ML20133E836

Forwards Maelu Policy MF-121 & Endorsements 23,24 & 25 to Nelia Policy NF-261

ML20133E836
Person / Time
Site:	Clinton
Issue date:	09/30/1985
From:	Turner C ILLINOIS POWER CO.
To:	Saltzman NRC
References
NUDOCS 8510100035
Download: ML20133E836 (18)

Text

, .

e

. /LLI VOIS POWER 00MPANY 500 SOUTH 27TH STREET, DECATUR. ILLIN0ls 62525-1805 t

September 30, 1985 I

f

{

NRC Office of Anti-Trust and Indemnity Washington, D.C.

RE: Illinois Power Company Nuclear Energy Liability Policies Mr. Saltzman:

.Enclo' sed are 2 copies each of the following:

Policy No. MF-121 with the Mutual Atomic Energy Liability Underwriters Endorsements 23, 24, and 25 to policy,No. NF-261 Very truly yours, lW C. L. Turner Supervisor

• General Ins & Pension Encl.

CLT/dg A

p-e 8510100035 850930 ,

( igg

, PDR ADOCK OPDR M I

.J .

~ .

Nuclear Energy Liability insurance k

NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION .

AMENDMENT OF THE DESCRIPTION OF THE FACILITY ENDORSEMENT It is agreed that Item 3 of the Declarations, " Description of the Facility" is amended to read:

Location: All Real and Personal Property, except for those facilities '

known as the dam, visitor's center and marina as insured.by the Named Insured's other property insurance coverages, located within the boundaries of the site location consisting of-land areas bounded <by the station boundary lines as shown in Figure 2.1-2 of the Clinton Power Station Final Safety

+

Analysis Report, all located about six (6) miles east of the City of CLINTON in DEWITT COUNTY, east-central Illinois, c ',

t /

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

of the Nuclear Energy Liability Policy (Facility Form) as des-ignated hereon. No Insurance is afforded h eunder.

1 .s . .e u Johr L. Quattrocchi. Vice President-Liability Underwriting American Nuclear Insurers Effective Date of this Endorsement August 19, 1985 NF-261 To form a part of Policy No 12:01 A.M. Standard Time issued to Illinois Power Company. Western Illinois Power Cooperative. Inc. and Soyland Power Cooperative, Inc.

Date of issue _ S ntomber 10. 1985 ,

For the suwscribing co panies f f a

By A

/F' General Manager Endorsement No 25 Countersigned by-A W"

1 ,

. Nuclear Energy Liability insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT _

CALENDAR YEAR 1985

-It is agreed that Items la. and Ib. of Endorsement No. 21

~

are amended to read: .

la. ADVANCE PREMIUM: It is agreed that the Advance Premium due the companies for the period designated above is: $ 6,718.48 .

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: $ 4,501.38 . -

Additional Premium: $6,618.48 .

This is ta certify that this is a true copy of the original Endorsement having the endorsement number and being made part of the Nuclear Energy Liability Policy (Facility Form) as des-4 ignated hereon. No Insurance is afforded hereunder.

John L. Quattrocchi, Vice Pre @nt Liability Underwriting Amencan Nudear Insurera Effective Date of this Endorsement January 1. 1985 12:01 A.M. Standard Time To form a part of Policy No NF-261 Issued to _ Illinois Power Company. Western Illinois Power Cooperative, Inc. and Soyland Power Cooperative, Inc.

Date of 13 sue _sentomber 10. 1985 By A

/F~ General Manager 1 Endorsement No 24 Countersigned by NE-36 ~

Nuclear Energy Liability 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 1 above shall not be cumulative, and each payment made by the i 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 this is a true copy of the original Endorsement having the endorsement number and being made part of the Nuclear Energy Liability Policy (Facility Form) as des-

. ignated hereon. No Insurance is afforded hereunder.

y

+8 +

John L. Quattrocchi, Vice President Lisbility Underwriting Amencan Nudear Insurers Ettectue Date of Inis Encorsement Aucus 18. 19R To form a part of Policy No NF-261 Issued to Illinois Power Company. Western Illinois Power Cooperative, Inc. and Soyland Power Cooperative, Inc.

Date of issue Rantombor in 199q For the su scribing co panies Endorsement No 23

., Wn

/F~ General Manager Countersioned by .

IThia 10 ta c:rtify th t thi:: is c trua copy of tha originci Dec1 rztiin3_ bring psd p:rt of th2 Nuclerer Energy Liability iPclicy (Fccility Form) having the numb:r designated h:rcon cnd including Endorcene g .

g number d 1 through 7 ,

No in:urance is afforded here- 919 North Michigan Avenue, Chicago 11, Illinois und:r.

.T . Nucle er L ability Policy No. MF- 121

.Iin i. 6uattrwhl. Vice Preskt Liabinty Underwriting

' American Nuclear 1murers DECLARATIONS Illinois Power Company, Western Illinois Power Item 1. Named Insured - Cooper _atiy_euIpc. and Soyland Power Cooperative. e Inc.

Addrea 500 South E th_ Street c Deganur a Illinois 62525 (No. Street Town or City State)

Item 2. Policy Period: Beginning at 12:01 A.M. on th, 19th day of August ,19_.8g 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:

Locatior, All Real and Personal Property, except for those facilities known as the dam. visitor's center and marina as insured by the Named Insured's other oroperty insurance coverages. located within the boundaries of the site location consistinn of land areas bounded'by the station boundary lines as shown in Figure 2.1-2 of the Clinton Power Station Final Safety Analysis Report, all located _about six (6) miles east of the City of CLINTON in DEWITT COUNTY.

east-central Illinois.

Type Power Reactor The Operator of the facility i. Illinois Power Company s item 4. The limit of the companies' liability is $ 36.000.000.00 - __ subject to all the terms of this policy having reference thereto.

Item 5. Advance Premium $ 1.950.52 leem 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 ar eption<=

Date of Issue __SCP t_ ember _10, 1985 Countersigned by _.

Authorized Representative Nuclear Energy Liability Policy (Facility Form) 2/1/57 (Second Revision)

T

NUCLEAR ENERGY LIABILITY INSURANCE f

( .

MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS l

t

{ AMENDMENT OF DEFINITION OF INSURED f (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.

Effective Date of To form a part this Endorsement August 19, 1985 of Policy No MF-121 Issue to Illinois Power Company, Western Illinois Power Cooperative, Inc. and Soyland Power Cooperative, Inc.

Date of Issua September 10, 1985 For the Subscribing Companies M UAL ATOMIC ENEIIGY LIABILITY U ' ERWillTERS g_ r Dy -

b IM m

w- x 7 Countersigned by Endorsement No.

A tr7Houtzt:ss lit:t twA:NTATiv>:

ME-63

Nuclear Energy Liability Insurance

-l Mutual Atomic Energy Liability Underwriters 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 Lia-bility 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 Atcmic 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 J 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 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 ME-59 Page 1 of 4 (1/1/82)

, .~ -

e (b) transportation for the purpose of going to any other

(. (cont) country, state or nation, except a deviation 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.

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 facility from any location except an indemnified nuclear facility but only if the transpor-tation of the material is not by predetermination to be inter-

. rupted 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.

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 disecvered 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 operations relat-ing thereto and to examine the insured's books and records as f ar 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 canpanies 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 Commission 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 Page 2 of 4 (1/1/82)

e n  :, .

Neither the right to make such inspections and examinations nor the making thereof nor any advice or report resulting therefrom shall constitute an undertaking, on behalf of or for the benefit

. sof . the insured or others, to determine or warrant that such fa- q cility or operations are safe or healthful, or are in compliance ,

- with any law, rule or regulation. -In consideration of the issu- l ance or continuation of this policy, the 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 from interruption of business or manufacture, aris-ing 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 Ibnit the contractual ob-ligations of the canpanies 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 over a period of days, weeks, months, or longer and'also arising out of the properties of other nuclear material so discharged or dispersed from one or more 'other nuclear fa-cilities insured under any Nuclear Energy Liability Policy (Facility Form) issued by Mutual Atomic 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-

, duced by the extraction or concentratio,n 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 one or more other Nuclear Energy Liability Policies '(Fa-cility Form) issued by Hutual Atomic Energy Liability Underwriters, 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 Mutual Atomic Energy Lia-l( bility Underwriters.under all Nuclear Energy Liability Policies (Fa-cility Form), including this policy, applicable to such common occur-rence shall be the sum of the limits of liability of all such policies,

!HE-59 :Page 3 of-4 (1/1/82)-

y= .- .

tSe liait oE liability of each such policy being as determined by Condition 3 the'reof, but in no event shall such total aggregate

. liability of such members exceed $36,000,0003 (2) the total liability k- . . 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 1,imit 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 determined by Condition 3 thereof.

The provisions of this condition shall not operate to increase the linit of the companies'. liability under this policy.

o . .V . The second paragraph of Condition 12, "OTHER 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 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 expense covered by this policy, the insurance afforded by this policy shall be excess insurance over such other insurances provided, with respect to any person who is not em-ployed 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.

L

.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 may be. given to such agent, at its office at .One East Wacker Drive, Chicago, F-

? Illinois 60601, 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.

Effective Date of To Form a Part

.This Endorsement August 19, 1985 of Policy No. MF-121

-12:01 A.M. Standard Time -

Issued tg Illinois Power Company,' Western Illinois Power C'ooperative, Inc. and Soyland Power Cooperative, Inc.

Date of Issue September 10; 1985 For t}he Subscribing C By '

_ #2 -

I

-,f i y Endorsement No. 6 Countersigned by

(

ME-59 Page 4 of 4 (1/1/82)

_m____ _ _ _ _ _ _ _ _ . _ _ _ _ _ _ _ _ _. _ _ _ _

NUCLEAR ENERGY LIABILITY INSURANCE MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS.

ADVANCE PREMlUM ENDORSEMENT and STANDARD PREMIUM ENDORSEMElfr Calendar Year 1985

1. ADVANCE PREMIUM It is agreed that the Advance Premium due the companies for the calendar year designated above is $ 1.950.52 .

I 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 1.950.52 ~ .

Reserve Premium $ 1.306.85 .

Effective Date of To form a part this Endorsement Aunust 19. 1985 _of Policy No. MF-121 1 sued to Illinois Power Company, Western Illinois Power Cooperative, Inc. and Soyland Power Cooperative, Inc.

Date of Issue September 10, 1985 For the Subscribing Companies MITT L ATOMIC ENERGY LIABILITY UNDER ITERS By ( _

. Ao '

w T '

WV Endorsement No. 5 Countersigned by AlfrHORIZED REFRESENTATIVE

(

ME-41

NUCLEAR ENERGY LIABILITY INSURANCE MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS o

~

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 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 Form a Part this Endorsement August 19. 1985 of Policy No. MF-121 Issued to _ _ Illinois Power Company. Western Illinois Power Cooperative, Inc. and Soyland Power Cooperative, Inc.

Date Septamher 10. 1985 For the Subscribing Com; anies Mutual Atomic Energy Liability Underw fers f r' /

By (4.

q . C._,//N[tw va.///\

Endo rsement No. 4 Countersigned by Authorized Representative

(

ME-39a

NUCLEAR ENER3Y LIABILITY INSURANCE MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS i

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 course of the transportation of nuclear material to or from the facility, the insureds and the companies agree to wafve (1) any issue or defense as to the conduct of the claimant or the fault of of the insureds, including but not limited to:

(i) 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 dcG ase 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 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..

3. The waivers set forth in paragraph 1. above shall be effective only with respect to bodily injury or property damage to which the policy applies under its terms

( other than this endorsement; provided, however that with respect to bodily injury or property damage resulting from an extraordinary nuclear occurrence, Insuring Agreement IV, " Application of Policy," shall not operate to bar coverage for f 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 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 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 To form a part th'a Endorsement Junust 19. 1985 af Policy No, MF-121 Issued to Illinnin Power Comnany. Western Illinois Power Cooperative. Inc. and Soyland Power Cooperative, Inc.

Date of Isso, September 10. 1985 For the Subscribing Companies e

M TUAL ATOMIC ENERGY LIABILITY DERWRITERS By* $W

&]

V!t % %

l l

(

Endorsement No. 3 Countersigned by Aurwoazzso RstasesNTAms 1

T ME-33a .

1 1

,,_ b , c- -

NUCLEAR ENERGY LIABILITY INSURANCE i.

MUTUAL ATOMIC ENERGY-LIABILITY UNDERWRITERS INDUSTRY CREDIT RATING PLAN PREMIUM ENDORSEMENT It is agreed that Condition 1 of the policy is replaced by the following:

1 CONDITION 1. ' PREMIUM (1) Definitions: With reference to the premium for this policy:

"advan'ce 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 accordance with the companies' rules, rates, rating plans, (other than the Industry Credit Rating Plan), premiums and minim'um premiums applicable to this insurance;

" 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 year;

" 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 unpaid 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

r j c' ~

_z_

~

Liability Policies issued by American Nuclear Insurers and Mutual Atomic Energy Liability Underwriters and subject to the Industry Credit Rating Plan; i

" reserve for refunds," at the end of any calendar year, 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 calendar year exceeds (2) the total for the sam ~e 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 Nuclear Insurers 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 -

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

' refund for any calendar year shall in no event be greater than the industry reserve premium for such calendar year.

(2) Paymebt 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 year shall be stated in the Advance Premium Endorsement for such calendar year issued to the named insured as soon as practicable prior to or after the beginning of such year.

As soon as practicable after each December 31 and after the termination of this policy, the standard premium for the preceding calendar year Lshall be finally determined and stated in the Standard Premium Endorse-ment for that calendar. year. If the standard premium so determined exceeds the advance premium pre.viously paid for such calendar year,

~

the named insured shall pay the. excess to the companies; if less, the companies sha11 return to the named insured the excess portion paid by such insured.

The named insured shall maintain records of the information necessary for premium computation and sha11' send copies of such records to the companies as directed, at the end of each calendar year, at the end of 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

{ this policy may be used by the members of Mutual Atomic Energy l

m .

_3, 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 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 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 accordance with the provisions of this Condition 1.

Effsetive Date of To Form a Part this Endorsement August 19. 1985 of Policy No. MF-121 Issued to 1111nnt, pov,e en.n nv. Wonrarn T114nnis Power Coonerative. Inc. and Soyland Power Cooperative, Inc.

Dato of Issue September 10, 1985 For the Subscribing Companies MUTijAL ATOMIC ENERGY LIABILIT NDERWRITERS BY L <,

z-- -

h -

w ,/,A Endorsement No. 2 Countersigned by Authorized Representative ME-17

- - - - - . _ _ - - - _ _ _ _ _ - - - - - - . _ _ - - _ _ - - - - - - - _ _ _ ---. - - - - - .- l

' NUCLEAR ENER3Y LIABILITY INSURANCE MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS I

i Amendment of Name of *!cmber Compa:1y Endorsc nent It is agreed that the name " SENTRY INSURANCE A MUTUAL COMPANY" is substituted for " IIA:tDWARE MUTUAL CASUALTY COMPAIrl" wherever it appears in the policy.

Eficctive Date of To form a part this Endorsemmt August 19,_ 1985 of Pelig No. MF-121 Isturd to - Illi"0is Power Company, Western Illinois Power Cooperative _, Inc. and Soyland Power Cooperative, Inc.

Date of 1ssu, September 10, 1985 For the .%hscribing Companies M 'UAL ATOMIC ENERGY LTAnil 'Y UNDERWRITERS nr . \ _ -Q VV W Endmstment No. _.1._ ____ Count rin.nvl by .._ . ..._ ._ -- =- --

.4Una0 Ring krPRCSENTATW8 g,**