ML20114B612

Forwards Endorsements 10,14 & 47 to Nelia Policy NF-238

ML20114B612
Person / Time
Site:	Farley
Issue date:	01/21/1985
From:	Duck J MARSH & MCLENNAN, INC.
To:	Dinitz I NRC OFFICE OF STATE PROGRAMS (OSP)
References
NUDOCS 8501290364
Download: ML20114B612 (8)

Text

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Marsh &

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Marsh & McLennan, incorporated 2121 San.'acinto Street 1300 San Jacinto Tower Dallas, Texas 75201 Telephone 214-979-9900 January 21, 1985 Mr. fra Dinitz Insurance indemnity Analyst Licensee Relations Section Office of State Programs U. S. Nuclear Regulatory Commission Washington, D. C. 20555 Alabama Power Company J. M. Farley Nuclear Plant ANI/MAELU Policy NF-238 Endorsements 10. fl. 12. I3. 14 and 47

Dear Jerry:

Enclosed for your records are two certified copies of Endorsement Nos.10, ll.12,13,14 and 47 pertaining to the Alabama Power Company J. M. Farley Nuclear Plant which you requested in your letter dated 19 November 1984 to A. R. Barton of Alabama Power Company.

Very truly yours,

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Mnn R. Duck, Jr.

Assistant Vice President M&M Nuclear Consultants cc: N. Horsley J. L. Collins

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NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION AMENDMENT OF CONDITION 2 " INSPECTION: SUSPENSI0rl" (Facility Form)

It is agreed that Condition 2 " INSPECTION; SUSPENSION" 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 operations relating thereto and to examine the insured's books and records as far as they relate to the subject matter of.this insurance.

Neither the right to make inspections and examina-tions nor the making thereof nor any advice or repcet resulting therefrom shall constitute an undertaking, on behalf of or for the benefit of the in-sured or others, to determine or warrant that such !,cility or operations are safe or healthful, or are in compliance with any b, rule or regulation.

If a representative of the companies discovers a condition which he believes to be unduly dangerous with respect to the nuclear energy hazard, a repre-sentative of the companies may request that such condition be corrected with-

' out 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 companies to be responsible for the continuance of such dangerous condition, and to the United States Nuclear Regulatory Com-mission, suspend the 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 to each such person or organization that such condition has been corrected.

Tnis is to certify that thia lo a trvo copy of thn oiiginal Endorcement having the endoracnvat number and boing made part oc tha nucl2ar Eneru Liability Policy (Facility Form) as das-ignat 'd hereon. Ho Insuranco i fforded hereunder.

.bbn L Quxtrahi, & Pra!cnt ListJky Underwr;&g American Nxiest inn.rers

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t) this Endorsement January 1,1977 k

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3 12.01 A.M. Standard Timo (Qg Qf issued to Alabama Power Company

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Date of issue December 15, 1976 For liie su ;cribing co panies By

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General Manager Endorsement No 10 Countersigned by NE-46 (1/1/77)

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Nuclear Energy Liability Insurancky NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION

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WAIVER OF DEFENSES END0RSEMENT (Extraordinary Nuclear Occurrence)

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

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

_(a) arises out of or results from or occurs in the course of the con-struction, possession, or operation of the facility, or (b) arises out of or results from or occurs in the course of the transportation of nuclear material to or from the facility, the insureds and the companies agree to waive (1) any issue or defense as to the conduct of the claimant or the fault of the insureds, including but not limited to:

(i) negligence, (ii) contributory negligence, (iii) assumption of risk, and (iv) unforeseeable intervening causes, whether involved 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 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 af ter the date of the nuclear incident.

The waiver of any such issue or defense shall be effective regardless of whether such issue or defense may otherwise be deemed jurisdictional or relating to an element in the cause of action.

2. The waivers set forth in paragraph 1. above do not apply to (a) bodily injury or property damage which is intentionally sustained by the claimant or which results from a nuclear incident intentionally and wrongfully caused by the claimant; (b) bodily injury sustained by any claimant who is employed at the site of and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits therefor are either payable or re-quired to be provided under any workmen's compensation-or occupational disease law; (c) any claim for punitive or exemplary damages, provided, with respect to any claim for wrongful death under any State law which provides for 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.

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3. The waivers set forthh) paragraph 1. above shall be eh' pplies un ltive only with respect oth, bodily irijury or prop:rty damage to which the policy a to

r 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 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 pro-tection required of the named insured; (b) the agreement of indemnification between the named ' insured and the the Nuclear Regulatory Commission made pursuant to Section 170 of the Atomic Energy Act 'of 1954, as amended; and (c) the limit of liability provisions of Subsection 170e. of the Atomic Energy Act of 1954, as amended.

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

4. Subject to all of the limitations stated in this endorsement and in the 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 recnver damages because of bodily injury or property damage to which the policy applies as proof of financial protection.

5. As used herein:

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

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

" claimant" means the person or organization actually sustaining the bodily injury or property damage and also includes his assignees, legal represent-atives and other persons or organizations entitled to bring an action for damages on account of such injury or damage.

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t is dor ment January 1, 1977 To form a part o' Po! icy No 2%

12.01 A.M. Standard Time issuedto Alabama Power Company Oite of issue December 15. 1976 For the su

cribing co panies This is to cortify that this is a true copy of tho original Endorce cnt having tho endorcement na. der and being mado I of the Nucloar Ent

r$y Liability Policy (I'acility FcD1W t

(gnated ht on. No Incurance la aff ded horoundor.

General Manager Endorsement No

.M Countersigned by (1/1/ 77 ) John L. Osatroce!;i, Vice Prc@nt Liaility Underwriting Amrian %r im rs

Irr Energy Li:bility insuranc(7 O

NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION AMENDMENT OF DEFINITION OF

" NUCLEAR ENERGY HAZARD" (Indemnified Nuclear Facility)

It is agreed that:

1. Solely with respect to an " insured shipment" to which the 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 handling and temporary storage incidental thereto, within (a) the territorial limits of the United States of America, its territories or possessions, Puerto Rico or the Canal Zone; or (b) international waters or airspace, provided that the nuclear material is in the course of trans-portation between two points located within the territorial limits described in (a) above and there are no deviations in the course of the transportation for the purpose of going to any other country,' state or nation, except a devia-tion in the course of said transportation for the purpose of going to or returning from a port or place of refuge as the result of an emergency.

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

This is to cortify that thia 10 a true copy of the original Endoraonent br.ving t,he endoracecnt auc.bor and being mado part of tho Nuclear Er:grgy Liability Policy (Pacility Form) as dos-ignated horcon. No Insurance affcrded hereundor.

John b attruchi, Vice Presider.t LL6ility Underwritirig A:nmm Nu&ar Iraurers Effective Date of this Endorsement Januar1 1,._1.973

,To form a part of Policy No NF-2 38 12.01 A.M. Standard Time issued to _ Ahhama_foxcLfampany For the su cribing co panies Date of issue De.cember_lL_1976 By

_d General Manager Endorsement No 12 Countersigned by NE-44 (1/1/77) u...

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.uclear Energy Li. *lh y insurad.,)

NUCLEAR' ENERGY ByI S URANCE ASSOCIATION

1) ADVANC YD D PREMIUti EllDORSEMErlT

2) CilAtlGES UB.,

.4 BitTG COMPAtlIES Afl0 Ifl TilEIR PRO TI0tlATE LIABILITY EllDORSEMEtiT Calendar Year 1977 la. ADVAtlCE PREMIUM: it is agreed that the Advance Premium due the companies for the period designated above is:

2,000.00

b. STANDARD PREMIUM AND RESERVE PREMIUti: In the absence of a change in the Advance Premium indicated above, it is agreed that, subject to the pro-visions of the Industry Credit Rating Plan, the Standard Prenium is said Advance Premium and the Reserve Premium is: $

1.9an nn 2.

It is agreed that with respect to bodily injury or property damage caused,

-during the effective period of this endorsement, by the nuclear energy hazard:

'.. a. The word " companies" wherever used in the policy means the

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' subscribing companies listed on the reverse side of this

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...x. b. The policy shall be binding on such companies only.

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c. Each such company shall be liable onlyffor its proportion of any obligation assumed or expense incurred under the policy because of such bodily injury or property damage as designated on the reverse side of this endorsement.

3.

It is agreed that the effective period of _this endorsement is from the beginning of the effective date of this endorsement stated below to the

'close of December 31st of the Calendar Year desianated in the caption above, or to the time of the termination or cancellation of the policy, if sooner.

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This 1s to cortify that thic is a true copy of the original Endercement having the endorcement nuatar and being cado part oi 1:ue Huoloar EnerJy Liability Policy (Pacility Form) as des-igt. tod hereon. No Insurance ' 3 afforded horoundor.

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Jean L. Quattrncefd, Vice Prennt-Lhbimy Un krwriting Ardcan Nucicar ic,sarers Effective Date of this Endorsement Ja nRa ry_L_.] 977 To form a part of Policy No T-233 12'o1 A.M. Standard Time issued to Alas m Power Cc ru,y F'

cate of issue __Dece!:tec_31_lSZ6.

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- deneral Manager Endorsement No _

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IN ANCE ASSOCIATION 0

ONDITION 4 AND AME 977 SUBSCRIBING COMPANIES AND IN THEI OPORTIONATE LIABILITY ENDORSEMENT It is agreed that:

1.

with respect to bodily injury or property damage caused after the effective date of this endorsement by the nuclear energy hazard, the figure $96,875,000 stated in Condition 4 of the policy is amended to read $108,500,000.

2.

.the listing of subscribing companies and their proportionate liability for calendar year 1977 shown on the reverse side of the Advance Premium and Standard Premium Endorsement for Calendar Year 1977 is replaced by the listing on the reverse

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L This in to certify that this is a true copy of the original Endorcement having the endorsecont number and tcing made part or cho ITuclear Energy Liability Policy (Facility Form) an des-ignated hereon. l'o Insurance is afforded hereundor.

John L. tMttrocchi, Vice Presk!cnt Liabthty v3erwritir.g Arr4rican Nuclear Insurers j'33T[j'o,$m*en't January 1, 1977 To form a part of Policy No MI'-D'l 12:o1 A.M. Standard Time issu:dto Abbma Po nir Cess D:t2 of issuo January 31. 1977 For the su scribing co pa

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BY G eneral Manager Endorsement No 14 Countersigned 7,NE-430 (1/1/77)

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G Nuclear Energy Liability insurance

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RESTORATION OF LIMIT OF LIABILITY

'l ENDORSEMENT i

i t is agreed that:

1.

Endorsement No. 45 is deleted.

1 2.

Payments made and expenses incurred by the companies under this policy have reduced, in accordance with Condition 3 of the policy, the 1imits of the companies' IlabiIity stated in Item 4 of the Declarations and in all increase of Limit of Liability Endorsements.

3 The limit of liability stated in Endorsement No. 41 which has been reduced is hereby restored to $124,000,000.00 This restored limit applies only with respect to obligations assumed or expenses incurred because of bodily injury or property damage caused by the nuclear energy hazard af ter the effective date of this endorsement.

4.

The 1imits of Ilabiiity stated in the policy shalI not be cumulative.

Each payment made by the companies af ter the effective date of this endorsement for any loss or expense covered by the policy shall reduce by the amount of such payment every limit of liability, regardless of which limit of liability applies with respect to the bodily injury or property damage out of which such loss or expense arises.

This is to certify that this in a true copy of the original L.dorcement having the endorsement number and being made part o.

.no Nuclear Energy Liability Policy (Facility Form) ao des-igaated hereon. No Incurance is afforded hereunder.

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John L. Quattwehi, Vice Pruident-Li&Ity 'rderwriting Arrxtysu Nudear Insurers Ef fective Date of NF-238 July 1' B82 To form a part oil

'y inis Encorsement 12.01 A.M. Standard T6me issued to Alabama Power Company A

'D' tbn 0:13oftssu, n,enher 14. 1987

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General Manager En fsement No k7 Countetslane D

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