ML20126H129

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Forwards Endorsements 14-19 to ANI Policy NF-248, Endorsements 1 & 2 to ANI Binder EB-69,MAELU Policy MF-101, Endorsements 1-14 to Maelu Policy MF-101,MAELU Binder B-69 & Endorsement 1 to Maelu Binder XB-69
ML20126H129
Person / Time
Site: McGuire Duke Energy icon.png
Issue date: 04/01/1981
From: Sanders F
DUKE POWER CO.
To: Saltzman J
Office of Nuclear Reactor Regulation
References
NUDOCS 8104060547
Download: ML20126H129 (37)
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Text

{{#Wiki_filter:- - _ t. D~URE POWER COMPANY GENERAL OFFICES "^"'*N' 373 4 422 SOUTH CHURCH STREET CHARLOTTE. N. C. 28242 April 1, 1981 p, .lg. g. Y, 9 Mr. Jerome Saltzman Office of Antitrust & Indemnity El, f.9 )f. }/ Deputy Chief -t $# *O i Nuclear Regulatory Commission 'y W.- Washington, D. C. 20555 t

Subject:

McGuire Nuclear Station l Unit I ANI - Policy No. NF-248 Binder No. EB-69 l MAELU Policy No. MF-101 Binder No. XB-69

Dear Mr. Saltzman:

Enclosed you will find copies of Endorsements 14, 15, 16 17, 18 and 19 to ANI Policy NF-248. Endorsement 1 and 2 to ANI Binder No. EB-69, MAELU Policy No. MF-101 and Endorsements 1-14 of same, MAELU Binder No. XB-69 and Endorsement I of same. Sincerely, / F. D. Sanders Insurance Analyst l FDS/sd cc: K. S. Canady enclosures roo/ s // L 8104060 547

m _ Nuclear Energy Liability insurance j NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION i t i IflCREASE OF LIMIT OF LIABILITY EllDORSEf'EllT 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 1 above shall not be cumulative, and each payment made by the ~ companies after the ef fective date of this endorsement for i any loss or expense covered by the policy shall reduce by the amount of such payment both the limit of liability stated i 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 the bodily injury or property damage out of which such loss or ' expense arises. . c. u a u,:- L: n*: a2- .er7v3 merMim1 ac x M e n u be' ? u da ::rr: - a

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tovember 15, 1980 12.01 A.M. Standard Time Tc form a part of Policy No T NA issued to Duke Power Company f

Date of tssue October 14, 1980 For the su 3cribing cor panies i By v / General Manager Endorsement tio I4 Countersigned by '( I ' L - f t u-.-qw..:- ..,t.y,- .%,n... .. f w ry..,y,_,,,,...,. ..u .,Sw s -.w ,ww...,..%e +,.m...-._ ..-----..- - m a.

i Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEM$NT l CALENDAR YEAR 1980 It is agreed that Items la. and ib. of Endorsement No. 12 are amended to read: la. ADVANCE PREMIUM: It is agreed that the Advance i Premium due the companies for the period designated above. is: 3,621.53 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 r Credit Rating Plan, the Standard Premium is said Advance j Premium and the Reserve Premium is: $ 2,426.42 Additional Premium: $ 1,621.53 i f i ni:,; 18 to a 0:** t ry -.it t r.i'i 10 t raJ cop / cf :.90 origin'L1 Er.dorc a na' c.: ; u . rte. :0nt :12:1 er and i.eir. rado part c.f the nucl: r Jr.cr ? Li bilin ?.s1107 { ~~;cill' y o.n) as des-c igr.ated heroca. So I.nraa m ia nffor'ied hereundar. .f,6 5 N 2A!)OG,vn ; 'r L Effectise Date of { this Encorsement ttovember 15, 1980 To forrn a part of Policy No UI-240 f 12:01 A.M. Stancard Time t issued to Duke Power Company Date of issue flovember 11. 1980 Fo'r the su scribing co panies I .[ By / / General Manager / 15 Countersigned by_. L~7 /* [ b.( L e Ll s. j l ncorsement No a c. - 4 6

Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION l ADVANCE PREMlUM AND STANDARD PREMlUM CALENDAR YEAR 1981 ENDDRSEMENT-t 1. ADVANCE PREMIUM: It is acreed that the Advance Premium due the companies forte period designated above is: 329,218.98 2. STANDhRD PREMIUM AND RESERVE PREMIUM: In the absence of a change in the A:.vance Premium inaicatea 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: 247,881.43 I f r.i; ' c :: artii'7 C.;; ti.,i: ; : 'm JWl/ 0 tr.u c:cigin.11 7 E: nr u. c.t.1. :i: 7 a '. 2..':. . : ar ar..! a c ;., e a ds ; ur: l ai th;...:01 ct i r.,.. ' i ' t i. 0 /_ ' h'2 0 ll '.t7 hr'3 ) as d e.s-icn1tr i harc.n. t:0 inz =::.m L: 21:.::Lc hartra;:. r i i /) u i r~- 4 I Ni. ' wL e.e 8....gG hh 'E* j w-l r v.s NnHar f. n i 1 Effect:ve Date of i this Endorsement January 1,1981 To form a part of Policy No-NI~240 E 12.01 A.M. Standard Time l tssuecto Duka Power Company l Date of issue December 22, 1980 For the su scribing co panies By J l General Manager i 16 / '/ l Endorsement No 7 Countersigned by ' / gy h . ~.. ~. ~..

i Nucl:ar En:rgy Lirbliity insuranco NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION AMENOMENT OF DEFINITION OF CONDITION 2 " INSPECTION: SUSPENSION" AND " INSURED SHIPMENT" (Indemnified Nuclear Facility) It is agreed that: 1.) 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 facil!ty and all operations 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 representative 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 noncompliance with such request, a representative of the companies may, by notice to the named insured, to any other person or organization considered by the comptaies 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 Commission follow-ing the date that such Commission receives such notice. The period of such suspension shall tenainate 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. Neither the right to make such inspections and examinations nor i the making thereof nor any advice or report resulting 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 healthful, or are in compliance with any law, rule or regulation. In consideration of the issuance or ~ continuation of this policy, the insurec' 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 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 the companies under this policy or any policy affording the insured r property insurance through American Nuclear Insurers. NE-51 Page 1 of 2 (1/1/81) (over)

1 4 2.) The definition of " insured shipment" in Insuring Agreement III, " DEFINITIONS", is replaced by the following: 1 " insured shipment" means a shipment of source material, special nuclear material:, spent fuel, waste, or tailings or wastes produced by the extraction or concentration of uranium or thorium from any ore processed primaril content, herein called " material", (1) y for its source material to the facility from any. location except an indemnified. nuclear fccility, but only if the transportatiori of the material is not by predetermination to be interrupted by removal of the meterial from 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. l This is to certify that this is a true copy of the original Endorsement having ti;s endor::enant number and being made part of the ?lcolear Energ7 Liability Polir/ (Facility Form) as des-ignated e' ercon. Ilo Insurance is aircrded hereunder. l b l / l1 s & iL y A% n% /Q met abiary I .f Effective Date of January 1, 1981 NF-?48 this Endorsement To form a part of Policy No 12.01 A.M. Standard Time Issued to Duke Power Company j December 22, 1980 For the su scribing co panies Date of issue By ) / General Manager i Endorsement No Countersign $d by C '~ NE.51 Page 2 of 2 (1/1/81)

Nuclear Energy L! ability insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION Amendment of Location of the Facility It is agreed that the location specified in Item 3 of the Declara-tions, " Description of the Facility", is amended to read: Location All of the premises including the land and all buildings and structures of Duke Power Company's William B. McGuire Nuclear Station shown as being within the heavy black lines on a reduced copy or Drawing Number MC-1001-1 Revision 1 dated February 22, 1977, a copy of which is attached hereto and made a part hereof. The site as described includes the cooling-water intake structure, the cooling-water discharge structure and canal, and the Switching Station located approximately 3000 feet south of the administration building. The William B. McGuire Nuclear Station is located on the south shore of Lake Norman approximately 17 miles Northwest of the city of Charlotte in Mecklenburg County, North Carolina. Thw is to certify ths t'"n i: 'IS-Nf.t"?#fff[1 ~i c - - <3.. _ ~~ - -=- z.sme=, 2 hr.1 2 : c=-- -: ; ~- " (f : = L M I '= ' * * * * *

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Nuclear Energy Liability insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION CHANGES IN SUBSCRIBING COMPANIES AND IN THEIR PROPORTIONATE LIABILITY ENDORSEMENT Calendar Year 1981 1. 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 subscribing companies ~ listed below. b. The policy shall be binding on such companies only. c. Each such company shall be liable for its proportion of any obligation assumed or expense incurred under the policy because of such bodily injury or property damage as designated below. 2. 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 31,,1981, or to the time of of the termination or canc,ellation of the policy, if sooner. t3 ao s;g$9:3!% r^= celi 5 oncoca"?g ct IM 0 1 = tip N 5, Aety Canaltf es bre r *2. Se, ? 51 Faraiastaa A,e.

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~* u Effective Date of o-Januhry 1, 1981 To form a part of Policy No ~ this Endorsement 12:01 A.M. Standard Time issued to Duke Power Company For the su scribing co panies Date of Issue March 12, 1931 L w il F General Manager Endcrsement No 19 Countersigned by (1/81) -+ s =1 4-r,-. - - -.. W y -t-y yi

Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION SPECIFICATION OF BINDER EFFECTIVE DATE AND PREMIUM ENDORSEMENT Tt is agreed that: 1. The United States Nucleae Regulatory Comission has issued.to the insureds named in Item 1 of the Declarations Operating License No. NFP-9 effective January 23, 1981 for the reactor described in Item 3 of the Declarations of the binder. 2. Item 6 of the Declarations of the binder is deleted and replaced with the following: Item 6. Portion of the annual premium payable for the companies' contingent liability described in Condition 4 of the Draft Master Policy from the effective date hereof to tne end of calendar year 1981

$ 4,371.00 3.

Item 8 of the Declarations of the binder is deleted and replaced by the following: Item 8. Binder period: Beginning January 23, 1981 and continuing to the effective date and time of cancellation or termination of the Draf t g er Policy or this binder, whichever first occurs. aastarr standard time. Inis is to certity tnat tnis is a true copy of the original Endorsement having the endorsement number and being made a part of the binder for NUCLEAR ENERGY LIABILITY POLICY (Secondary Financial Protection) as designated hereon. No Insurance is afforded hereunde d. ,J // 3 / \\ Q Jo;\\n L. Quatt ni, idents Liability Underwriting American Nuclear Insurers Ettective Cate of Sinder No. Inis Endorsement January 23, 1981 To form a part of Rmpb EB-69 12:01 A Duke Power Company.M. Stancarc Time tssued to cate of issue March 4.1981 For the su scribing ce panies h e, /F' General Manager Encorsement No I Countersigned by

Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION SUBSCRIBIt1G COMPAtlIES AND THEIR PRO-PORTIONATE LIABILITY ENDORSEMEftT. Calendar Year 1981 1. It is agreed that with respect to (i) bodily iniury or property damage caused, during the effective period' of this endorsement, by the radioactive, toxic, explosive or other hazardous properties of nuclear material. and'(11) contingent liability as provided in Condition 4 for excess incurred h,ses because retrospective premium due under one or more binders witn rispect to such bodily injury or property damage is not paid; a. The word " companies" wherever used in the policy means the subscribing companies-1isted on the reverse side of this endorsement. b. The policy shall be binding on such companies only. c. Each such company shall be liable only for its proportion designated next to its name of any obligation assumed or expense incurred under the policy. 2. It is agreed that the effective period of this endorsement is frem the beginning of the effective date of this endorsement stated below, to the close of December 31st o' the Calendar Year designated in the caption above, or to the time of the termination or cancellation of the Draf t Master Policy, or this binder, whichever first occurs, eastern standard time. (see reverse side for list of subscribing companies) This 1 ; w Or! '.. ! Inecri:1.21 End:rco:.:3.n.u.. ' r4 L. ' c n. .a. - -/ : d i::it; mde part of the IIu:1 car T:c:J-/L's" - ' y Fo.' r f hellity For.a) as des-Ignater'. neroon, lio Insurance is Abrded hereunder. O 11 Et'e:Sve Cate of Binder No. rwis Encersement January 1,1981 To terrn a can of74TeyM5 EB-69 l Y .2 o1 A v. Stancarc Tirne issuee to Duke Power Company Caie,ct issue March 12,1981 For the sur criDme c

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l i I 4 l 1 i Sette!a fi.". Cn"*nnit$ Perp)pilag or tfic; Aetna Caswelty and 5ersty Co.. The.151 Faretngton dre., Martford. CT 06156 9.930569 Aetna lasw ance Cor54er. SS fle St.. martford. Cf c6115 2.644152 e Af h alated F# insgrance Co., Allendale feet. # 0. los 700. Jennstoa, el 02919 .244264 Alltana ensu anCe Campgny, $4)$ t,ilsnore $194.. Los Anoeles. CA 9M54 1.324076 r Alls tate insurance Co.. Allstate P' ara Souta. Gl. Nortneroom. IL 60062 4.965294 l' seericar aog Asurance Co., '02 patoen ta., how fore. NY 10005 .86892$ Agrecan Motorists insurante Ca.. Long Grove. IL 60049 413774 Sita inovs Cas.alty Corporetton, 32016th 5t.. esca Islana. IL 61201 .413774 i m Centennial Insurance Co.. Atlantic tvilding, 45 mall it,. new form, af 1000$ Concieraal Isaion insurance Co.. One Beacon St., 80ston alA 02108 3.310,64 .2442 i 90 Connessicut inoe'es ty Cososey, ine. 9 f ara Scriaes Aa.. Farmington. CT 06032 413774 Continental Cawaity Co.. Cha plass. Chicata. IL 60645 4.137737 l Co':ttreatal Inweance Co fee. 40 passen La. He* Mrs. 'iv 10035 7.6%A114 Feoeral lasurance Oo., il Jcen 7 sencee Pawy. Snort wills, 9.1 07078 1.49958% a j Firess s fond ins rance Co spanies. P.J. Los 3Hl. San f rancisco, CA 94119 5.296333 l Ow eral Acticent Fles and D's An s rance Carg.. Ltd., 414 main t St.. Pn tlade'Gn 6a, #A 19106 1.32 a 076 l n l Orest American lasurance Ca.. e.0 aos 2575. Cinc$aasti. 0* $4:01 1.324076 nanover inwrance Co.. fne. 440 Lincoln 5t.,.orcester, MA G180% 496518 Hart 4rd Act t:ent and Indemity Ca.. Harte re Plaza, nartford Cf 36115 1.034153 o Martf are Steam teller insa. & Ins. Co.. The $6 8cospect St.. *artford. CT 061C2 . d i6428 Mignianos lawrence Co., 400 JeHerson 5t., =austoe. II 77002 .413774 Nome Insewty Co.. Tne, il Maisea L4.. hew Tort. f:T 10038 3.641209 Insurance Co. or 'iorta America. 9.0. to 7728. raileselsata. PA l9101 1.651295 Moaarca inweance Co. of Cato. inc.19 Aector 5t.. he. vors. 47 10006 .331019 insu ance Coreany or me. vorm, P 0 so.12:8. Galt iacre. *0

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morta estera national las. Co. 731 No. Jacasan 5t.. mil.avn e wl 13?01 .667035 e Onio i.awalty insurance Coreany. Tae.136 f.orte inied 51. n *ilton, C* 45325 .165509 a 8acifie laavanity Co. 11 Joan F nennes, Par..a., snort wills, n) 07078 .331019 Peeriess bwrance Co., 62 s'4 ale Ave. seene, an 03411 124132 Protect ue inurance Co. 3100 he. Meridian 5t.. Indianapolis. IN 46208 .248264 Previoence ogsnin9 ton Insvesace Co. 20 4.asnington place. Provisence, el 02903 103443 Reisance lawrence Cocoany, 4 Penn Center Piera. Pallaaelonn PA 1910]C38 ,993c57 toyal inwrence Company of Anerice. 163 illiam Street. F.e. afort. 9: lo

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$t. Pael fire & flartas lat. Co. 385 hasningtsa it.. St. Paul, an 5$102 4.681228 5eanoars surety Co. 90 miliam St., New fart, hf 10038 .413174 5 tate Fam fire & Cawalty Corgany,112 test aasnington 5t. Bloo**neton. It 41701 .527547 Iransamerica Insurance Cocoany. P.O. Bos tal%6. Los A34eles. CA 93064 .377547 Travelers inde' Fidelity and feuerenty Co. 103 '.ignt St. Santtnere 84tity Company, The One Ioner 54earg martford. (T D6Ill 10 755186 IJRetse 5f ates . NO 21702 1D.4t?097 unt Led States Fire lawrence Co., 8.0. los 2 3al, morristown. nJ 079 @ 2.979171 2Wrien ins.rance Co., 231 ;4. "e rtin941e ad., Scharov g. IL 60196 1.241321 e M( =41

MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS 919 North Michigan Avenuei Chicago !!, !!!inois Nuclear Energy Liability Policy No.' MF 101 (Facility Form) DECLARATIONS i Duke Power Ccrnpany Item 1. Named Insured P. O. Box 2178 C1arlotte, North Carolina 28242

Addres, Town or City State)

(No. Street UCVCE82 ,19 2, 13th day of Item 2. Policy Period: Beginning at 12:01 A.M. on tha and continuing through the etiective date of the cancelation or termination of this pr,licy, standard time at the address of the named insured as stated herein. Item 3. Description of the Facility: All of the premises including the-land and all buildings and structures g,,;,p of Duke Power Ccmpany's ItGuire Nuclear Station (including but not limited to Units 1 and 2) situatM cn a site consisting of about 30,000 acres bounded to the wst by the Catawba River channel and to the north by Lake Noman and located approximately 17 miles north-northwest of the city of Charlotte, Mecklenburg County, North Carolina, Power Reactor

Typ, Duke Power Ccrpany The Operator of the facility ;,

36,000,000 item 1. The limit of the companies' liability is $ subject to all the terms of this policy having reference thereto. 545.67 Item 5. Advance Premium c 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 Date of Issu;pvebgr_21,__1980 Countersigned by Authorn.cd Representative 9 Nuclear Energy Liability Policy (Facility Forrn) :/1/57 (Second Revision) Ti

. = -. -. t 1 i NUCLEAR ENERGY LIABILITY INSURANCE I f MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS. l I ). ADVANCE PREMIUM ENDORSEMENT and i STANDARD PREMIUM ENDORSEMENT Calendar Year 1980_ 1. ADVANCE PREMIUM t It is agreed that the - Advance Premium due the companies for the calendar year designated.above is S 545.67 3. STANDARD PREMIUM AND RESERVE I'REMIUM 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: S tandard Premium $ 545.67 l Re se rve Premium $ 365.60 i. t 1 Effective Date of To form a part this Endorsement Novaber 15, 1980 of Policy No, ff-101 Issued to Duke Power Ccrapany Date of Issue Nweber 21, 1980 i For the Subscribing Companies MUTUAL ATOMIC ENERGf_ LIABILITY UNDERWRITERS Ily .1 i 1 Endorsement No. Countersigned by AUTHORIZED REPRESENTATIVE 'N~ S HB ( e y y -v,- w-- n n y n w y e-,- --r,r .n.ae-- %-r-v-ww..s-,---r-e +me- -<=-wa,w.-e+--,

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NUCLEAR CEFGY LIABILITY INSUIWEE i MTiUAL A'IMIC DEGY LIABILITY UNDERIGITERS ~ Ancndment of Name of Member Company Endorsement It is agrocd th.it t'ae namo " SENTRY IMSURANCE A ITUTUAL COMPANY" is substiteited for "IINtDU.ikE FJTUI.L CASUALTY CC:PANY" wherever it appearr. in the isolicy, t t r tlas Endon.cinent _ ..N._ov_m_b_e._r.__1_5_,1980 To,fm,in a pan Mr-101 Effc tive Date of of I chey No. Duke Power Canpany Issued to Novmber 21, 1980 D te of Issuw-h c For il e Sule.cribing Cmnps.nies /#/ MUTUAL ATO 1TC ENT;RGY LIABILITY UNDEltWRITEllS Dy_. Endmtement No. Countends.ned by __ AUTitWAPD RErdrS%TATin K, r==;** ~.

t; i NUCLEAR ENERGY LIABILITY INSURANCE ? MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS l ? Amendment of Condition 4 Endorsement It is agreed that with respect to bodily injury or property damage caused after the effective date of this endorsement by the nuclear energy haza.rd the figure $13,500,000 stated in Condition ~ 4 of the policy is amended to read $36,000,000. ^ r - i I-Noverber 15, 1980 }o form a,part MF-101 th s Endorse ent pg Duke Power Canpany l Issued to Nwenber 21, 1980 Date of Issu, J For the Subscribing Companies /0/ MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS By I 3 Endorsement : No. Countersigned by l 6 [ O g 4 g

~- i NUCLEAR DEPCI LIABILITY INSNPANCE MUTUAL AIQiIC DERGY LIABILITY UNDEPARITEPS 1 Amendment of Transportation Coverage (Indemnified Nuclear Facility) It.is agreed that the definition of " insured. shipment" in Insuring Agreement III.is amended to read: ~ ( r " insured shipment" means a shipment of source material, special 3 nuclear material,- spent fuel or waste, herein called " material," (1) to the facility from any location except an indemnified i nuclear f acility, but only if the transportation of the material is not by predetermination to be interrupted by removal of the material from 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. t i L [ Effective Date of To fann a part MF 101 1 rember 15, 1980 af Pohey No. this Endorsement Issued to l Nm 1, 80 Date of Issua I For the Subscribing Companies l h. MUTUAL ATOMIC ENERGY LIABILnY UNDERWRITERS '. /D L. BY t 4 l Endorsement No. Countersigned by ~ i .%trDioMIRD RsraassNTAvns l T5.~ t -..e.~.. -..4.. .~ .,~.y.;.., ,y.,,,,. ,,,,,y,_., m..,.m.,_.r.,,,.m.,y,..,_,, ,,_y_

4 IUCLEAR ENERGY LIABILITY INSUPRJCE MU'IUAL A'ICMIC ENEICY LIABILITY UNDEIMRITERS AMENDMENT OF CONDITION 2 " INSPECTION; SUSPENSION" (FACILITY FOPJO 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 examinations nor the making thereof nor any advice or report resulting therefrom shall consti-tute 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 healthful, or are in compliance with any law, 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 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 companics 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 Commission, 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 organisation that such condition has been corrected. Effective Date of November 15, 1980 To for,m a part MF-101 this Endorsement af Pohey 5o. l I Duke Pcwer Ccxnpany Issued to Date of Issua For the Subscribing Companies MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS g By 5 Countersigned by Endorsement No. .%1TDICR22ED Rsrats NTATIVE l T*

~ i I NUCLEAR ENEIE LIABILITY INSUFREE I ) SITIUAL' A'IU4IC ENEiG IJABILITY UNDERWRITERS t s Address of Mutual Atomic-Energy Liability Underwriters Endorsement t It is agreed that the address of the Mutual Atomic Energy Liability Underwriters appearing on the declarations and in the " Company. Representation" condition of the polley is amended = to read "One East Wacker Drive, Chicago, Illinois 60601" ' i 1 i 'r i Effective Date of To form a part MF 101 November 15, 1980 af Policy No, this Endorsement l l Duke Power Ccupany Issued to i I November 21, 1980 Date of Iss-t t For the Subscribing Companies j MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS g By 6 Endorsement No. Councersigned by Avrhonssao RsrasseutAT!vs T w-e ,,-,+-wsw....,,.,-.. ,.--.ecy.-. --.sv....- -,-3,..,m,-rt,1,r,-me,..ww<mye-3.,e,,- .,r+-y-.- .,,-,--.r,w..wg-v,-r,-, -ey g r-w, r y*,- -y.,

? NUCLEAR ENERGY IJAUILITY INSURANCE MUTUAL ATOMIC ENERGY LIAB!LITY UNDERWRITER 5 /JILNDATGY E?IDOF. SEMI]!T MUCIIAR E'!E2GY LL1BILITY FOLICY (FACILITY FCRM) i It is agreed that: L I. "ac first sentence of the definition of nuclear facility is amended to read: " nuclear f acility" means "the facility" as defined in any Nuclocr Enccg~v Liability Policy (Facility Fern) insued by Mutual-Atomic Energy Liability Underuriters or by nuclear Energy Liability Insurance Associaticn; II. The definition of " indemnified nuclear f ac111Ly" ie replaced by t,he following: "indennified nuclear facility" ncans (1) "the facility" as defined in any Duclear Enerr.;y Liability Policy (Facility Forn) iacued by Mutual Atonic Enercy Liability Undervritera [ or by Nuclear Energy Liability Incurance Ascociation, or (2) any other nuclear f acility, if financial nrotnetion in required p':rsur.nt to the Atenic Energy / ct cf 105!5, or any law anondatory thercof, with recpect to any activitica or operations conducted thercat; III. Condition h is replaced by the following: LIMITATION OF LIABILITY: CCECt'! OCCURREh'CE Any occurrence or series of occur-rences resultint; in bodily injury or property dMage aricing out of the radio-active, toxic, explosivo or other hazardeus propertiec of (a) nuclear natcrial dicchcrged or disperced from the facility over a period of dcys, ucels, month or lonrcr and also crising out of such proporties of other nuclear natorial no discharged er dispersed from cac or more other nucienr facilitics ina. red unocr any l'uclear Enerny Liability Pol-icy (Facility Forn) icsued by Mutual Atemic Encrgy Liability Underwritero, or (b) coerce material, cpecial nuclear n'aterial, vent, fuel or vauto in the - cource of trar sportatirn for which incarance is afforded under thic policy and also oric3ng out of cuch properties of other cource na[cri% specisi nuclear material, nrent fuel or unsto $n the course of trancportation for which innuranco is afforded under one or more other Hoclear F,ncrgy Liability Policies (Facility Forn) iccued by Mutual A tonic Ennrgy Liability Underwriters, chall be doowd to be n emmon occurrenec i caulting in bedily. injury or propnrty' damnge caused by the nuc1 car energy ha::ard. .* :e. -.---.-vm. .re, ,, ~. -. ,.~,r,mm -m-m e, .4,-- r..,-.. ,e .-y-

2 4 With respect to such bodiPy injury ar.d property dunge (1) the total aCCregate liability of ths nenbers of Mutual Atonic 1.ncrpy Liability Underwriters under all kcler.r E:mr<ry Liabilitr Paldcies (Fa:ility Fora), includin; this polic.,, a; pli:::le to.such ::r.nen oc:urrenco shall be the sun of the linits of liability of all such p:licies, the limit of liacili;.y of ca :: suen policy beinn as dettmined by Condition 3 thereof, bu e :.n no cv:nt :nall such ::tal g: rer at.c liability of cuch members c:<cced 31),' N,03); (2) ne total liability of 2.e c:npanics under thi: policy chal) nc:t e:::ced thct proport:on of the total agre-gate lic.bilf t r of the r.:..5c: s of Hutu.1 Ateni: ins r:;7 Lishility !!nder-writers, :.s stated in clause (1) aLove, :hich (a) the li..it oi liscility of thic pel:',y, is dater.inco by Concition 3, bears to (t) thr sun of the li;.it: of lia:il.ny of all cu:h pol cics tasuea by ::: n z.er.oers, a the linit Of licollity of cach cuch,eclicy bein:r,. as deternined b.r Con-ditton 3 tharco!. The provi ion: cf this conditien shall not operate to increate the linit of the comanie:' lie.:' llity under this policy. IV. The secenci parc raph of C:ndition 12 "Other In:urance" is ancn:cd to rea:: "If the in:,u:ed h'.o oth:r valid ar.c collcatible ircur:n=e (other th.:n cuch e.;rcurr nc meurance or er ' other nuc1c.r c::rcy.1 a.il;. _n:ur.c.:c _a: t; 1;..n'.; l A.m

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  • .o cny rerran una 1: not enployed..:. and in connection.:lth the faci:ity, cuch in:urano a: is :frorded by this plicy for tacily inj.ry to an cnple:/t.e of the incurca cribing out of 2.rni in tha cour se of his v.ploynent shall be pri-nary insure.r.cc ut. der such other incuran c."

l l i i I E L. c . t.s.a.t;te Dr.te of To a : ort MF 101 r.ndorsement November 15, 1980 of,for.u: l i nhey b,a. i i Duke Power Ccnpany Issued to Date of Inur l l l For the Subsesibing Com'pr.nies' t \\ (c L MUTU/.L ATO.UIC ENEltGY LIAi!!LITY UNDE! WRITERS D' A A '- 3;y 1:enimu n.tne No.. 7 c,,,ae,4 n,j I,y m nnmin netwieu. n ..n

NUCLEAR ENEPGY LT. ABILITY INSUpANCE .i i MtJIUAL A'IQ4IC ENERGY LIABILITY UNDERWRITERS AMENDMENT OF DEFINITION OF " NUCLEAR EMERGY HAZARD" (Indemnified Nuclear Facility) l It is agreed that: i 1. Solely with respect to an " insured shipment" to which the policy applies as proof cf financial protection required by.the Nuclear Regulatory Commission l subdivision (2) of the definition of " nuclear energy hazard"'is amended lto read: j t (2) the nuclear material is in an insured shipment which is away from any l 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 che 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 transportation for the purpose of ~ going to any other country, state or nation, except a deviation in the course of said transportation for the purpose of geing 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. P Effective Date of To form a part 101 I this Endorsement Nova ber 15, 1980 af Policy No. Duke Power Ccnpany Issued to Date of Issu, November 24, 1980 i { L For the Subscribing Companies 5, MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS 10/. By ,e : Al Endorsement No. '8 Countersigned by AUTalonizso Rarasesu7Attys, l l T t n .- m e nn - ~.. -. -,,,, -n. .~,.,o

i l r ht'CIZAR D EIUl LTABILITY INSURANCE fUIUAL KIO4IC ENEFnY LIABILITY UNDERWRITEPS AtCND\\ TORY ENDOP.SIMENT 1 Application of Polievi It is m;rced that Imuring Av.remenc TV of the pol f e;e, captioned " Application of Policy" is avicaded to' read as follows: APPT,1 CATION OF POLICY T1.in policy cpplies only to bmii ty Liju : v or p ccrerty r'arnce (1) which i s cr.tised c;a r; n g t h.? 1 olicy peilod b / the nuclear energ, he.anrd and (2) Phich is dincovered 2:.d fer tchich vritten claim is riade arnit st the int.ared, not later thart ern years af ter the cui of the polh.y pc riivi. i [ I 's> tk 1.,I" U^'"adcacment ...No..v. e,ber- _ -15, 1980 9'2' f -- f o ch " # P^"d o. - !E-101 Y 1:;3aea in Novm5er24,1980 D.te of louc a O Foi !r; foub iii.ing Cou.i anbs . /... M UTUAL /.TO.ilC ENEltG's I IAli1LITY UNI >l.I'.WRITEl;S jg j,. 1 .p '- liy.. I.<' n -. r en t No..._ _9 O w ed/.ml by - isun.u a u v.nru;c;v.w : a m i: m:. 32

NUCLEAR ENERG Y ! ' ADILIT Y INSURANCE MUTUAL A'ioMIC ENERGY oIABILITY UNDERWRITERS INDUSTRY CREDIT RATING PLAN PREMIUM ENDORSEMENT It is agreed that Cundition 1 of the policy is replaced b/ the folluwing: CONDITION 1. PREMIU M (1) Definitions: With reference to the premium for this policy: "adva nce premium", fo r any calenda r yea r, is the estimated standa rd premium for that calenda r yea r: "standa rd premium", for any calendar yea r, is the premium fo r that calendar yea r computed in accordance with the companies' rules, rates, rating plans, (othe r than the Indust ry Credit Rating Plan), premiums and minimum premiums applicable to this insurance; " reserve p remium" means that partion of the standard premium paid to the campanics and specifically allocated under the ;ndustry C redit Rating Plan fo r incu rred !a sses. The a mount of the "rese rve premium" for this policy fo r any ca!endar yea r during which this policy is in force is the amount desi.:r.ated a s such in the Standa rd Premium r ndorsement for that calendar yea r; " industry reserve premium," for any calenda r f ea r, is the sum of the res erve premiums fo r that calenda r yea r for all Nuclear Ene rgy Liability Policies issued by American Nuclear Insurers and Mutual Atomic Energy Liability Underwriters and subject to the Industry Credit Rating Plan; " policy refund ratio", fo r any calendar yea r, is the ratio of the named insured's reserve premium for that calendar year to the industry reserve premium for that calenda r yea r; " incurred losses" means the sum of: (1) All losses and expenses paid by Ame rican Nuclea r Insurers and Mutual Atomic Ene rgy Liability Underwrite rs, and (2) All reserves for unpaid losses and expenses as estimated by American Nuclear Insurers and Mutual Atomic Energy Liability Unde rwriters because of bblications assumed and the expenses incurred in connection with such obligations by members of American Nuclear Insurers a'nd Mutual Atomic Ener; y Liability Underwrite rs under all Nuclea r Energy m. M %, .JPf%g N e" g.. Af, h.*4l i T h P ~ e 4hg Mhh p$a ,y

-d. Liability Policies issued by Americar Nuclear Insurers and Mutual Atomic Ene rgy Liability Unde rw riters and st ject to the Industry Credit Rating Plan: "re se rve fo r refunds at the end of a ty calendar yea r, is the amount by which (1) the sum of all industry reserve premiums for the period from January 1,1957 through the end of such calenda r yea r 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 Industry Credit Rating Plan by members of American Nuclea r Insurers and Mutual Atomic Energy Liability Underwrite rs; " industry rese rve premium refund," for 'any calenda r yea r, is determined by multiplying the reserve for refunds at the end of the ninth calendar yea r thereafter by the ratio of the industry reserve premium for the calenda r yea r fo r which the p remium refund is being dete rmined to the sum of such amount and the total industry reserve premiums fo r the next nine calenda r yea rs the reafter, p rovided that the industry reserve p remium refund fo r 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 named insured shall pay the companies the advance premium stated in the declarations, for the period from the effective 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 yea r shall be stated in the Advance Premium Endorsement for such calenda r yea r issued to the named insured as soon as practicable prior to o r after the beginning of such year. As soon as practicable after each December 31 and after the termination of this policy, the standa rd premium fo r the preceding calendar year shall be finally dete rmined and stated in the Standa rd Premium Endo rse-ment fo r that calenda r yea r. If the standard premium so determined exceeds the advance premium previously paid fo r such calenda r year, the. named insured shall pay the excess to the companies; if less, the companies shallreturn to the named insured the excess portion paid by such insured. The named insured shall maintain reco rds of the info rmation necessary for premium computation and shall send copies of such records to the companies as directed, at the end of each calendar year, at the end of the policy pe riod 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 this policy may be used by the members of Mutual Atomic Energy s 4 =e" 4 $ p h e

Liability Unde rw rite rs to discharge 1: ir obligations with respect to incurred losses whether such losses e incurred unde r this policy o r under any othe r policy issued by Amc tcan Nuclea r Insu rers o r Mutual Atomic Ene rgy Liability Underwrite r<. (4) Reserve Premium Refunds. A po rtion 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) Compeation of Reserve Premium Refunds. The mserve premium refund due the named insured for any calendar year shall be determined by multiplying any industry reserve premium refund fo r such calendar year b<f the policy refund ratio fo r such calendar year. The reserve premium refund for any calendar year shall be finally determined is soon as practicable after July 1 of the tenth calendar year thereafter. (6) Final Premium. The final premium fo r 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 hlutual Atomic Energy Liabilitf Underwriters subscribing this policy for any calendar yea r, o r po rtion the reof, the reby ag ree s fo r itscif, seve rally and not jointly, and in the respective proportion of its liability assumed under this policy fo r that calendar year, to return to the named insured that portion of any reserve prernium refund due the named insured fo r that calendar year, determined in accordance with the provisions of this Conditio n 1. Effective Date of To Fo rm a Part 49 101 this Endo rsement Nove.ber 15, 1980 of policy yo, Issued to Duke Pcser Ccrpany Date of Issue Nover.ber 24, 1980 For the Subscribing Companies MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS l BY i Endo rsement No. 9S Counte rsigned by Authorized Representative g, 9 I 4 de hi * .fe 'e h ,, %,k y & m % gda,a h f L e a

NUCLEAR ENEPGY T [ ABILITY INSLTANCE MLTIUAL A'IO4IC ENERGY LIABILITY UNDERhEITERS 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, possession, or operation of the facility, or (b) arises out of or results from or occurs in the ceurse 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, (11) 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 i l 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. l 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 l vrongfully caused by the claimant; the site of l (b) bodily injury sustained by any claimant who is employed at l and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits therefor are either payable or required to be provided under any 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 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.

~.. - - -. 1 3. The waivers set forth'in paragraph 1. above shall be effective'only with respect to bodily injury or property damage u which the policy applies 'under its terms other than this endorsement; provided, however that with respect to bodily injury. or property. damage resulting from'an extraordinary nuclear occurrence, Insuring Agreement IV, " Application of Policy,"'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.protectie.n 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' I 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 -

r 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 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 ' I "n a Part MF 101-November 15, 1980 af Pohey No. this Endorsement Issued to Date of Issu-L r O For the Subscribing Companies MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS _.,R By i 11' Endorsement No. Countersigned by .%UTHORizzoRarasssNTATIVE i .we-- .--,.,r., wy --, ,,-w.., - ,,.,e-n-w-+ ,,.,me,,, .%+r m ...,ge.- 6, .-..u.r.w.-, e e n..---.r ....e -o----- m e--

... _. ~... _ NUCLEAR ENERGY J ABILITY INSURANCE MUTUAL ATOMIC ENERG'[ LIABILITY UNDERWRITERS - - r i Supplementary Endorsement Waiver of Defenses Reactor Construction at the Facility [ j It is agreed that in construing the application of paragraph 2 (b) of the Waiver of Defenses Endorsement with respect to an extrao rdinary nuclear ' occurrence occurring at the facility, a claimant who is' employed at the l facility in connection with the constru'ction of a nuclear reactor with { respect to which no operating license has been issued by the Nuclear Regulato ry C ommission shall not be considered as employed in connection f with the activity where the extraordinary nuclear occurrence takes place if: j (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 l Commission with respect to the nuclear reactor, and i (3) the claimant is not employed in connection with the possession, storage, use or transfer of nuclear material at the facility. i Effective Date of To Fo rm a Part this Endorsement Novenber 15, 1980 of Policy No, MF-101 i Issued to Duke Pcuer Campany [ r Noverber 24,1NO Date i L g_ For the Subscribing Companics i .c Mutual Atomic Energy Liability Underwriters l N' l By t .-p + L Endorsement No. 12 Countersigned by f L Authorized Representative F f ~yT'**F--^'*T*'"*' "P-*Y 1y ww e e, e--w r-ve.-..wv-w.ee ~.ow%r==.se w .er- < a ,,,e-- -c-gee.,.%,-.o,-v,.+-,...--,, ,.,w-, ees-..,-,.,..-,9,. ,--gy--,-a,.r-,e. v, g ,+gw--syse,-4.,.9.-m,-rrior b

l..; *:'. NUCLEAR ENEPCI LIAB '.ITY INSUPRiCE MUTUAL ATCMIC ENE%'Y LIABILIT'l UNDERWRITEPS . g ~....,,W: and 't, '. ' s.' Y ADVANCE PREMIUM ENDORSEMENT i. r STANDARD PREMIUM ENDORSEMENT I Calendar Year 1981 /. p

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%,M 1. ADVANCE PREMIUM It is agreed that t$e Advance Premium due che companies fer the calendar year ' QD.,- designated above is $ 95,579.71 ' ' ;,7 m *,

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2. STANDARD PREMIUM AND RESERVE PREMIUM .+,.p. In the absence of a change in the Advance Premium indicated above, it is ,r",- agreed that, subject to the provisions of the Industry Credit Rating Plan, j.f,'#.f ,,,j,,.c@.i';; the Standard Premium.and Reserve Premium are: e,. .. N,'B' Standard Premium $ 95,579.71 -", bj/ - Reserve Premium $ 71,965.57 t* ap:, 1 ,' '3 *,'.6 e., c Effective Date of To fom a part this Endorsement January 1, 1981 of Policy No, MF-101 + Mke Pcwer Ccrpany Issued to h.h Date of Issue h ary 2, 1981 c ... ',.; i. ' :. '., ~' :e., l 7 f, p ';,f,E /3 For the Subscribing Companies . ' i,'.,' /0/ MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS - 1;,;./.

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utual Atr.ic Encrgy Licbility Underwriters f

l Amentent of Lccation of the Facility l It is agreed that the lccation s;xecified in Itm 3 of the Declarations, " Description cf the Facility", is amenaec to read: i Lccaticn All of the pre: rises including the land and all buildings and structures of Duke Power Ccepany's William B. McGaire

uclear Station shown as beina within the hea"y black lines on a reduced cepv of Crawing *.iumber SC-1001-1 l

Revisicn 1 dated February 22, 1977, a copy of which is attached hereto and made a part hereof. The site as describcd incitries the cooling-water int &.e structure, the ecoling water discharge structure and canal, and the Switching Staticn located approxirately 3000 feet scuth of the atiristratien building. The William B. McGuire Nuclear Staticn is lccated on the scuth shore of Lake ::onve.n approximately 17 miles -erth.est of the city cf Charlotte in *Icckle: eg Ccr.ty, ::crth Caro ~.ina. r Elictive Date of January 30, 1981 To form a part VF-101 tms Endorsement af PoHey No. Dake Pcwer Ccrpany Issued to i Farch 11, 1981 i Date of Issu.- t ././f For the Subscribing Companies i A L- .TIUTUAL ATO.511C ENERGY LIA!!ILITY UNDERWRITERS .~ s gy e 11 Endorsement No. Countersigned by \\unica::ro EzrnantAme 7.. I 4 h ..~ a,, y_, ,9y a 9 .,p 7 w.

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BlMDER, INCL,UDING BINDER NO. XB-69 DECLARATIONS AND BOND FOR PAYMENT OF PLETROSPECTIVE PREMIUMS BINDER The members of Mutual Atomic Energy Liability Underwriters, hereinafter called the " companies", subscribing this binder, each for itself, severally and not jointly, and in the respective proportions set forth herein, and the insureds named in Item 1 of the Declarations belov, agree as follows: A. The companies hereby bind insurance to the insureds-named in Item 1 of the Declarations in accordance with the provisions of the Draft Master Policy. All rights and obligations of the parties to this binder are set forth in the provisions of the Draft Master Policy, as it may be amended from time to time pursuant to its conditions or paragraph B below. B. The term " Draft Master Policy" means the draft of the MASTER POLICY -- NUCLEAR ENERGY LIABILITY POLICY (SECONDARY FINANCIAL PROTECTION) dated June 24,1C77 in the custody of the Nuclear Regulatory Commission, a copy of which is attached hereto, and includes all binders issued by the companies in connection with such Draft Master Policy. The Master Policy, as subsequently issued by the companies, shall cancel and replace this binder and the Draft Master Policy effective as of the time and date of the inception of the binder period. C. Such insurance as is provided by the Draft Master Policy applies, through this binder, only: (1) to the insureds identified in Items,1 and 2 of the Declarations below, (2) to bodily injury or property damage (a) with respect to which the primary financial protection described in Item 4 below would apply but for exhaustion of its limit of liability and (b) which is caused during the binder period stated in Item 8 below by the radioactive, toxic, explosive or other hazardous properties of nuclear material and t I (c) which is discovered and for which written claim is made against the insured not later than ten years after the end of such binder period; provided, however, that with respect to bodily injury or property damage caused by an extraordinary nuclear occurrence this subparagraph (C) shall not operate to bar coverage for bodily injury or property damage which is discovered and for which written claim is made against the insured not later than twenty years after the date of extraordinary nuclear occurrence.

DECLidtATIONS Item 1. Named insureds and addresses: (a) Duke Power Company - 422 South Church St., Charlotte, N.C. 28201 Item 2. Additional Insureds: Any other person or organization who would be covered under primary financial protection decscribed in Item 4 of this binder but for exhaustion of the limit of liability of such primary financial protection. Item 3. Description and location of the nuclear reactor: Unit 1 of the William B.

  • cGuire ';uclear Station located in "ecklenburg County, North Carol.ina
tem 4.
r-..:snon ci ; = :.- f:nancial protection applicable to the nuclear re:.cter and limit of liability thereof:

Nuclear Energy Liability Insurance Association Policy NF-24 8 S124,000,000 Mutual Atomic Energy Liability Underwriters Policy MF-101 S 36,000,000 Do other nuclear reactors share the limit of liability provided under the primary financial protection? No, not at this time l Item 5. Maximum retrospective premium (exclusive of allowance for premium taxes) ) payable to the companies under the Draft Master Policy with respect to each l nuclear incident: S1,125,000, i l I l i

ltem 6. Portion of the annual premium payable foi the companies' contingent liability described in Condition 4 of th-Draft Master Policy from the effective date hereof to the end of calendar year 1978: The pro rata portion of $1,350.00 for the period from the effective date of this binder to the end of the calendar year during which such effective date occurs. Item 7. Limits of Liability: See Item 3 of the Declarations of the Draft Master Policy. Item 8. Binder period: Beginning at the same time and date that the Facility Operating License issued by the United States Nuclear Regulatory Commission for the reactor described in Item 3 of this binder becomes effective and continuing to the effective date and time of cancelation or termination of the Draf t Master Policy or this binder, whichever first occurs, eastern standard time. BOND FOR PAYMENT OF RETROSPECTIVE PREMIUMS Know all Men By The:;c Presents, that the undersigned do hereby acknowledge that they are named insureds under the Draft Master Policy described in the above Binder and Decla ra tions. The named insureds do hereby covenant with and are held and are firmly bound to the subscribing members of Mutual Atomic Energy Liability Underwriters (hereinaf ter called the " companies") to pay to the companies all retrospective premiums and allewances for premium taxes which shall become due and payable in accordance with the terms of the Draft Master Policy with interest on such premiums and allowances for taxes to be computed at the rate provided in the Draft Master Poliev from the date payment thereof is specified to be due the companies in a written notice to the named insured, as provided in Condition 1 of the Draft Master Policy until paid. And it is hereby expressly agreed that copies of written notices of retrospective premiums and allowances for premium taxes due and payable c:e other evidence of such amounts due and payable sworn to by a duly authorized representative of the companies shall be prima facie evidence of the fact and extent of the liability of the named insureds for such amounts. And it is further expressly agreed that the named insureds will indemnify the companies against any and all liability, losses and expenses of whatsoever kind or nature (including but not limited to interest, court costs and counsel fees) which the companies may sustain or incur (1) by reason of the failure of the named insureds to comply with the covenan;s and provisions of this Bond or (2) in enforcing any of the covenants or provisions of this Bond, or any provisions of the Draf t Master Policy relating to such covenants or provisions. For the purpose of recording this agreement, a photocopy acknowledged before a Notary Public to be a true copy hereof shall be regarded as an original. THE ABOVE BINDER, DECLARATIONS AND BOND FORM A PART OF THE DRAFT MASTER POLICY, CANCELATION OR TERMINATION OF THE DRAFT MASTER POLICY OR THE BINDER SHALL NOT AFFECT THE OBLIGATIONS OF THE NAMED INSUREDS UNDER THE DRAFT MASTER POLICY OR THE BOND TO PAY THE RETROSPECITVE PREMIUMS AND ALLOWANCES FOR PREMIUM TAXES WITH RESPECT TO ANY BODILY INJURY OR PROPERTY DAMAGE WHICH IS CAUSED DURING THE BINDER PERIOD.

IN WITNESS WHEREOF, the named insureds have caused this Binder, these Declarations and this Bond for Payment of Betrospective Pr emium s, to be signed and sealed by a duly authori::ed officer, to be effective ar of the time and date of the inception of the binder period. Attest or Witness ' Named Insureds: Duke Power Comeany (Na ' eq Insurech,- Type or Print) r M7 ./ By N V3 N %a ' (SEAL) / (S'igna' ure of Officer) Vice Pr'esident, Finance Ain. (Type or Print Name & Title of Officer) Date: (Named Insured - Type or Print) By (SEAL) (Signature of Officer) (Type or Print Name & Title of Officer) Date: (Named Insured - Type or Print) By (SEAL) (Signature of Officer) (Type or Print Name & Title of Officer) l Date: 1 1 (Named Insured - Type or Print) l By (SEAL) (Signature of Officer) (Type or Print Name & Title of Officer) l Da te : I i l

_. ~.. _ 9 t IN WITNESS WHEREOF, the subscribing com:-inies have caused the Binder and the Declarations to be signed on their behalf I e the. Manager of Mutual-Atomic Energy Liability Underwriters, to be effective as i f the time and date of the inception of the binder period, and countersigned below b, a duly authorized representative, c Attest or Witness For the Subscribing Companies of Mutual Atomic Energy Liability Underwriters 7h N By ? M Countersigned by (Authorized Representative) Subscribing Companies PROPORTION OF 100% American Mutual Liability Insurance Company, Wakefield, MA 15.0000000 Employers Insurance of Wausau A Mutual Company, Wausau, WI 15.0000000 Liberty Mutual Insurance Company, Boston, MA 30,0000000 Lumbermens Mutual Casualty Company, Long Grove, IL 30.0000000 Michigan Mutual Insurance Company, Detroit, MI 5.0000'000 Sentry Insurance, A Mutual Company, Stevens Point, WI 5.0000000 This is to certify that this is a true copy of the original Binder, bearing the number designated hereon, for insurance coverage under the DRAFT MASTER POLICY - NUCLEAR ENERGY LIABILITY POLICY (Secondary Financial Protection) dated June 24, 1977. No insurance is afforded by this copy. J) m. du Mutual Atomic Energy Liability Underwriters i e I t ~.

i i i Noelea r Enerr Lia bility f nsorance M UTUA L ATOMIC ENEl(GY ! A DILITY UND E11W1(ITEl(S SPECIFlC ATION OF illNDEl( EFF ECTIVE DATE AN D 1)l(EMIUM EN DOllSEM ENT lt is agreen that: 1. The United States Nuclea r Ilegula tory Conimis.sion ha s is sued to the insureds named in Iten) 1 of the Declarations Opereting Licens e No. NPF-9 effective January 23, 1981 in e the rea cto r desc ribed in item 3 of toe Decla ration > of the lo ade r. 2. Iten. 6 of the Declarations of the binder is deleted and replaced by the following: I t e m fi. Portion of the annual premium payable for the companies' contingent liability desc ribed in Condition 4 of the Draf t Ma st er Poliev f roni the effect6ve date lie reof to the end of calenda r year 1981 3 1,269.00 3. Iten. M of toe Decla rations of the binder is deleted and replaced by the following: Item 8. Hinder period: Beginning January 23, 1981 and continuing to the ef fective date and time of cancelation or termination of the Draf t Ma ste r l>olic y or this binde r, whichever first vec u rs, eastern standard time, Effnetive Date of this Endorsenient January 23, 1981 To form part vf 13inder Nn, XB-69 14:01 A. M. Standa rd Time l Issued to_ Duke Power Company Date of issue February 17, 1981 For the subsc ribing companies l '. y l Manager ' Endo rsement No. 1

r.,, n o.
r.,.-

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Subscribing Companies PROPORTION OF 100% American Mutual Liability Insurance Company, Wakefield, MA 15.0000000 Employers Insurance of Wausau A Mutual Company, Wausau, WI 15.0000000 Liberty Mutual Insurance Company, Boston, MA 30.0000000 Lumbermens Mutual Casualty Company, Long Grove, IL 30.0000000 Michigan Mutual Insurance Company, Detroit, MI 5.0000000 Sentry Insurance, A Mutual Company, Stevens Point, WI 5.0000000 l l l This is to certify that this is a true copy of the original endorsement, bearing the number designated hereon, for insurance coverage under the DRAFT MASTER POLICY-l NUCLEAR ENERGY LIABILITY POLICY (Secondary Financial Protection). No insurance is afforded by this copy. % m. dc~A s Mutual Atomic Energy Lit.bility Underwriters l J}}

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