ML20043D900

Forwards Endorsements 137-142 to Nelia Policy NF-140, Endorsements 87-92 to Maelu Policy MF-67,Endorsements 13-14 to Nelia Policies N-9 & N-8 & Maelu Policies M-9 & M-8

ML20043D900
Person / Time
Site:	Peach Bottom
Issue date:	06/05/1990
From:	Cullen E PECO ENERGY CO., (FORMERLY PHILADELPHIA ELECTRIC
To:	NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
References
NUDOCS 9006110260
Download: ML20043D900 (51)

Text

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PHILADELPHIA ELECTRIC COMPANY LEGAL DEPARTMENT Jamon W. Oudem 2301 MARKET STREET, BOX 8699 Paul Auerbach

,%y,,$',fcN"I PHILADELPHIA, PA 19101 N"tENUy" -

(215) 841 5544 FAX: 568-3389

'j'", n b"#

Edward J. Cullen. Jr.

Djarnie R Anderson fa'" ""' Gas o ubra S Legal Adminstrator E. C. Kirk Hall Niml"Jr'y*ie#f."" "

T. %chael Mather June 5, 1990

^"***"' O'"ai counsei :

Document Control Desk U.S. Nuclear Rogulatory Commission Washington, D.C.

20555 Het Peach Bottom Atomic Power Station Unit Nos. 1, 2 and 3 Docket Nos. 50-171, 50-277 & 50-278 Dear Sir Enclosed for your records are_two copies each of the following endorsements:

1. Endorsement No. 137-142, ANI Policy No. NP-140.

2. Er.dorsement No. 87-92, MAELU Policy No. MF-67.

3. Endorsement No. 13-14 (Unit 3), ANI Policy No. N-9.

4. Endorsement No. 13-14 (Unit 3), MAELU Policy No. M-9.

l

5. Endorsement No. 13-14 (Unit 2), ANI Policy No. N-8.

6. Endorsement No. 13-14 (Unit 2), MAELU Policy No. M-8.

Very truly yours,

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h Edward J. Cul en, Jr.

-EJC,JRiss l

Enclosures 90(+'10260 900603 PDh ADOCK 05000171

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i Nuclear Energy Uability insurance

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l NUCLEAR ENERGY UABluTY INSURANCE MSOCIATION i

WAIVER OF DEFENSES ENDORSEMENT' l

(Extraordinary Nuclear Occurrence) l Ef factive August ~ 20, 1988, 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' q

1.

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

j-and which 4

(a) arises out of-or results:from or occurs in the course l

i of the construction, possessi.41, or operation of the

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facility, or l

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

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 i

or the fault of the insureds, including 1but not limited 4

tot i

1 (1) negligence, 1

(ii) contributory negligence, 1

(iii) assumption of risk, and l

(iv) unforeseeable intervening ~

causes, whether l

involving the conduct of a third person, or an i

act of God, (2) any. issue or defense as to charitable or governmental

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immunity, and i

(3) any issue or defense based on-any statute of I

limitations if suit is instituted within.three years fron the date on which the claimant first knew, or i

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 in-the cause of action.

2.

The waivers set forth in paragraph 1. apove do not apply.to 6

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(a) bodily injury or property damage which.is intentionally sustained by the claisant or which results from a nuclear incident intentionally and wrongfully caused by the claimanti (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 workmen's. compensation or occupational disease law; (c) any claim for punitive or exemplary damages, provided, with respect - to any claim for' wrongful death under any State law which provides for 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 maxinua 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 damage resulting from an extraordinary nuclear occurrence, Insuring Agreement IV

" Application of Policy"g 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 clain.is made against the insured not later than twenty years after the date of the extraordinary nuclear.occurr(20)

ence, such waivers shall not apply to or prejudice

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prosecution or defense of any claim,or portion t

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, cf the Atonia nnrgy Act of 1954, as amended.

such waivers shall not preclude a defense based upon the l.

failure of the claimant to take reasonable steps to mitigate i

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 f%YnJLFRJ

c of bodily injury or property damage to which the policy applies as proof of financial protection, i

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 in or property damage ~and also l

assignees, jury includes his legal representatives and.other i

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

1 l

r This is to certify that this is a true copy of the original Endmwment toving the endorsement numbor and being rnade part ;

s des.

of the Nucicar Energy Liability Pacy (Facihty Fm' diorded here.

ignated heicon. No insurance i

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9 Effective Mte of this Endorseaent August 20, 1988 To form a part of Policy No.

NF-140 Ih 01 A.M.

Stanoord ttne 1

Philadelphia Electric Company, Public Service Electric and Gas Co., Delmarva Issued to Power and Light Co. and Atlantic City Electric Co.

Date of issue February 16, 1990 For the cribing panies By j

Plas t

Endors.; ment No.

137 i

Countersigned by HE-33b Page 3 of_3_

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Nuclear Energy Liability Insurance i

NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION h

l SUPPLEMENTARY ENDORSEMENT l

WAIVER OF. DEFENSES REACTOR CONSTRUCTION AT THE FACILITY 8

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.

i 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 operatin has been issued by the Nuclear Regulatory Commission g license shall not be considered as employed in connection with the activity where j

the extraordinary nuclear occurrence takes place it (1) the claimant is employed exclusively in connection I

with the construction of a nuclear reactor, including l

all related equipment and installations at the-facility, and i

(2) no operating ' license has been issued by the Nuclear Regulatory Commission with respect to the nuclear i

reactor, and (3) the claimant _is-not employed in connection with the possession,

storage, use or transfer of nuclear

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material at the facility.

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

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Endorsement hwing the endorsement number and being made part I

of the Nurka Encu]v Liability Policy,(Facility Form) as des-igni x1 hereon. No insurance is affoged hereunder.

L Joh t,la 4\\

i Anwrs Nw.lw huwers t,.

Effective Date of this Endorsement August 20, 1988 i

To form a part of Policy No.

NF-140 12:01 A. m. stanosed time Philadelphia Electric Company, Public Service Electric and Gas Co., Delmarva Issued to Power and Light Co. and Atlantic City Electric Co.

Date of 1ssue February 16, 1990 i

For the s ribing

panies, dy n AL---

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\\ Freside t Endorsement No.

138

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i Countersigned-by L

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~NE.39b r

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i Nuclear Energy Liability insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION

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Restriction of Companies Oblication'to Defend.

Investicate. Neactiate or Settle Any Clain or Suit r

(Section 170 0. of the. Atomic Energy i

l Act of 1954, as amended)

Effective August 20, 1988, it is agreed that whenever, pursuant l

l to subsection 170. O.

of the Atomic Energy Act of 1954 as-i

amended, an appropriate-U.S.

District court determines,that I

liability from a single nuclear incident may exceed the limit of liability. under the applicable limit of liability under l

subsection 170 e. (1) (A), (B) and - (C) of the Atomic Energy Act of 1954,. as ' amended, the companies obligations under. Insuring i

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 prosecuting, investigating, settling, or defending claims or, suits, which are

.I not authorized for payment by a court pursuant to such subsection 170 0.

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Thb is to certify that th% is a true copy of the originn!

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Endorsement hwma the endorsement number and being made part of the Nuclear Enctay Liability Potr > (Facihty Form) as des-iso ted heicon, No 'isurance is a' rded hereunder.

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Job Quat trocc ht,

'te s&nt, j

Arnernen Nudem innters

... a. wwwdi-i Effective Date of this Endorsement August 20. 1988 To fon a part of Policy No. NF-140 l

12:01 A.II. Standard tim Philadelphia Electric Company, Public Service Electric and Gas Co.. Delmarva f

Issued to Power and Light Co. and Atlantic City Electric Co.

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Date of issue February 16. 1990 For the su ibing co antes 1

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By l

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Endorsesent No.

139 h

Countersigned by 44 i

7 NEd0

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Nuclear Energy Wability insurance NUCLEAR ENSRGY UABluTY INSURANCE ASSOCIAT WAIVER OF DEFENSES ENDOREEMENT l

(Extraordinary Nuclear Occurrence) t The named insured, acting for himself and every other insured under the policy, 3

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

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

(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 i-i of the transportation of nuclear material to or from the facility.

t the insureds and the companies agree to waive 4

3 (1) any issue or defense as to the conduct of the claimant or the fault not limited to of the insureds, including but t

(i) negligence.

1 (ii) contributory negligence.

(iii) assumption of risk, and (iv) unforeseeable intervening

causes, whether involving the conduct of act of God.

a third person. or an (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 i

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 in the cause of action.

2.

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

property damage or environmental damage which is intentionally sustained by the i

claimant or which results from a nuclear incident-j intentionally and wrongfully caused by the claimants NE 33c (1/1/90)

Page 1 of 3 I

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(b) bodily injury sustained by any claimant who is

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employed at the site of and in connection with the t

L activity.where the extraordinary nuclear occurrence

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takes place if benefits therefor _ are either payable or required to be provided i

under an compensation or occupational disease law y. workmen's 4

(c) any claim for punitive or exemplary damages.

i provided.. with respect to any claim for wrongful death under any State law which provides far damages only punitive in nature. - this exclusion does not apply to the extent that the claimant has sustained L

-actual damages. measured by the pecuniary. Injuries r6gulting 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 ef fective ' ' only with respect to bodily damage or environmental damage to which the policy appliesinjury. _

under its terms other than this endorsement 8.

j

however, that with respect to bodily injury, provided.

damage or environmental damage resulting from an property extraordinary nuclear occurrence.

the1. provisions of ~

COVERAGES A and C of the polic bodily injury, property damage y providing coverage for environmental damage or caused during the policy period by the nuclear energy 8

hazard and which is discovered and for which written claim is made against the insured' not later-than ten (10) after the end of the policy period shall not years bar coverage for operate to T

bodily

injury, property damage or environmental damage (a) which: is caused policy period by the nuclear energy hazard and' duri ng - the is discovered and for which written claim is made against (b) which the insured not later than' twenty date of the extraordinary nuclear ~occu(20) years 'atter the rrence.

L Such waivers shall not apply to, or prejudice the t

prosecution or defense of which is not within the protection afforded underany claim or. portion of t

(a) the provisions of the policy applicable' to the financial protection required of the named insured (b) the agreement of indemnification between the insured and the h_

named-Nuclear-Regulatory Commission made pursuant to Section 170 of the Atomic Energy Act of 1954, as amended: and (c) of the Atomic Energy Act of 1954the limit of liability provis L

as amended.

Such waivers shall not preclude a defense based upon the -

failure of the claimant totake 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 i

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 because of bodily injury. prcperty dama recover damages j

damage ' to which the policy applies ar. ge or environmental proof-of financial protection.

5.

As used herein t

" extraordinary nuclear occurrence" means an eve nt _ which i

the Nuclear Regulatory Commission has deter 'ned so be.an-extraordinary nuclear occurrence as defined n the Atomic Energy Act of 1954 as amended.

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

as

" claimant" means the person or. organization actually I

sustaining the bodily

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

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

count of such l

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This la to certify that this is a true copy of the original of 'ha Nuder Energy LiabittyEndorsonwnt hav

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art is

'olicy (Fecility Form) as des-rei forded hereunder, 1

.hn L QaMirocthi, Vre President.

t American Nuckm insurers

- rwritrng r

Effective Date of this Endorsesent January 1. 1990 To form a part of Policy No. NF-140 12:01 A. M. Standerd time j

Philadelphia Electric Company, Public Service Elect ic and Gas Co., Delmarva Power and Light Co. and Atlantic City Electric Co.

Issued to D3te of Issue.

February 16, 1990 For the S ribing

panies, l

By

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\\ WM13bsf

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. Endorsement No.

140 countersigned by A

NE-33c(1/1/90)

Page 3 of 3

2 Nuclear Energy Llability_ 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 CEFENSES ENDORSEMENT, NE-33c with respect to an extraordinary nuclear occurrence occurring -at the facility.

a claimar.c who is employed at the. facility-in connection with tk.a. construction of. a nuclear reactor with respect to which no operating license has been issued by the Nuclear Regu3.itory commission shall not be considered; as employed in_ connection with tho'te.tivity where the extraordinary L ;!

nuclear occurrence takes place.it:

(1) the claimant is employed m;iusively 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 luclear Regulatory Commission with respect to the nuclear reactor, and

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

storage, use or transfer of nuclear I

material at the facility.

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

of t% Nurkur Energy Liability P hey (Facih meigd hereon. IJo Inwrmcc i-fforded hereunder.

'- id v'ch vice Penident Aurican Nxiear hsurers trirm

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Effactive Date of this Endorsement January 1, 1990 To form a part of Policy No. NF-140 t

12:01 4. M. Standard time Philadelphia Electric Company, Public Service Electric and Gas Co., Delmarva l'

Issued to Power and Light Co. and Atlantic City Electric Co.

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

/

y' r l

Endorsement No.

141 Countersigned by NE-39c (1/1/90) 4

Nuclear Unorgy Uabilky Insurance; I^

NUCLEAR-ENERGY LIABILITY INSURANCE ASSOCIATION 3

AMENDATORY ENDORSENENT i

(Facility Form)

It is agreed thatl 1.

INSURING ACREEMENT I is replaced by.the followingt.

I C0VERACE A - LIABILITY To pay on behalf of the insured all suas which.the insured t

I shall become legally obligated to pay as covered damages -

i because of bodily injury or property; damage. or as covered environmental cleanup costs because of ~ environmental 1

damage.

This coverage applies only to bodily injury, property damage or environmental damage caused during the policy period by the nuclear energv hazard, i

and which is discovered and for which written claim is inade against tho' 1

insured, not later than ten (10) years af ter the and of l

the policy period.

The companies oha11 have the right and duty to defend any clain or suit ngainst the insured alleging such injury or damage, and snaking damages or costs which are payable under the terma:

such investiga* ion.of this policyt but the companies may make n*gotiation and settlement of the claim or suit at they does 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.

be construed as covered by this policy:which ~in no event shall

)

i (1) damages for on-site property damage:

(2) recovery of on-site cleanup costs or any other cleanup costs except covered environmental cleanup costs:

(3) performance of an insured's~ environmental t

obligations or on-site cleanup obligations: protection (4) or any other relief or recovery except payment of l

covered damages or covered environmental cleanup i

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.

with respect to any claim or suitthe companies.shall pay, incurred in the defense, including they defend.'the costs (1) costs taxed against the insured in any such suit and interest on any judgment thereint i'

(2) premiums on appeal bonds and bonds to release i

attachments in any such suit, but withcut obligation-to apply for or furnish such bondst-2 h

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y (3) reasonable expenses, other than loss of earnings, incurred by the insured at the companies' request.

~v COVERAGE B o

THE FACILITY-DAMAGE TO PROPERTY OF AN: INSURED AWAY i

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With respect to property damage caused during the policy period by the nuclear energy hazard to the property of an insured which is away from the facility. to pay to such insured those suas which.such insured would have been 1

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

C0VERACE C - SUBROCATION - 0FFSITE EMPLOYEES s

(

p With respect to bodily injury caused during the policy 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 atter the end of: the policy period, i

to pay to the workmen's compensation carrier of such insured as followse i

All suas which such carrier would have been entitled to recover and retain as damages from another person or organization, had r.=h par:;on or organisation alone been legally responsible for such bodily injury. by: reason of

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the rights acquired - by subrogation by the payment of the t

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 i

law shall be deemed to be a workmen's compensation carrier -

within the meaning of this coverage.

This coverage does not apply to bodily injury to any t

person who is employed at and in connection with the facility nor shall insurance as required under the laws of any state.it constitute wo 2.

INSURING AGREEMENT II is replaced by the followings i

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 damage.

covered environmental cleanup coats because. of bodily s or the nuclear energy hazard. injury property damage or environmental damage caused by Subdivision (b)

United States of Ararica or any of its agencies,st ova does n the Tennessee Valley Authority.

except Subject to CONDITION 3 and the other provisions of this policy. the against whom claim is made or sul_t is brought. insurance 4

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3.

INSURING AGREEMENT III is replaced by the followingt i

III DEFINITIONS Wherever used in this policy:

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" bodily injury" means bodily injury. sickness or disease.

including death resulting therefrom, sustained by any person.

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" covered damages" means damages because~ of bodily injury E

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

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" covered environmental cleanup costs" means only those environmental cleanup costs which are incurred directly i

for monitoring, testing for, cleaning up, neutralizing or i

i containing. environmental damage as the result of an extraordinary nuclear occurrence or a transportation incidentt but include on-site cleanup costs. covered environmental cleanup costs do not r

A

" 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, but which may also be used for the disposal containing small amounts of-nuclear satorial.of waste. materials

" environment" includes land.

the atmosphere.- and all i

watercourses, bodies of water whether on, above or below the surface of the ground.and natural' resou

" environmental cleanup costs" include all loss, cost or 1

expense arising out of any governmental decree, directive order or (other than an award of covered damages in an action at law)- requiring or requesting a person or organization to undertake or pay for. monitoring, for. cleaning up, neutralizing or containing contaminationtesting 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 u

obligations of any person or organization (1) relating to the protection of the environnert from contamination or imminent danger of contamination.

and i

(2) imposed by any governmental laws.

regulations or l

ordinances.

" extraordinary nuclear occurrence" the United states Nuclear Regulatory Commission has means an event which determined to be an extraordinary nuclear occurrence as 3

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Catined in th3 Atomic Energy Act amendatory thereof.

of 1954 or in any law i

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" governmental" refers to federal, state and local governments and authorities.- including courts. agencies

-i and political subdivisions thereof.

"indemnirled nuclear facilitya means (1)

"the facility" as defined in any Nuclear Energy i

Liability Policy (Facility F issued by Nuclear Energy Liability Insurance orm)

Atomic Energy Liability-Underwriters, orAssociation i

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or Mutual (2) any other nuc3 ear. facility, i

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-if financial. protection i

Atomic Energy Act of 1954 is. required pursuant to the A' th respect to any activitiesor any law amendatory thereof.

theteat.

or operations conducted i

" insured shipment" means a shipment of special nuclear material, source. material.

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spent fuel. waste or wastes produced by the extraction or conc. or tailings i

its source material content. herein called "matu i

entration of.

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l erial."

(1) to the facility from indemnified any location nuclear

facility, but = only if the except - an transportation of the material is-not by predeter '

aination to be interrupted by removal of the material from a

transporting. conveyance purpose other than the continuation of its transpor for any tation, or (2) from the facility' to any other ~ location, but only-until the material is removed from conveyance for any. purpose other that the transporting.

a continuation of its transportation.

" nuclear energy hasard" means explosive or other the i

material, but only if hazardous radioactive,

toxic, properties of nuclear (1) discharged' or dispersedthe nuclear material is at the fa\\

as been relinquish possession or custody thaveo* to any othe

- i person or organisation, or (2) is away from any other nuclear facility and i n

which course of transp includin s;in.the temporary storage ortation.-

incidental thereto.g handling and (a) the territorial limits of the United ftate within a

America, its territories s of Puerto Ricos or or possessions,, or

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(b) international waters or airspace, provided that t

the nuclear material is.in the transportation between two points located withi course. of h

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the territorial limits described in (a) above and 3

there is no deviation in the course of the L

transportation for the pur country, state or nation pose of going to any other i'

except for the purpose of

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going to or returning from a

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as the result of an: emergency. port or place of refuge

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" nuclear f. mi;1ty" means."the facility" as defined in-any l

Nuclear Ena.-

Liability Policy-Facility Form) issued by

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I Nuclear Energy Liability Insuran(ce Association or Mutual Atomic Energy Liability Underwriters.

i facility"~also means The term " nuclear i

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(1) any nuclear reactor.

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

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

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

fabricating or alloying of special nuclear material if at any time tho' total amountof such material in i

the custody ' of the. insured at the premises where such equipment or device is located ~ consists of

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contains more than '25 - grams of plutonius or uranium or.

233 or any combination ~ thereof, or more than 250 grams of uranium 235 l

(4) any structure, basin. excavation, premises or. place

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1 prepared or used for the storage or disposal of waste.

I and includes the site on which any of th' o foregoing is located, all operations conducted on such site and all i

premises used for such operations.

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

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" nuclear reactor" means any apparatus designed or used to sustain nuclear fission or - a self-sustaining chain

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reaction or to contain a critical mass of fissionable

i material.

arising out of on-site cleanup obligations."on-site cleanu

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i "on-site cleanup obligations" include all obligations of i

i any person or organization.

laposed by common law or otherwise, to undertake j

or pay fc.r monitoring, testing for cleaning up. neutralizing or cantaining contamination i

by nuclear material at the facility.

i is on, above or be:.ov the surface of tae ground.Whether the material 1

any property at the facility, whether tn.e property above or below the surface of the ground, other than

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i aircraft, watercraft or vehicles licensed for highway use, i

5 l

I

.. _ m. __

l.

a l

provided such aircraft. watercraft or ' vehicles 'are not used in connection with_the operation of the facility.

h

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

imminent danger of contamination.

" source material."

"special nuclear material."

and i

Atoalc Energy. Act" byproduct material" have the meanings given them of

1954, or in any. law amendatory thereof.

" spent fuel". means any fuel islement or fuel component..

solid or liquid, which has been used or exposed.to.

{

radiation in any nuclear' reactor.

o "the facility" usans the facility described in the l

declarations and includes the location designated in Item 3 of the declarations and all property and operations at -

i such location.

\\

" transportation incident" nuclear material - from an insuredmeans a discharge er dispersal of shipment cau collision' or upset of the transporting conveyance, sed by accident 'that breaks open. _ punctures or ruptures - the or an i

shipping containers : or containmentL thereont but'.only both the discharge or' dispersal andithe collision, upset if or accident.take place away from any nuclear. facility and i

away from any disposal site, and-both occur in the. course of the transportation. including handling and temporary storage incidental thereto.

" 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 Coverage Endorsement IV-A added by the

" Amendment of for Workers claima (Facility Form)"

continues to apply:

IV LIMITED DEFENSE OF PARTIALLY COVERED CLAIMS O The following provisions apply with respect to any-duty to defend has been limited by INSURING AGR,

(1)

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

gy making 6

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

I such a defense, the companies shall not be considered as having waived their rights under this policy to deny payment-or reimbursement of the items not j

covered.

(2)

As soon as practicable, the first named insured.

l acting on behalf of all insureds, and the companies shall endeavor to reach an equitable arrangement for handling the defense and shering the costs thereof.

(3)

The companies' share of defense costs shall 'not i

suceed 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 suit in the absence of any claim or demand for the items not covered.

l (4)

The companies shall have a right to contribution j

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

.i i

companies' share.

including reimbursement by. the

)

first named insured of all such excess costs paid by.

l the companies.

(5)

If the companies and the first named insured cannot agree on the companies' share of defense. costs the-dispute 'shall be submitted. as a condition prece, dent to any right of recovery on this policy. to arbitra-tion for a final and binding resolution, as provided in Condition 19.

5.

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

" bodily injury damage or environmenta) property damage" are replaced by " bodily injury, or i

damage."

6.

EXCLUSION (f) is replaced by the following exclusion:

[This policy does not apply ]

I (f) to on-site property damage 1

7.

In CONDITION 3 and in all endorsetents to this policy i

modifying the dollar amount of the limit of liability stated in Ites 4 of the declarations, the words " bodily injury or property damage" are replaced b property damage or environmental damage."y " bodily injury, 8.

In' CONDITION 4 and in all endorsements to. this policy i

modii'ying the dollar amount of the total aggregate 11abillty of the companies with respect to a common occurrexes 4

(a) the words

" bdily injury or environmental damage"y injury, property damage" are replaced by "bodil property damage or i

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

" bodily injury.

property damage and environmental damage."

l l

7 1

..w -..

.?

'In CONDITISNS 5. 11.'15 and it, and in allL 9.

property damage" are replaced bthis policy relating thereto.

endorsements to damage or environmental damage."y " bodily injury, injury or property 10.

CONDITION 19. DECLARATION 8. is renumbered C 11.

20.

The following CONDITION is added to the policy 19 OF INStAING AGREEMENT IVARBITR4 TION O ON All such disp 0tes subject tol paragraph (5) of INSURING AGREEMENT IV shc11 be submitted to a - Board of (the " Board") foc a final and~ binding resolution of the ration-dispute.

named insured,There shall be two parties'to the arbitration acting on behalf of all insureds as their the first duly authorized r

Liability Insurance epresentative.. and Nuclear Energy Association, acting -

companies as their duly authorized repres.On > behalf. cf the entati,ve.

Except to the extent the parties

(

otherwise the following principles will applysmutually. agree (a)

The arbitration will take' place in New York.

New York, and will be governed by the lawe of th of New York.

(b) e State Either party may begin the process of arbit giving intention to do so andnotice to the other party in ' writing ofration by

.its the name of the arbitrator that it has appointed.

(c)

The 'other party shall then appoint in writing arbitrator and the arbitrators shall appoint in writing an.

an umpire before they be The umpire shall act as chairman gin the-arbitration.

(d)

If a party fails to name its arbitrator within of the Board.

R thirty (3C) days of the other l

request that it do so, the party's written appoint an arbitrator for the party in defaultrequesting ~ party (e) may If the two arbitrators' fail to agree on the they have bothselection of an umpire within thirty (30) been appointed, days after choice shall be made by drawing lots.name two, of w each of then shall (f)

The The arbitrators and umpire shall be executive officers or forner executive officers of companies licensed to do business in the United insurame States or of organizations designated a i

named insured under a Nuclear Energy Liability Poli s the first issued by Nuclear Energy Liability ' Insurance Association cy or Mutual Atomic Energy Liability Underwriterst provided that the current employees of the following 1

shall not be eligible for service without the consent of both parties 8

9

s.

1

)

(1) any party or likely party to the underlying claim or suits-(2)

American Nuclear Insurers.

MAERP Reinsurance j

Association or thir members: or (3) any other insurer or reinsurer which has casualty inhurance or reinsurance in force on any of the foregoing which may be materially l

affected by the Board's decision.

)

(g)

Within thirty (30) days after the appointment of the

[

umpire, each party shall submit its case in' writing to the Board.

The' Board shall determine its rules of procedure, and.

{

(h) 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 witnesses and argument shall be completed i

within sixty (60) days of the appointment of the umpire, provided the Board may grant one extension of thirty (30) days.

(1)

The arbitrators and the umpire are not to be bound by-4 any strict rules of legal-procedure.

evidence or

^

legal precedents.

They shall. however, be. governed 1

to add to or change its provisions.by the terms.of this po

~ subject to this

{

admonition, they 'shall interpret ;the relevant provisions of this policy. as _ an honorable business 1

agreement, and shall be entitled to decide.

in i

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 period, including )any i

extension l

paragraph (h) above.

granted, described in (k)

If the Board fails to make an_ award within the time ~

prescribed by paragraph (j) above. then unless an

+

extension is agreed to by_ the-parties, a new arbitration shall be commenced. and completed. in 1

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

(1)

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

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

and may be filed or confirmed in any court of-competent jurisdiction, state or federal and judgment ~ thereon entered and enforced, in accor.

with the law and practice of the forum.

dance 9

i

.~..

9 (m)

Unless the 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 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 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 i

of this endorsement stated below.

I i

This is to certify that this is a true copy of the original Endorsement hedng the endo,sement numbar and being made part e the Nach Energy Uubidtv Pdicy (Facility Form) as des-6.nd henmn, bio insurance is arded hereunder.

. s M..M m/~,

1/i s

..aa husar m,uers n

10 Effective Date of this Endorsement January 1. 1990 To form a part of Policy No NF-140 12:01 A.M. Standard Time Philadelphia Electric Company, Public Service Electric and Gas Co., Delmarva Issued to Power and Light Co. and Atlantic City Electric Co.

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

i P

IDENT Endorsement No_

142 countersigned by ii?-71 (1/1/90) i 1

m

-.-,_m_m_..,

_---_________---...______m c

-i ry e

L Nuclear Energy Liability' insurance I

MUTUAL ATOMIC ENERGY UABILITY UNDERWRITERS WAIVER OF DEFENSES ENDORSEMENT (Extraordinary Nuclear occurrence) l Effactive. August 20,

1988, the named

insured, acting for himself and every other insured under. the policy, and the

- r members of Nuclear Energy Liability Insurance Association agree

'i as follows:

1.

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

(a) arises out of or results from or occurs in thr course l

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 tot (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 l

governmental immunity, and (3) any issue or defense based on any statute of I

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 in the cause of action.

2.

The waivers set forth in paragraph 1. above do not apply to ME-33b Page 1 of 3

.m

I e

l (a) bodily injury or property damage which is intentionally sustained by the claimant or which results from a nuclear incident intentionally and wrongfully caused by the claimant; (b) bodily injury sustained by any claimant who is employed at the site of and in connection with the 1.

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; (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 f rom. such death, but. not to exceed the i

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 damage resulting from extraordinary nuclear occurrence, Insuring Agreement an IV,

" Application of policy" shall not operate ta bar i

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 3

i claim is -made against the insured not later than twenty (20) years after the date of the extraordinary nuclear occurrence.

l 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 Cor. mission made pursuant to Section 170 of the Atomic Energy Act of 1954, as amended; and I

(c) the limit of liability provisions of Subsection 170e.

{

of the Atomi c Energy Act of 1954, as amended.

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

ME-33b Page.2 of 3 l

?

i 4.

Subj0ct to all of 'the limitations endorsement and in the Atomic Energy Act of 1954as stated in this be judicially enforceable - in accordance with a

against any insured in an action to' recover damages g

e r terms policy applies as proof of financial protection c

the 5.

As used hereint

" extraordinary nuclear occurrence" the Nuclear Regu atory Co extraordinary nu has dete ined to ce an Energy Act of 1954, as amended.rence as defined in'the Atomic

" Financial protection" and- " nuclear incident" h a v e - t meanings given them in the Atomic Energy Act of 1954 amended.

, as

" claimant" means the person -or sustaining the bodily injury or property damage: andorganization a includes his assignees, legal representatives and other also damages on account of such injury or damagepe j

on for i

i

\\

t Thlo b to certify that this is a true copy of the original Enckrwmem havina the endorsement number and being made ptt c' tb Mirce.t Encrey Liabliity P Aicy (Focility Form) as detr ipsi herson. No Insurance i affolded hereundu.

_ 3 _%

1.

aithe

.d l

Effcetive Date of this Endorsement _ August. 20, 1988 4

To fors a part of Policy No. _MF-67 12:01 A.M.

Stannard time i

Fower and Light Co. and Atlantic City Electric CoP 1ssued to as Co., Delmarva Date'of issue _

February 16, 1990

_ Por the Subscribing Companies NtFFDAL ATOMIC DGmGY LIABILITT 13Oct By _

Endorsement No. __

87

_A Countersigned by-

{

=

ME-33b' i

Page 3 of 3

--er

D e

Nuclear Energy Liability insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS SUPPLEMENTARY ENDORSEMENT WAIVER OF DEFENSES REACTOR CONSTRUCTION AT THE FACILITY i

~ Effective August 20, 1988, it is agreed that in construing.the' i

application of paragraph 2(b) of the WAIVER OF' DEFENSES' ENDORSEMENT ME-33b with respect to.an extraordinary nuclear -

occurrence occurring at the employed at the facility in conn. facility, a

claisant who is ection 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 it i

(1) the claimant is employed exclusively in connection with the construction 'of a nuclear reactor, including all related equipment and installations at the i

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 empicyed in connection with.the possession,

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

lhh, is to certify that this is a true copy of the oripal L

F.ndorshment howing the endorsement number and

v.

• Nuc' car Dictw Liabi' s Po!;cy (Facihty form) as des-gi. tcd ha t N, '~ntr a is efforded bewunder.

~

]

Jonn L Qw/adv. N ihn mi xlerwriting Amerwan Ndear inmrnrs 4

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

MF-67 12:01 A.M.

Standard time Philadelphia Electric Company, Public Service Electric and Gas Co., Delmarva Power and Light Co. and Atlantic City Electric Co.

Issued to Date of issue February 16, 1990 For the Subscribing companies MUYllAL ATOKIC BEnlGY LIABILITY INest 1-nn Endorsement No.

88 Countersi,tned by a

ME 39b

Nuclear Energy Liability insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS Restriction of Connanies oblication to Defend, Investicate. Noactiate or Settle Any Claim or Suit (Section 170 0. of-the Atomic Energy Act of 1954,'as amended)

Effective August 20, 1988, it is agreed that whenover, pursuant' to subsection 170 0.

of the Atomic Energy Act ofs 1954' as

amended, an appropriate U.S.

District Court determines that liability from a single nuclear incident may exceed the limit of i

liability under the applicable limit of liability under subsection 170 e.(1) (A), (B) and (C) of the Atomic Energy Act of

1954, as

amended, the companies obligations under Insuring Agreement I,

to defend, investigate, negotiate' cr settle any claim or nuit 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 sutts, which are not authorized for payment by a court pursuant to such subsection 170 0.

This in to certify that this is a true co;v of the original Endorsement having the endorserrynt number and being made art

. the Nuckar Energy Liabihty lyfey (Facihty Form) es dcs-i alet on rded lwrcunder.

I John L Quattrocchi, Vwe Preskjent Underwntire I

Ananun Nuclear lasurers iiiiUib,:

Effective Date of this Endorsement August 20, 1988 To form a part of Policy No. MF-67 12:01 A.It. Standard time Philadelphia Electric Company, Public Service Electric and Gas Co., Delmarva Issued a Power and Light Co. and' Atlantic City Electric Co.

Date of issue February 16, 1990 For the subscribing Companies MFFDAL ATOIIIC ElWBST LIABILITT WIDERWRITERI By

• D e Mn_

i Countersigned by

(

Endorsement No.

89 HB 70'

v m

1-4 Nuclear Energy Uability insurance MUTUAL ATOMIC ENERGY UABluTY UNDERWRITERS WAIVER OF DEFENBER ENDORREMENT (Extraordinary Nuclear Occurrence) g The named insured, acting for himself and every other insured

~

under the policy, and the members of Nuclear Energy Liability Insurance Association agree as followat 1.

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

(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 toi, (1) 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 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 propsrty damage and the cause thereof.

j 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 n

I (a) bodily

injury, property damage or environmental damage which is intentionally sustained by the claimant or which results from a nuclear - incident intentionally and wrongfully caused by the claimant 1

ME-33c(1/1/90)

Page 1 of 3 j

v

/

g,.

t i

l I'

(b) bodily : -injury sustained by; anyicialmant ' who ~is employed at the site of and-in' connection' with - the l

L

' activity where the extraordinary nuclear occurrence takes place if benefits _ therefor; are either ' payable j

l-or.. required to be provided under any: workmen's:

4 compensation or. occupational disease. law t

(c) ' a ny. claim _ f or-punitive or ' exemplary damages.:

.,I

,provided.

with respect to any claim ' for - wrongful, death-under-any. state law which provides-foridanages

'only punitive in' nature, this exclusion; does ' not l

~ apply to the extent -- that the claimant has ' sustained _

l a

i actual: - damages -- measurado by: the pecuniry injurles' resulting: from. 'such, death but--notto exceed the 1

h

-maximum amount otherwise recoverable under.~1aw..

a 1

3.

The waivers. set forth _ 'in. paragraph

.1,' _ above shall be:

i

[

offective fonly: with.-respect to ; bodily injury, property j

damage or environmental.damageLto which the policy applies l F

.under : -its terms other.than this endorsement: provided.a

however, that with respect to bodily _ Linjury.

property-damage or environmental damage; resulting' from cn j

g extraordinary nuclear occurrence, the provisions 'of

COVEILAGES A and C sof< the policy - providing : coverage for:

bodily injury, property? damage' or. environmental;. damage l

. caused-during the _ policy period. by the. nuclear energyJ hazard and which is discovered-and for which written claim!

j

! C made 'against ~ the insured ~ not -later. thant ten L(10): years; n '.or the and. of E the policy perd od shall not ' operate to l

oar coverage for-bodily

injury, property damage- _or-environmental' 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 date of the extraordinary nuc. twenty (20). years ' af ter the i

lear occurtence.

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) tho' 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.

i pursuant to Section 170 of the. Atomic Energy : Act ~ of 3

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

of the Atomic Energy-Act of 1954. as amended.

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

l ME-33ct(1/1/90)

Page 2 of 3 l

t r

u

l J

4.

Subject to all of ~ - the c litiltations: stated in this endorsement and in thel Atomic; Energy. Act of 1954 as amended, the. waivers ~ set forth iniparagraph 1. above.shall be 3 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 7 as proof of protection.-.

financial i

-5.

As used herein:

" extraordinary nuclear. occurrence"- meansD an = event ' which' I

.i the Nuclear Regulatory Commission has' determined to be an-extraordinaryinuclearfoccurrencelas definedJin:the Atomic

' Energy-Act of 1954, as amended.'

q

. t

" Financial protection" andi " nuclear incident" have-the meanings given thsm in the Atomic Energy Act-of amended.

1954, as l

" claimant"-.means the person _ or organizationt actually-sustaining. the-bodily. injury, property Ldamage or environmental : damage and also includes h assignees, entitled to bring an acand-othere persons :or is legal representatives.'-

organizations--

l injury'or damage.

tion for' damages:onJaccount of such

-3

}

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

c c Nrdo Energy Uability F licy (Facility Form) as des-nu nereon t i Irm ~ ~ i dorded hereunder.

.T.

.N

- I L Qutunecia. Vic e President / nderwriting Am.aan Ibdeur Inwrets -

Effective Date-of i

this Endorsement January 1, 1990 4

To fors a partfof Policy No.

MF-67 j

12:01 A.N Standard time Philadelphia Electric Company, Public Service Electric and Gas Co., Delmarva-Issued to Power and Light Co. and Atlantic City Electric Co.

Date of issue February 16,'1990 For the Subscribing Companies MtrtuaL ATONIC ENERGY LIABILITY IBIDERURITERS By 8.

C Endorsement No.

90 countersigned by I

ME-33c (1/1/90)

Page 3 of 3 i

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e s

L Nuclear Energy Liability _ insurance MUTUAL ATOMIC ENERGY-LIABILITY. UNDERWRITERS' SUPPLEMENTARY. ENDORSEMENT.

-WAIVER'OF DEFENSES REACTOR CONSTRUCTION AT THE FACILITY-

- I t-is agreed - that in construing ~ the application ;- of E paragraph 2 (b) - of _.the WAIVER OF DEFENSES ENDORSEMENT NE-33c - with respect.

to -. an extraordinary nuclear occurrence occurring 0 at'~ the -

facility a

claimant-who 'is -employed at the ; facility _- in.

connection with the construction ofc a nuclear reactor _ with

-t respect to which no operating. license has been issued ' by the' Nuclear Regulatory Commission shall. not be. consideredL as employed in connection with the activity where: the: extraordinary

{

nuclear ~ occurrence; takes. place if:

(1)-

the claimant is > employed exclusively =in connection with the construction of a; nuclear reactor, including all.related. equipment 'and- -installations at~ the i

facility, and (2) no operating license han beenl issued _ by the Nucleari

-Regulatory Commission. with respect to ithe _ nuclear reactor, and (3). the claimant is not em storage.... ployed in ' connection Dwith the possession, use cot transfer of nuclear material at the-'f acility.

This is to certfy this thie is a true copy of the original x

Endorsement faving the endorsement numbor e,nd being made part of the Nu&ar May lisbility I licy (Facility Form) as des-inate i hareon.1'h,Mhg inded hereunder.

3,l-

$, Qt i

' L Qwwa.hl, h President Underwriting Anwaan Nudm Imurers Effective Date of this Endorsement January 1, 1990 To form a part cf Policy No. - MF-67 12:01 A.M. 'stanoord time Philadelphia Electric Company. Public Service Electric aad' Gas Co., Delmarva Power and 1.ight Co. and Atlantic City Electric Co.

Issued to Date of-issue February 16, 1990 For-the subscribing companies-MUTUAL ATOKIC ENERGY LIABILITY IBIDER

~

s.aw

)

Endorsement No.,,_91 Countersigned by

[

ME-39c (1/1/90) t

. 1

- t a.

Nuclear Energy'. Liability insurance s

MUTUAL ATOMIC ENERGY LIABILITY' UNDERWRITERS AMENDATORY ENDORSEMENT i

It is agreed that:

1.

INSURING AGREEMENT I is replaced by the following:-

I COVERAGE A

. LIABILITY-

]

1 To pay on. behalf of.the insured-all sums which the insuredi shall become. legally obligated to pay,as covered ~ damages because of bodily injury or property; damage', or: as covered'

-[

s

-environmental. cleanup : costs - because. : ofenvironmental damage..

This~ coverage' applies only to bodily' injury, property damage or environmental damagei caused. during-:the policy period by - the ' nuclearJ energy hazard, and; which;is discovered and for which written claim is made against-tho' insured, not ~1ater' than : ten. (10). years : after the and of '

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 4

seeking' damages or costs

• which are - payable under the. terms of this policy: but theicompanies;may make-such investigation negotiationc and ) settlement : of the claim or suit as they doen expedient.

The - companies '

duty to defend ' shall. be limited, 'as described in INSURING AGREEMENT IV, if the'clain~or suit.

also seeks.any of ~ the fo11owing, whichtin no event shall be construed as covered by this policy 1 j

(1) dasages for on-site property; damage (2) recovery of: on-sits cleanup costs - or iany.. other.

[

cleanup costs. except covered environmental cleanupf costs (3) performance of : an insured's environmentaic protection obligations or.on-site cleanup obligationst or (4) any,.other relief or recovery. except payment of covered - damages or covered. environmental cleanup.-

costs.

The companies' duty to defend claims or suits ends when I

the limit of their liability has - been exhausted pursuant-to CONDITION 3.

.l t

'1

-Subject to INSURING AGREEMENT IV, the companies shall pay.

l with respect to any claim or suit they -defend.,

i incurred-in the' defense. including-the= costs (1) costs taxed against the insured in any such suit and interest _on any, judgment therein4 (2) premiums on appeal bonds and bonds to release attachments in any such suit, to apply for or furnish such bondstbut without obligation H

a.-

- -- - '~'

' ~ ^^~^ ^ ^ ~

=,

(3)~-

reasonable expenses.

other ' than loss of : earnings, E

incurred by~the insured at'tho' companies' request.

i i

COVERAGE-B - DAMAGE TO PROPERTY, OF i AN' INSURED AWAY : FRON.

THE FACILITY With respect te' property damage 1 caused during the1 policy

- period by the nucJear; energy hazard to the : property. of '.an.

insured which '. is as'ay from the facility. - to pay to such insured those - suas which - such insured would have been 1egally obligated to: pay..as covered' damages. therefor.:had such: property. belonged to.another.=

~

COVERAGE C - SURROGATION--~0FFSITE EMPLOYEES With respect to bodily. injury n caused - during: the policy:

period by the nucisarc energy' hazard to any employee of anL

~

insured, and which is. discovered and for which written claim is made against the ~ insured. not'Llater than ten. (10)'

1 years : atter the and-of then policy: period. to pay to the d

workmen's compensation carrier of-such insured.as followst.

All sums-which such carrier would have been' entitled to recover and retain -as damages from another person or, organization, had such person or organization l alone been' legally responsible J for such bodily-. injury.; by reason ~ of--

the rights acquired by subrogation byL the payment of the.

benefits required of. such ~ carrier under thet applicable workmen's. compensation or ? occupational disease 1 law.

-An-employer who is a' duly qualified? self-insurer Junder.such law shall be deemed to'be.a workmen's. compensation carrier within the meaning.~of this: Coverage _.

' t This covarage does not apply to 1 bodily ' injury te. any

'l person who is : employed at and ' in connection with the l

facilityi nor shall '. it constitutei workmen's. compensation 1 insurance as required under the. laws of-any state.

2.

INSURING' AGREEMENT [II isEreplacedIby the fo11owing1-i

)

II DEFINITION OF INSURED i

The unqualified word

" insured" includes a) the named i

insured and (b) any other person' or -orga(nization' 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.

j 31 1

{

the nuclear energy hazard, a

Subdivision (b) above does not, include as an.. insured' the United States of America or any of its agencies, except i

the Tennessee Valley Authority.

Subject to CONDITION 3 and the other provisions of this-l h

policy, the insurance applies separately to each insured

[

against whom claim is made or suit is brought.

t 1j; 2

i

. ~.

~3..

, INSURING AGREEMENT III,is replaced'by the-fcllowing: -

III DEFINITIONS.

Wherever used in this policy:-

" bodily injury" means bodily-injury,- sickness or disease-includin person. g death resulting _ therefrom, sustained by-any, j

" covered damages" means' damages because of bodily inju or property damage to which this policy applies: _but a

ry covered damages do not includes or on-site cleanup costs.

environmental cleanup costs

" covered environmental

]

environmental cleanup costscleanup costs". means only those for monitoring,-testing for, cleaning up,-neutralizinwhich are 1 incurre containing environmental:

g or extraordinary - nuclear. occ; damage- - as the result of incidents but covered environmental' eleanup dosts do an urrence or at transportation.

include _on. site cleanup costs.:

not-

" disposal site" I

means any-' structure, basin

^

i promises or place -prepared disposal of waste materials of a general naturea - dump or

.s-excavation,'

as ite for the 1

may also - be-used for the = disposal of: waste materials-

, but:which-containing.small amounts of nuclear material.

i

" environment" includes- - land., the e.tmosphere.--.and 1

watercourses bodies of water whether on, a,bove:or below the. surface of=the groundnatural re and all-1

" environmental cleanup costs" 1

include all ' loss expense arising out of any governmental decree, o d directive icost or I

(other than an awi.rd of covered-damages ~ er-or

.- r action-at law)- requirin in -- an organization to undertake g; or requesting a person or-i for, cleaning up c.r pay fori monitoring, m testing of the environmen,t, whether the contamination is on or below the surface of tho' ground.

+

, above ment by nuclear material." environmental damage" means contam environ-

" environmental protection obligations of any person or organizationobligations" include all (1) relating to the protection of contamination ~ or imminent the environment - from danger of and contamination,-

(2) imposed by aay ordinances.

governmental ' laws, regulations or

" extraordinary nuclear occurrence" tho' United means an event which States Nuclear determined to be an extraordinaryRegulatory Commission has nuclear occurrence'as

)

3 1

e defined in the Atomic Energy Act of 1954, or in any law l

amendatory thereof.

• governmental" refers' to = federal.

' state and local governments and authorities, including courts, agencies ~

and political subdivisions thereof.

" indemnified' nuclear facility" means (1)

"the facil'ity" as ' defined - in any Nuclear' Energy Liability ~ Poli,y '(Facility Form)- issued by Nuclear -

Energy Liability Insurance Association or Mutual Atomic' Energy Liability Underwriters, or-(2) any other nuclear facility,:

j a

if financial protection-is required pursuant. to the Atomic Energy Act of 1954; :or-any law amendatory; thereof.

3 with ' respect to - any activities _or operations conducted thereat.

" insured shipment" means a shipment of. source L material, special nuclear material, spent fuel.. waste. = or tailings =

4 or wastes producedn by, the extraction or - concentration of uranium or thorium i from.' any ore l

processed - primarily. for 1

its-source material content, herein called " material "-

(1) to t hi.

facility from.a ny. location - except. an ~

indemnifled nuclear : facility.

but only~ if the transportation-of the. material -is not by predeter-mination to be_ interrupted :byf removal.- of._the-material' f rom "a transporting conveyance for any 1

purpose.other than the continuation-o~ flits ltranspor-

-tation, or J'

(2) fron-the facility to ' any other.'. location. -but only-until.the material is' removed from a.- transporting conveyanca for any purpose other. than the i

[

continuation of its transportation.

" nuclear ens; gy hazard" means the. : radioacitive.

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 otb6c-i person or organization, or (2) the nuclear material is. in an insured shipment which is away from any other nuclear facility and ir in the t

course of transportation.- including handlins n'nd r

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

America, its territories or-possessions, _ c?:

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

4 1

........-.m o,.

- j

l

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L i

the territorial limits described ' in a ' above and i n. t he -. c o(u r)se ' of -

there

'is, no. deviation-the.

transportation for the-purpose of going-to any other g

o country.- state-or ~ nation.. excepti for' the purpose of 3

going to or: returning 1fros'a p

. as the result of an emergency, port or: place ofs refuge:

i

" nuclear f acility" means "the facility" as Ldetined: in :any ;

L Nuclear ; Energy Liability Policy (FacilityL Form) ~ issued by L

Nuclear Energy Liability Insurance Association; or - Mutual Atomic Energy Liability Underwri%rs.. < The - term " nuclear-facility" also means L

(1) any nuclear reactor.

l (2)- any equipment or device designed orLused(for 1

(a).

separating the= isotopes ~of uranium or plutonium.:

(b).

processing or utilizing spent; fuel, orr

,j (c) handling, processing or packaging waste _.

s (3) any : equipment or. device; usedL for thei processing' i

fabricating or alloying of-special: nuclear material if.at any, time the total?amountLof such material-in:

')

the

)

custody of the insured at? thel premises where-i auch equipment or devicer is : located 7 consists of 'or contains'more than-25 grans?:of plutonium-oriuranius' 233 or any. combination-thereof.: or more - than ; 1250 l

grams of-uranium:235..

(4)- any structure, basin. excavation. - premises or place' "a

prepared or used 'for. the. storage or: disposal of:

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

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.

1

" nuclear reactor" means anyLapparatus1 designed or;used to-Ji i

sustain nuclear-fission or a

self-sustaining: chain l

i 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 -all obligations -of 4

any - person-or. - organization. = imposed L by common law or J

i otherwise, to undertake or. pay for monitoring. - testing.

t for, cleaning up, neutralizing-or containing, contamination-by nuclear material at'the facility,Ewhether the material is on. above or below the surface of the ground.

t "on-site - property damage" ' includes call property damage to -

any property at the facility, whether the property is on, above or below the surface of the ground.

other than -

i aircraft, watercraft;or vehicles licensed for highway use.

{

5 e

a

1.'

}

provided 'such aircraf t, ' watercraf t :

'used in connection with!the' operation of'the facilit or vehicles are not e

y.

" property; damage"' meansi physical' injury to orL destructi or radioactive contamination of-property, and loss of use on of. property so injured, destroyed or losst of. use - of property' while; evacuated or withdrawn from -

1 contaminated, and use because possibly sot contaminated or because of imminent' danger of. contamination.

n

" source' material,"

". special. nuclear

' byproduct material" 'have? the meanings ' given them i i

material,"- and=

1 Atomic Energy-. Act of

1954, or:.in any law

- n:the-

'. the reof.

amendatory j

" spent : fuel" means' any fuel element I

solid ~or.

liquid which -. has ~ been or fuel ' component. -.

radiation'in any.n,uclear: reactor.

used or exposed to

'"the.

f acility" means Lthe-facility described' in~ the

- i declarations and includes the_ locationdesignatedLi 3 of the-declarations-and all property and operati n Item:

such location.

ons at

" transportation incident" means : aJ discharge or dis

.of nuclear. material-from an insured shipment persal collision.: or' upsetx of the -transporting-conveyancaused -' by accident that breaks ce, or-an shipping containers or -openi punctures. or ~ ruptures.

the both-the' discharge ~or= dispersal 1andcontainment J thereon a but - only or = accident take: place. away from any! the collision, up? if set of the transportation,. including -handlingaway-from and both occur in the co and.

nuclear facility storage incidental thereto.-

urse 1

and temporary

" waste" means any waste material (1) containing^ byproduct material and (2) resulting from - the _ operation. by.a.ny person: or the-definition > of nuclear facility under paorga 4

(1) or (2) thereof.-

n ragraph 4.

INPURING, ACREEMENT IV is INSURING AGREEMENT IV-A added by the

" Amendment of replaced '. by the following and Coverage Endorsement continues to apply:-

for Workers claims- (Facility Form)"

IV LIMITED' DEFENSE OF PARTIALLY COVERED-ITS-The following provisions partially covered claim or suitapply with respect to-any duty to defend has been limited by INSURING AGRfor which the comp EEMENT It (1)

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

insured mutually By making 6

.I

>m

.c such a defense, the companias,shall not'be? considered-having waived their rights.. underf this-policy to as:

deny payment or reimbursement ;of: the< items not covered.-

7 e

(2)

As soon as; practicable. -.the. first1 named - insured, acting on behalf of all. insureds, and the. companies.

shall-endeavor _to reach;an; equitable: arrangement for:

handling therdefense and sharing the: costs thereof.-

l' (3)- The: companies' share of - defense costs : shall not I

~

exceedf the portion. of L the'. total-defense costs.that represents the costs 1 which would be reasonably; and necessarily n incurred in the defense. of 1the - claim or-suit in the _ absence of any! clain _or-~_ demand" for the items not covered.

a (4).The companies shall.- have. a :. right _ toi contribution from the first : named' insured for< all; defense mosts as -

t they ~ are incurred in ' excess ofi the ; amount of f tM companies': share.. including, reimbursement iby1 the i

first named insured:of.all.such excess costs l paid-by the companias.

4

'(5)

If the companies and : the first named finsured Ecannot i

agree on the companies'. share, of defensei costs,_ ~ the dispute shall be submitted.-as a condition l precedent a

to^any right of recovery'on this policy. to;arbitra-3 tion for a, final and bindingsresolution..as provided' in Condition =19.

{

5.

In EXCLUSIONS _ (d) and;(e), and: inia 111 endorsements ' to this -

~

i policy. relating

thereto, the. words- " bodily: : injury or-property damage" are replaced" by "bodilyJinjury, property

~

damage.or environmental damage."

6.

EXCLUSION (f) is replaced'by.the)following exclusiont (This policy does not. apply:)--

e (f) to on-site property.damaget:

7.

In-CONDITION 3 and.'in = all. endorsements 9 to this ' policy modifying the dollar amount. 'of 1the. limit of liability stated in injury -or p. Item '4 of the declarationsi the wrds " bodily roperty damage" are replaced b

(

property' damage or environmentaltdamage."y " bodily injury,

_l o

L 8.

In CONDITION 4 and in all endorsements to this policy modifying the dollar amount of ' the total-aggregate liability of the coepanies with. respect to a common occurrence:

(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_

l replaced by

" bodily

injury, property damage and environmental damage."

o 7

i

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i

0:

i

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.. as.a l,

l'-

9.

-In CONDITIONS 5.n11. 15'andt18. and'in allsendorsements,to this. policy relating _thereto, the words4" bodily injuryLor-3

.)

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

10..

CONDITION = 19 DECLARATIONS.- and CONDITION 20 NUTUAL=

POLICY' CONDITION, are renumbered CONDITIONS 20 and.21.-

11.

The following CONDITION l's-added' to the policy:;

ARRITRATION. OF DISPUTES-I 19J OF INSURING _ AGREEMENT IV RELATING To -- THE APPLICATj All such disputes subject to ' paragraph: (5)= of INSURING:

AGREENENT-~IV shall be submitted to a Board of Arbitration-(the " Board") for a1 final and" binding, resolution of the dispute.

There-shall,be two parties to the arbitration:.

the!first named-insured, acting on behalf? of all. insureds ;asitheir l

duly authorized representative.

and ' ' Nuclear; Energyi

~

Liability rInsurance Association. -' acting on i behalf 1 of1 the companies.as their duly authorized representative.

i Except to the extent - the ' parties _ mutually agree otherwise, the following principles will apply -

V (a)

The -arbitration will take < place -lin New York.' New

)

l York. -and' will be governed by J thellaws of the-State -

of New York.

i (b)

Either party'may begin the process:of< arbitration by-giving ' notice' to ' the other -- party in: writing Tof Dits:

i

. intention to do so andJ the name of the : arbitrator-1 o

that it has appointed.

(c)

The ' other party shall-then appoint in writing-an arbitrator, and the arbitrators. sha11x. appoint in 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's: written request that it-do so. 'the appoint an arbitrator for the party in default. requesting party-may (e)

If ' the, two arbitrators fall to-agree-on 'the j

selection of an umpire within thirty (30) : days Jafter-they have both been appointed. - each _ of: them shall -

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 U :ensed 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.

Underwriterst 1

provided that the current employees of-the following shall not be eligible for service 8

'(.

i e

0 1

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 any of the foregoing which may be materially affected by the Board's decision.

(g)

Within thirty (30) days after the 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 1

i 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, I

hearing of witnesses 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.

(1)

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 admonition, they shall interpret the relevant provisions of this policy as an honorable business agreement, ated 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 period, including any extension granted, described in paragraph (h) above.

(K)

If the Board fails to make an award within the time I

prescribed by paragraph (j) above, then unless an extension is agreed to by the parties, a

new arbitration shall be commenced acu completed in accordance with the procedure set out in paragraphs (a) through (j) above.

(1)

The award of the Board signed by any two members l

shall be final, not subject to appeal and binding on

{

all parties, including all policy and all insureds thereunder. insurers subscribing the The award shall

{

be treated as a matter involving interstate commerce, and may be filed or confirmed in any court of competent jurisdiction.

state or

federal, and judgment thereon entered and enforced, with the law and practice of the forum. in accordance 9

T-mr

.y4 i

.s.

(m)

Unless the; Board decides otherwise.feach-' party shall-.

pay the expenses ~. of '. the arbitrator appointed byJor-

'f or it and one half 'of' the. other ' costs' Tor arbitration.-

(n)-

If-an arbitrator.or umpire is:unableLoriunwilling'to act. a new arbitrator. or ' umpire ~ as the! caseL may be.

shall. be appointed - to act in J. his or her - place.1 in.

4 accordance,with the provisions set forth above.

(o)

All materials relevant - to the 'arbitrationM shall ~ be submitted to. the Board in ; triplicate andi-the, filing.

. party shall-send' simultaneously a' copy-thereof4to.thet j

opposing party.

I L

12.

This endorsement applies to all claims;for damages. co.-sts.:

expenses or other relief-or recovery for.which: coverage'is' l.

sought - under. this policy, and '.which are first made :in:

l writing:against any-insured on.or after the effective datel It

'of this endorsement-stated below.

i

.i l

I 1

i

. Thk is to mWy that this is a true copy of the ongnal n

!!ndor, ment having the endorpment numbor and.bcing made s rt 1::r Encrav Uabdify Pokv (Facility Forn0 as des-u vv Nw.ma. t.o insurance is affe dcd hereunder, ign

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.m W

/mw wum.

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i I

10 Ef fective Date of i

4

.this Endorsement January 1. 1990 12:01.A.M. Standard Ties

-To form a part of Policy No. MF-67 1: sued to' Philadelphia Electric Company, Public Service Electric and Gas Co., Delmarva Power and Light Co. and Atlantic City Electric U0.

Dato of lasue February 16. 1990 For the Subscribing companies MUTUAL ATOMIC ~ENRRCY LIABILITY UND WRITERS By l

Endorsement No.

92 Countersign d by_

Av

.ME-71(1/1/90)

Auth f1*ed Representative

d[ of,,

1 4

1 Nuclear Energy. Liability. Insurance' NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ENDORSEMENT TO CERTIFICATE NO. 'N-9 Forming Part of Master.-Policy.No. 1L

-)

Nuclear EnergyfLiability Insurance n

(Secondary Financial Protection)

It is agreed that effective' August 20, 1988:

t I '. )

Subparagraph (c) on Page 1 of the~ certificate is. amended-to

' read-as follows:

1 (c) to bod 11v iniury or crocerty damaae

[

(1) with. respect to which the 'orimary financiali orotection described in Item 4 of.the '. Declarations.

would apply.but for 3

(i) exhaustion of: its limito of liability, as-described :in ; condition. 6-:of.the-Master

. Policy, or r

(ii) the application of '. Insuring ! AgreementE IV, l

" Application of ~ Policy" of the orimary i,

financial orotection',.as amended by paragraph 3

of the Waiver of ' Defenses Endorsement attached thereto, and-i

~

(2) which is caused during the certificate. period. stated in Item 6 of the Declarations by a nuclear incident t

arising out of, or -in connectjon.with the -nuclear.

L reactor described in: Item-3 of!the. Declarations,-and-i is discovered 'and for which written claim is (3) which i

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,

$'his subparagraph (3) shall" not operate to'bar coverage-for bodily iniury or property damaae caused. by an axtraordinary nuclear occurrence.

4 II.) -Item-4.(b) of the certificate'is' deleted.

I III.)-Item 7.

of the cedificate is amended to read.as follows:

'l

~1 1

'NE-S-14 Page 1 of 2 I

~

l ; W,.

I t,

' 7 '.

Maximum retrospective premium 1 (exclusive of j

allowance.for premium taxes)cpayable pursuant-1 to -. Condition-2 of the -Master Policy; With respect to each nuclear incident: $51,266,250.

q

1 Y

4 THIS IS TO CERTIFY THAT THIS IS A TRUE COPY OF THE ORIGINAL CERTIFICATE, BEARING THE NUMBER DESIGNATED HEREON, FOR i

INSURANCE COVERAGE UNDER THE MASTER POUCY NUCLEAR ENERGY LIABILITY INSURANCE (SECONDARJ FINANCIAL PROTECTIONKNO INSUfiANCE IS AFFORDED BY.THg' COPY,

'Hf

. AT~

FR Ff" aPnwotNrvwCUlWRlW W A A ERICAN NUCLEAR INSURERS Effective Date of u

c this Endorsement Auoust 20. 1988 To form a part of Cer;ificate No. N-9

]

12:01 A. M. Standard time Philadelphia Electric Company,.Public. Service ' Electric & Gas Company,-

Issued to Delmarva Power & Light Company; and Atlantic City Electric Company

/

Date of Issue March 23, 1990 Fer the Subsc)ribing Co6)anies, 5

By _,.

'1M' h-e

'Presiden k

Endorsement No.

13 Countersigned by L,

b NE-S-14' Page 2 of 2 r -

.y y,

=, em q

=

L.

Nuclear Energy Liabilityjinsurancel L

j NUCLEAR ENERGY LIABILITY INSURANCE' ASSOCIATION L

ENDORSEMENT TO CERTIFICATE NO.

N-9 FORMING.PART OF MASTER POLICY NO. 1 NUCLEAR ENERGY LIABILITY INSURANCE-R (Secondary Financial-Protection);

i 1.

In paragraph (c) 'on : Pages ?1 and

'2. of the certificate ;' and ? ini all endorsements, to - the certificate relating ~ 1thereto. the words " bodily. injury'or. property-damage" are amended lto read 1

" bodily in iurv,. crecerty damana or environmental'damane",.

2.

This-endorsement. applies to' alli claims :for damages. :: costs,-

(

expenses or otherf relief' or recovery for which coverage is l

soughtLunder'the_ policy, and which are first made intwriting?

?

against~ any insured: on or af ter the effective ~ date of1this' endorsement stated below..

i

' k THis IS TO CERTIFY THAT THIS i

1NSURANCE ~ OVERAGE UNDER TCER

\\

1 IS A TRUE CCPY OF

\\

C LIAB!LITY.NSUHANCE (SECON0/R L

AL T} '" ^RNANC'. PROT INSURANC f-is

.f 1

~

ED B ERGY JOHN L 4

TTR CHI AMERICAN NUCLEAR INSURER

- i s

' l aqll ~

Effective Date of this Endorsement January 1, 1990 To fore a part of Certificate-No. N-9 12:01 A. M. Standard time Philadelphia Electric-Company, Public Service Electric & Gas Company,

' Issued to-Delmarva Power & Light _ Company, and-Atlantic City Electric Company

~

'Date'of Issue March 23, 1990 For the Suti ribing Ceis anies, By AM a,W.

WRESIDENT

' Endorsement No.

14 Countersigned by.

N

.NE-5-18 (1/1/90) 1

P f,= 2...

l i

Nuclear Energy Liability: Insurance MUTUAL ATOMIC ENERGY' LIABILITY UNDERWRITERS-

- ENDORSEMENT TO: CERTIFICATE No. M-9 at Forming-Part of. Master-Policy'No. 1 h

Nuclear-Energy' Liability Insurance:

j (Secondary ~ Financial Protection),

It is agreed that effectiveiAugust'20,-.:1988::

I. )-

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

e j

(c) to bodily iniury or oronerty damaae-(1) with.

respect-to which.-the orimarvfinancia'i j

' protection described ~in Item-' 4 of the = Declarations <

1 would apply but for-(i) exhaustion of ilts limit.;of-liability as, described in Condition 6-of :the. Master Policy, or' i:

(ii) the _ l application :of; ' Insuring Agreement.:IV, "Applicationf of Policy" of' the crimary financial orotection, as. amended by paragraph:

3 of the '

Waiver of. Defenses Endorsement J

attached;theretoi and (2) which is _ caused during the certificate : period - stated' in Item-6 of the iDeclarations by. a nuclear -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

of the' Declarations.

However,-

this l

subparagraph (3) 'shall not operate to bar coverage.

'l f or - ),_od il y iniurv or oronerty damaae caused-by an

.]

extraordinary nuclear occurrence, o

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

L III.) Item 7.

of the certificate is amended to read as follows:

L 1.

T l

l

.NE-S-14 Page 1 of 2

< ?.h,;

Item 7.

M'aximum" retrospectiveL premium (exclusive - of

allowance-for' premium taxes), payable pursuant:

to condition 2 of the 1 Master.. Policy. with-i

-respect to each nuclear incident: $14,883,750.:

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t THIS IS TO CERTIFY THAT THIS IS A TRUE COPY OF THE' ORIGINAL L

CERTIFICATE. DEARING THE NUMBER DESIGNATED HEREJN FOR INST RANCE COVERAGE UNDER THE MAITER P0i.lCY NUCLEAR ENERGY

/

LIAE liY INSURANCE ' SECONDARY F//ANCIAL PROTECTION). NO '

INSti ANC, g,FF 9 0o "s

JOHN. QUATTROCCHI '.

VICE PRESIDENT-UNDERWRITING AMERICAN NUCLEAR INSURERS l

i Effective Date of

.this Endorsement Auoust 20, 1988 To form a part of certificate No. M-9 12:01 A.M.

Standard -time Philadelphia Electric Company, Public-Service Electric & Gas Company, Delmarva Power. & Light Company, and Atlantic ' City Electric. Company Issued to Date of issue March 23, 1990 For the Subscribing Companies i'

NtmIAL AT00GC ENERGY LIABILITY WRITERS W b h 4' E By Endorsement No.

13 Countersi ed by A

L ME-S-14 Page 2 of 2 hv

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Nuclear Energy:Liabilityg insurance L

MUTUAL, ATOMICL ENERGY: LIABILITY UNDERWRITERS Y

i l_

ENDORSEMENT To CERTIFICATE No.< M-9 FORMING:PART OF MASTER POLICY-No.-1 NUCLEAR: ENERGY LIABILITY INSURANCE

'(Secondary = Financial-Protection) l t

E 1.

In paragraph (c) on.Pages 1 and 2.of the: certificate, and,in' all endorsements to the certificate relating '. thereto, the=

-j words " bodily-injury or' property damage" are. amended;to read L.

" bodily in iurv, eronerty damana orf environmental damane.

q l

2.-

-This endorsement applies to'all~ claims forSdamages,z costs.-

expenses or other relief.. or recovery for which coverage.ist 5

sought.under.the.. policy. and which are first'made in writing j

.against any_ insured. on or after the effective date of:this endorsement

• stated below.-

i i

4 THIS IS TO CEPil5Y TH AT THIS IS A TRUE COPY CERTIFICATE, BEARING h!E NUVBER DEStGNATED HEREON, INSURANCE COVERAGE UNDER 1HE MAST

.i POllCY NUCLEAR ENERGY :

LIABILITY INSURMCE (SE NDARY FINA INSUHANCE IS AERkRD L PROTECTION). NO-y i

~i JOHN L QUATTROCCHI

. VICE PRESIDENT UNDERWRITING -..

I AMERICAN NUCLEAR INSURERS q

e..

Effective Date of this Endorsement January 1.- 1990 To form a part of Certificate No. M 12:01 t..M.

standard ttser -

Philadelphia Electric Company,-Public Service Electric & Gas Company, Issued to Delmarva Power & Light Company, and Atlantic City Electric Company Date of issue March 23, 1990-For the Subscribing Companies NUTUAL ATOKIC ENERGY LIABILITY By Endorsement No.

14 Countersigned by M

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

4p a.m. - _

Nuclear Energy Liability insurance NUCLEAR ENERGY' LIABILITY INSURANCE ASSOCIATION j

i ENDORSEMENT ' TO CERTIFICATE No. N-8 Forming Part of Master Policy No. 1 Nuclear Energy' Liability Insurance (Secondary Financial Protection) q It is agreed that effective August' 20, 1988:

I.)

Subparagraph - (c) on Page 1 of the certificate is amended to1 read'as follows:

]

(c) to bodily iniury or Dronerty damaae.

(1) with respect-to, which,the.orimarv-financial" protection described in Item

4. of the Declarations would apply.but for

-(i) exhaustion of~ its' limit of-liability as describedL.in-Condition L6 of the Master Policy, or-i (ii)

-the -application of Insuring 'AgreementL::IV,-

]

" Application' of ' Policy." 'of.the ~ orimary 1

financial orotection, as am~ ended by-~ paragraph 3

of. _ the Waiver : of,' Defenses: Endorsement attached thereto, and-(2) which 'is caused during the certificate period 1 stated in Item 6 of the Declarations by'.a: nuclear" incident i

arising out ' of, or 'ini connection with > the nuclear reactor described.in Item 3Lof the Declarations, and (3) which is discovered and for which. written claim :is made against the insured "not later : than : ten 1(10) years after the and of the certificate period-: stated:

in Item 6-of -the-Declarations.-

However, this subparagraph (3) shall not. operate. to bar coverage

- i for hodily iniury. or - oronerty damaae caused-: by. an 1

extraordinary nuclear occurrence.

II.)-

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

[

III.) Item 7.

of the certificate is amended to read as follows:

NE-S-14 Page 1 of 2 J

et

~$

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I te m - 7.-

Maximum eretrospective premium -(exclusive cof-allowance for premium ~ taxes) payable purstant; to Condition 2

of ; the Master-Policy

'a'i t h respect to each nuclear incident: $51,266.250.

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CERTIFICATE, BEARING THE NUMBER DES 4

LIAB!L TY INSURANCE FECONDARY FlbINS

j iCIAL PROTECTION)lNO INSL' ""f, g i,O'

(-

^^

JOHN L QUATTHOCCH1 VICE PRESIDENT UNDERWRITING AMERICAN NUCLEAR INSUREAS i

Effective Date of this Endorsement' Auaust 20. 1988 To form a part of Certificate No. N-8 12:01 A. M. Stanoord time Philadelphia Electric Company, Public Service Electric & Gas Company, a

Issued to Delmarva Power & Light-Company, and Atlantic City Electric-Company j

/1 i

Date of Issue March 23, 1990 For the Subscribing.Co6)anies,

//

(i /l'iX bv A h By

' Prest t-I Endorsement No.

13 Countersigned by a

NE-S-14 Page 2 of 2 i

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'a-Nuclear EnergyiLiability insurance NUCLEAR ENERGY:LIABILIT( INSURANCE: ASSOCIATION q

. ENDORSEMENT TO' CERTIFICATE'NO.

N-8 FORMING PART'OF^ MASTER POLICY.'NO. 1 NUCLEAR ENERGY, LIABILITY-INSURANCE

=!

(Secondary' Financial-Protection)

I 1.

In paragraph (c) on Pages 1 and 2 of'the certificate,-and.in all-- endorsements to the_ certificate - relating thereto, the

'I words " bodily' injury or property damage"-are amended:to-read

" bodily in iurv;, grocerty damane-or-environmental-damane".

2.

This ' endorsement -~ applies.tof all claims.for damages, costs, expenses or other ' relief; or.J recovery. for which coverage :is sought under the policy, Land which are first made in writing

.against, any insured on or af ter the-effective date - of this-endorsement stated below.-

THis IS TO CERTIFY THAT THIS IS A TRUE CERTIFICATE, BEARING THE NUMBER DESIGNATED AL INSURANCE COVERAGE ONDER THE MAST LIABILI INSURANCE (SECONDARY FINAF lAL FRO GY INSUR I.' "GRDEL TY " @

2M JOHN 1ATiHOCCH1' ~ ~ ~.

VICE PRESIDENT-UNDERWRITING >

AMERICAN NUCLEAR INSURERS -

s..

i Effective Date of this Endorsement January 1, 1990 To form'a part of Certificate No. N 12:01 A. M. Standard time Philadelphia Electric Company,-Public Service Electric & Gas Company, Issued to Delmarva Power & Light Company, and Atlantic City Electric' Company Date of Issue-March 23, 1990 For the Subs ribing Ces antes,-

By l 1A/ U.

s

-Endorsement No.

14 Countersigned by NE-S-18 (1/1/90)

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p.,.

1 Nuclear Energy Uability. Insurance-MUTUAL ATOMIC. ENERGY: UABILITY! UNDERWRITERS H

ENDORSEMENT-TO CERTIFICATE No. M-8 Forming--Part of Master Policy No. 1 Nuclear 2nergy Liability Insurance

.(Secondary Financial: Protection)-

=l It is agreed that effective. August 20,=1988:

I.)

Subparagraph (c) on Page.l.of the certificate is~amanded to read as.follows:

(c) t'o bodily'iniury or oronerty damaae I

(1) with respect to. which-the.orimarv financial protection described in' Item 4 of the Declarations-would apply but for l

(i)l exhaustion.of its limit of" l'iability

. as' j

-described in Condition 6

of fthe Master i

L

. Policy, or-

[.

(ii) tho ' application - of. Insuring. Agreement IV,

" Application-of Policy".of.the orimarv=

i u nancial-orotection,Eas amended by paragraph 3-of the.

. Waiver: :of' Defenses. Endorsement attached thereto, and l

s (2) which -is ' caused during the certificate _ period. stated' in Item 6 of the Declarations by a, nuclear " incident arising out of,- or in.-' connection ' with the nuclear reactor described in.. Item 3 of the Declarations, and p

(3) which is discovered and for which - written

• claim is made - against: the insured not flater than ten (10) f 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 iniurv or oronerty damaae caused by an l

extraordinary nuclear' occurrence.

=

II.)

Item 4..(b) of the certificate isLdeleted.

III.) Item 7.

of the certificate is amended to read as follows:

i

/'

ME-S-14 Page 1 of 2 4

3. -

]

s #.i

.i i

Item 7..

Maximum retrospective premium 1 (exclusive ' of allowance for premium taxes) payable pursuant _

-i to ' ' Condition '

2.;.

of the Master. Policy ' with respect to each nuclear incidents $14,883,750'.

i l

I i

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THIS IS TO CERTtFY THAT THIS IS A TRUE COPY OF THE ORIGINAL CERTIFICATE, BEARING THE NUMBER DESIGNATED HEREON, FOR INSURANCE COVERAGE UNDER THE MASTER POLICY-NUCLEAR ENERGY' U ABILITY INSURANCE (SECONDARYglNANCIAL PROTECTION). NO I

1 SUR S AF RDm MY THly/s0PY.-

s J 'N L UAT VICE PRESIDENT-UNDERWRITIN -

AMERICAN NUCLEAR INSURERS :

7 Effective Date of this Endorsement.

Auaust 20, 1988 To form a part of CertificateTNo. M-8 12:01 A.M.

Standard time Philadelphia Electric. Company, Public Service Electric & Gas Company, Issued. to Delmarva Power & Light Company, and Atlantic City Electric Company

]

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

MUTUAL ATOKIC'EMERGY LIABIllTY ERURITERS By R.

N$k;h(8 2

Endorsement No.

13 Countersigned by A

HE S-14

.Page 2 of 2

= _ _ _ _ _ _......

7 1,, ; a y, -

r l Nuclear? Energy UabilityL. Insurance:

MUTUAll ATOMIC ENERGY LIABILIT( UNDERWRITERS.

ENDORSEMENT TO CERTIFICATE NO.

M-8 ~

7 FORMING.PART.0F MASTER POLICY NO.

1-NUCLEAR ~ ENERGY' LIABILITY INSURANCE-(Secondary Financial Protection)

I 1.

In paragraph (c) on-Pages:1 and 2 of theJeartificate,.andJini k

all' endorsements. to the certificate' relating.thereto.. the.:

words1" bodily; injury or property damage" are amended to read:

'" bodily i n iury, oronerty damana or environmental damana".-

-2.

- This endorsement applies. to Lall) claims for: damages. costs.

expenses or other' relief: or' recoveryi for; which coverag'e';is:

sought;under:the policy.'and.which are first madetin writing?

.against. any.. insured on.. or n af ter ? the ' effective :date L of this --

i

. endorsement stated.below.

.I y

~ THIS IS TO CERTIFY THAT THIS'IS A TRUE COPV OF THE ORIGINAL I

CERTIFICATE, BEARING THE iMABER DESIGNATED HEREON. FOR INSURA JCE COVERAGE UNDER THE MAS POLICY-NUCLEAR ENERGY.

i LIABILIT INSURANCE (S ~ NDARY FINAt (AL PROTECTION). NO INSUR r@

L

- JOHN L JATTROCCHf VICE PRE 5!OENT UNDERWRITING AMERICAN NUCLEAR LNSURERS-i Effective Date of this Endorsement January 1,-1990 To form a part of Certificate No.:M-8 f

12:01 = A.M. Standard time Philadelphia Electric Company, Public Service Electric & Gas Company,

]

- Issued to-Delmarva' Power & Light Company, and Atlantic City ~ Electric Company -

I Date of issue March 23, 1990 For the Subscribing Companies-l MUrDAL' ATONIC BIERGY LIABILITY VRITERS By I

Endorsement No.,

14 Countersigned by A

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

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1