by the following exclusions (This policy does not apply:)

I i

(L) to on-site property damages t

7.

In CONDITION 3 and in all endorsements to this policy modifying the dollar amount of the limit of liability stated in Item 4 of the declara?. ions. the words " bodily injury or property damage" are replaced by " bodily injury, property damage or environmental damage."

R.

In CONDITION 4 and in all endorsements to this policy nodifying the dollar amount of the tetal aggregate liability of the companies with respect to a common occurrence 1

(a) the words

" bodily injury replaced by

" bodily injury. property damage" are i

or property damage or i

environmental damage"t and (b) the words " bodily injury and property damage" are replaced by " bodily

injury, property damage and environmental damage."

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9.

this policy relating thereto, the words " bodil

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property damage" are replaced b damage or environmental damage."y " bodily injury, property

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10.

CONDITION 19. DECLARATIONS is renumbered CONDITION 20.

11.

The following CONDITION is added to the policyt 19 0F INSURING AGREEMEltf~IVARBITRATION O t

P All such disputes subject to paragraph (5) of INSURING AGREENENT IV shall be submitted to a Board of A (the " Board") for a final and binding resolution of the dispute.

There shall be two parties to the arbitration named insured, the first acting on behalf of all insureds as their duly authorized representative and Nuclear Energy I

companies as their duly authorized representativ i

Except to the extent the parties otherwise, the following principles will applymutually agree (a)

The arbitration will take place in New York. New York, and will be governed by the laws of the State l

of New York.

(b) giving notice to the other party in wciting ofEit intention to do its so and the name of the arbitrator that it has appointed.

(c)

The other party shall then appoint in writing an arbitrator. and the arbitrators shall appoint in The umpire shall act as chairman of the Board. w (d)

If a party fails to name its arbitrator within i

thirty (30) days of the other party's written request that it do so.- the appoint an arbitrator for the party in defaulc. y requesting part may i

(e)

If the two arbitrators fail to agree on the selection of an umpire within thirty (30)

L they have both been appointed, days after i

each of then shall name two.

choice shall bs made by drawing lots.of whom the other sha The (f)

The arbitrators and umpire shall-be executive officers or former executive officers of insurance companies licensed to do business in the United states or of organizations designated as the first named insured under a Nuclear Energy Liability Policy issued by Nuclear Energy Liability Insurance Association or Nutual Atomic Energy Liability Underwriters: provided that the current employees of the following shall not be without the consent of both partiesteligible for service 8

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.-4 (1) kny party oa likely party to the underlying claim or suits (2)

American Nuclear Insurers.

MAERP Reinsurance Association or their members: or (3) any other insurer or reinsurer which has casualty insurance or reinsurance in force on any of the foregoing which may be materially affected by the toard's decision.

(g)

Within thirty (30) days after tho' appointment of the umpire. each party shall submit its case in writing to the Board.

(h)

The Board shall determine its rules of procedure, and the nature and extent of any discovery, testimony, examination or cross-examination of witnesses and oral argument permitted.

The decision of any two members of the Board shall be final and binding on all parties.

All discovery. submissions of evidence.

hearing of witnesnea and argument shall be completed within sixty (60) days of the appointment of the umpire. provided the Board may grant one extension of thirty (30) days, 4

i (i)

The arbitrators and the umpire are not to be bound by any strict rules of legal procedure, evidencs or legal precedents.

They shall. however, be governed l.

by the terms of this policy, and shall have no power to add to or change its provisions, subject to this o

admonition, they shall interpret the relevant provisions of this policy as an honorable : business I

agreement, and shall be entitled to decide, in accordance with such provisions together with the other materials submitted to them, what they think is the fair and right thing to be done between the parties from a business point of view.

without favoring the interest of either party.

(j)

The Board shall make its award in' writing within thirty (30) days after the close of the perlod.

including any extension grant ed, described in paragraph (h) above.

(k)

If the Board fails to make an award within the time prescribed by paragraph (j) above. then unless an i

extension is agreed to by the parties, a new arbitration shall be commenced and completed in

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accordance with the procedure set out in paragraphs (a) through (j) above.

(1)

The award of the Board signed by any two members shall be final, not subject to appeal and binding on i

all parties, including all insurers subscribing the-policy and all insureds thereunder.

The award shall be treated as a matter involving intorstate commerce.

and may be - filed or confirmed in any court of competent jurisdiction, state or

federal, and judgment thereon entered and enforced, in accordance with the law and practice of the forum.

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s (m)

Unless the Board decides otherwise, cach party shall pay the expenses J the arbitrator appointed by or for it and one half of the other costs of i

arbitration.

(n)

If an arbitrator or umpire is unable or unwilling to act, a new arbitrator or umpire, as the case may be.

shall be appointed to act in his or her place. in accordance with the provisions set forth above.

(o)

All materials relevant to the arbitration shall be submitted to the Board in triplicate and the filing party shall send struitaneously a copy thereof to the opposing party.

12.

This endorsement applies to all claims for damages. costs.

expenses or other relief or recovery for which coverage is sought under this policy, and which are first made in writing against any insured on or after the effective date of this endorsement stated below.

TW is to certify that this is a true copy of the original Endorrement having the endorsement numbar and being made part of the Nuclcar Energy Liability Pohey Lfacility I'orm) as des-ignato ' hereon. No insurance is afforjfel hereunder.

un1.<mumceni,Ou

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Mvr8 e ucles Imums 10 Effective Date of this Endorsement January 1. 1990 To form a part of Policy No NF-286 12:01 A.M. Standard Time issued to Gulf States Utilities Company and Cajur, Electric Power Cooperative. Inc.-

Date of Issue February 16. 1990 For the su ribing c panies By T

PRESIDENT Endorsement No 42 Countersigned by iE-71 (1/1/90)

r Nuclear Energy Liability insurance 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 HE-33c with respect to an extraordinary 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 Nuclear Regulatory Commission shall not be considered as employed in connection with the activity where the extraordinary nuclear occurrence takes place ift (1) the claimant is einployed exclusively in connection with the construction of a nuclear reactor, including all related equipment and installations at the facility, and (2) no opSrating license has been issued by the Nuclear Regulatory 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.

This is to ecrtify that this is a true copy of the original Endorwment having the endorsement number and being made part of the Nucleer Encray Lkibihty Pobey acihty Form) as des d hacunder.

4-hrme'hneon,NoIns ra r S 2

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anuchi, va. em.atent underwres Anww.m Jude lusurcr$

Effective Date of this Endorsement January 1, 1990 form & Part of Policy No. NF-286 12:01 a. m si m ro ti=

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Issued,to Gulf States Utilities Company and Cajun Electric Power Cooperative, Inc.

Date of Issue February 16, 1990 For the Sub ibing Co antes, By 1

( rplrMe # h

, Endorsement No.

41 Countersigned by NE-39cl(1/1/90) i

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e Nuclear Energy Liability insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION SUPPLEMENTARY ENDORSEMENT WAIVER OF DEFENSES REACTOR CONSTRUCTION AT THE FACILITY 7

It is agreed that in construing the application of paragraph' 2(b) of the WAIVER OT DEFENSES' ENDORSEMENT NE-33c with respect to an extraordinary nuclear occurrence occurring at-the

facility, a

claimant who is employed.at the facility in connection with the const ruction of a nuclear reactor with respect to which no operating license has been issued by the Nuclear Regulatory Commission shall not be considered as employed in connection with the activity where the extraordinary nuclear occurrence takes place ift (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 (3) the _ claimant is not employed in connection with the possession,

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

This is to certify that this k a true copy of the original Endort.ement having the endorsement number and being made part of tha Nuciect Encray Liabihty Pohc acihty Form) as des

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'd hereunder.

imun twreon. No In rre--

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bk Jahn L ' >amrnhl, We Prosantilnderwntgy Aam on krim insurers Effective Date of this Endorsement January 1, 1990 To fors a part of Policy No. NF-286 12:01 4. M. Stanaerd time Issued,to Gulf States Utilities Company and Cajun Electric Power Cooperative, Inc.

Date of Issue February 16, 1990 For the Sub ibing Co antes, By U

4

\\ rpW W Endorsement No.

41 Countersigned by I

NE-39c(1/1/90)

s Nuclear Energy Usbility insurance j

NUCLEAR ENERGY UABluTY INSURANCE ASSOCIATION WAIVER OF DEFENSES ENDORSEMENT (Extraordinary Nuclear Occurrence)

The named insured, acting for himself and every other l'nsured under the policy.

Insurance Association agree as follows:and the members of Nuclear Energy Liabi 1.-

With respect to any extraordinary nuclear occurrence to which the policy applies as proof of financial protection and which 1

.r J

(a) arises out of or results from or occurs in the course i

of the construction. possession. or operation of the j

facility, or o

i (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 i

claimant or the fault of the insJreds. IT11uding but not limited to:

(i) negligence.

(11) contributory negligence.

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(iii) assumption of risk, and

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(iv) unforeseeable intervening

causes, whether involving the conduct of a third person or an J

act of God.

(2) any issue or defense as to charitable or governmental immunity, and i

(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.

The waiver of any such issue or defense shall be effective l

regardless of whether such issue or defense may otherwise be daemed jurisdictional or relating to an element in the cause of action.

2.

The waivers set forth in paragraph 1. above do not apply W.

(a) bodily

injury, property damage or anvironmental damage which is intentionally sustained by the claimant or which results from a nuclear incident intentionally and wrongfully caused by t'1e claimanti NE-33c(1/1/90)

Page 1 of 3 i

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l (b) bodily-injury sustained by any claimant who is i

employed at the site of and in connection with the activity where the extraordinary nuclear occurrence j

takes place - if benefits therefor are either payable or required to be provided under any workmen's i

compensation or occupational disease law:

)

(c) any claim for punitive or exemplary

damages, i

provided.

with respect to any claim for wrongful t

death under any State law which provides for damages only punitive in nature.

this exclusion does not.

i apply to the extent that the claimant has sustainied actual damages. measured by the pecuniary injuries resulting from such death but not to exceed the 1

maximum amount otherwise recoverable under law.

1 3.

The waivers set forth in paragraph 1.

above shall be effective only with respect to bodily injury, property damage or environmental damage to which the policy applies l

under its terms other than this endorsements however.

that with respect to bodily injury. provided.

property damage or environmental damage resulting from an 5

extraordinary nuclear occurrence, the. provisions of COVERACES A and C of the policy providing coverage for bodily injury.

property damage or environmental damage l

caused during the policy period by the nuclear energy-hazard and which is discovered and for which written claim is made against the insured. not later than ten (10) years after the end of the policy period shall not operate to bar coverage for bodily injury.

property damage or l

l environAnntal damage (a) which is caused during the policy r4riod by the nuclear energy hazard and (b) which is dieMWered and for which written claim is made against l

the insured not later than-twenty years after the date of the extraordinary nuclear occu(20) rrence.

I Such waivers shall not apply-to, or prejudice the

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prosecution or defense of any claim or portion of claim which is not within.the protection afforded under (a) the provisions of the -policy applicable to the financial protection required of the named insuredt (b) the agreement of indemnification between the named insured and 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, I

of the Atomic Energy Act of 1954, as amended.

Such waivers shall not preclude a defense based upon the failure of the claimant to tde reasonable steps to mitigate damages.

NE-33c(1/1/90)

Page 2 of 3

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4 Subject to all of the limitations stated in this endorsement and in the Atomic Energy Act of 1954 as amended. the waivers set forth in paragraph 1. above shall be judicially enforceable in accordance with their terms against any insured in an action to recover damages because of bodily injury, property damage or environmental l 'l l

damage to which the policy applies as proof of financial protection.

o 5.

As used hereint i

" extraordinary nuclear occurrence" means an event which the Nuclear Regulatory Commission has determined to be an extraordinary nuclear occurrence as defined in the Atomic Enurgy Act of 1954 as amended.

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

i

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

injury, property damage or environmental damage and also includes his assignees.

legal representatives and other persons or organizations entitled to bring an action for damages on account of such injury or damage.

This is to certify that this is a true copy of the original t

Endorsement hav'.ng the endort,ement numter and being made part of the t udur Energy Liability Pohey (Fi ihty Form) as des-ignated ureon No insu nec is afforde hereunder.

D.

Jahr. L O..

trmchi. Mce Prowkni Unck rwE An.crican Mkar Insurers l

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Efh uive Date of this Endorsement January 1. 1990 To form a part of Policy No. NF-286 12:01 A. M. standard time I

Issued to Gulf States Utilities Company and Cajun Electric Power Cooperative. Inc.

L l

- Date of Issue February 16. 1990 For the S ribing

panics, By _

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'* N Endorsement No.

40 countersigned by NE-33c(1/1/90)

Page 3 of 3 i

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NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION l

Restriction of Companies Oblication to Defend, Investiaate. Neactiate or Settle Any Claim or Suit (section-170 0. of the Atomic Energy i

Act of 1954, as amended)

/

Effectiva August 20, 1988, it is agreed that whenever, pursuant I

to subsection 170 0.

of the Atomic Energy Act of 1954, as i

amended, an appropriate U.S.

District Court determines that liability from a single nuclear incident may exceed the 10,,'t of liability under the applicable limit of liabilit)

'ider subsection 170 e.(1) (A), (B) and (C) of the Atomic Energy Act of

1954, as
amended, the companies obligations under Insuring 1

Agreement I,

to defend, investigate, negotiate or settle any I

claim or suit under the policy do not include any obligation that would necessitate or result in the companies incurring legal

costs, including costs of initiating, prosecuting, investigating, settling, or defending claims or suits, which are not authorized for payment by a court pursuant to such subsection 170 0.

This is to certify that this is a true copy of the original Endorsement having the endorsement nurnbar and bems ma i

of the Nuckar Energy Liabilty Policy Wacihty Form) as des-t isnatet heron No hw. w

N#d bereunder.

J.ihn 1.

, attn (chi, %cc l'rmdent Urr.feruutus Amtwm Wkar hwuters l.

I Effective Date of this Endorsesent August 20. 1988 To fors a part of Polier No.

NF-286 th01 A.M. Standard time Issued to Gulf States Utilities Company and Cajun Electric Power Coooerative. Inc.

l Date of issue February 16. 1990 For the Su ibing Co antes By FRiSIDENT Endorsement No.

39 Countersigned by 1

NE 70

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Nuclear Energy Liabimy insurance o

NUCLEAR ENERGY LIABILITi itiSURANCE ASSOCIATION SUPPLEMENTARY ENDORSEMENT WAIVER OF DEFENSES M OR CONSTRUCTION AT THE FACILITY Effective August 20, 1988, it is agreed that in construing the application of paragraph. 2(b) of the WAIVER OF DEFENSES ENDORSEMENT NE-33b with respect to an extraordinary nuclear occurrence occurring at the

facility, a

claimant who is employed at the facility in connection with the construction of a nuclear reactor with recpect to which no operating license has been issued by the Nuclear Regulatory Commission shall not be considered as employed in connection with the activity where the extraordinary nuclear occurrence takes place its (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 Huclear Regulatory 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.

This a to certify that this is a true copy of the original Endori,cment having the endorsement numbor and being made pa of the Nudcar Encray Liability Policy ( acility Form) as des-ianmet hereon. No Inwrance is aHor bereunder.

John L dracht. We tmdentUnde Anwr,g on uda Insurers Effective Date of this Endorsesent August 20, 1988 To form a part of Policy No.

NF-286 1h 01 A. M. Stanosed time Issued to Gulf States Utilities Company anc Cajun Electric Power Cooperativo, II,c.

t Date of Issue February 16, 1990 For the s ribing

panies, Jy I

M

\\1Fresident Endorsement No.

38 Countersigned by.,

NE.39b

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i Nuclear Energy Usbility Insurance NUCLEAR ENERGY UABluTY INSURANCE ASSOCIATION l

WAIVER OF DEFENSES ENDORSEMENT (Extraordinary Nuclear Occurrence)

[

Effective August 20, 1988, the named insured, acting for himself and every other insured under the policy, and the members of i

Nuclear Energy Liability Insurance Association agree as follows:

s 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 construction, possession, or operation of the facility, or 5

(b) arises out of or results from or occurs in the course i

of the transportation of nuclear material to or from the facility, i

the insureds and the companies agree to waive (1) any issue or defense as to the conduct of the claimant t

t or the fault of the insureds, including but not limited tor (i) negligence, l

(ii) contributory negligence, (iii) assumption of risk, and (iv) unforeseeable int!3vening

causes, whether i

involving the conduct of a third person, or an act of God, j:.

(2) any 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 within three years-from the date on which the claimant first knew, or reasonably could have known, of his bodily injury or

~

l property damage and the cause thereof.

L 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 P

NE-33b Page 1 of 3

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(a) bodily injury or property damage which is intentionally l

sustained by the claimant or which results from a nuclear incident intentionally and wrongfully caused by the claimant; (b) bodily injury sustained by any claimant who is employed at the site of and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits therefor are either payable or required to be provided under any workkfn's compensation or occupational disease laws (c) any claim for punitive or exemplary damages, provided, with respect to any claim for wrongful death under any State law which provides for damages only punitive in

nature, this exclusion does not apply to the extent that the claimant has sustained actual
damages, measured by the pecuniary injuries resulting from such death but not to exceed the maximum amount otherwise recoverable under law.

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 injury or property stamage resulting from an extraordinary nuclear occurrence,. Insuring Agreement IV,

" Application of Policy"c shall not operate to bar coverage for bodily injury or property 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 (20 the date of the extraordinary nuclear occurrenc)e. years after Such waivers shall not apply.

to, or prejudice the prosecution or defense of any claim or portion of claim which is not within the protection afforded under (a) the provisions of the policy applicable to the financial protection required of the named insured; (b) the agreement of indemnification between the named insured and 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 waive shall not preclude a defense based upon the failure of t he claimant to take reasonable steps to mitigate damages.

4.

Subject to all of the limitations stated in this endorsement and in the Atomic Energy Act of

1954, as amended, the waivers set forth in paragraph 1.

above shall be judicially enforceable in accordance with their terms against any insured in an action to recover damages because NE-33b Page 2 of 3

D_

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+

of bodily injury or prcperty damage to which the policy applies as proof of financial protection.

5.

As used herein:

l

" extraordinary nuclear occurrence" means an event which the l

Nuclear Regulatory Commission has determined to be an extraordinary nuclear occurrence as defined in the Atomic Energy Act of 1954, as. amended.

i

" Financial protection" and

" nuclear incident" have the meanings given them in the Atomic Energy Act of 1954, as 1

amended.

}

" claimant".means the person or organization actually J

sustaining the bodily in or property damage and also assignees, jury includes his legal representatives and other persons or organizations entitled to brin for damages on account of such injury or damage.g an action j

I i

This is to certify that this is a true copy of the original I

of the Nuclear Energy Liabihty Policy (Fi e part istatea:Sereon. No inst rance is aHort es-

. hereunder.

w, t.

omn ho we Arnete a th&n Imurces,cona na.u i

Effective Date of this Endorsement August 20, 1988 To form a part of Policy No.

NF-286 12:01 A.M.

Stanoord time i

Gulf States Utilities Company and Cajun Electric Power Cooperative. Inc.

Issued to Date of issue.

February 16, 1990 For the cribing panies By

\\Piesident Endorsement No.

37 Countersigned by

.i

NE-33b Page 3 of 3 s

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