ML20101C731

Forwards Endorsements 1-10 to Nelia Policy NF-284, 1-6 to Maelu Policy MF-113,1 to Nelia Certificate N-98 & 1 to Maelu Certificate M-98

ML20101C731
Person / Time
Site:	Limerick
Issue date:	12/17/1984
From:	Bradley E PECO ENERGY CO., (FORMERLY PHILADELPHIA ELECTRIC
To:	Saltzman J NRC OFFICE OF STATE PROGRAMS (OSP)
References
NUDOCS 8412210172
Download: ML20101C731 (44)

Text

{{#Wiki_filter:e: e PHILADELPHIA ELECTRIC COMPANY j f 2301 MARKET STREET 1 P.O. BOX 8699 PHILADELPHI A. PA.19101 ' " " ^ " ",, * ',, ' ", " ' " ' ' " * (21s18414ooo ano essesmas counssL EUG ENE J. BR ADLEY r associava omse==== CG=h6E6 DON ALD BLANMEN RUDOLPH A. CHILLEMI E. C. KI R K H ALL T. H. M AH ER CORN ELL PAUL AUERBACH assasTaalf SagesRab COUNssb EDWARD J. CULLEN, JR. December 17, 1984 THOM AS H. MILLER, JR. IR EN E A. McMEMN A assistant couwssa. Mr. Jerome Saltzman, Asst. Director State and-Licensee Relations Office of State Programs U.S. Nuclear Regulatory Commission Washington, D.C. 20555 Re: Limerick Generating Station Unit 1 Docket No. 50-352 Facility Operating License No. NPF-27

Dear Mr. Saltzman:

Enclosed for your files are two copies each of the following insurance documents relating to the Limerick facility: (a) Nuclear Energy Liability Insurance Association Policy No. NF-284 including Endorsements 1 thru 10; (b) Mutual Atomic Energy Liability Underwriters Policy No. MF-113 including Endorsements 1 through 6; (c) Endorsement No. I to NELIA Certificate No. N-98 and; (d) Endorsement No. I to MAELU Certificate No. M-98. Very truly yours, 7 3 8412210172 841217 / PDR ADOCK 0500035y fl PDR Eugen J Bradley EJB:pkc y\\ Enclosures \\, m

1 NUCLEAR ENERGY LIABILITY INSURANCE MUTUAL ATOMIC. ENERGY LIABILITY UNDERWRITERS SPECIFICATION OF CERTIFICATE EFFECTIVE DATE AND 'M PRB4IUM END0RSB1ENT It is agreed that: 1. The United States Nuclear Regulatory Commission has issued to the insureds name in Item 1 of the ' Declarations Onerating License No ' NPF-27 effective October 26, 1964 for the reactor describ~ed in Item 3 of the Declarations of the certificate. 2. Item 6 of the Declarations of the Certificate is deleted and replaced by the following: Item 6. Certificate Period: Beginning October 26, 1984 and continuing to the effective date and time 'of cancellation or termination of the Master Policy or this Certificate, whichever first occurs, eastern standard time. 3. Item 8 of the Declarations o'f'the certificate is deleted and replaced by the following: Item 8. Portion of the annual premium payable for the companies' contingent liability described in Condition 4 of the Master Policy from the effective date hereof to the end of calendar s year 1984-

$ 248.40 9

Effectivo Date of l October 26, 1984 T2 form n part M-98 this Endorsement of Certificate No. Philadelpbla Electric Company Date of Isaua November 1. 1984 This is 'to certify that thic in a true copy of the original Endorsement having the endorcement ne,::beFrmthd;86herraamtkvtpanics l of the lluclear Energy Liability Policy (Facility Fcrm) as dos-ignatzd hereon. Ilo Incurance is forded g g rtTOMIC ENERGY LIAjlILITY U ERWitITERS

• S.

13y_d - M l Jnhn I,. Qux _ qt m prea,m.U4138'rdm;W M W' , hwtiua. N*xiu: D:.v;;m Endorsement No. _ Countersignet! by A GIT 4f tllfilt.ta j(E3*N& 4&;N T4 TIVD: .i

w Nuclear Energy Liability insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION SPECIFICATION OF CERTIFICATE EFFECTIVE DATE AND PREMIUM ENDORSEMENT lit is agreed that: 1. The United States Nuclear Regulatory Commission has issued to the insureds name _in Item 1 of the Declarations Operating License No. NPF-27 effective October 26, 1984 for the reactor described in Item 3 of the Declarations of the certifica te. 2. Item 6 of the Declarations of the Certificate is deleted and replaced by the following: Item 6. Certificate Period: Beginning October 26, 1984 and continuing to the effective date and time of cancellation or termination of the Master Policy or this Certificate, whichever first occurs, eastern standard time. 3. Item 8 of the Declarations of the'Certif_icate is deleted and replaced -by the following: Item 8. Portion of the annual premium payable for the companies' contingent liability described in Condition 4 of the Master Policy from the 1984 $55.Y0""I ear Iais... ~.u cL.s .4 un '.u orL ina.t 2 Endorse.mt having th 3 cudo r.e..n m.acr and being t ado part of the Nuclear Energy Liability Policy (Pacility Form) as des-ignated horoon. No Insurance is forded hereunder. m W* % T.ua ~ . Effectnre Date of in.s En orsornent Octob r 26, 1 4 N-98 g f I:surd to Philadelphia ElectrihCompany Dat3 of Issue November 1,1984

ce tno suje,5crioing ce panies f

By-IA /I General Manager Endorsmnt No I Counterstancd by

MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS 919 North Michigan Avenue, Chicago 11, Illinois

This ia to certify that this is a true copy of the original Declar:tions and Endorsements Numbered 1 through 6 and being

mada e part of the Nuclear Energy Liability Policy Nuclear Energy Liability Policy No. MF-II3 (Facmty Fonn)

.(Facility Form) as designated her No Insurance i efforded here der. .I, - DECLARATIONS Jo L. Quattroce i, VIce Pres Liability Underwriting Im;rican Nuclear Insurers Item 1. Named Insured Philadelphia Electric Company 2301 Market Street Philadelphia, Pennsylvania 19102 Addrn< (No. Street Town or City State) Item 2. Policy Period: Beginning at 12:01 A.M. on the 26th day of Oc.tpbe r ,19, S.h, and continuing through the effective date of the cancelation or termination of this policy, standard time at the address of the named insured as stated herein. Item 3. Description of the Facility: Location All of tne premises including the land and all buIldinas and structures -_ known as the Limerick Generating Station. The Limerick Generating Station consists of approximately 595 acres and is loca_t_gd in southeastern Pennsylvania on the Schuylkill River about 1.7 mIIes southeast of the limits of the Borouch of Pottstown and about 20.7 miles northwest of the Philadelphia cjtv limits. Typ,. Power Reactor The Operator of the facility ;. PhiladeIphia Electric Company item 4. The limit of the companies' liability is $_L000.000,00_. subject to all the terms of this policy having reference thereto. Item 5. Advance Premium $ 3,5Cd8 ni Item 6. These declarations and the schedules forming a part hereof give a complete description of the facility, insofar as it relates to the nuclear energy hazard, except as noted No Exteptions Date of Issue-November 20, 1984 Countersigned by-Authon, red Representative .. t.a l ;. U F P A., l.'i C. Nuclear Energy Liability Policy (Facility Forrn) 2/1/57 (Second Revision) T

,o l d MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS l AMERICAN MUTUAL LIABILITY INSURANCE COMPANY, Wake 6 eld, Massachusetts EMPLOYERS MUTUAL LIABIUTY INSURANCE COMPANY OF WISCONSIN, Wausau, Wisconsin HARDWARE MUTUAL CASUALTY COMPANY, Stevens Point, Wisconsin LIBERTY MUTUAL INSURANCE COMPANY, Boston, Massachusetts LUMBERMENS MUTUAL CASUALTY COMPANY, Chicago, Illinois MicnicAN MUTUAL LIABIUTY COMPANY, Detroit, Michigan '( NUCLEAR ENERGY LIABILITY POLICY (FACILITY FORM) j l l l l l l ( i i

NUCLEAR ENER3Y LIABILITY POLICY (FACILITY FORM) ( MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS Ah1ERICAN MUTUAL LIABILITY INSURANCE COMPANY, Wakefield, Massachusetts EMPLOYERS MUTUAL LIABILITY INSURANCE COMPANY OF WISCONSIN,Wausau, Wisconsin HARDWARE MUTUAL CASUALTY COMPANY, Stevens Point, Wisconsin LIBERTY MUTUAL INSURANCE COMPANY, Boston, Massachusetts LUMBERMENs MUTUAL CASUALTY COMPANY, Chicago, Illinois MICHIGAN MUTUAL LIABILITY COMPANY, Detroit, Michigan The undersigned r iembers of Mutual Atomic Energy IJability Underwriters, hereinafter called the " companies " each for itself, severally and not jointly, and in the respective proportions hereinafter set forth, agree with the lasured, named in the declarations made a part hereof, i.s consideration of the premium and in reliance upon the statements in the declarations and subject to the limit of liability, exclusions, conditions and other terms of this policy: INSURING AGREEMENTS I Poverage A - BOD.LY INJURY AND PROPERTY DAMAGE DEFINITIONS Wherever used in this policy: TTT IJABILITY To pay on behalf of the insured: "bedily Inlery" means bodily injury, sickness or disease, including 111 (1) n!! sums which the insured shall become legally obliga.ed to pay death resulting therefrom, sustained by any person; as damages because of bodily injury or property, damage caused " property damage" means physical Injury to or destruction or by the nuclear energy hazard, and the companies shall, defend radioactive contamination of property, and loss of use of property so any suit against the insured alleging such bodily injury or injured, destroyed or contaminated, and loss of use of property while property damage and, seeking damages which are payable under evacuated or withdrawn from use because possSly so contaminated the terms of this policy; but the companies may make such In-or because of imminent danger of such contamination; vestigation, negotsation and settlement of any claim or suit as they deem expedient; "auclear meteriel" means source material, special nuclear rsaterial (2) costs taxed against the insured in any such suit and Interest on or byproduct material; any judgment therein; "searce materlel," "speclot seclear meterial," and " byproduct (3) premiums on appeal bonds and on bonds to release attachments material" have the meanings given them in the famic Energy Act ( In an such suit, but without obligation to apply for or furnish of 1954, or in any law amendatory thereof; such nds; " spent fuel" means any fuel element or fuel coroponent, solid or (4) reasonable expenses, other than loss of earnings, incurred by the liquid, which has been used or exposed to radiation in any nuclear insured at the companies' request, reactor; Covarege B-DAMAGE TO PROPERTY OF AN INSURED AWAY " waste" means any waste material (1) containing byproduct ma-terial and (2) resulting from the operation by any person or organ-PROM THE FACILITY With respect to property damage caused by tration of any nuclear facility included within the deficition of thr nuc! car energy hazard to property of an insured which is away nuclear facility under paragraph (1) or (2) thereof; from the facility, to pay to such insured those sums which such insured would have been legally oblig:Jed to pay as damages there. "the facility" means the facility described in the decla, rat. ions and f:r, had such property belonged to another. locludes the location designated in Item 3 of the declarations and all property and operations at such location; Coverage C-SUbROGATION-OFFSITE EMPLOYEES With "seclear facility" means "the facilhy" as defined in any Nuclear respect to bodily injury sustained by any employee of an Insured Energy Liability Policy (Facility Form) issued by the companies or tad caused by the nuclear energy hazard, to pay to the workmen's by Nuclear Energy Liability Insurance Association. The term "nu-compensation carrier of such insured all sums which such carrier clear 'acility" also means would have been entitled to recover and retain as damages from (nother person or organization, had such person or organization (t) any nuclear reactor, cl:ne been legally responsible for such bodily injury, by reason of (2) any equipment or device designed or used for (a) separati,ng l the rights acqaired b7 subrogation by the payment of the benefits the isotopes of uranium or plutonium, (b) processing or utiliz-required of such carrier uader the applicable workmen's compensa. ang spent fuel, or (c) handling, processing or packaging waste, tion of occupational disease law. An employer who is a duly quali-(3) any equipment or device need for the processing, fabricating or fied self-insurer under such law shall be deemed to be a workmen's alloying of special nuclear rnaterial if at any time the total compensation carrier within the meaning of this coverage. This amount of such material in the custody of the insured at the l Csverage C does not apply to bodily injury sustained by any person premises where such equipment or device is located consists of who is employed at and in connection with the facility. or contains more than 25 grams of plutonium or uranium 233 This Coverage C sha!! not constitute workmen's compensation or any combination thereof, or more than 250 grams of uranium l Insurance as required under the lav* -l any state.

235, (4) any structure, basin, excavation, premises or place prepared or l

used for the storage or disposal of waste, DEFINITION OF INSURED The unqustified word " Insured" In-cludes (a) the named insured and (b) an other person or organi-and includes the site on which any of the foregoing is located, all artson with respect to his legal responsabi sty for damages because operations conducted on such site and all premises used for such cf bodily injury or property damage caused by the nuclear energy OPerat;ons; hizard. "Indemalfled useleer facility" means Subdivision (b) above does not include as an insured the United (t) "the facility" as defined in any Nuclear Energy Liability Policy States of America or any of its agencies. (Facility Form) Issued by the companies or by Nuclear Energy I( Subject to Condition 3 and the other provisions of this policy. Liability Insurance Association, or the insurance applies separately to each Insured against whom claim (2) any other nuclear facility, is made or suit as brought. If financial protection is required pursuant to the Atomic Energy l Nuclear Energy llabiliar Policy (Faciliry Fr.rm) vnst (second nevision) PAGE3 i NPF.IM (2R) L_

f l Act of 1954,.or any inw smendatory thereof, with respect to any "lesered shipment" means a shipment of source material, special activities or operations conducted thereat; nuclear material, spent fuel or waste, herein called " material," (1) to the facility from a nuclear facility o,wned by the United "seeleer reester" means any apparatus designed or used to sustain St*t 'I ^"'C8 but only if the transportation of the material is [uclear 6ssion in a self-supportin chain reaction or to contain a r not b predetermination,to be interrupted by the removal of the critical mass of fissionable materia - mater I from a transporting conveyance for any purpose other than "oneleer energy besord" means the radioactive, toxic, explosive or the continuation of its transportation, or (2) from the facility to other hazardous properties of nuclear material, but only if any other location except an indemnified nuclear facility, but only (1) the nuclear material is at the facility or has been discharged or until the material is removed from a transporting conve,yance for dispersed therefrom without intent to relinquish possession or any purpose other than the continuation of its transportation. custody thtreof to any person or organization, or (2) the nuclear material is in an insured shipment which is (a) In APPLICATION OP POLICY This policy applies only to bodily T the course of transportation, including handling and temporary injury or property damage (1) which is caused during the policy.L storage incidental thereto, within the territorial limits of the period by the nuclear energy hazard and (2) which is discovered United States o8 America, its territories or possessions, Puerto and for which written claim is made against the insured, not later - Rico or the Canal Zone and (b) away from any other nuclear than two years after the end of the policy period. facility; EXCLUSIONS This policy does met apply: handling or use at the location designated in Item 3 of the (a) to any obligation for which the insured or any carrier as his declarations, in time of peace or war, o,f any nuclear wea n insurer may be held liable under an workmen's compensation, or other instrument of war utilizing special nuclear materia or unemployment compensation or disa lity benefits law, or under byproduct material; any similar law; (e) to bodil injury or property damage due to war, whether or not (b) except with respect to liability of another assumed by the in. declare, civil war, insurrection, rebellion or revolution, or to sured under contract, to bodily injury to any employee of the any act or condition incident to any of the foregoing; insured arising out of and in the course of his employment by the insured; but this exclusion does not apply to bodily injury (f) to property damage to any propesty at the location designated to any person who is not employed at and in connect.on with in Item 3 of the declarations, other than aircraft, watercraft or the facility if the insured has complied with the requirements vehicles licensed for highway use, provided such aircraft, water-of the applicable workmen's compensation or occupational dis-craft or vehicles are not used in connection with the operation case law respecting the securing of compensation benefits there-of the facility; under to his employees; (g) to property damage to nuclear material in the course of trans-(c) to liability assumed by the insured under contract, other than portation to or from the facility including handling or storage an assumption in a contract with another of the liability of an incidental thereto; person or organization which would be imposed by law on su (b) under Coverage B, to proberty damage due to neglect of the person or organization in the absence of an express assumption insured to use all reasona le means to save and preserve the of liability, property after knowledge of the occurrence resulting in such (d) to bodily injury or property damage due to the manufacturing, property damage. CONDITIONS The named insured shall pay the companics the advance Atomic Energy Commission, suspend the insurance with respect to 1 FREMlUMpremium stated in the declarations, for the period from the effective the named insured and such other person or organization effective d:ti of this policy through December 31 following. Thereafter, at 12:00 midnight of the next business day of such Commission follow-the beginning of each calendar year while this policy is in force, ing the date that such Commission receives such notice. The period the named insured shall pay the advance premium for such year to of such suspension shall terminate as of the time stated in a written the companies. The advance premium for each calendar year shall notice from the companies to the named insured and to each such be stated in a written notice given by the companies to the named person or organization that such condition has been corrected. Insured as soon as practicable prior to or after the beginning of such year. LIMIT OF LIABILITY: TERMINATION OF FOLICY UPON EX-Such advance premiums are est.irnated premiums only. As soon HAUSTION OF LIMIT Regardless of the number of persons and as practicable after each December 31 and after the termination,cf organizations who are insureds under this policy, and regardless of this policy, the earned premium for,the precedmg premium period the number of claims made and suits brought against any or all sh-11 be cornputed in accordance with the companies' rules, rates, insureds because of one or more occurrences resulting in bodily r< ting plans,f the earned premium thus computed for any prem,this injury or property darnage caused during the policy period by the premiums and rninimum premiums applicable to insurance. I ium. nuclear energy hazard, the limit of the companies' liabili stated period exceeds the advance premium previously paid for such period, in the declarations is the total liability of the companies r their the named Insured shall pay the excess to the companies; if less, the obligations under this policy and the expenses incurred by the com-anies shall return to the named Insured the unearned portion panies in connection with such obligations, including e dg Pli by such insured. (a) payments in settlement of claims and in satisfaction of $ury-The named Insured shall maintain records of the Information mats against the insureds for damages because of bodify necessary for premium computation and shall send copies of such or property damage, payments made under parts (2), (3) and records to the companies as directed, at the end of each calendar (4) of Cbverage A and payments made in settlement of claims ye:r, at the end of the policy period and at such other times during under Coverages B and C; th2 policy period as the companies may direct. (b) payments for expenses incurred in the investigation, negotiation, settlement and defense of any claim or suit, incluing, but not limited to, the cost of such services by salaried em loyees of the The companies shall be pecmitted to 2 INSPECTION: SUSPENSIONinspect the facility and to examine the insured's books and records com anies, fees and expenses of independent ad unters,imony, attor-ney fees and disbursements, expenses for er rt test (t any time, as far as they relate to the subject matter of this inspection and a praisal of roperty, examina on, X-ray or Insurance. autopsy or medi 1 expenses o any kind; If a representative of the companies discovers a condition which he believes to be unduly dangerous with respect to the nuclear (c) syments for expenses I,ncurred the companies la investigat-ng an occurrence resulting in bo ly injury or property damage energy hazard, a representative of the companies may request that or in mantmarmg its effects. such condition be corrected without delay. In the event of non. Each payment made by the companies in discharge of their obliga-compliance with such request, a representative of the companies tions under this policy or for expeases incurred in connection "ith may, by notice to the named insured, to any other person or organi-such obli ations shall reduce by the amount of such payment the z; tion considered the companies to be responsible for the con-tinume of such ngerous condition, and to the United States limit of e cornpanies' liability under this policy. PAGE 4

l If, durirg thi policy period or subsequent thereto, the total ef h vs gny right under this policy ta join the comprnies er Eny cf such payrnents made by the companies shall exhaust the limit of them as parties to any action against the insured to determine the the companies' liability under this policy, all liability and obliga-insured's liability, nor shall the companies or any of them be im-tions of the companies under this policy shall thereupon terminate pleaded by the insured or his legal representative. Bankruptcy or 1nd shall be conclusively presumed to have been discharged. This insolvency of the insured or of the insured's estate shall not refieve policy, if not theretofore canceled, shall thereupon automatically the companies of any of their obligations hereunder. terminate. Regardless of the number of years this policy shall continue ACTION AGAINST COMPANIES-Coverage B No suit or ac-o f*rce and the number of premiurns which shall be payable or pa,in id, thi limit of the companies' liability stated in the declarations shall tion on this policy for the recovery of any claim for property dam-Q age to which Coverage B applies shall be sustainable in any court not be cumulative from year to year. of law or equity unless all the requirements of this policy shall have been complied with and unless commenced within two years after i LIMITATION OF LIABILITYt COMMON OCCURRENCE Any oc. the occurrence resulting in such property damage. [ 4 currtnce or series of occurrences resulting in bodily injury or prop-l huarw,amage arising out of the radioactive, toxic, explosive or other INSURED *5 DUTIES WHEN LOS$ OCCURS-Coverage B In Q l trty d us propeities of th event of property damage to which Coverage B applies, the y t (c) nuclear material discharged or dispersed from the facility over insured shall furnish a complete inventory cf the property damage f a period of days, weeks, months or longer and also arising out claimed, showing in detail the amount thereof. Within ninety-one af such properties of other nuclear material so discharged or days after the occurrence resulting in such property damage, unless dispersed from one or more other nuclear facilities insured by such time is extended in writing by the companies, the insured shall the companies under a Nuclear Energy Liability Policy (Facility render to the companies a proof of loss, signed and sworn to by l Form), or the Insared, stating the knowledge and belief of the insured as to (b) nurce material, special nuclear material, spert fuel or waste in the following: Identification of such occurrence; the interest of the the course of transportation for which insurance is afforded insured in the property destroyed or damaged, and the amount of under this policy and also arising out of such properties of each item of property damage claimed; all encumbrances on such other source material, special.auclear material, spent fuel or property; and all other contracts of insurance, whether valid or not, waste in the course of transportation for which insurance is covering any of such property. The insured shall include in the afforded under one or more other Nuclear Energy Uability proof of loss a copy of all descriptions and schedules in all policies. Policies (Facility Form) issued by the companies, Upon the companies' request, the insured shall furnish verified plans thill be deemed to be a common occurrence resulting in bodily in, and specifications of any such property. The insured, as often as jury or property damage caused by the nuclear energy hazard. may be reasonably required, shall exhibit to any erson designated e son naNed b the com nies and r$ With respect to such bodily injury and property damage (1) the der oat an tot:1 aggregate liabihty of the companies under all Nuclear Energy the same; an[ as often as may be reasonably required, shall produce Li1bihty Pohcies (Facility Form), including this policy, applicable for examination all books of account, records, bills, invoices and t2 such common occurrence shall be the sum of the limits of liabil,ity other vouchers, or certified cupies thereof if originals be lost, at cf til such pohcies, the limit of liability of each such pobey being such reasonable time and place as may be designated by the com-as determined by Condition 3 thereof, but in no event shall such panies or their representatives, and shall permit extracts and copies totIl aggregate liability of the companies, exceed $13,500,000; (2) thereof to be made. the total liability of the companies under this pobey shall not exceed th:t proportion of the total aggregate liability of the companies, as stated in clause (1) above, which (a) the limit of liability of this APPRAISAL-Coverage B In case the insured and the companies f policy, as determined by Condition 3, bears to (b) the sum of the shall fail to agree as to the amount of property damage, then, on T limits of liability of all such policies issued by the companies, the the written demand of either, each shall select a competent and limit of liability of each such policy being as determined by Con-disinterested appraiser and notify the other of the appraiser selected dition 3, thereof. within twenty days of such demand. The appraisers shall first The provisions of this condition shall not operate to increase the select a compctent and disinterested umpire and, failing for fifteen limit of the companies' liability under this policy. days to agree upon such umpire, then, on request of the insured or the companies, such umpire shall be selected by a judge of a court of record in the state in which the property is located. The ap-NOTICE 0F OCCURRENCE, CLAIM OR SUIT In the event of praisers shall the s appraise each item of property damage and, bodily inj,ury or property damage to which this pohey apphes or of failing to agree, shall submit their differences only to the umpire. tn oc,currence which may gwe rise to,dentify the Insured and also An award in writing, so itemized, of any two when filed with the claims therefor, written notice contumng particulars sufficient ta n,th respect to the time, place companies shall determine the amount of property damage. Each reasonably obtainable information wi appraiser shall be paid by the party selecting him and the expenses tn,d cucumstances thereof, and the names and addresses of the of the appraisal and umpire shall be paid by the parties equally. Injured and of available, witnesses, shaP or for the insurid to Mutual Atomic Energy Liabih,be given by,ters or the The companies shall not be held to have waived any of their rights ty Underwri by any act relating to appraisal. companies as soon as practicable. If claim is made or suit is br:ught against the insured he shall immediately forward to Mutual At;mie Energy Liability dnderwriters or the companies every de-SUBROGATION in the event of any payment under this policy, 1 mand, notice, summons or other process received by him or his the companies shall be subrogated to all the insured's rights of re-J, representative. covery therefor against any person or organization, and the insured shall execute and deliver instruments and papers and do whatever The in-else is nycessary to secure such rights. Prior to knowledge of h ASSISTANCE AND COOPERATION OF THE INSUREDsurid shall coo erste with the companies and, upon the comp hazard the [nsured may waive in writing any right of recovery I b "' or property damage caused by the nuclear energy l request, attend carings and trials and assist in making settlements, securing and giving evidence, obtaining the attendance of witnesses agalmt any puson oy organization, but a,fter such knowledge the end in the conduct of any legal proceedings in connection with the insured shall not wane or otherwise prejudice any such right of subject matter of this insurance. The insured shall not, except at "C"* "T' his cwn cost, make any payment, assume any obligation or incur The companies hereby waive any rights of subrogation acquired i any expense. against the United States of America or any of its agencies by reason of any payment under this policy. l No The companies do not relinquish, by the foregoing provisions any j 7 ACTION AGAINST COMPANIES-Coverages A and C action shall lie against the cornpanies or any of them unless, as a right to restitution from the insured out of any recover es made by c ndition precedent thereto, the insured shall have fully complied the insured on account of a loss covered by this pohey of any with all the terms of this policy, nor until the amount of the in, ampunts to which the companies would be entitled,had such pro-sured's obligation to pay shall have been finally determined either vasi ns, or any of them, not been included in this pobey, by judgment against the insured after actual trial or by written / agreement of the insured, the claimant and the companies. OTHER INSURANCE If the insurance afforded by this policy for t Any person or organization or the legal representative thereof loss or expense is concurrent with insurance afforded for such loss who has securea such judgment or written agreement shall there. or expense by a Nuclear Energy Liability Policy (Facility Form) efter be entitled to recover under this policy to the extent of the issued to the named insured by Nuclear Energy Liability Insurance insurtnce afforded by this policy. No person or organization shall Association, hereinafter called " concurrent insurance," the companies l PAGE 5 I

shall not be Jiable under this policy for a greater proportion of such Premium adjustment, if any, may be made either at the time can-loss or expense than the limit of liability stated in the declarations celation is efected or as soon as practicabic after cancelation becomes af this policy bears to the sum of such limit and the limit of lia-efective, but payment or tender of unearned premium is not a con-bility stated in the declarations of such concurrent policy. dition of cancelation. If the insured has other valid and collectiole lasurance (other th;n such concurrent Insurance er any other nuclear energy liability (* insurance issued by the companies or Nuclear Energy Liability In. COMPANY REPRESENTATION surance Association to any person or organization) applicable to (a) Any notice, sworn statement or proof of loss which may be te 10 loss or expense covered by this policy, the insurance aforded by this quered by the provisions of this policy may be given to any one policy shall be excess insurance over such other insurance; provided, of the compames, and such notice, statement or proof of loss so with respect to any person who is not employed at and in con-given shall be valid and binding as to all companies. nection with the facility, such insurance a,s is anorded by this policy (b) In any action or suit against the companies, service of process for bodily snjury to an employee of the nsured arising out of and may be made on any one of them, and such service shall be in the course of his employment shall be primary inscrance under deemed valid and binding service on all companies. such other insurance. (c) Mutual Atomic Energy Liability Underwriters is the agent of the companies with respect to all matters pertaining to this in-CHANGES Notice to any agent or knowledge possessed by any surance. All notices or other communications required by this 13 egent or by any other person shall not efect a waiver or a change policy to be given to the companies may be given to such agent, in any part of this policy or estop the companies from asserting any at its oHice at 919 North Michigan Avenue, Chicago 11, Illinois right under the terms of this policy; nor shall the terms of this with the same force and efect as if given directly to the com-policy be waived or changed, except by endorsement issued to form panies. Any requests, demands or agreements made by such a part of this policy executed by Mutual Atomic Energy Liability agent shall be deerned to have been made directly by the com-Underwriters on behalf of the companies. panies. ASSIGNMENT Assignment of interest by the named insured shall Exce. t with respece t "l 7 AUTH.ORIZAT. ION OF NAM.ED INSURED c mpliance with the obligations imposed on the insured by Condy,o,L p not bind the companies until their consent is endorsed hereon; if, however, the named Insured shall die or be declared bankrupt or ti ns 5, 6, 7, 3, 9,10 and 11 of this policy, the named insured is insolvent, this policy shall cover such Insured's legal representative, author red to act for every other insured in all matters pertaining receiver or trustee as an insured under this poli but only with respect to his liability as such, and then only provife,d written notice to this insurance. sf his appointment as legal representative, receiver or trustee is given to the companies within ten days after such appointment. CHANGE 5 IN SUB5CRIBING COMPANIES AND IN THEIR PRO il O PORTiONATE LIABILITY By acceptance of this policy the named 10 CANCELATION This policy may be canceled by the named insured insured agrees that the members of Mutual Atomic Energy Liability 15 by mailing to the companies and the United States Atomic Energy Underwriters liable under this policy, and the proportionate liability Commission written notice stating when, not less than thirty days of each such member, may change from year to year. Any such thereafter, such cancelation shall be efective. This policy may be change shall be stated in en endorsement entitled

• Changes in Sub-c:nceled by the companies by mailing to the named insured at the scribing Companies and in Their Proportionate Liability" issued to address shown in this policy and to the United States Atomic Energy form a part of this policy, duly executed on behalf of the companies Commission written notice stating when, not less than ninety days subscribing such endorsement and mailed or delivered to the named th reafter, such cancelation shall be effective; provided in the event insured, and the named insured further agrees that regardless of ef non-payment of premium or if the operator of the facility, as such changes:

any subscribing this policy upon its issuance shall be designated in the declarations, is te laced by another person or (1) each comfy for its stated proportion of any obligation assumed (( erganization, this policy may be cancefed by the cornpanies by mail-liable en ing to the named insured at the address shown in this policy and or expense incurred under this policy because of bodily injury to the United States Atomic Energy Comminion written notice stat-or property damage caused, during the period.from the effective in3 when, not less than thirty days thereafter, such cancelation shall date of this pelicy to the effective date of the first such endorse-be effective. The mailing of notice as aforesaid shall be sufficient ment, by the nuclear energy hazard; proof of notice. The effective date and hour of cancelation stated (2) this policy shall remain continuously in effect from the effective in the notice shall become the end of the policy period. Delivery of date stated in the declarations until terminated in ordance such written notice either by the named insured or by the companies with Condition 3 or Condition 15; shill be equivalent to mailing. (3) neither the liability of any company nor the limit of liability Upon termination or cancelat. ion of this policy, other than as of stated in the declarations shall be cumulative from year to year. th2 end of December 31 in any year, the earned premium for the period this policy has been in force since the preced:ng December 31 sh;ll be computed in accordance with the following provisions: DECLARATIONS By acceptance of this policy the named Insured (a) If this policy is terminated, pursuant to Condition 3, by reason agrees that the statements in the declarations are the, agreements and / of the exhaustion of the limit of the companies' hability, all representations of the named Insured, that this pohey is issued in premium theretofore paid or payable shall be fully earned; reliance upon the truth of such representations and that this policy embodies all agreements between the named, insured and the com-(b) If the named insured cancels, the earned premium for such Pantes or any of their agents relating to this msurance. period shall be computed in accordance with the customary mual shart rate table and procedure, provided if the named O in*ured cancels after knowledge of bodily injury or property MUTUAL POLICY CONDITION This policy is nonassessable. The dmt: age caused h/ the nuclear energy hazard, all premiums named insured is a member of each of the companies and shall par-theretofore paid or payable shall be fully earned; ricipate, to the extent and upon the conditions fixed and determined (c) if the companies cancel, the earned premium for such period by its board of directors in accordance with the provisions of law, shall be computed pro rata. in the distribution of dividends so fixed and determined. P AGE 6

l NUCLEAR ENERGY LIABILITY POLICY No. MF-MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITE 25 AMER 7CAN MUTUAL LIABILITY INSURANCE COMPANY LIBEnTY MUTUAL INSURANCE COMPANY Wake 8 eld, Massachusetts Boston, Massachusetts EMPimERs MUTUAL LIABIUTY INSURANCE COMPANY LUMBERMENs MUTUAL CASUALTY COMPANY OF WISCON5!N Chicago, Illinois Wausau, Wisconsin HARDWARE MUTUAL CASUALTY COMPANY MIC1!!GAN MUTUAL LIABILITY COMPANY Stevens Point, Wisconsin Detroit, Michigan The named insured is hereby notified that by virtue of this policy he is a member of each of the companies and is entitled to vote either in person or by proxy at any and all meetings of each of the companies. The annual meetings of each of the companies are held at the time end place stated herein. This policy is nonassessable. k NOTICE OF ANNUAL MEETINGS Thr annual meetings of AMERrCAN AfUTUAL LIABILITY The annual meetings of ListRTY hfUTUAL INSURANCE INSURANCE COMPANY are held at its home oEce in COMPANY are held at its home oEce in Boston, Massa-Wtkefield, Massachusetts, on the third Wednesday of chusetts, on the second Wednesday of April in each year, March in each year, at eleven o' clock in the morning. at eleven o' clock in the morning. The annual meetings of EMPLOYERS MUTUAL b1 ABILITY 'Ule annual meetings of LUMBTRMENS MUTUAL CAS-INSURANCE COMPANY OF WISCONSIN are held at its UALTY COMPANY are held at its home OEce in Chicago, home oEce in Wauuu, Wisconsin, on the third Friday of Illinois, on the third Tuesday of May in each year, at February in each year, at ten o' clock in the morning. eleven o' clock in the morning. Thr annual meetings of IIARDWARE MUTUAL CASUALTY The annual meetings of Mrculo4N MUTUAL LiAnruTY COMPANY tre held at its home oEce in Stevens Point, COMPANY are held at its home oEce in Detroit, Michigan, Wisconsin, on the third Wednesday of April in each year, on the last Thursday of March in each year at 10:30 i at nine o' clock in the morning. o' clock in the morn ng.

E NUCLEAR ENERGY LIABILITY INSURANCE >\\ t. MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS AMENDMENT OF DEFINITION OF INSURED (Tennessee Valley Authority) It is agreed that regardless-of the provisions of the second paragraph of Insuring Agreement II, part (b) of the Definition of Insured includes as an insured the Tennessee Valley Authority with respect to its legal responsibility for damages because of bodily injury or property damage caused by the nuclear energy hazard. ( ( e Effective Date of ToIorm a part this Endorsement October 26, 1984 MF-113 of Policy No i Philadelphia Electric Company Issue to l Date of Issua u nu,mh o r- ?n. 1984 l For the Subscribing Companies i M UAL ATOMIC ENEIIGY LIABILITY U ' ERWillTERS By l' d .N l v.% - nt i 6 Endorsement No. Countersignc<l by A tiref onszrte lu: 'itres:teT4titM" ME-63

c 9 4 Nuclear Energy Liability Insurance f .V Mutual. Atomic Energy Liability Underwriters AMENDATORY ENDORSEMENT (Indemnified Nuclear Facility) e It is agreed that: I. In Insuring Agreement III, "DEFINITIONE" A. The first sentence of the definition of " nuclear facility" is amended to read: " nuclear f acility" means "the facility" as defined in any Nuclear Energy Liability Policy -(Facility Form) issued by Nuclear Energy Liability Insurance Association or by Mutual Atomic Energy Lia-bility Underwriters. B.' The definition of " indemnified nuclear f acility" is replaced by the following: (, " indemnified nuclear f acility" means ( (1) "the facility" as defined in any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association or by Mutual Atomic Energy Liability Underwriters, or (2) any other nuclear facility, if financial protection is required pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, with respect to any activities or operations conducted thereat; C. Solely with respect to an " insured shipment" to which this policy applies a6 proof of financial protection required by the Nuclear Regulatory Commission, Subdivision (2) of the definition of " nuclear energy hazard" is amended to read: (2) the nuclear material is in an insured shipment which is away from any other nuclear facility and is in the course of trans-portation, including the handling and temporary storage inci-dental thereto, within (a) the territorial limits of the United States of America, its territories or possessions, or Puerto Rico; or (b) international waters or airspace, provided that the nuclear ^( material is in the course of transportation between two points located within the territorial limits described in (a) above and there are no deviations in the course of the HE-59 Page 1 cf 4 (1/1/82) ...v..-. ~ --,

3.. Q ; ~ ;. - e (b) transportation for the purpose of going to any other c'untry, state or nation, except'a deviation in the -(cont) o course of said transportation for the purpose of going to or returning-from a port or place of refuge as the result ofcan emergency. D..The definition of " insured shipment" is replaced with the following: " insured shipment" means a shipment of source material, special nuclear material, spent fuel or waste, or tailings or wastes pro-duced by _the extraction or concentration of uranium or thorium from any ore processed primarily for its source material content,. herein called " material",. (1) to the faci'lity from any' location except an indennified nuclear facility but only if the transpor-tation of.the material is not by predetermination to be inter-rupted by removal of the material fran a transporting conveyance for any purpose other than the continuation of its transportation, or (2) from the facility to any other location, but only until the material is removed from a transporting conveyance for any purpose other than the continuation of its transportation. . E. ' As used herein, " financial protection" has the meaning given it: in the Atomic Energy Act of 1954, as amended. =II. Insuring Agreement IV is replaced by the followings f IV APPLICATION OF POLICY This policy applies only to aodily in' jury b or property damage (1) which is caused during the policy period Eby the ' nuclear energy hazard and (2) which is discovered and for which written claim is made against the insured, not later than ten years after the end of the policy period. III. Condition 2 is replaced by the following: 2 INSPECTION; SUSPENSION The campanies shall at any time be pennitted but not obligated to inspect the facility and all operations relat-ing thereto and to examine the insured's books and records as far as they relate to the subject of this insurance and any property insurance afforded the insured through any company who is a member. of Mutual Atomic Energy Reinsurance Pool. If a representative of the companies discovers a condition which he believes to be unduly dangerous with respect to the nuclear energy hazard, a representa-tive of the companies may request that such condition be corrected without delay. In the event of non-compliance with such request, a representative of the companies may, by notice to the named in- ~ .sured, to any other person or organization considered by the com-Panies to be responsible for the continuation of such dangerous condition, and to the United States Nuclear Regulatory Commission, suspend this insurance with respect to the named insured and such other person or organization effective 12:00 midnight of the next business day of such Commiss' ion following the date that such Com-mission receives such notice. The period of such suspension shall ( terminate as of the time stated in a written notice from the com-(' panies to the named insured and to each such person or organization that such condition has been corrected. ME-59 Page=2 of 4 (1/1/82)

0; - Neither the right to make. such inspections and examinations'nor - the making ;thereof nor any advice or report 'resulting therefrom. m shall constitute an undertaking, on behalf of: or for the benefit ~ fof : the insured or others, to determine or' warrant that such f a- - cility or operations are safe.or healthful, or are in compliance > with any law, rule or: regulation.- In consideration of_the issu-T ance or continuation.of this policy,Lthe insured agrees that nei-ther the companies nor any persons or organizations making such' inspections or examinations on their behalf shall be. liable with

respect to injury to or destruction of property at the facility,-

-or.any consequential loss or expense resulting therefrom, or any loss resulting frm interruption of business or manufacture, aris - .ing out of 'the making of or a failure to maka any such. inspection or examination, or any. report thereon, or any such suspension of y - insurance, but this provision does not limit the contractual ob- ~ 111gations of the companies under this policy or any policy. afford-ing the insured property insurance through any company who is a -member of Mutual Atomic Energy Reinsurance Pool. IV. Condition 4 is replaced by_the following: 4 LIMITATION OF LIABILITY COMMON OCCURRENCE Any. occurrence or series of occurrences resulting in bodily injury or property damage. arising out of the. radioactive, toxic, explosive or other hazardous proper-ties of (a) nuclear material discharged ~or dispersed from the facility , {? 1 over.a period of days, weeks, months, or longer and also - 'b arising out of the properties of other nuclear material so t discharged or dispersed from one or w are other nuclear fa-cilities insured under any Nuclear Energy Liability Policy (Facility Form) issued by Mutual Atmic Energy Liability. -Underwriters, or- '(b) source material, special nuclear material, spent-fuel, waste,- or tailings or wastes produced by the extraction or concen-: ( tration of uranium or thorium from any ore processed primarily for its source material content in the course of transportation - for which insurance is afforded under this policy and also aris-- ing out of such properties of other source material, special ~ nuclear material, spent fuel, waste, or tailings or wastes pro-- [L duced by the extraction or concentration of uranium or thorium. fra any-ore processed primarily for its source material content 3 in the' course of transportation for which insurance is ' afforded. under one or more other Nuclear Energy Liability Policies (Fa - j_ ~' cility Form) issued by Mutual Atomic Energy Liability Underwriters, shall be deemed to be a ccannon occurrence resulting in bodily injuryg or property damage caused by the nuclear energy hazard. With respect to such bodily injury and property damage (1) the total aggregate liability of the members of the Mutual Atomic Energy Lia-

('

bility Underwriters under all Nuclear Energy Liability Policies (Fa-E:p cility Form), including this policy, applicable to such comon occur-rence shall be the sum of the limits of liability of all such policies, p LHE-59 Page 3.of 4 (1/1/82)-

y 'the;11'ait of-liability of each such policy being as determined by 7( Condition 3_the'reof, but in no event-shall such total' aggregate a 4: liability of such members exceed $36,000,0003 (2) the total liability s of the companies under this policy shall not exceed that proportion .of the total aggregate liability of the members of Mutual Atomic Energy - Liability Underwriters,-as stated in clause (1) above, which (a) the limit'of liability of this policy, as determined by ConditionL3, bears to (b).the sum of the limits of liability of all such policies issued 2 by such members, the limit-of liability of each such policy being as determined by Condition.3 thereof. The provisions of'this condition shall not operate to-increase the limit of the companies' liability under this policy.

V.- The second paragraph of Condition 12, "OTHER INSURANCE", is amended to read

If the ir.sured has other valid and collectible insurance (other than-such concurrent insurance or any'other nuclear energy liability in-surance issued by Nuclear Energy Liability Insurance Association or - Mutual Atomic Energy Liability Underwriters to any person or organi-zation). applicable.to loss or expes. e covered by this policy, the insurance afforded by this policy snall be excess insurance over such L other insurance; provided, with respect-to any person who.is not ;em-played at and'in connection with the facility,-such insurance as is . afforded by this policy for bodily injurf to an employee of the insured arising out of and in the course of his employment -shall be primary - j ' insurance under such other insurance. -( VI. Paragraph-(c) of Condition 16, " COMPANY REPRESENTATION", is amended to reads (c) Mutual Atomic Energy Liability Underwriters :is the agent of the companies with respect to all matters -pertaining to this. insurance. All notices or other communications required by this policy _to be given to the companies J may be' given to such agent,' at its office at One East Wacker Drive, Chicago, Illinois 60601, with the same force and effect as if given directly to the companies. - Any requests, demands o' r agreements made by such agent-shall be deemed to have been made directly by the companies. . Effective Date of' To Form-a Part This Endorsement October 26, 1984 of policy.No. MF-113 12:01 A.M. Standard Time

Issued to Phl1adelphia Electric Company

+ Date of Issue November 20. 1984 For he Subscribing Cp r i-~ e By As 'M r , ~,w Endorsement No. s; Countersigned by ~~ ME-59 Page 4 of 4 . (1/1/82)

1 NUCLEAR ENERGY LIABILITY INSURANCE MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS S Supplementary Endorsement Waiver of Defenses Reactor Construction at the Facility It is agreed that in construing the application of paragraph 2 (b) of the Waiver of Defenses Endorsement with respect to an extraordinary nuclear occurrence occurring at the facility, a claimant who is employed at the facility in connection with the construction of a nuclear reactor with respect to which no operating license has been issued by the Nuclear Regulatory Commission shall not be considered as employed in connection with the activity where the extraordinary nuclear occurrence takes place if: (1) the claimant is employed exclusively in connection with the construction of a nuclear reactor, including all related equipment and installations at the facility, and (2) no operating license has been issued by the Nuclear Regulatory '(f Commission with respect to the nuclear reactor, and ( (3)the claimant is not employed in connection with the possession, storage, use or transfer of nuclear material at the facility. Effective Date of To Fo rm a Pa rt this Endorsement October 26, 1984 of Policy No, MF-113 1ssued to Philadelphia Electric Company Date November 20. 1984 For the Subscribing Companies i Mutu 1 Atomic Energy Liability Underw Mers er. / //E8te.c, - //A By t y c vi-Endorsement No. _4_ Countersigned by '/ ( Authorized Rep' rest:ntativ.c ', ( ME-39a

NUCLEAR ENER3Y LIABILITY INSURANCE i ( MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS i l WAIVER OF DEFENSES ENDORSEMENT (Extraordinary Nuclear Occurrence) The named insured, acting for himself and every other insured under the policy, and the members of the Mutual Atomic Energy Liability Underwriters agree as follows: 1. With respect to any extraordinary nuclear occurrence to which the policy applies as proof of financial protection and which (a) arises out of or results from or occurs in the course of the construction, posseasion, 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 of the insureds, including but not limited to: (1) negligence, ( (ii) contributory negligence, { (iii) assumption or risk, and (iv) unforeseeable intervening causes, whether involved 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 property damage and the cause thereof, but in no event more than twenty years after the date of the nuclear incident. The waiver of any such issue or defense shall be effective regardless of whether such issue or defense may otherwise be deemed jurisdictional or relating to an element in the cause of action. 2. The waivers set forth in paragraph 1. above do not apply to (a) bodily injury or property damage which is intentionally custained by the claimant or which results from a nuclear incident intentionally and wrongfully caused by the claimant; (b) bodily injury sustained by any claimant who is employed at the site of and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits th2refor are either payable or required to be provided under any workers' 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 i only punitive in nature, this exclusion does not apply to the extent that the claimant has sustained actual damages, measured by the pecuniary injurics resulting from such death but not to exceed the maximum amount otherwise recoverable under such law.

V.,. ~. The wa'ivers set forth in paragraph 1. above shall be effective only with respect 3 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 I. or property damage resulting from an extraordinary nuclear occurrence, Insuring Agreement IV, " Application of Policy," shall not operate to bar coverage for i bodily injury or property. damage (a) which is caused during the policy period by the nuclear energy hazard and (b) which is discovered and for which written claim-is made against the insured not later than twenty years after the date of the extraordinary nuclear occurrence. Such waivers shall not apply to, or prejudice the prosecution or defense of any claim or portion of claim which is not 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 170 e. of the Atomic Energy j Act of 1954 as amended. Such waivers shall not preclude a defense based upon the failure of the-claimant to take reasonable steps to mitigate damages.

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

5.-As used herein: " extraordinary nuclear occurrence" means an event which the Nuclear Regulatory Consnission 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 meanings given them in the Atomic Energy Act of 1954, as amended. " claimant".means the person or organization actually sustaining the bodily injury or property damage and also include his assignees, legal represen- ]- tatives and other persons or organizations entitled to bring an action for damages on account of such injury or damage. Effective Date of To form a part this Endorsement October.26, 1984 af Policy No_ MF-113 Philadelphia Electric Company Date of Issue h== hor on ign For the Subscribing Companies 4 9 M TUAL ATOMIC ENERGY LIABILITY DERWRITERS ( h Ib d By 3 v m.m 7 .,s ( ~ '3 4i Endorsement No. Countersigned by Auruosass6 Rar _asssurams 4, l T ME-33a

NUCLEAR ENERGY LIABILITY INSURANCE ( MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS 'f 1 ADVANCE PREMIUM ENDORSEMENT and STANDARD PREMIUM ENDORSEMEfff Calendar Year I90k 1. ADVANCE PREMIUM Premium due the companies for the calendar year ItisagreedthattheAdva0.ce01 3,50 designated above is $ 2 STANDARD PREMIUM AND RESERVE PREMIUM In the absence of a change in the Advance Premium indicated above, it is agreed that, subject to the provisions of the Industry Credit Rating Plan, the Standard Premium and Reserve Premium are: Standard Premium s 3,504.01 ( Reserve Premium $ 2,419 07 l Effective Date of To fors a part this Endorsement October 26, 1984 of Po icy No. MF-113 I: sued to Philadelphia Electric Company Date of Issue November 20, 1984 For the Subscribing Companies MUT L ATOMIC ENERGY LI, ABILITY UNDER ITERS A By 5 hs, ' L'k V w T Endorsement No. 2 Countersigned by AUTHORIZED REPRESENTATIVE t ME-41

' i NUCLEAR ENERGY LIABILITY INSURANCE (. 1 MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS i INDUSTRY CREDIT RATING PLAN PREMIUM ENDORSEMENT It is agreed that Condition 1 of the policy is replaced by the following: CONDITION 1. ' PREMIUM (1) Definitions: With reference to the premium for this policy: " advance premium", for any calendar year, is the estimated standard premium for that calendar year; " standard premium", for any calendar year, is the., premium for that calendar year computed in accorda.nce with the companies' rules, rates, rating plans, (other than the Industry Credit Rating Plan), premiums and' minimum premiums applicable to this insurance: r " reserve premium" means that portion of the standard premium paid to the companies and specifically allocated under the Industry Credit Rating Plan for incurred losses. The amount of the " reserve premium" for this policy for any calendar year during which this policy is in force is the amount designated as such in the Standard Premium Endorsement for that calendar year; " industry reserve premium l' for any calendar year, is the sum of the -reserve premiums for that calendar year for all Nuclear Energy Liability Policies issued by American Nuclear Insurers and Mutual Atomic Energy Liability Underwriters and subject to the Industry Credit Rating Plan; " policy refund ratio", for any calendar year, is the ratio of the named insured's reserve premium for that calendar year to the industry reserve premium for that calendar yeart " incurred losses" means the sum of: (1) All losses and expenses paid by American Nuclear Insurers and Mutual Atomic Energy Liability Underwriters, and (2) All reserves for mn aid losses and expenses as estimated by American Nuclear Insurers and Mutual Atomic Energy (, Liability Underwriters ( because of obligations assumed and the expenses incurred in connection with such obligations by members of American Nuclear Insurers and Mutual Atomic Energy Liability Underwriters under all Nuclear Energy

i I Iiability Policies issued by American Nuclear Insurers and Mutual Atomic i ~-(.- Energy Liability Underwriters and subject to the Industry Credit Rating Plan; 1(= t " reserve for refunds,6' at the end of any calendar year, is the amount by t which'(1) the sum of all industry reserve premiums for the period from 1 -January 1,1957 through the end of such calendar year exceeds (2) the total for the same. period of (a) all incurred losses, valued as of the next . following July 1, and (b) all reserve premium refunds made under the i. Industry Credit Rating Plan by members of American Nuclear Insurers i and Mutual Atomic Energy Liability Underwriters; ' " industry reserve premium refund," for any calendar year, is determined by multiplying the reserve for refunds at the end of the ninth calendar year thereafter by the ratio of the industry reserve premium for the l { calendar year for which the premium refund is being determined to the sum of such amount and the total industry reserve premiums for the next nine calendar years thereafter, provided that the industry reserve premium i refund for any calendar year shall in no event be greater than the industry i reserve premium for such calendar year. I (2) Payment of Advance and Standard Premiums. The named insured shall pay the companies the advance premium stated in the declarations, for i the period from the effective date of this policy through December 31 following. Thereafter, at the beginning of each calendar year while this i. policy is in force, the named insured shall pay the advance premium for l such year to the companies. The advance premium for each calendar l year shall be stated in the Advance Premium Endorsement for such E calendar year issued to the named insured as soon as practicable prior to or after the beginning of such year. I i As soon as practicable after each December 31 and after the termination l of this policy, the standard premium for the preceding calendar year l shall be finally determined and stated in the Standard Premium Endorse - i ment for that calendar year. If the standard premium so determined j exceeds the advance premium previously paid for s'uch calendar year, l the named insured shall pay the excess to the companies if less, the i companies sha11 return to the named insured the excess portion paid by i such insured. l The named insured shall maintain records of the information necessary for premium computation and shall send copies of such records to the i companies as directed, at the end of each calendar year, at the end of 'L - the policy period and at such other times during the policy period as the company may direct. (3) Use of Reserve Premiums. All reserve premiums paid or payable for ih this policy may be used by the members of Mutual Atomic Energy ( e O

j - ' . pr Liability Underwriters to discharge their obligations with respect to ( incurred losses whether such losses are incurred under this policy or ( under any other policy issued by American Nuclear Insurers or Mutual Atomic Energy Liability Underwriters. (4) Reserve Premium Refunds. A portion of the reserve premium for this policy for the first calendar year of any group of ten consecutive calendar years shall be returnable to the named insured provided there is a reserve for refunds at the end of the tenth calendar year.

• '(5)

Computation of Reserve Premium Refunds. The reserve premium refund due the named insured for any calendar year shall be determined by multiplying any industry reserve premium refund for such calendar year by the policy refund ratio for such calendar year. The reserve premium refund for any calendar year shall be finally determined as soon as practicable after July 1 of the tenth calendar year thereafter. (6) Final Premium. The final premium for this policy shall be the sum of standard premiums for each calendar year, or portion, thereof, during which this policy remains in force less the sum of all refunds of reserve premiums due the named insured under the provisions of this Condition 1. (7) Reserve Premium Refund Agreement. Each member of Mutual. Atomic 8 Energy Liability Underwriters subscribing this policy for any calendar' year, or portion thereof, thereby agrees for itself, severally and not ( jointly, and in the respective proportion of its liability assumed under j-this policy for that calendar year, to return to the named insured that l portion of any reserve premium refund due the named insured for that l calendar. year, determined in accordance with the provisions of this Condition 1. Effective Date of To Form a Fart j this Endorsement October 26, 1984 of Policy No. MF-113 Issued to Philadelphia Electric Company 'Dato of Issue November 20, 1984 I' For the Subscribing Companies MUTI[AL ATOMIC ENERGY LIABILIT NDERWRITERS BY I h MMA . ny Endorsement No. Countersigned by. N m m. Authorized Representative t ( ME-17

t In Witngss Whereof, each of the subscribing companies has caused this policy t( ba executed by it, attested on its behalf by an officer of Mutual Atomic Energ3 ( tichility Underwriters and duly countersigned on the declarations page by an ( cuthorized representative. Subscribing Companies Proportion of 100% (1) American Mutual Liability Insurance Company 15 kM Secre Presifnt (2) Employers Insurance of Wausau A Mutual Company 15 Secretary President (3) Liberty Mutual Insurance Company 30 l lW L~ Secretary President (4) Lumbermens Mutual Casualty Company 30 dr = Secretary s President (5) Michigan Mutual Insurance company 5 g President Secretary President (6) Sentry Insurance A Mutual Company 5 / W4 / \\ Secretary President By: 100

(; .d NUCLEAR-ENERGY LIABILITY INSURANCE ASSOCIATION 127 John Strect. New York, New York 10038 Nacica Enctsy Liability Policy No. NF-284 e (Fuility Form) e:CLARATIONS Item t. Named Insured Philadelnhia Electric Company Adden 2301 Market Street Phil adel phia, Pennsylvania 19101 (No. Sueet Town or Cary State) Item 2. Policy Period: Beginning at 12:01 A.M. on the 19th day or March-i,_H4_. and cont;n, a, is,o..h - - the efective date of the cancelataon or termination of this policy, standard time at the address cf the named insured as stated leesesa. Item). Description of the Faility: 1.cuion All of the premises includina the land and all buildings and structures known as the Limerick Generating Station. The Limerick Generating Station 4 consists of approximately 595 acres and is located in southeastern Pennsylvania on the Schuylkill River about 1.7 miles southeast of the limits of the Borough of Pottstown and about 20.7 miles northwest of the Philadelphia city limits. Power Reactor .,., p, ne opernoe of the faility is Philadelphia Electric Company Isem 4. The limit of the companies

• liability is $ 1,000,000.00 subjui to all the terms of this pole <y harica telerence therete.

Item ). Advance Premium 100.00 . Item 6. These dettsrat ons and the schedules forming e part hereof give a complete dewription of the fuelser, enselst as it relates to tN nwiens enerar hassed. encept as noted no exceptions April 10 , i,_ 84 count,,,;,n,d b, Due of li u, ^""'""d"'r'"'a'*"" Thic is to certity that this is a true copy of the original D;clarations being made part of the Nuc1 car Energy Liability Policy (Facility Form) h:ving the number designated hereon and including Endorsements numbered L through 7. No insurance is afforded hereunder. Nuclear Energy I.iabit.ty Pol.cy (fudery Form) 2/th? (Second Revision) ,(f f,,,,,",',Presirient.I,tibility UndQg

e e NUCLEAR ENERGY LIABILITY POLICY (FACILITY FORM) The undersigned members of Nuclear Energy Liability Insurance Association, hereinafter called the " companies," each for itself, severally and not jointly, and in the respective proportions hereinafter set forth, agree with the insured, named in the declarations inade a part hereof, in consideration of the premium and in reliance upon the staternents in the declarations and subject to the limit nf liability, exclusions, conditions and other terms of this policy: INSURING AGREEMENTS I COVERAGE A - BODILY INJURY AND PROPERTY DAMAGE byproduct snaterial; LIABILITY To pay on behalf of the insured: "fo,r, mai,,ial," "spuial endear maserial," and "hypre/nts material * (1) all sums which the insured shall become legally obligated to pay have the meanings given them in the Atornic Energy Act of 1934, or in as darnages because of bodify injury or property damage caused any law amendatory thereof; by the nuclear energy haurd, and the com anies shall defend any ",p,,, nel" means any fuel element or fuel component, solid or liquid, suit aga nst the ensured allegmg such ily injury or property whkh as been used or exposed to radiation in any nuc! car reactor; damage and seeking damages which are pa able under the terms of this poln, y; but the companies may ma e such investigation, ,,,,. means any waste material (I con:aining byproduct material negotsation and settlement of any claim or suit as they deem and (2) resulting from the operation y an person or organization of apedient any nuclear facility included within the d nition of nuclear facilary under paragraph (1) or (2) thereof; (2) costs taxed against the s.nsured in any such suit and interest on any judgment therein; ,g, gjfj,,,, means the fuility described in the declarations and in-cludes the location designated in item ) of the declarations and a!! (3) p*emiums on appeal bonds and on bonds to release attachments property and operations at such location; such sust, but without obligation to apply for or furnish in an Men dity m **the facility" as denned in any Nuclear Energy such nds; Liability oficy (Faulity Form) issued the companies or Mutual (4) reasonable expenses, other than loss of carnings, incurred by the Atomic Energy Liability L*nderwriters. e term " nuclear fac ty" also insured at the companies request. means (1) any nuclear reactor, COVERAGE B - DAMAGE TO PROPERTY OF AN INSURED (2) any equipment or device designed or used for (a) separating the AWAY PROM THE PACILITY isotopes of uranium or plutonium, (b) processing or utilizing With respect to property damage caused by the nuclear energy h::ard spent fuel, or (c) handling, processing or packaging waste, ts property el an insured which is away from the facilitr, to pay to (3) any equipment or device used for the processing, fabricating or such insured those sums which such msured would have been legallF alloying of special nuclear material if at any time the to I amount obligated to pay as damages therefor, had such property belonged to of such material in the custody of the insured at the premises (

another, where such equipment or device is located consists of or contains rnore than 23 grams of plutonium or uranium 23) or any com-COVERAGE C - SUBROG ATION - OPP 5ITE EMPLOYEES bination thereof, or more than 230 grams of uranium 233, With respect to bodily injury sustained by any employee of an insured (4) any stru ture, basin, excavation, premises or place prepared or used and caused by the nuclear energy hazard, to pa to the workmen's com.

for the storage or disposal of waste, sation carrier of such insured all sums = kh such carrier would and includes the site on which any of the foregoing as located, all be been entitled to mover and setain as darnages from another operations conducted on such site and all premises used for such rson or organization, had such person or organsaation alone been operations; Fegally responsible for such bodily injury, by reason of the rights "in/,nreyc4 nodur faility" means acquired by subrogation the payment of the bene 6ts required of such (1) "the facility" as denned in any Nuclear Energ Liability Policy carrier under the applica le workmen's compensation or occupational Facility Form) issued by the companies or b Mutual Atomic disease law. An etrployer who is a duly quala6ed self. insurer under nergy Liability Underwriters, or such law shall be deemed to be a workmen's compensation carrier (2 any other nuclear facility, within the meaning cf this coverage. This Coverage C does not app to of nancial protection is required pursuant to the Atomic Energy Act of bodily angury sustained by any person who as employed at an an connection with the facility, 3934, or any law amendatory thereof, with respect to any act vities or operstions conducted thereat; This Coversge C shall not constitute workmen's compensation insurarue ,,sedest reater means any apparatus designed or used to sustain as required under the laws of any state. nuclear 6ssion in a self supportmg chain reaction or to contain a critical mass of 6ssionable material; 11 (a)FINITION OF INSURED The unqualified word " insured" includes "..d,,, energy Anaud" means the radioactive, tonic, explosise or other DE the named insured and (b) any other person et organiastion with hasardous properties of nuclest material, but only if respm to his legal responsibility for damages because of bodify injurF (t) the nucitar material is at the faolity or has been discharged or or property damage caused by the nuclear energy hazard. dispersed therefrom without intent to relinquish possession or Subdivision (b) above does not include as an insured the t'niteJ custody thereof to any person or organization, or States of America or any of its agencies. (2) the nuclear material is in an insured shipment which is (a) in the Subject to Condition 3 and the other provisions of this policy, the course of transportation, including handling and temporary storage insurarwe applies seperstefy to each insured against whom claun is incidental thereto, within the territorial limits of the United States rnade or suit is brought. of America, its territories or possessions. Puerto Raco or the Canal Zone and (b) away from any other nuclest facility; "I'38'! 'b "'ces" rneans a sMpment of soune anatu,i,al, s wial nuclear

1. i wherever used in this policy:

III " DEFINITIONS rnaterial, spent fuel or waste, herein called material. (l to the fae:1 Je/dy infery" means bodily a..ngu, sickness or disease, including ity from a nuclest facility owned by the t'nited States of America, but death resulting therefrom, sustained y any person; only if the transportation of the material as not by predetermination to "preferry densge* rneans physical injury to or destruction or radio. be interrupted by the remoisi of the material from a transporting con. active contamination of property, and loss of use of property so injured, ..veyarge for any purpose other than the continuation of its transports. destroyed or contaminated, and loss of use of property while evacuated tion, or (2) from the facility to any other location except an indemni. ( or withdrawn from use because possibly so contaminated or buause of 6ed nuclear fanisty, but only until the material is remosed from a imminent danger of such contammation; transporting conveyance for any purpose other than the contmustion of "certest nieseriar' encens source material, spaial nuc! cat material or its transportation. Nuclear Energy Liability Policy (Facility form) 2/1/37 (Second Revision) '=t000

~, _ - ~ .? .. ] / <,/ Appl 8CAMM Of 706887 This policy a

• only to bodily esd.ary-written claim is sande assiast the insused, not later them two years after er psopesty desmage ( ) which is caused the policy perio by the end nf the policy period.

I the assclast emergy haamsd and (2) which is discovered and for which + ( ) EXCLUSIONS This policy does not apply: tions, in time of peace or war, of any! ant anseeri l nuclear weapon we onber (a) to any obligation for which the insured or any carrier a his in. insement of war utiliaang special sur a og hypeedact sesor susy be held liable under any workmen's come===anan un-inneesial: 88mploysment c p==*ia= or disabilh bene 6es law, or mler any 4. simular Inw; (e) to bc2ily saiuIy or psoperty due to wet, whether er mot derlored, ci,il war. paevanctmen, lion or a ' - act or condition incident to say of she fosegoing; i or to ser (b) except wish suseset to liabilisy of smother assumed p ee insond the "asused ""d """*"'t, so bod injury to any employw se ssag out of and se coune of his _. _. _ by the so- '(f) to psoperty damage to any peoperty at the lar=se== * ' - ' la Issui 3 of ee declasations, other be mistmit, w=a==rJe or io. we set at wie acil hicle liameed for highway use, psovided such aiscaft r,:=imous.d I,as c::$:s'wie ee - d t,,e a,,,'im - e am - m -== ee , weemsaft a es w hmen s f compensation bemehes thereunder to his.di.mse i.= mpcting '=ai'r-em the securing o , e (g) to psoperty damage ao nuclear mecenal b the course of (c) to liability assumed by the insured under costect, other h as tion to er ison the nacilg including handling er seosage I assumpaise in a cesence with emother of the liebsity of any pessoa them; er eer===*y which woeld be imposed by law on such pemos er err==--- sa the absence of an espass -=paion d lishi;ity;~ (b) under Cowe age B, to psoperty damage due es aqslect of the in. some to use all senseenbie meses to saw and psuserve she peop. (d) to bodily injusy or psopesty damage due to the - esty after "__ hamaisqg er mer at the lace

• ion daagassed in leem 3 of the declers.

damage.. E L of the accumence seemisses la such psoporty t CONDITIONS 1 FRIANWed 'Ihe named issused shall pay the campa===s the advance erty damage caused during the policy period by the murl=ar emergy psumium sensed in the declasations, for the period fsosa the efectrue hassed, the lisair of the companies

• li=Maay seated in the Ariannei=== is deer of this policy thsough December 31 following. Theseafser, at the the total liability of the -

_ for their "' ' under this bass'ans'ag of each r=Mr year while this policy is is fosce, the named policy and the expenses incuned by the compenses se comasction with issused shall pay the advance premium for such yest to the c such obligstions, including The advemm pumme for wh calender year shall be la a (a) payments in settlesient d claims and la antisfacesos d % ( wnesen motice gma by the compaans to the namd sasured as soon as against the insureds los einmages because of beday injury or peop. l patiraah pner e or after the beginning of such year. Coveren A sort perments made in settleme)nt of claies undere Such advance pwauums an estimated premiuens only. As soon as practicable after each Dereseber 31 and after the termaantion cd this Coverages B and C; i 1 ' policy, the sessed premium for the pmeding premium period shall be (b) pymnts for expenses isacurnd is ee iam negotission, computed m -- - wisin the companus rules, pnemes and - prenuums applicable so tha,rstes, rating pleas, settlement and defense of any claim or suit, including, but not nasurance if the limited to, se cost d such services b earned pwmium thus for any premium period exceeds the companies, fem and espwes M ' ' y alarid esiplope d ee advance premsum prev y paid for such period, the named insured Quesas, assosaeys* I shall rey the escess to the companies; il less, the companies shall re. fees and disbumments, expense for' expert spe==a=r, inspation and appsainal of propert cat espemen d say kind;y, czan===*=aa X.ssy or autopsy or medi. susa to she esmed issund the unsermed portion paid by such insured. The assmed lasured shall maintain swords of the information neces. sary for pumium computation and shall send copies of such records to (c} p ynients for capeases incurred Iq time c==r===== in investigating the compenses as dimsed, at the end of each calender year, at the end an occurrence susulting in bodily sojury or peoresty damage or in minimizing ses efects. the icy period sad such other times during e policy period Each payment inade by the companies in discharge of their obligation,s under this policy or for expenses incurred sa commertion weta suca obligations shall reduce by the amount of arch perment the limit of the INSFECTMHit SUSPEldSteel " Die companies shall be permittal to 2 inspat the facil.ty and >> examine the insured's books and raords at companies' Isability under this policy, If, during the policy period or subsequent thereto, the total of such say time, as far as IIwy relsee to t: e subject metter of this ansurance. payments made by the evnpanies shall exhause the lisnit of the com. ' If a representative of the companies aliscovers a condition which he panies* liability under this policy, all liabilsey and obligations of the believes to be unduly dangeseus with respect to the nuclear ener(ty conapanies undar this policy shall thereupon terminate and shall be haamsd, a sepsesemestive of the compeaies may request that such condi. conclusively presumed so have beca discharged. This policy. if not tion be conected without delay. In the event of mon.cornpliance with thererofore canceled, shall thereupon automatically terminate, such miguest, a sepsesementsve of the companies sney, by notice to the Regardless of the number of years this policy shell continue in force. anmed issused, to say other person or orcsaiastion considered by the and the number of or paid, the limit of the cornpanies' premiums which shall be to be..

• 1 for the c- '

Te of such dangerous liability stated in the rations shall not be

• == and to the United States Atomic Energy Comerission, sus
• pand the issusence with aspect to the asmed insured and such osher cumulative from year to year.

pensa er orgssanation efective 12:00 midnight of the sent business day of such Comunission following the date that such Commission LIMITATION OF LIA.lLITY: COMMON OCCuttENCE Any occur. A meives such notice. The period of such suspension shall termi2ste as rence nr series of occurrences resulting in bodily injury or property 4 of the tisme stated la a westten motice from the companies to the named damage arising out of the radioactive, toxic, explosive or other hassed. issused and to each such person or organisation that such condition has ous propertses of lues conected. (a) nuclest material discharged or dispersed from the facility over a period of days, weeks. months or longer and also arising out of TNT OF TERAN01ATION OF POUCT UpON EX. such properties of other nuclear material so discharged or dis. 3 uAU.T.O MA.88U.T.Y: compenses under a Nutlear Enerry Liability Polecy (Fac persed from ene or more other aucle fa<ilit es msured 6, the O M Y megasdiees of the numbe, of persons ana orp=====*= who ese insuseds mojer this policy, and seaardless of the amber of cleises minde and suits bsought assamst any or all insureds form), or because of one or mose occurrences sesulting in bodily injury or prop. (b) source material, spaial oe: leet material, spent fuel or waste in the l

i conne of tienerosention for which insurance is $foeded under this propeny. The insured shall include in the proof of less a copy of all poliry and also arising out of such psoperties of other source siencriptions sad whedules in all pelirles. U the companies

• request.

maserini, special auc6ent material, spent fuel er waste ie the conne the issueed shall feraieb veri 6ed pleas sms6 cations of any such I of - for which insurance is aforded under one or property. The insured, as eftse as may be seasonably seysised, shall es. 1'

mese enfier Nacasar Isergy liabilrty Polacies (Facility Form) is-hilut to ser person _%

f the compenses any et such property, sued by the,a=y-as== and subsait to essauantions u enth by any persom named by the J shall be dessied to be a comraos occurrence resulting in bodily injury or (*fnpamin and subscrdie se sane; and as ofwa as sney be seasonably psoposty dominge caused by the nuclear emergy besasd. '"lusred, shall produce for examination all books of accomet, succeds. dams i balls, envoices and other vouchers, or certi6ed copses thereof if i M % 8'

• EN % and

,,,,, ((1) se be lost, at such reasonable time and place as may be desagensed the g 1.iabil seProentatives, and shall permk eatseas and copse p (Facility Fone), udsag this policy, applicable so vach com. (Q yr man ercursence shall be the suas of the linues et liability of d'such 4 "' the limit of liability of each such policy being as determined a= Asia = 5 theseof, but la ao event shall such total a43 se lie. AppgAISAl,,

• . A B !a case the insuesd and the compenses %

) of the <==raah= escued $46,500,000; (2) the asesi i icy of shall fail to saree as to the amount of property damage, tiaen, on the ! ~ the cesspanies ander this policy shall not esceed that psoportsen et the written demand of either, each shall select a competent and disineesusesd esent es pagnee liabilisy of the ca raies, as stated is clause ( )M

above, appraiser and notify the other of the appraiser selected within which i a) ehe lisait of liabitaty of this policy, as determined days of such demand. The sppraisers shall Erst select a competent eies 5, esass to (b) ^ehe sum on the limits of lesbility of all s polacass disinterested umpise and, fasling for 6fteen days so assee upon such issued by the -

the limit of liability of each such policy being umpire, then, on request of the ansund or line companies, such umpim as duessmiend by Coadsteen 5. thereof. shall be seis led by a judge of a court of reconi in the sense in which The psevaslems of this conditism shall act operate to increase the limit the property is located. The appsaisers shall them appenise each itsen of only to the venp re. An award a, agree.,shall submit,their difesences ProPetty dasnage and, failing so of the compensas* limbdaty under shis policy. s writsag, so an====ad of any two 5 "a"d4 injury or geoputy damage to which this polscy applia er,of P'"='e'"< 'h P !J '" d "6/ "' A "'C">e" " O hi M

• '"***""*'"'**'"*""'d h

of the' appraisal and e yire sh paid the expenses.!he mmpanies slWI not he kid to hve ' my seir en accursamme whsch ma giw rise to claims thestfor, wtseese assace g, i y "= "aamf pasticulass

==* to identify te issused and also semasa-rights by any act sviating to appsaisal. ably obenashie amfosemessa wish suspect to the time, place and ciscum-samaces shessof, and the sames and addmeses of the imissed and of evegable wiemesses, shall be given by or for time issused to Nuclear SugaOGATION In the event of any payment under this policy, the 11 IJahstasy Issusmace Association or the c==p=== as sees as compasses shall be subrogated to all the insured's rights of secovery AA If claim is ainde or suit is bsought the issused, he therefor against any person or organisation, and the tasused shall es. j ismeedineely forwasd to Nuclear Emengy ' 'ity lasurance Asso. ecute and deliver inseruments and papers and do whoever else is cistion or the <== rah = every d===ad mance, sununoes or other pao. necessary so secure such rights. Prior to knowledge of bodily injury or cues seceived by bism or his repr*===*=tive. property damage caused by the nuclear energy hasard she issused may i I waive in writang an isht of recovery against any person or orgsaana. %"2'a"n"y s'a'ri.hMJ'c'ry',"'"'" *" "' " " *"" 1 6 ^su*s=ed shall^"*' ^"* ""'^"*" " ", u'p"o'n'the ca-P.;.e P er with the ra-raha and The hereby waive,any rights of subrogation acquesed sequest, seesad cgs and trials and assist ja==kian securies and givies evadence, obtaining the aseemdmace of witnesses and against the sited Staws of America or any of its ageacaes by reason of i. (A in the conduct of aar legal proceedings in commectson with the subjectany payment under tiu, policy. smesser of this issusance. 'Ihe insured shall mot, except at his own cost, . The companacs do not relanquish, by the foregoing provisions, any snake any payment.====== any obligation or incur any expense. "sht to restatution from the insured out of any recovers,es made by the msured on account of a loss covered by this policy of any amouses es which the companies would be entitled had such provisions, or aar of i 7 ACTION AGAINST COedpANigs - Cevoregos A med C No them, not been included in this policy. arviaa shall lie. fast the companies or any of them unless, as a con-disjon psecedent il seto, the insured shall have fully complied with all the terms of this p>Iicy not until the amount of the insured's obligation OTNER INSURANCE If the insurance aforded by this policy for loss 1 ? (' to pay shall have been Anally determined either by judgment against the or espense is concurrent with insurance aforded for such loss or ex. Am Arsused after actual trial or by written agreement of the insured, the pense by a Nuclear Energy Liability Policy (Facility Form) issued to demanar and the ca-paaks. the named insured by Mutual Atomic Energy Liability Underwsisers, Amy persos or o ' tion or the legal representative thereof who hereinafter called " concurrent insurance," the compasses shall est be ' F~ secured such j t or written agreement shall thereafter be liable under this policy for a greater pro rtion,of such loss or es easitled to recover this policy to the estent of the insurance than the limat of liabalg,ty stated in the eclarations of this pl es gfonied by this policy. No person or organizat.on shat! have any right ","['"' 'nt a i e limn of liab4 staud in the lara-P" I under the policy to poin the companaes or any of them as parties to any action against the insured to determine the insured's liabihty, nor shall II '.he insured has other valid and collectible insurance (other than the companies or any of them be impleaded the insured or his legal such curwurrent insurance or any other nuclear energy liability insurance representative. Bankruptcy or insolvincy of insured or of the so. assued by the companies or Mutual Atomic Energy Liability Underwrit. l stred's estate shall not relieve the companies of any of their obligations ers to any person or organization) applicable to loss or expense covered hereunder by this policy, the msurance aforded by :his rolicy shall be escess in. surance over such other insurance; provided, with respect to any person who is not employed at and in sonnection with the facility, such insur-ACTIpN SAINST COMPANIES-Coverege B No suit or action ance as is a#orded by this policy for bodily injury to an employee of ' 8_ on tius policy for the recovery of any claim for property damage to the insured arising out of and in the course of his employment shall be which Coverage B applies shall be sustainable in any court of law of primary insurance under such other insurance. . equity unless all the requirements of this policy shall have been com-L plied with and unless commenced within two years after the occurrence restiting in such property damage. CNANSES Notice to any agent or knowledge possessed by any agent 11 or by any other person shall not efect a waiver or a change in any part AJ of this policy or estop the companies from asserting any right under the ' O in the event of property damage io.hich coverage B applies, th-m, E i,rms of this policy; not shall the terms of this plic) be waived or ' INSTRED'S DUTIES WHEN LOSS OCCURS - Coverage . hanged, exiert by endorsement issued io form a part of this policy

1. : stred shall furnish a complete inventory of the properry damage

,,etuted by Nuclear Energy Liability lasurance Association on behalf claimed, showmg in detail the amount thereof. Within ninety one days of she companies. after the occurrence resulting in such property damage, unless such time is extended in writing by the cornpanies, the insured shall render to the companies a proof of loss, signed and sworn to oy the insured, ASSIGNMENT Assignment of interest by the named insured shall not 1A / stating the knowledge and belief of the insured as to the following: Nnd the companies until their consent is endorsed hereon; if, however, AT ( identification of such occurrence; the interest of the insured in the the named insured shall die or be declared bankrupt or insolvent, this property destroyed or damaged, and the amount of each itern of prop. policy shall cover such insured's legal representative, receiver or trustee erty rionage claimed; all encumbrances on such property; and all other as an insured under this policy, but only with respect to his liability as contracts of insurance, whether valid or not, covering any of such such, and then only prouded maitten notice of his appintrnent as legal

representative, receiver se truseee is given to the companies within ten (b) be made on any one of them, and such service shall be de days siter such appointment. valid and binding service on s!! campa=a== (c) Nuclear Energy Unbility lasurance Association is the agent of CANCELATION This policy may be canceled by the named insu.ed bF the companies with respect to all matters -' to this insut./ 15 mailing to,the compenses and the Unsied States Atomac Energy Com-ance. All notices or other communications requ' by this policy' mass.on written notice stating when, not less than thirty days thereafter, ogce at 60 John Street, New York 38 New York witkcat, at its to be given to the companies may be given to such e such cancelation shall be efective. Thas policy may be canceled by the the same companies tiy mailing to the named insated at the address shown an this force and effect as if given directly to the companies. Any requests policy and to the Unsted States Atomac Energy Commiss on written notice demands or agreements made by such agent shall be deemed to statmg when, not less than ninety days thereafter, such cancelatu.n shall have been made directly by the companies. be effative; provided in the event of non payment of premium or if the operator of the facility, as designated in the declarations,is replaced by anuther person or organization, this policy may be canceled by the AUTNORBIATION OF NAMED INSURED Except with respect to 1 M companies by mailing to the named insured at the address shown in compliance with the obligations imposed on the insured by Conditions A ( this policy and to the United States Atomic Energy Commission written 5,6, 7[or, eve,ry other insured in all matters pertaining to this ins g 9 1o and I1 of this policy, the named insured as authorised notice stating when, not less than thirty days thereafter, such cancela. to act Ison shall be efective. The mailing of notice as aforesaid shall be su&cient proof of notice. The efective date and hour of rancelation stated in the notice shall become the end of the policy perioJ. Delivery CNANGES IN SUBSCRISING COMPANIES AND IN TNEIR 1 O of such written notice either by the named insured or by the companies PROPORTIONATE LIABILITT By acceptance of this pol, icy the named AO shall be equivalent to mailing. insured agrees that the members of Nuclear Energy 1. lability Insurance Association lia! ale under this policy, and the proportionate liability of Upon termination or cancelation of this policy, other than as of the cach such member, may change from year to year, and further agrees end of December 31 en any year, the earned premiurn for the period that regardless of such changes: this policy has been in force since the precedmg December 31 shall be computed in accordance with the fo!!owing provisions: (I) each company subscribing this pola.cy upon its issuance shall be liable only for its stated proportion of any obligation assumed or (a) if this policy is terminated, pursuant to Condition ), by reason of expense incurred under this policy because of bodily injury or the exhaustion of the limit of the companies' liability, all premium property damage caused, du ' the period from the efective date theretofore paid or payabic shall be fully earned; of this policy to the close of ernber 31 next following, by the (b) if the named insured cancels, the earned premium for such period nuclear energy hazard; for each subsequent calendar year begin. shall be com ted in accordance with the customary annual short ning January I next following the efective date of this policy, the rate table and procedure, provided if the named insured cancels subscribing companies and the proportionate liability of each such after knowledge of bodily injury or property damage caused by the company shall be stated in an endorsement issued to form a past nuclear energy hazard, all premiums theretofore paid or payable of this pois'cy, duly executed and attested by the General Manager shall be fully earned *. of Nuclear Energy Liability Insurance Association on behalf of cach such company, and maded or delivered to the named insured; (c) if the companies cancel, the earned premium for such period shall be computed pro rata. (2) this policy shall remain continuously in efect from the efective date stated in the dalarations until terminated m accordance with Premium adjustment, if any, may be made either at the tame cancelation Condition 3 or Condition 15; is effected on as soon as practicable after cancelation becomes efective but payment or tender of unearned premium is not a condition el (3) neither the liability of any company nor the limit of liability stated ,,nc,g,,;on, in the declarations shall be cumulatne from year to year. DECLARATIONS By acc nce of this policy the named insured agrees ( 16 COMPANT REPEISENTATION that the statements in the declarations are the agreements and reprv h (a) Any notice, sworn statement or proof of loss which may be re-sentations of the named insured, that this policy is issued in reliance quered by the provisens of this policy rnay be given to any one upon the truth of such representations and t.at this policy embodies all of the companies, and such notice, staternent or proof of loss so agreernents between the named insured and the companies or any of given shall be valid and binding as to all companies, their igents relating to this insurance. Ier W mass Wurator, each o' the subscribing companies has caused this policy to be executed anJ attested on its behalf by the General Mantger of Nuclear Energy Liability Insurance Association and duly couatersigned on the declarations page by an authorized represcatative. l l l ( For the Subscribing Companies l ' AN By ~ e. ger l l 1 ( l

Nuclear Energy Liability insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT CALENDAR YEAR 1984 It is agreed that Items la. and Ib. of Endorsement No. 2 are amended to read: la. ADVANCE PREMIUM: It is agreed that the Advance Premium due the companies for the period designated above is: $ 13,372.08 Ib. STANDARD PREMIUM AND RESERVE PREMIUM: In the absence of a change in the Advance Premium indicated above, it is agreed that, subject to the provisions of the Industry Credit Rating Plan, the Standard Premium is said Advance Premium and the Reserve Premium is: $ 9,231.72 Additional Premium: $11,631.57 This is to cortify that this is a true copy of the original Endorsement having the endorcenent n.nber and being made part of the Nuclear Enogy" Liability Policy (Facility Form) as dos-ignated hereon. No Insurance is afforded hereunder. .s. W John L QuattrenH, Vice Prr.! dent-Liability Ur.dcrwriting American liudar Inwers Effective Date of January 1, 1984 NF-284 this Endorsement 12:01 A.M. Qtandard Time To form a part of Policy No issued to Philadelphia Electric Company Date of issue November 20, 1984 For the su scribing co panies By /F' General Manager Encorsement No 10 Countersioned by 'NE-36

Nuclear Energy Llabillty insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION INCREASE OF LIMIT OF LIABILITY ENDORSEMENT It is agreed that: 1. The ' limit of liability stated in Item 4 of the declarations of the policy is amended to read $ 124,000,000.00 This amended limit applies with respect to obligations assumed or expenses incurred because of bodily injury or property damage caused, during the period from the effective date of this endorsement to the date of termination of the policy, by the nuclear energy hazard. 2. The limit of liability stated in Item 4 of the declarations and the amended limit of liability stated in paragraph I above shall not be cumulative, and each payment made by the companies after the effective date of this endorsement for any loss or expense covered by the policy shall reduce by the amount of such payment both the limit of liability stated in Item 4 of the declarations and the amended limit stated in paragraph 1 above, regardless of which limit of liability applies with respect to bodily injury or property damage out of which such loss or expense arises. This is to certify that thic is a true copy of the original &dorsenent having the endonc.wn.:dar and being nado part of the Nuclear Energy Liabi;it/ Polic;f (Fcc111ty Form) ao des-Ignated hereon. No Tnsurance in afforded horeunder. .z. M e John L. Quattrocchi, Vice Presiderit LiaMity Urderwriting American Nuc!carInsurers October 8 2% in s or ment To form a part of Policy No !ssu=oso Philadelphia Electric Company Date of issue November 20, 1984 For the su icribing co panies By A l'~ General Manager 9 Encorsement No Countersioned by . w,_.. <. _ u,.ah .m . _. A s u..

Nuclear En:rgy Licbility insurcnco NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION f ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT CALENDAR YEAR 1984 It is agreed that Items la.'and Ib. of Endorsement No. 2 are amended to read: la. ADVANCE PREMIUll: It is agreed that the Advance Premium due the companies for the period designated above is: $ 1,740.51 s Ib. STANDARD PREMIUM AND RESERVE PREMIUM: In the absence ~of a change in the Advance Premium indicated above, it is agreed that, subject to the provisions of the Industry ( Credit Rating Plan, the Standard Premium is said Advance Premium and the Reserve Premium is: $ 1,166.14 Additional Premium: $1,640.51 '\\ January 1,.1984 NF-284 t s Encor ent T f rm a part of Policy No 12:01 A.M. Stancard Timo issued to Philadelohla Electric Company Date of issue Mny 17-19gg For the s >;cribing co panies By - ) / General Manager Enco_rsement No. - NE-36 Counterssoned by I' / b:.h: l'

a..!O c. r., ; :c.

+.. 1;ECEiVED Nuclear Energy Lisb!llty insurance [ NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION tv p 3 O'A "I,$.'dhjd bk bI k A N.'T OF DEFINITION OF INSURED (Tennessee Vallev Authcritv) It is agreed that regardless of the provisions of the second paragraph of Insuring Agreement II, part (b) of the Definition of Insured includes as an insured the Tennessee Valley Authority with respect to its legal responsibility for damages because of bodily injury or property damage caused by the nuclear energy hazard. [- l [. I l March 19, 1984 inis E or ment 12:01 A.M. Stancara Time To form a part of Policy No-NF-284 issu=a so Philadelphia Electric Company j Date et issue Anril 10' 10Ra f. By A I VT General Manager. Er corsement No Counters!Onod by l NE-63 1

Nuclear Energy Liability insurance ( NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION INFORMATION TO BE PROVIDED TO THE COMMONWEALTH OF PENNSYLVANIA 0F SUSPENSION OR CANCELATION It is agreed that if the companies suspend the insurance or cancel the policy they shall at the time they provide notice thereof to-the United States Nuclear Regulatory Commission, advise the office of the Commonwealth of Pennsylvania designated below of the action they have taken. Such information may be provided in writing or orally, and if done orally will be confirmed promptly in writing by the companies. Conmonwealth Office: The Office of the Director Bureau of Radiation Protection Pennsylvania Dept. of Environmental Resources P.O. Box 2063 Harrisburg, Pennsylvania 17120 ( Tel. (717) 787-2480 f f Eff;ctive Date of -mis Endorsement March 19,1984 To form a part of Policy No NF-284 12.01 A.M. Standard Time issued to Philadelphia Electric Company t Data of Issue Anril 10.1984 For me a mrMng co panies By A (F' General Manager End:rsement No 6 Countersigned by NE-55 (6/81)

Nuclear Energy Liability insurance NUCLEAR ENER2Y LIABILITY INSURANCE ASSOCIATISN AMENDATORY ENDORSEMENT .( (Indemnified Nuclear Facility) <It is agreed that: I. In-Insuring Agreement III, " DEFINITIONS" A. The first sentence of the definition of " nuclear facility" is amended to read: " nuclear facility" means "the facility" as defined in any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association or by Mutual Atomic Energy Liability Underwriters. B. The definition of " indemnified nuclear facility" is replaced by the following: " indemnified nuclear facility" means (1) "the facility" as' defined in any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association or by Mutual Atomic Energy Liability Underwriters, or (2) any other nuclear facility, ( if financial protection is required pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, with respect to any activities or operations conducted thereat; C. Solely with respect to an " insured shipment" to which this policy applies as proof of financial protection required by the Nuclear Regulatory Commission, Subdivision (2) of the definition of " nuclear energy hazard" is amended to read: (2) the nuclear material is in an insured shipment which is away from any other nuclear facility and is in the course of transportation, including the handling and temporary storage incidental thereto, within (a) the territorial-limits of the United States of America, its territories or possessions, or Puerto Rico; or (b) international waters or airspace, provided that the nuclear material is in the course of transportation between two points located within the territorial limits described in (a) above and there are no deviations in the course of ! I the transportation for the purpose of going to any other country, state or nation, except a NE-59 Page 1 of 4 (1/1/82) (over)

i deviation in the course of said trans-portation for the purpose of going to or returning from a port or place of j refuge as the result of an emergency. D. The definition of " insured shipment" is replaced with the following: ) " insured shipment" means a shipment of source material, special nuclear material, spent fuel or waste, or tailings or wastes produced by the_ extraction or concentration of uranium or thorium from any are processed primarily for its source material content, herein called " material", (1) to the facility from any location except an indemnified nuclear facility, but only if the transportation of the. material is not by predetemination to be interrupted by removal of the material from a transporting conveyance for purpose other than the continuation of its transportation, any(2) from the facility to any other location, but only. or until the material is removed from a transporting conveyance for any purpose other than the continuation of.its transportation. E. As used herein, " financial protection" has the meaning given it in the Atomic Energy Act of 1954, as amended. II. Insuring Agreement IV is replaced by the following: IV APPLICATION OF POLICY This policy applies only to bodily injury or property damage (1) which is caused during the policy period by the nuclear energy hazard and (2) which is ( discovered and for which written claim is made against the insured, not later than ten years after the end of the policy period. III. Condition 2 is replaced by the following: 2 INSPECTION; SUSPENSION The companies shall at any time be permitted but not obligated to inspect the facility and all cperations relating thereto and to examine the insured's books and records-as far as they relate to the subject of this insurance and any property insurance afforded the insured through American Nuclear Insurers. If a representat've of the companies discovers a condition which he believes to be unduly dangerous with respect to the nuclear energy hazard, a representative of the companies may request that such condition be corrected without delay. In the event of non-compliance with such request, a representative of the companies may, by notice to the named insured, to any' other person or organization considered by the compcnies-to be responsible for the continuation of such dangerous condition, and to the United States Nuclear Regulatory Conmission, suspend this insurance with respect to the named insured and such other person or organization effective 12:00 midnight of the next business day of such Commission following the.date that such Commission receives such notice. The period of such suspension shall terminate as of the time stated in a written notice from the companies to the named insured and M aach - such person or organization that such condition has been corrected. NE-59 Page 2 of 4 (1/1/82)

, Neither the right to make such inspections and examinations nor the. making thereof nor any advice or report resulting-b therefrom shall constitute an undertaking, on behalf of or-for the benefit of the insured or others, to determine or warrant that such facility or operations are safe or health-ful, or_ are in compliance with any law, rule or regulation. In consideration of the issuance or continuation of this policy, the insured agrees that neither the companies nor any persons or organizations making:such inspections or examinations on their behalf shall be liable with respect to injury.to or i destruction of property at the facility,_or any consequential loss or expense resulting therefrom,'or any loss resulting from interruption of business or manufacture, arising out of the making of or a failure to make any such inspection or examination. or any report thereon, or any such suspension of insurance, but this provision does not limit the contractual obligations of i the companies u'ider this policy or any policy affording the insured property insurance through American Nuclear Insurers. i IV. Condition 4 is replaced by the following: 4 LIMITATION OF LIABILITY; COWON OCCURRENCE Any occurrence or series of occurrences resulting in bodily injury or property damage arising out of the radioactive, toxic, explosive or other hazardous properties of (a) nuclear material discharged or dispersed from the facility over-a period of days, weeks, months or . ( -- longer and also arising out of the properties of other nuclear materhl so discharged or dispersed from one or more other nuclear facilities insured under any Nuclear Energy Liability Policy (Facility Fom) issued by Nuclear Energy Liability Insurance Association, or (b) source material. -special nuclear' material, spent fuel, waste,.or tailings or wastes produced by the extraction or concentration of uranium or thorium from any ore processed primarily for its source material ~ content in the course of transportation for which insurance is ^ afforded under this policy and also arising out of such properties of other source material, special.iuclear 1-material, spent fuel, waste, or tailings or wastes produced by the extraction or concentration of uranium er thorium 1 from any are processed primarily for its source material content.in the course of transportation for which insurance is afforded under one or more other Nuclear Energy Liability Policies (Facility Form) issued by Nuclear Energy Liability Insurance Association, shall be deemed to be a common occurrence resulting in bodily . injury or property damage caused by the nuclear energy hazard. With respect to such bodily injury and property damage (1) the ( total aggregate liability of the members of the Nuclear Energy Liability Insurance Association under all Nuclear Energy Lia-bility Policies (Facility Form), including this policy, appli- ' cable to such common occurrence shall be the sum of the limits JNE-59 Page 3 of 4 (1/1/82) (over)

ff4 .of liability of all such policies, tha limit of liability of 'each such policy being;as determined by Condition 3 thereo.f. but in no event shall such total aggregate liability. of such members exceed $124,000,000; (2) the total liability of the f companies under this policy shall not exceed f hat proportion of the total aggregate liability of the membe *s of Nuclear 4 Energy Liability Insurance Association, as stated in clause t (1) above, which (a) the limit of. liability of this policy, as determined by Condition 3, bears to (b) the sum of the limits of liability.of all such policies issued by such members, the limit of liability of each such policy being as U determined by Condition 3 thereof. The provisions of this condition shall not operate to increase the limit of the companies' liability.under_this policy. r V. The second paragrap'h~ of Condition 12, "0THER INSURANCE",' is amended - to read: If the insured has other valid and collectible insurance. (other than such concurrent insurance or any other nuclear energy liability insurance issued by Nuclear Energy Liability. 3 Insurance Association or Mutual Atomic Energy Liability ~ Underwriters to any per ',on or organization) applicable to loss or expense covered by this policy, the insurance afforded by this policy shall be excess insurance over such other insurance; provided, with respect to any person who is not employed at and in connection with the facility, such insurance as is afforded by this policy for bodily injury to an employee of the insured arising out of and in the course of his. (- employment shall be primary insurance under such other insurance. VI. Paragraph (c),of Condition 16. " COMPANY REPRESENTATION", is amended to. read: (c) Nuclear Energy Liability Insurance Association 'is the agent of the companies with respect to all matters pertaining to- ~ this insurance. All notices or other communications required 1 -by this policy to be given to the companies may be given to ~ such agent, at its office at The Exchange, Suite 245, 270 Farmington Avenue', Farmington, Connecticut 06032, with the same force and effect as if given directly to the companies. Any requests, demands or agreements made by such agent shall be deemed to have been made directly by the companies. t Effective Date cf March To form a part of Policy No NF-284 . this Endorsemen, issued to Philadelphia Electric Company For the a cribing co panies - Date of Issue April 10,1984 By I /F~ General Manager Endorsement No 5 countersigned by NE-59 Page 4 of 4 (1/1/82)

Nutlear Energy LI:bility insuranc3 NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ( SUPPLEMENTARY ENDORSEMENT WAIVER OF DEFENSES REACTOR CONSTRUCTION AT THE FACILITY Itisagreedthatinconstruingtheapplicationofparagraph2(b)of the WAIVER OF DEFENSES ENDORSEMENT (NE-33a) with respect to an extra-ordinary nuclear occurrence occurring at the facility, a claimant who is employed at the facility in connection with the construction of a nuclear reactor with respect to which no operating 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 if: (1) the claimant is employed exclusively in connection with the construction of a nuclear reactor, including all related equipment and installations at the facility, and (2) no operating license has been issued by the Nuclear Regulatory Commission with respect to ( the nuclear reactor, and (3) the claimant is not employed in connection with the possession, storage, use or transfer of nuclear material at the facility. ' Effective Date of NF-284 March 19,1984 To form a part of Policy No this Endorsement 12:01 A.M. Standard Time issued to Philadelphia Electric Company For the su scribing co panies Dat3 of issue April 10.1984 By l /F' General Manager Endorsement No 4 Countersigned by NE-39a (1/1/77)

Nuclear Enstgy Liability Insurance . NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION - WAIVER OF DEFENSES ENDORSEMENT {, (Extraordinary Nuclear Occurrence) The named insurcd, acting for himself and every other insured under the policy, and the members of Nuclear Energy Liability Insurance Association agree as Tollows: -1..With respect to any extraordirfary nuclear occurrence to which the policy . applies as proof of financial protection and which (a) arises out of or _results from or occurs in the course of the con- . struction, possession, or operation of the facility, or (b) aris'es 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 t' e 4 h fault of the insureds, including but not limited to: negligence, ( 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 imunity, and (3)-any iissue or defense based on any statute of limitations' if suit is instituted within _three years from the date on which the claimant first knew, or reasonably could have known, of his bodily injury or property damage and the cause thereof, but in no event more than twenty years after the date of the nuclear incident. The. waiver of any such issue or defense shall be effective regardless of whether -such issue or defense may 'otherwise be deemed jurisdictional or relating to an elenent in the cause of action. (

2. The waivers set forth in paragraph 1. above do not apply to L

'(a) bodily injury or property damage which is intentionally sustained by ~ he claimant or which results from a nuclear incident intentionally and t {- j wrongfully caused by the claimant; (b)' bodily injury sust'ained by any' claimant who is employed at-the site of .and in connection with the activity where the extraordinary nuclear l occurrence takes place if benefits therefor are either payable or re- ' quired to be provided under any workraen's compensation or occupational disease law; (c) any claim for punitive or exemplary damages, provided, with respect to j-any claim for wrongful death under any State law which provides for q damages only punitive in nature, this exclusion does not apply to the [' extent that the claimant has sustained actual damages, measured by the pecuniary injuries resulting from such death but not to exceed the maximum amount otherwise recoverable under such law. l NE-33a (over) I

.3s The waivers set forth in paragraph 1. above shall b3 effective only with respect to bodily injury or property damage to which the policy applies under its terms other than this endorsement; provided, however..that with respect to bodily in-jury or property damage resulting from an extraordinary nuclear occurrence In-suring Agreement IV, " Application of Policy", shall not operate to bar coverage for bodily injury or property damage (a) which is caused during the policy period i by the nuclear energy hazard and (b) which is discovered and for which written claim is made against the insured not later than twenty years after the date of the extraordinary nuclear occurrence. Such waivers shall not apply to, or prejudice the prosecution or defense of any claim or portion of claim which is not within the protection afforded under 1 (a) the provisions of the policy applicable to the financial pro-tection required of the named insured; (b) the agreement of indemnification between the named ' insured and the the Nuclear Regulatory Commission made pursuant to Section 170 of the Atomic Energy Act of 1954, as amended; and 4 (c) the limit of liability provisions of Subsection 170e. of the Atomic Energy Act of 1954, as amended. .Such waivers shall not preclude a defense based upon the failure of the claim-ant to take reasonable steps to mitigate damages.

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

5. As used herein:

" extraordinary nuclear occurrence" means an event which the Nuclear Regulatory Commission has determined to be an extraordinary nuclear occurrence as defined in the Atomic Energy Act of 1954, as amended. " financial protection" and " nuclear incident" have the meanings give.n them in the Atnmic Energy Act of 1954, as amende,d. 4 " claimant" means the person or organization actually sustaining the bodily 2 injury or property damage and also includes his assignees, legal represent-i atives and other persons or organizations entitled to bring an action for damages on account of such injury or damage. Effsetive Date of i this Endorsement March 19,1984 12: A.M..S ta To form a part of Policy No NF-284 issued to Philadelphi ectric gaaro Time ompany - DIts of issue April 10, 1984 For the su scribing co panies By / General Manager Encorsement No 3 countersigned by NE-33a i (1/1/77) L

e Nu:;l:cr En::rgy LI:bility insur;nce NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION [. ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT CALENDAR YEAR 1984 ~ It is agreed that Item 5 of the Declarations " Advance Premium" is amended to read: ADVANCE PREMIUM: It; is agreed that the Advance Premium due the companies for the period designated above is: $ 100.00 STANDARD PREMIUM AND RESERVE PREMIUM: In the absence of a change in the Advance Premium indicated above, it is agreed that, subject to the provisions of the Industry credit Rating Plan, the Standard Premium is said Advance Premium and the Reserve Premium is: ( $ 67.00 I Effective Date of this Endorsement March 19, 1984 To form a part of Policy No ~ 12:01 A.M. Standard Time issutd to Philadelphia Electric Company Data of issue Anril 10.1984 For the su scribing co panies By l General Manager / Endorsement No 2 Countersigned by NE-41

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

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

(3) Use of Reserve Premiums All reserve premiums paid or payable for % policy may be used by the members of Nuclear Energy Liability Insurance Association to discharge their obligations with respect to incurred losses whether such losses are incurred under this policy or under any other policy issued by Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters. (4) Reserve Premium Refunds A pottion of the reserve premium for this policy for the first cal-endar year of any group of ten consecutive calendar years shall be returnable to the named in-sured provided there is a reserve for refunds at the end of the tenth calendar year. (5) Computation of Reserve Premium Refunds he reserve premium refund due the name insured for any calendar year shall be determined by multiplying any industry reserve premium refund for such calendar year by the policy refund ratio for such calendar year. The reserve pre-mium refund for any calendar year shall be finally determined as soon as practicable after July 1 of the tenth calendar year thereafter. (6) Final Premium De final premium for this policy shall be the sum of the standard premiums for each calendar year, or portion thereof, during which this policy remains in force less

i the sum of all refunds of reserve premiums due the named insured under the provisions of

~ this Condition 1. (7) Reserve Premium Refund Agreement Each member of Nuclear Energy Liability Insurance Association subscribing this policy for any calen'dar year, or portion thereof, thereby agrees for itself, severally and not jointly, and m the respective proportion of its liability assumed under this policy for that calendar year, to return to the named insured that portion of any reserve premium refund due the named insured for that calendar year, determined in accord-ance with the provisions of this Condition 1. Effective Date of this Endorsement March 19.1984 NF-284 To forre a part of Poh.ey No. 12:01 A.M. Standard Time . Issued to Philadelohia Electric Comoany D1te of Issue April 10,1984 For the su ribing com ies By Uh General M inager ( _ Endorsement No. I Countersigned by ,eOg? Pegg 3

Nucirr En:rgy Li:bility instr:nn ' NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION INDUSTRY CREDIT RATING PLAN PREMlUM ENDORSEMENT It is agreed that Condition 1 of the policy is replaced by the following: CONDITION 1. PREMIUM (1) Definitions: With reference to the premium for this policy: " advance premium", for any cak idar year, is the estimated standard premium for that calendaryear; " standard premium", for any calendar in accordance with the companies' rules, year, is the premium for that calendar year compute rates, rating plans (other than the Industry Credit Rating Plan), premiums and minimum premiums applicable to this insurance; " reserve premium" means that portion of the sta.sdard premium paid to the can'panies and specifically allocated under the Industry Credit Rating Plan for incurred lones. The amount of the " reserve premium" for this policy for any calendar year during which this policy is in force is the amount designated as such m the Standard Premium Endorsement for that calendar year; " industry reserve premium", for any calendar year, is the sum of the reserve premiums for that calendar year for all Nuclear Energy Liability Policies issued by Nuclear Energy Liabih:y Insurance Association and Mutual Atomic Energy Liability Underwriters and subject to the Industry Credit Rating Plan; ~ " policy refund ratio", for any calendar year, is the ratio of the named insured's reserve pre-mitun for that calendar year to the industry reserve premium for that calendar year; " incurred losses" means the sum of: (1) alllosses and expenses paid by Nuclear Energy Liability Insurance Association and Mu-tual Atomic Energy Liability Underwriters, and (2) all reserves for unpaid losses and expenses as estimated by Nuclear Energy Liability In-surance Association and Mutual Atomic Energy Liability Underwriters because of obligations assumed and the expenses incurred in connection with such obligations by members of Nucl:ar Energy Liability Insurance Association and Mutual Atomic Energy Liability Underwriters under all Nuclear Energy Liability Policies issued by Nuclear Energy Liability Insurance Association and Mutual Atomic Energy Liability Underwriters and sub-ject to the Industry Credit Rating Plan; " reserve for refunds", at the end of any calendar year, is the amount by which (1) the sum - of allindustry reserve premiums for the period from January 1,1957 through the end of such calendar year exceeds (2) the total for the same period of (a) allincurred losses, valued as of the next following July 1, and (b) all reserve premium refunds made under the Industry Credit Rating Plan by members of Nuclear Energy Liability Insurance Association and Mntual Atomic Energy Liability Underwriters; ~ " industry reserve premium refund", for any calendar year, is determined by multiplying the reserve for refunds at the end of the ninth calendar year thereafter by the ratio of the indus-try reserve premium for the calendar year for which the premium refund is being determined to the sum of such amount and the totalindustry reserve premiums for the next nine calendar years thereafter, provided that the industry reserve premium refund for any calendar year shall in no event be greater than the industry reserve premium for such calendar year. (2) Payment of Advance and Standard Premiums The nam:d insured shall pay the companies the advance premium stated in the declarations, for the period from the efTective date of this policy through December 31 following. Thereafter, at the beginning of each calendar year while this policy is in force, the named insured shall pay the advance premium for such year to the companies. The advance premium for each calendar year shall be stated in the Advance Pre-( mium Endorsement for such calendar year issued to the named insured as soon as practicable prior to or after the beginning of such year. NE.07 PAGE 9 v r

p-- 4 Y? o j f. SUCSCR18!'8G CCFPANTES PROP 0RTION OF 1001 Aetna Casualty 4 Su'rety Co.. The.15I Paretagton Avenue. Hartford. CT 06154 Af flitated f M losurance Co.. Allendste Park. P,Q. Son 1500. Johnston, RI 02919 8.75847 - Alliana insurance Coacany. 6435 Wilshire 81vd.. tos Angeles. CA 90048 .25024 Altstate lasurance Co.. American lause Assurance Company. 70 Pine Street. New Vort. NY 100051 Allstate Tones't Plaza. - TIA. El West Mf stas 84.. S 1.33442 t 4.67118 American Hntorists Insurance Coswany. Long frove. IL 60049 .87585 Siteantnows Casualty Corporation. 320-18th 5t.. Rock Island. IL 61201 .41707 Centenntal lasurance Ccapacy. Atlantic Butiding. 45 Wall Street. New York. NY 10005 .4I;07 . Cos=4rcial Union Insurance Co.. One 8eacon Street. Soston. MA 02108 . 25025 Connecticut Indonelty Company. The. 9 Farm Springs Ad.. Farmington, CT 06032 3.33656 Continental Casualty Co. CHA Plata. Chicago. IL 60685 .41707 Continental Insurance Co.. The. 2 Corporation P14Ce South. Ptscataway. NJ 08854 4.St.435 ' federal Insurance Co. 51 John F. Kennedy Parkway, short utils. NJ 07078 7.71579 Firemen's Fund Insurance Compantes. P.O. Ses 177. Novato. CA 94998 1.50145 Genera) Accident Insurance Company of America. 414 Walnut 5t,. Philadelphia, PA 19105 5.33849 seneral Insurance Cowany of America. Safeco Plaza. Seattle. liA 98285 1.34462 ' Ndover lasurance Co.. The 440 CinCoin St.. Worcester. NA 01605 1.66828 Hartford Accleent and Indemity Co. Ine. Hartford Ple2s. Martford. CT 06115 .5004b httford 5tese 8Hier lasp.& Ins. Co.. Tae. 56 Prospect St.. Martford. CT 06102 . 7.09020 Higana ds laserseca Co., 600 Jef ferson St.. Houston. TA 77002 .58389 Ns'e Indemity Co.. The. 59 Malden Lane. New Yort. NY ' ' '8 1.83511 .33365 Insurance Co. of north Arerica. c/o CIG*4A.10 Rocaeft e Plaza. New Tork. NY 10020 -{; ' Metropolttaa Prop. & Llab. Insurance Co. 125 Maiden tane. Svite I200 New York, NT 10034 4.83801 Mission fr.surance Ccepany, 2601 kilshire 81vdl. Los Angeles CA 90057 1.66628 Honarch Insurance CA. of 0hte. The.19 Rector St., New York, NY 10006 .50048 tiotors lasurance Corporation. 3044 West Grand 81vd.. Detrott. M144202 - .33365 horthwestern RJtional lasurance Ccapany, 732 he. Jackson St. Milwaukee, WI 532G2 - 16683 Chto Casualty lasurance Cesvany, The,134 North Third 5t.. Mastiton. CH 45025 .93424 ' Pactfic Indomalty Co. 51 John F. Kennedy Parkway. Short Mills. BJ 07078 .16683 Protective Insurance Co., 3103 81 orth Mertataa 5t.. Indianapolls. If,46208 41707 Providence Was%4ngton lasurance Co., 20 Washingten Place. Providence. R102903 .08341 Reitance lasurance Coreany. 4 Penn Center Plaza. Philadelphta. PA 19103 .16683 Royal Insurance Co-pany of America 150 W1111ae Street. new Tork. NY 10038 ' 1.00097 St. Paul fire & Hartne Ins. Co., 345 Washingtea 51.. St. reet. His 55102 3.50338 5eaboard SJrety Co. 90 Utilfan St., hew York. NY 10038 - 5.05822 ~- State Fars Ftre & Ca$ualty Company !!! Cast Washington St. 81ocaington. IL 61701 .16683 Transamerica insurance Company. P.O. Ses 54256. Los Anteles. CA 90054 .83414 transport in*=ntty Company, 3670 utishire Sive.. Los Angeles. CA 90010 .83414 Travelers Indemntly Company. The. One Tower Square, partford. CT 06115 .08341 United States fidelity acd Guaranty Co.. P.O. 80s !!38. 8altimore. MD 21203 10.84382 - United States Fire lasurance Co.. P.O. Bos 2387. Morristown. NJ 07960 10.76048 Universal %derwetters lasurance Co., 5135 Cak Street, stansas City. HD 64112 3.08633 lurich Insurance Co. 231 No. Martingale Ad., Schaumburg. IL 60196 .36643 NE* 816 1.25120 k e}}