ML20147H214

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Forwards Endorsements 1,2 & 3 to Maelu Certificate MW-137 & Endorsements 1,2 & 3 to Nelia Certificate NW-53
ML20147H214
Person / Time
Site: Big Rock Point File:Consumers Energy icon.png
Issue date: 03/01/1988
From: Frounfelker R
CONSUMERS ENERGY CO. (FORMERLY CONSUMERS POWER CO.)
To: Dinitz I
NRC
References
NUDOCS 8803080422
Download: ML20147H214 (50)
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Text

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Consumers

@rewamus MKJNEAA"5 PNSERE55 Power General offices: 212 West Michleen Avenue, Jackson, MI 49201 + (517) 788-o550 March 1, 1988 Mr Ira Dinitz Mail Stop 128 US Nuclear Regulatory Commission Washington, DC 20555 ,

ANI POLICY CERTIFICATE NW-53 MAELU POLICY CERTIFICATE MW-137 DOCKET No 50-155 Attached are two copies each of the above policy certificates together with endorsements for Big Rock Point Nuclear Plant. These policy certificates cover the "new" master workers program with the Nuclear Insurance Pools.

R E Frounfelker l Property & Casualty Insurance Director.

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1 880302 i J h h 05000155 PDR k

OC0388-2-IN02 k

A C3G ENERGYCOMPANY )

u _ _---- _ ______------------_____ _________________ __ . . . .

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,w ,s MUTUAL ATOMIC ENERGY-LIABILITY UNDERWRITERS NUCLEAR ENERGY LIABILITY POLICY (Facility Worker Form) herein called the MASTER WORKER POLICY CERTIFICATE OF INSURANCE Certificate No. MW-137 Date of Issue Jan. 26, 19 88 This is-to certify that the insureds named [in Item 1 of the Declarations hereof, hereinafter called the "Named Insureds", have obtained insurance under the Master Worker Policy issued by Mutual' Atomic Energy Liability Underwriters on behalf of its members. The insurance is subject to all of the-provisions of this "Certificate" arid the Master Worker Policy.

1 DECLARATIONS Item 1. Named Insureds and Addresses:

Consumers Power Company 212 West Michigan Avenue Jackson, Michigan 49201 Item 2. Certificate Coverage Period:

Beginning at 12:01 a.m. January 1, 1988 and ending at the close of December 31, 1992, Eastern Standard Time, or at the time and date this Certificate is cancelled or terminted, whichever first occurs.

MMWPC-1 (1/1/88) Page 1 l

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. Item-3. Description of the Facility:

Location: See Endorsement No. 3.

Type: Power Reactor (Operating) operator of the Facility: Consumers Power Company Item 4. Amount of Insurance Available:

The amount of insurance afforded by the Master Worker Policy through this Certificate shall be determined by Section VIII of the Master Worker Policy and all of the other provisions of the policy ,

relating thereto.

Item 5. Advance Premium: $ 4,837 'O 2

APPLICATION OF CERTIFICATE This Certificate applies only to bodily injury to a new worker (1) which is caused during the Certificate Coverage Period by the nuclear energy hazard and (2) which is dis-covered and for which written claim is first made against an insured under the certificate within the discovery period of the Master Worker Policy.

3 INDUSTRY RETROSPECTIVE RATING PLAN All insurance under the Master Worker Policy is subject to the Industry Retrospective Rating Plan in use by the companies. No insurance is provided under this Certificate unless and until the first Named Insured has accepted in writing the Industry Retrospective Rating Plan Premium En-dorsement and a copy of the signed endorsement has been issued by the companies to form a part of this certificate.

MMWPC-1 (1/1/88) Page 2 0

i IN WITNESS WHEREOF, the companies subscribing the Master Worker Policy have caused this Certificate to be executed and attested on their behalf by the Manager of Mutual Atomic Energy Liablity Underwriters and duly countersigned by an authorized representative.

For the Subscribing Companies of MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS J. Michael O'Connell, Man ger By - W . hpMA ~

(A y oriYed Went) ~h Countersigned by:

(Authorized Representative)

IN This is to certify that this is a true copy surance of the coverage original Cortif'icate under boaring the number designated hereon, for if) Workers Form) herein the Nuclear norgy Llability Policy (Facillgf af fordedbythis copy.

r calledthe M crW c'hi, Vice President - Liab lity Underwriting John L Qu American Nu ar insurers MMWPC-1 (1/1/88) Page 3 E _ __ _ _ _ _ _ _ _

Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS l INDUSTRY RETROSPECTIVE RATING PLAN PREMIUM ENDORSEMENT {

It is agreed that:

1. DEFINITIONS With reference to the premium for the Certificate of which this endorsement forms a part:

"Master Worker Policy" means the Master Worker Policy issued by MAELU; "Certificate Holder" means the first Named Insured in a Certificate issued to form a part of the Master Worker Policy; "advance premium", for any calendar year, is the esti-mated 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 Retrospective. Rating Plan), premiums and minimum premiums applicable to this insurance.

Standard premium includes elements for premium taxes, expenses, profit and contingencies, guaranteed cost insurance and estimated reserve premium. The elements of standard premium, other than for premium taxes and estimated reserve premium, are not subject to retrospec-tive adjustment; "reserve premium" means that portion of the premium for a certificate (including reserve premium charges paid) that is specifically allocated under the Industry Retro-spective Rating Plan for ratable incurred losses; "industry reserve premium", for any period, is the sum of the reserve premiums for that period for all Certifi-cates issued to form a part of the Master Worker Policy; "retrospective adjustment ratio", for any period, is the ratio of the reserve premium for this Certificate for that period to the industry reserve premium for the same period; "incurred losses" means the sum of all:

(1) losses and expenses paid by MAELU, and (2) reserves for losses and expenses as estimated by MAELU, ME-W-1 (1/1/88) Page 1

because of obligations assumed and expenses incurred in connection with such obligations by the members of MAELU under the Master Worker Policy; "ratable incurred losses" means 95% of incurred losses.

Ratable incurred losses are the portion of incurred losses which are not covered by the guaranteed cost insurance element of standard premiums; "non-ratable incurred losses" means 5% of incurred losses. Non-ratable incurred losses are the portion of incurred losses which are covered by the guaranteed cost insurance element of standard premiums; "reserve for refunds", as of any date, is the algebraic difference between:

(1) all industry reserve premium for the period from January 1, 1988 through such date, minus (2) the total for the same period of (a) all ratable ,

incurred losses and (b) all industry reserve pre-mium refunds made under the Industry Retrospective Rating Plan by members of MAELU; "industry reserve premium charge", for any period, means the amount determined pursuant to the provisions of Section 4 of this endorsement for payment by the Named Insureds under Certificates; "reserve premium charge" means the portion of an indus-try reserve premium charge payable by the Named Insureds under this Certificate; "industry reserve premium refund", for any period, means the amount determined pursuant to the provisions of Section 4 of this endorsement for return to the Named Insureds under Certificates; l "reserve premium refend" means the portion of an indus-

! try reserve premium refund returnable to the Named l Insureds under this Certificate.

2. PAYMENT OF ADVANCE AND STANDARD PREMIUMS 3, The Named Insureds shall pay the companies the advance l premium stated in the declarations, for the period from 1

the effective date of this certificate through December 31 following. Thereafter, at the beginning of each calendar year while this Certificate is in force, the Named Insureds shall pay the advance premium for such year to the companies.

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ME-W-1 (1/1/88) Page 2

The advance premium for each calendar year shall be stated in the Advance and Standard Premium Endorsement for the year issued by the companies as soon os practic-able prior to or after thG beginning of the year.

As soon as practicable after the end of a calendar year or the Certificate Coverage Period, the standard premium for the preceding year shall be finally determined and stated in the Advance and Standard Premium Endorsement for that year. If the standard premium exceeds the adi vance premium paid for that year, the Named Insureds shall pay the excess to the companies; if less, the com-panies shall return to the Named Insureds the excess portion paid.

The Named Insureds shall maintain records of the inform-ation necessary ft.r 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 Certi- -

ficate Coverage Period and at such other times as the companies may direct.

-L 3. SPECIAL RESERVE ACCOUNT; USE OF RESERVE PREMIUMS MAELU shall maintain on behalf of its Lcabers a Special Reserve Account for holding collectively all reserve premiums paid for all Certificates,issuad to form a part of the Master . ' Worker Policy. Sucn premiums, together ' '

with any undistributed net income realized thereon after taxes and investment expenses, shall be used for the following purposes only:

(1) to pay ratable incurred losses or, in the event ratable incurred losses are paid under the haster Worker Policy from funds advanced by the members of MAELU subscribing the policy, to reimburse such members as a matter of first priority for the funds advanced; i

' (2) to refund any amounts so held to the Named Insureds, as provided in Section 4.

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No merbers of MAELU and no Named Insureds shall havs any individual interest in or claim upon amounts hold in the i

special Reserve Account, except to participate propor-l tionally in any refund or reimbursement provided for t

above.

All reserve premiums paid or payable for this Certifi-cate may be used by HAELU to discharge the obligations of its members under the Master Hwker Policy with re <

spect to the above purposes and arising out of clains made under any Certificate issued to form a part of the Master Worker Policy.

ME-W-1 (1/1/88) Page 3

4. PAYMENT OF RESERVE PREMIUM CHARCES AND REFUNDS As soon as practicable af ter each December 31 - the com-panies.will review the status of the. reserve for refunds and. report their findings to all Certificate Holders.

If, at any time, the companies find that there is a negative -balance in the reserve ' for refunds and the.t such condition is likely to prevail, they shall deter-mim en appropriate industry reserve premium charge.

, similarly, if the companies find that there is a surplus positive balance, they shall determine an appropriate industry reserve. premium refund.

The portion of_an industry reserve premium. charge or an industry reserve premium-refund that is:

(1) payable by the Named Insureds as a reserve premium charge, or (2) due such insureds as a reserve premium refund, shall be determined by multiplying tne industry reserve pre ium charge or the industry reserve premium refund by '

the retrospective adjustment ratio applicable to this Certificate.

The amount of any reserve premium charge shall be stated in a Retrospective Reserve Premium Charge Endorsement.

The charge shall be paid promptly after receipt of the endorsement.

j When all claims covered by the Master Worker Policy are s closed the companies shall maki a final review and report, and shall dete rmine a final industry reserve premium charg3 or industry reserve premittm re 'nd eque.1 to the amount of the belance.

5. FINAL PREMIUM N The final premium for this Certificate shall be (a) tne sum of the standard premiums for each calendar year, or portion thereof, during which the certificate remains in force plus (b) the sum of all reserve premiums, includ-ing all reserve premium charges, minus (c) the sum of all re-9rve premium refunds.
6. RES'S A PREMItM MRGE AGREEMENT

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sf (a) the participation of Named IrJ  %' 'r v' <- Oertificates subject to the Industry R. >:r '.- -

ro 2 3 Plan, (b) the undertaking of such hae z. + w' 's pay their appropriate share of any indu ef sr4L premium charge and (c) the obligations masumed by * , ambers of MAELU under the Mar,~r Worker ME-W-1 (1/1/88) Page 4

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t Pol' icy,.the Named Insureds, by acceptance of the Master Worker Policy, agree:

(1) That the insurance provided by the Master Worker Policy applies collectively to all claims covered by the policy through - any and- all certificates issued to form a part of the policy.

(2) That the right of each Named Insured under a Cert-ificate to receive reserve premium refunds and the obligation of each such insured to pay reserve premiums charges applies to al2 clains covered by the Master Worker Policy and continues until all such claime are closed, whether 3r not such claims were before the inception of . the certificate or after its termination.

(3) To pay all reserve premium charges oue promptly ,

after receipt of the Retrospective Reserve Premium Charge Endorsement,-whether or not the certificate is terminated. Any reserve premium charge-shall be overdue if not paid within 60 days of the date of the invoice for the charge, overdue reserve premium charges shall bear interest from the due date until paid at an annual rate equal to the sum of (a) 3% plus (b) a rate of in-terest equal to Moody's Average Public Utility Bond Yield described in the issue - of Moody's Bond Survey current on the due date. Any reserve premium refund due to Named Insureds under a Certi-ficate shall be used to pay . any overdue reserve premium charges to such Named Insureds.

7. RESERVE PREMIUM REFUND AGREEMENT Each member of MAELU subscribing the Master Worker Policy for any calendar year, or portion thereof, with respect to which an industry reserve premium refund is determined to be payable thereby agrees for itself, severally and not jointly, and in the respective pre-portion of its liability assumed under the Master Worker Policy for that calendar year, to return promptly to the Named Insureds that portion of such refund due souch Insureds, as catermined in accordance with the provisions of this endorsement.

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ME-W-1 (1/1/S8) Page 5  ;

L___.-._______.._.._____._._._._._

r Ptgs 6 Accepted and agreed by the first Named Insured in behalf of itself and every other Named Insured stated in the Declara-tions of the certificate of which this endorsement forms a part.

Constrners Power Cormany (First Named Insured - Print or Type)

Date /(,./1/)By

/12&

(SignatGre of Authorized Officer)

R M Griswold, Vice President and Trearfurer (Print or Type Name and Title of Officer)

AMROV;ic As ic m COPE 883 ?OWl .T.vr.e L80AL 06PAATWNT This is to certify that this is a true copy of the original Endorsement having the endorsement numberand being made part of the Certificate of Insurance bearing the number designat horeon for insurance coverage u der the Nuctor Energy Unbi Policy (Facility Workers Form). No .sur s d r.

John L Ot . occh , Vice President - Lia ility Underwriting American Nuc. car Insurers Effective Date of To form a part of this Endorsement January 1,1988 of Certificate No.

12:01 A.M. Standard Time Isrued to Conc:umors 1:ower Omany Date of Issue October 19. 1987 For the Subscribing Companies MITIVAL ATOMIC ENERGY LIABILITT ERWRITERS By 8. C ..

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Endorsement No. 1 Countersigned by [ MM Authorized Representative ME-W-1 (1/1/88)

Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS i

ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT CALENDAR YEAR 1988

1. ADVANCE PREMIUM: It is agreed that the Advance Premium cue the companies for the period designated above is:

5 4.837.00 .

2. STANDARD PREMIUM AND RESERVE PREMIUM: .In the absence of a cnange in the Advance Premium indicated above, it is agreed that, subject to the provisions of the Indus-try Retrospective Rating Plan, the Standerd Premium is said Advance Premium and the' estimated Reserve Premium eiee.ent of the Standard Premium is:

lhls is to certify that this is a true copy of the original Endorsement

- 3.870.00 8,v!ro the endorsement number and being made part of the Certificato of insurance bearing the number designated hereon for insurance coverage under the Nuclear Energy Uability licy (Facility Workers Form). No in rance is affor *d k^'-"-9 _

M e' Pr . o it - ndowriting John L Qua American Nuci r Insurors Effoetive Date of this Endorsement January 1. 1988 To form a part of Certificate No. MW-137 12:01 A.M. Standard Timo Issu3d to Consumers Power Company Dato of Issue January 26, 1988 For the Subscrf5 hg Companies MUTUAL ATONIC E1ERGY LIABILITT UNDERWRITERS A

By Endorsement No. 2 Countersigne

' [b4 ME-W-2 (1/1/88)

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Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS DESCRIPTION OF THE FACILITY ENDORSEMENT It-is agreed that Item 3 of the Declarations, "Description of the Facility", is as follows:

Location: All of the premises including the land and all buildings and structures known as the Big Rock Point Nuclear Generating Plant, consisting principally of, but not limited to the reactor containment sphere, turbine building, service tsuilding, screen house, outdoor substation, warehouses, training centers and security building, including contents therein, located in the Township of Hayes, County of Charlevoix, and State of Michigan. This area is further depicted on Consumers Power Company Drawing No. S-G16408 Revision A, Sheet 3, and is described as follows:

1. Government Lots 1 and 2 and the E 1/2 of the SE 1/4 of Section 7; also that part of Government Lot 3 of said Section 7 lying N'ly of the East and West 1/4 line of said section; also the entire W 1/2 of Section 8; also all that part of the W 1/2 of the E 1/2 of Section 8 lying NW'ly of the center line of Highway US-31; also all that part of the N 1/2 of the N 1/2 of-the SE 1/4 of Section 8 lying E'ly of the center line of Highway US-31; also the E 1/2 of the NW 1/4 of Section 17, except the right of way of The-Chesapeake-and Ohio Railway; being all in T34N, R7W; II. And also, all of the unpatented overflowed lands and lake bottom lands belonging to or held in trust by the State of Michigan upon which Consumers Power Company is the owner of the easement and right to erect, construct, lay, operate and maintain a pipeline structures and facilities for the intake and transportation of water and to construct, erect, operate and maintain a channel for the transportation and discharge of water, said it.nd lying N'ly of the W 1/2 of Section 8. T34N, R7W, riayes Township, Charlevoix County, Michigan, and lying within the areas described as follows:

(A) A strip of land 100 feet in width being 50 faet on each side of a center line described as follows: to find the place of beginning of said center line, commence at the SW corner of Section 8. T34N, R7W, run thenc? due North along the West line of said secticn 3,948 feet to Meander Post No. 7 on the West line of said section, thence S 80' E along the meander line 1,297.92 feet to the place of beginning of the center line of said 100 foot strip, running thence N 04' S 1,420 feet to the place of ending.

A

..*, 'A (B) A strip of land 100 feet in width being 50 feet on each side of center line described as follows: to find the place of begir'ning of said center line commence at Meander Post No. 7 on the West. line of said Section 8 as above described, thence S 80' E along the meander line 1,320 feet, thence due East along the meander line 115.76 feet to the place of beginning of the center line of said 100 foot strip, running thence N 30'.06' E 210 feet to the place of ending.

This is to cortify that this is a true copy of the original Endorseme having the endorsement number and being made part of the Certi of insuranco bearing the number designated reon for insurance coverago und the Nuc. ear Enstgy Liability licy (Facility Workers Form). No Ins an ffo John L. Quatt hi, Vice President - Liab i derwriting American Nuclear Insurers l

l l

l l Effnctive Date of

this Endorsement January 1. 1988 To form a part of Certificate No. fiW-137 12
01 A.M. Standard Time Issued to Consumers Power Company l

For the subscr N ng companies D:to of Issue January 26, 1988 By \ Y'WW Con

W ral Manager l

1.r iu. .em :; $ 3 Countersigned by- W M

f, =

. .e , .:.y NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION NUCLEAR ENERGY LIABILITY POLICY-(Facility Worker Form) 4 herein called the

. MASTER UORKER POLICY CERTIFICATE .O F INSURANCE I. Certificate No. NW-53 Date of Issue Jan. 26. 19 88 This is to certify that the insureds named in Item 1 of the Declarations hereof, hereinafter called the "Named l . Insureds", have obtained insurance under the Master Worker I-Policy issued by Nuclear Energy Liability Insurance Associa-tion on behalf of its members. The insurance is subject to all of the provisions of this "Certificate" and tha 2-taster

(. Worker Policy.

f 1 DECLARATIONS Item 1. Named Insureds and Addresses:

Consumers Power Company 212 West Michigan Avenue Jackson, Michigan 49201 Item 2. Certificate Coverage Period:

Beginning at 12:01 a.m. January 1, 1988 and ending at the close of December 31, 1992, Eastern Standard Time, or at the time and date this certifi.cate is cancelled or terminated, whichever first occurs.

3 NMWPC-1 (1/1/88) Page 1 l

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, . L *. . 's Item 3. Description of the Facility:

Location: See Endorsement No. 3.

Type: Power Reactor (Operating)

(

l Operator of the Facility: Consumers Power Company l

! Item 4. Amount of Insurance Available:

l l The amount of insurance afforded by the Master Worker Policy through this certificate shall be determined by Section VIII of the Master Worker Policy and all of the other provisions of the policy relating thereto.

Item 5. Advance Premium: $ 16,663.00 l 2 APPLICATION OF CERTIFICATE This Certificate applies only to bodily injury to a new worker (1) which is caused during the certificate Coverage Period by the nuclear energy hazard and (2) which is dis-covered and for which written claim is first made against an insured under the Cartificate within the discovery period of the Master Worker Policy.

3 INDUSTRY RETROSPECTIVE RATING PLAN All insurance under the Master Worker Policy is sub-j ect to the Industry Retrospective Rating Plan in use by the companies. No insurance is provided under this Certificate unless and until the first Named Insured has accepted in writing the Industry Retrospective Rating Plan Premium En-dorsement and a copy of the signed endorsement has been (

issued by the companies to form a part of this certificate.

NMWPC-1 (1/1/88) Page 2

. , 's . ..

IN WITNESS WHEREOF, the companies subscribing the Master

-Worker Policy have caused this Certificate to be executed and attested on their behalf by the President of Nuclear Energy Liability Insurance Association and duly counter-signed by an authori::ed representative.

j For the Subscribing Companies of NUCLEAR ENERGY LIABILITY _ INSURANCE ASSOCIATION Burt C. Proom, President

, By .W . e_W M' h

!. ( Autti)rized Agent)

Countersigned by: v /J W )

A (Authorized Representative) l This is to certify that this is a true copy of the original Certificate boaring the number designated hereon, for instyance coverage undr,r the Nucler.r Energy Liability Policy (Facility p\rkors Form) herein called tho Mast Worker Policy. Jo '* ^ ~ ..; afforded by this copy.

~

John L Quatti ,MPr nT a dorwriting American Nuct insurers l

NMWPC-1 (1/1/88) Page 3 J

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Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION INDUSTRY RETROSPECTIVE RATING PLAN PREMIUM ENDORSEMENT It is agreed that:

0 1.- DEFINITIONS With reference to the premium for the certificate of which this endorsement forms a part:

"Master Worker Policy" means the Master Worker Policy issued by NELIA; "Certificate Holder" means the first Named Insured in a Certificate issued to form a part of the Master Worker Policy; "advance premium", for any calendar year, is the esti-

' mated standard premium for that calendar year; "standard premium", for any calendar year, is the pre-mium^for that calendar year computed in accordance with the companies' rules, rates, rating plans (other than the Industry _ Retrospective Rating Plan), premiums and minimum premiums applicable to this insurance. Standard premium includes elements for premium taxes, expenses, profit and contingencies, guaranteed cost insurance and i

estimated reserve premium. The elements of standard i premium, other than for premium taxes and estimated reserve - premium, are not subject to retrospective

adjustment; "reserve premium" means that portion of the premium for a certificate (including reserve premium charges paid)

( that is specifically allocated under the Industry Retro-l spective Ra*.ing Plan for ratable incurred losses; "industry reserve premium", for any period, is the sum of the reserve premiums for that period for all Certifi-cates issued to form a part of the Master Worker Policy; "retrospective adjustment ratio", for any period, is the ratio of the reserve premium for this certificate for that period to the industry reserve premium for the same period; "incurred losses" means the sum of all:

(1) losses and expenses paid by NELIA, and (2) reserves for losses and expenses as estimated by NELIA, NE-W-1 (1/1/88) Page 1

because of obligations assumed and expenses incurred in connection with such obligations by the members of NELIA under the Master Worker Policy; "ratable incurred losses" means 95% of incurred losses.

Ratable incurred losses are the portion of incurred losses which are not covered by the guaranteed cost insurance element of standard premiums; "non-ratable incurred losses" means 5% of incurred losses. Non-ratable incui' red losses are the portion of incurred losses which are covered by the guaranteed cost insurance element of standard premiums; "reserve for refunds", as of any date, is the algebraic difference between:

(1) all industry reserve premium for the period fren January 1, 1988 through such date, minus (2) the total for the same period of (a) all ratable incurred losses and (b) all industry reserve pre-mium refunds made under the Industry Retrospective Rating Plan by members of NELIA; "industry reserve premium charge", for any period, means the amount determined purcuant to the provisions of Section 4 of this endorsement for payment by the Named Insureds under Certificates; "reserve prer.ium charge" means the portion of an indus-try reserve premium charge payable by the Named Insureds under this Certificate; "industry reserve premium refund", for any period, means the amount determined pursuant . to the provisions of Section 4 of this endorsement for return to the Named Insureds under Certificates; "reserve premium refund" means the portion of an indus-try reserve premium refund returnable to the Named In-sureds under this Certificate.

2. PAYMENT OF ADVANCE AND STANDARD PREMIUMS The Named Insureds shall pay the companies the advance premium staten in the declarations, for the period from the effective date of this certificate through December 31 following. Thereafter, at the beginning of each calendar year while this Certificate is in force, the Named Insureds shall pay the advance premium for such year to the companies.

The advance premium for each calendar year shall be stated in the Advance and Standard Premium Endorsement NE-W-1 (1/1/88) Page 2

for the year issued by the colpanies as soon as practic-able prior to or after the beginning of the year.

As soon as practicable after the end of a calendar year or the certificate Coverage Period, the standard premium for the preceding year shall be finally determined and stated in the Advance and Standard Premium Endorsement for that year. If the standard premium exceeds the ad-i vance premium paid for that year, the Named Insureds shall pay the excess to the companies; if less, the com-panies shall return to the Named Insureds the excess portion paid.

The Named Insureds shall maintain records of the inform-ation 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 Certi-ficate Coverage Period and at such other times as the companies may direct.

3. SPECIAL RESERVE ACCOUNT; USE OF RESERVE PREMIUMS NELIA shall maintain on behalf of its members a Special Reserve Account for holding collectively all reserve i

premiums paid for all Certificates issued to form a part of the Master Worker Policy. Such premiums, together with any undistributed net income realized thereon after taxes and investment expenses, shall be used for the following purposes only:

(1) to pay ratable incurred losses or, in the event ratable incurred losses are paid under the Master Worker Policy from funds advanced by the members of NELIA subscribing the policy, to reimburse such members as a matter of first priority for the funds advanced;

! (2) to refund any amounts so held to the Named Insureds, as provided in Section 4.

No members of NELIA and no Named Insureds shall have any individual interest in or claim upon amounts held in the Special Reserve Account, except to participate propor-tionally in any refund or reimbursement provided for above.

All reserve premiums paid or payable for this certifi-cate may be used by NELIA to discharge the obligations of its members under the Master Worker Policy with re-spect to the above purposes and arising out of claims made under any Certificate issued to form a part of the Master Worker Policy.

NE-W-1 (1/1/88) Page 3

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4. PAYMENT OF RESERVE PREMIUM CHARGES AND REFUNDS As soon as practicable after each December 31 the com-panies will review the status of the reserve for refunds and report their findings to all Certificate Holders.

If, at any time, the companies find that there is a negative balance in the reserve for refunds and that such condition is likely to prevail, they shall det er-mine an appropriate industry reserve premium cha ge.

Similarly, if the companies find that there is a surplus positive balance, they shall determine an appropriate industry reserve premium refund.

The portion of an industry reserve premium charge or an industry reserve premium refund that is:

(1) payable by the Named Insureds us a reserve premium charge, or '

(2) due such insureds as a reserve premium refund, shall be determined by multiplying the industry reserve ,

premium charge or the industry reserve premium refund by the retrospective adjustment ratio applicable to this Certificate.

The amount of any reserve premium charge shall be stated in a Retrospective Reserve Premium Charge Endorsement.

The charge shall be paid promptly after receipt of the endorsement.

When all claims covered by the Master Worker Policy are closed the companies shall make a final review and re-port, and shall determine a final industry reserve premium charge or industry reserve premium refund equal to the amount of the balance.

5. FINAL PREMIUM The final premium for this certificate shall be (a) the sum of the standard premiums for each calendar year, or portion thereof, during which the certificate remains in force plus (b) the sum of all reserve premiums, includ-ing all reserve premium charges, minus (c) the sum of all reserve premium refunds.
6. RESERVE PREMIUM CHARGE AGREEMENT In consideration of (a) the participation of Named Insureds in other Certificates subject to the Industry Retrospective Rating Plan, (b) the undertaking of such ,

Named Insureds to pay their appropriate share of any industry reserve premium charge and (c) the obligations assumed by the members of NELIA under the Master Worker  ;

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NE-W-1 (1/1/88) Page 4 ,

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9 Policy, the Named Insureds, by acceptance of the Master Worker Policy, agree:

(1) That the insurance provided by the Master Worker Policy applies collectively to all claims covered by the policy through any and all certificates issued to form a part of the policy.

(2) That the right of each Named Insured under a Cert- ,

ificate to receive reserve premium refunds and the obligation of each such insured to pay reserve premiums charges applies to all claims covered by the Master Worker Policy and continues until all such claims are closed, whether or not such claims were before the inception of the certificate or after its termination.

(3) To pay all reserve premium charges due promptly after receipt of the Retrospective Reserve Premium Charge Endorsement, whether or not the certificate is terminated. Any reserve premium charge shall be overdue if not paid within 60 days of the date of the invoice for the charge, overdue reserve premium charges shall bear interest from the due date until paid at an annual rate equal to the sum of (a) 3% plus (b) a rate of in-terest equal to Moody's Average Public Utility Bond Yield described in the issue of Moody's Bond Survey current on the due date. Any reserve pre-mium refund due to Named Insur6ds under a Certificate shall be used to pay any overdue l reserve premium charges to such Named Insureds.

7. RESERVE PREMIUM REFUND AGREEMENT Each member of NELIA subscribing the Master Worker Policy for any calendar year, or portion thereof, with respect to which an industry reserve premium refund is I

determined to be payable thereby agrees for itself, severally and not jointly, and in the respective pro-portion of its liability assumed under the Master Worker Policy for that calendar year, to return promptly to the Named Insureds that portion of such refund due such Insureds, as determined in accordance with the provi-sions of this endorsement.

NE-W-1 (1/1/88) Page 5 l

u

PCg0 6 Accepted and agreed by the first Named Insured in behalf of itself and every other Named Insured stated in the Declara-tions of the certificate of which this endorsement forms a part.

Consumers Power Company (First Named Insured - Print or Type)

Date Nov 24, 1987 By d // 'ew*U-(Signature of Authorized Officer)

R M Griswold, Vice President & Treasurer (Print or Type Name and Title of Officer)

AM2OHD tts TO M W

COMEadaks N w a ,; w >a taSAL DEPARTanNT This is to cortify that this is a true copy of the original Endorsement having the endorsement number and being made part of the Certificate of iazurcna bearing the number designst hereon for insurance coverage under the Nuclear Energy Uabillt  !!cy (Facility Workers nu Form). No In urance is affor d est F), o P % dent- Ua . ty derwriting John L Qua(r Amoncan Nuct r insurers Eff0ctive Date of To form a part of this Endorsement January 1, 1988 of Certificate No. NW-53 12:01 A.M. Standard Time Issued to Consumers Power Company D:to of Issue October 19, 1987 For the scribing onpar.ie s By General Manager J ,

)

End3rsement No. I Countersigne /44# de ht-w-1 (1/1/88)

l4 1 Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION .

ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT L

CALENDAR YEAR 1988

1. ADVANCE PREMIUM: It is agreed that the Advance Premium due the companies for the period designated above is:

$ 16,663.00 .

2. STANDARD PREMIUM AND RESERVE PREMIUM: In the absence of a enange in.the Acvance Premium indicated above, it is agreed that, subject to the provisions of the Indus-try Retrospective Rating Plan, the Standard Premium is said Advance Premium and the estimated Reserve Premium element of the Standard Premium is:

Ws is to certify that this is a true copy of the original Endorsoment

$ 13.330.00 E wing Wie endorsement number and being made part of the Certificate of insurance bearing the number designated eroon for Insurance ficy (Facility Workers coverage under the Nuclear Energy Uablitt

.~ -

Form). No ir ranco is affor . d '

nderwriting John L Qua f't d P s dont - Ua ,

Amodean Nu r Insurers Effective Date of this Endorsement January 1. 1988 To form a part of Certificate No. fM-53 12:01 A.M. Standard Time Consumers Power Company Issued to_

-D:to of Issue January 26, 1988 Tor the Su ribing Co antes By 6 PRESIDENT E:d:rsement No. 2 countersigned by #A_

NE-W-2 (1/1/88)

E Neeleer Energy Liability insurance

. . , . . I. NUCLEAR ENERGY LIASILITY INSURANCE ASSOCIATION DESCRIPTION OF THE FACILITY ENDORSEMENT It is agreed that Item 3 of the Declarations, "Description of the Facility", is as follows:

Location: All of the premises including the land and all buildings and structures k'10wn as the Big Rock Point Nuclear Generating Plant, consisting principally of, but not limited to the reactor containment sphere, turbine building, service building, screen house, outdoor substation, warehouses, training centers and security building, including contents therein, located in the Towrship of Hayes, County of Charlevoix, and State of Michigan. This area is further depicted on Consumers Power Company Drawing No. S-G16408 Revision A, Sheet 3, and is described as follows:

I. Government Lots 1 and 2 and the E 1/2 of the SE 1/4 ;f Section 7; also that part of Government tot 3 of said Section 7 lying N'ly of the East and West 1/4 line of said section; also the entire W 1/2 of Section 8; also all that ,

part of the W 1/2 of the E 1/2 of Section 8 lying HW'ly of the center line

- of Highway US-31; also all that part of the N 1/2 of the N 1/2 of the SE 1/4 of Section 8 lying E'ly of the center line of Highway US-31; also the E 1/2 of the NW 1/4 of Section 17, except the right of way of The Chesapeake and Ohio Railway; being all in T34N, R7W; II. And also, all of the unpatented overflowed lands and lake bottom lands belonging to or held in trust by the State of Michigan upon which Consumers Power Company is the owner of the easement and right to erect, construct, lay, operate and maintain a pipeline structures and facilities for the intake and transportation of water and to construct, erect, operate and maintain a channel for the transportation and discharge of water, said land lying N'ly of the W 1/2 of Section 8. T34N, R7W, Hayes Township, Charlevoix County, Michigan, and lying within the areas described as follows:

(A) A strip of land 100 feet in width being 50 feet on each side of a ,

center line described as follows: to find the place of beginning of said center line, comence at the SW corner of Section 8. T34N, R7W, i run thence due North along the West line of said section 3,948 feet to Meander Post No. 7 on the West line of said section, thence S 80' E along the meander line 1,297.92 feet to the place of beginning of the center line of said 100 foot strip, running thence N 04' S 1,420 feet to the place of ending, i

(

(B) A strip of land 100 feet in width beina 50 feet on each side of center line described as follows: to find the place of beginning of said center line commence at Meander Post No. 7 on the West line of said Section 8 as above described, thence S 80' E along the meander line 1,320 feet, thence due East along the meander line 115.76 feet to the place of beginning of the center line of said 100 foot strip, running thence N 30* 06' E 210 feet to the place of ending.

This is to certify that this is a true copy of the original Endorsement having the endorsement number and being made part of the Certificate of insurance bearing the number designat eroon for insuranco coverage un the Nuclear erov IImbfli ~Ilcy (Facility Workers Form). No in ag,tf John L. Oust chi, Vice President - Liability Underwriting American Nuclear Insurers Eff;ctive Date of this Endorsement January 1. 1988 _ To form a part of Certificate No. tN.53 12:01 A.M. Standard Time Issued to Consumers Power Comoany For the subscribing companies Dato of Issus January 26. 1988 By General Manager

-s-~ 3 c - ters,,.ed , E M n

.. ,3 MUTUAL ATOMIC ENERGY LIABILITY. UNDERWRITERS NUCLEAR ENERGY LIABILITY POLICY (Facility. Worker Form)-

herein called the ,

MASTER-WORKER POLICY.

C-E R T-I F I C A T E O F--I N S U R'A N C E Certificate No. MW-137. Date of Issue Jan. 26, 19 88 This is to certify that the insureds named'in_ Item 1 of the Declarations . hereof, hereinafter called the "Named-Insureds", have-obtained insurance under - the Master Worker Policy issued ~by. Mutual-Atomic Energy Liability Underwriters

- on behalf of.its members. The insurance'is subject to all'of

the provisions of this - "Certificate" and the Master ~ Worker 4

Policy.

DECLARATIONS s

, Item 1. Named Insureds and Addresses:,

Consumers Power Company 212 West Michigan Avenue Jackson, Michigan 49201 Item 2. Certificate Coverage Period:

Beginning at 12:01 a.m. January 1, 1988 and ending at the close of December 31, 1992, Eastern Standard Time, or at the time and date this Certificate is cancelled or terminated, whichever first occurs.

MMWPC-1 (1/1/88) Page 1

4

.. 3. ,
- * , Item.3. Description of the Facility

= Location: See Endorsement No. 3.

L u

F

' Type: PowerReactor.(Operating)

Operator of the Facility: Consumers Power Company

~

. Item 4. Amount of Insurance Available:.

l The - amount- of insurance afforded by the Master l

Worker Policy through this Certificate shall be determined by Section VIII of the' Master Worker' Policy and all-of the other provisions of the policy relating thereto.

Item 5. Advance Premium: $ 4,837.00 i

i 2-L APPLICATION OF CERTIFICATE This certificate applies only to bodily injury to a new worker. (1) which is caused during the Certificate Coverage Period by the nuclear energy hat.ard and (2) which is dis-covered and for which written claim is first made against an insured under the Certificate within the discovery period of the Master Worker Policy.

3 INDUSTRY RETROSPECTIVE RATING PLAN r

.All insurance under the Master Worker Policy is subject to the Industry Retrospective Rating Plan in use by the companies. No insurance is provided under this certificate unless and until the first Named Insured has accepted in writing the Industry Retrospective Rating Plan Premium En-dorsement and ' a copy of the signed endorsement has been issued by the companies to form a part of this certificate.

MMWPC-1 (1/1/88) Page 2

IN WITNESS WHEREOF, the companies subscribing the Master WorXer Policy have caused this certificate to be executed and attested on their behalf by the Manager of Mutual Atomic Energy Liablity Underwriters and duly countersigned by an authorized representative.

For the Subscribing Companies of MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS J. Michael O'Connell, Man ger By __W.A WR '

(A y orized M ent) WN Countersigned by: IN (Authorized Representative) f This is to certify that this is a true copy of the original Certificate hearing the number designated hereon, for insurance coverage under ers Form) teroin tho Nucicar c !!cdthe MasterEnergy Liability Policy YorkorPolicy. li (Facility Wp??vrdtdbythiscopy.

John L. Quattre ,9 *et.lient!LIablIItMarwriting American Nuclear , surers MMWPC-1 (1/1/88) Page 3

Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS INDUSTRY RETROSPECTIVE RATING PLAN PREMIUM ENDORSEMENT It is agreed that:

1. DEFINITIONS With reference to the premium for the Certificate of which this endorsement forms a part:

"Master Worker Policy" means the Master Worker Policy issued by MAELU; "Certificate Holder" means the first Named Insured in a Certificate issued to form a part of the Master Worker Policy; "advance premium", for any calendar year, is the esti-mated 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 Retrospective Rating Plan), premiums and minimum premiums applicable to this insurance.

Standard premium includes elements for premium taxes, expenses, profit and contingencies, guaranteed cost insurance and estimated reserve premium. The elements of standard premium, other than for premium taxes and estimated reserve premium, are not subject to retrospec-tive adjustment; "reserve premium" means that portion of the premium for a certificate (including reserve premium charges paid) that is specifically allocated under the Industry Retro-spective Rating Plan for ratable incurred losses; "industry reserve premium", for any period, is the sum of the reserve premiums for that period for all Certifi-cates issued to form a part of the Master Worker Policy; "retrospective adjustment ratio", for any period, is the ratio of the reserve premium for this Certificate for that period to the industry reserve premium for the same period; "incurred losses" means the sum of all:

(1) losses and expenses paid by MAELU, and (2) reserves for losses and expenses as estimated by MAELU, ME-W-1 (1/1/88) Page 1

because of obligations assumed and expenses incurred in connection with such obligations by the members of MAELU under the Master Worker Policy; "ratable incurred losses" means 95% of incurred losses.

Ratable incurred losses are the portion of incurred losses which are not covered by the guaranteed cost insurance element of standard premiums; "non-ratable incurred losses" means 5% of incurred losses. Non-ratable incurred losses are the portion of incurred losses which are covered by the guaranteed cost insurance element of standard premiums; "reserve for refunds", as of any date, is -the algebraic difference between:

(

(1) all industry reserve premium for the period from I

January 1, 1988 through such date, minus (2) the total for the same period of (a) all ratable incurred losses and (b) all industry reserve pre-mium refunds made under the Industry Retrospective Rating Plan by members of MAELU; "industry reserve premium charge", for any period, means the amount determined pursuant to the provisions of Section 4 of this endorsement for payment by the Named Insureds under Certificates; "reserve premium charge" means the portion of an indus-try reserve premium charge payable by the Named Insureds under this Certificate; "industry reserve premium refund", for any period, means the amount determined pursuant to the provisions of Section 4 of this endorsement for return to the Named Insureds under Certificates; "reserve premium refund" means the portion of an indus-try reserve premium refund returnable to the Named Insureds under this Certificate.

2. PAYMENT OF ADVANCE AND STANDARD PREMIUMS The Named Insureds shall pay the companies the advance premium stated in the declarations, for the period from the effective date of this certificate through December 31 following. Thereafter, at the beginning of each calendar year while this Certificate is in force, the Named Insureds shall pay the advance premium for such year to the companies.

ME-W-1 (1/1/88) Page 2

i The advance premium for each calendar year shall be stated in the Advance'and Standard Premium Endorsement for the year issued by the companies as soon as practic-able prior to or after the beginning of the year.

As soon as practicable after the end of a calendar year or the certificate Coverage Period, the standard premium

for the preceding year shall be finally determined and stated in the Advance and Standard Premium Endorsement for that year. If the standard premium exceeds the ad-vance premium paid for that year, the Named Insureds shall pay the excess to the companies; if less, the com-panies shall return to the Named Insureds the excess portion paid.

The Named Insureds shall maintain records of the inform-ation 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 certi-ficate Coverage Period and at such other times as the companies may direct.

! 3. SPECIAL RESERVE ACCOUNT; USE OF RESERVE PREMIUMS MAELU shall maintain on behalf of its members a Special Reserve Account for holding collectively all reserve premiums paid for all certificates issued to form a part of the Master Worker Policy. Such premiums, together

, with any undistributed net income realize.1 thereon after taxes and investment expenses, shall be used for the following purposes only:

(1) to pay ratable incurred losses or, in the event i ratable incurred losses are paid under the Master Worker Policy from funds advanced by the members of MAELU subscribing the policy, to reimburse such members as a matter of first priority for the funds i advanced; (2) to refund any amounts so held to the Named Insureds, as provided in Section 4.

No members of MAELU and no Named Insureds shall have any

, individual interest in or claim upon amounts held in the Special Reserve Account, except to participate propor-tionally in any refund or reimburstrnent provided for above.

! All reserve premiums paid or payable for this Certifi-

! cate may be used by MAELU to discharge the obligations l of its members under the Master Worker Policy with re-l spect to the above purposes and arising out of claims l made under any Certificate issued to form a part of the l Master Worker Policy.

ME-W-1 (1/1/88) Page 3 1

y - .__ . _ _ _ . . . . _ _ _ _ _ _

2 j

4. PAYMENT OF RESERVE PREMIUM CHARGES AND REFUNDS As soon as practicable af ter each December 31 the com-panies will review the status. of the reserve for refunds-

. and report their findings to all Certificate Holders.

If, at any time, the companies find that there is a

-negative balance in the reserve for refunds and 1 that

-such condition is likely to prevail, -they shall deter-mine - an appropriate industry reserve premium - charge.

Similarly, if the companies find that there is a surplus positive balance, they shall. determine an appropriate industry reserve premium refund.

4 The portion of an industry reserve premium charge or an industry reserve premium refund that is:

4 (1) payable by the Named Insureds as a reserve premium charge, or I (2) due such insureds as a reserve premium refund, shall be determined by multiplying the industry reserve i premium charge or the industry reserve premium refund by the retrospective adjustment ratio applicable . to this certificate.

The amount of any reserve premium charge shall be stated in a Retrospective Reserve Premium Charge Endorsement.

The charge shall be paid promptly after receipt of the endorsement.

i When all claims covered by the Master Worker Policy are j closed the companies shall make a final review and report, and shall determine a final industry reserve premium charge or industry reserve premium refund equal

! to the amount of the balance.

i

5. FINAL PREMIUM 4

The final premium for this certificate shall be (a) the l sum of the standard premiums for each calendar year, or portion thereof, during which the Certificate remains in i force plus (b) the sum of all reserve premiums, includ-ing all reserve premium charges, minus (c) the sum of all reserve premium refunds.

1

6. RESERVE PREMIUM CHARGE AGREEMST In consideration of (a) the participation of Named
Insureds in other Certificates subject to the Industry

. Retrospective Rating Plan, (b) the undertaking of such

! Named Insureds to pay their appropriate share of any

, industry reserve premium charge and (c) the obligations

,' assumed by the members of MAELU under the Master Worker

! ME-W-1 (1/1/88) Page 4 l1

_ - ,-.--~_

Policy, the Named Insureds, by acceptance of the Master Workor Policy, agree:

(1) That the insurance provided by the Master Worker Policy applies collectively to all claims covered by the policy through any and all Certificates issued to form a part of the policy.

(2) That the right of each Named Insured under a Cert-ificate to receive reserve premium refunds and the obligation of each such insured to pay reserve premiums charges applies to all claims covered by the Master Worker Policy and continues until all such claims are closed, whether or not such claims i

were before the inception of the Certificate or after its termination.

(3) To pay all reserve premium charge 3 due promptly after receipt of the Retrospective Reserve Premium Charge Endorsement, whether or not the Certificate is terminated. Any reserve premium charge shall be overdue if not paid within 60 days of the date of the invoice for the charge.

Overdue reserve premium charges shall bear interest from the due date until paid at an annual rate equal to the sum of (a) 3% plus (b) a rate of in-terest equal to Moody's Average Public Utility Bond Yield described in the issue of Moody's Bond Survey current on the due date. Any reserve premium refund due to Named Insureds under a certi-ficate shall be used to pay any overdue reserve premium charges to such Named Insureds.

7. RESERVE PREMIUM REFUND AGREEMENT Each member of MAELU subscribing the Master Worker Policy for any calendar year, or portion thereof, with respect to which an industry reserve premium refund is determined to be payable thereby agrees for itself, severally and not jointly, and in the respective pro-portion of its liability assumed under the Master Worker Policy for that calendar year, to return promptly to the Named Insureds that portion of such refund due such Insureds, as determined in accordance with the provisions of this endorsement.

1 ME-W-1 (1/1/88) Page 5

P2go 6 Accepted and agreed by the first Named Insured in behalf of itself and every other Named Insured stated in the Declara-tions of the certificate of which this endorsement forms a part.

Consumers Power Cormany (First Named Insured - Print or Type)

Date /l,. /1/ )By (Signattre of Authorized Officer)

R M Griswold, Vice President and Treasurer (Print or Type Name and Title of Officer)

N ~4 AS E % ,

CON 9UW.na5 Towa 'E. Ors.6 L8 GAL DWAATMINT This is to certify that this is a true copy of the original Endorsement having the endorsement numberand being made part of the Certificate of lasurance bearing the number designat hereon for insurance coverage u der the Nuclear Energy Uab!! Policy (Facility Workers Form). No 1surane is aff 1 aun .-

John L 0 . oc' chi, co resident - U il Underwriting American Nu oar insurers Effective Date of To torn a part of this Endorsement January 1,1988 of Certificate No. }B-137 12:01 A.M. Standard Time Issued to Conmmrs Ptmer Cormany Date of Issue Octobe- 19, 1987 For the Subscribing Companies MUTUAL ATOMIC ENERGY LIABILITY ERWRITERS By Endorsement No. 1

. _ , Countersigned by_ k [ W Authorized Representative ME-k*-1 (1/1/88)

Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS ADVANCE P1EMIUM AND STANDARD PREMIUM ENCORSEMENT cal.ENDAR YEAR 1988

1. ADVANCE PREMIUM: It is agreed that the Advance Premium cue the ccmpanies for the period designated above is:

5 4,837.00 .

2. STANDARD PREMIUM AMO RESERVE PREMIUM: In the absence of a enange in the Advance Premium indicated above, it is agreed that, subject to the-provi; ions of the Indus-try Retrospective Rating Plan, the Standard Premium is said Advance Premium and the estimated Reserve Premium element of the Standard Premium is:

This !s to certify that this is a true copy of the original Endorsement S 3.870.00 " "; !% endorsement number and being made part of the Certificate of insulance bearing the number designated eroon forinsurance coverage und r the Nuclear Energy Liabliity/ licy (Facility Workers ran ffgd{ no f Form).

John L. Quat No in_ chl, Vice'PresEeltderwriting - Liab i American Nucle r insurers Effsetive Date of January 1, 1988 To form a part or certificate No, MW-137 this Endorsement 12:01 A.M. Standard Time v3u;; a Consumers Power Company D2to of Issue January 26, 1988 For the Subscribing Compantes MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS A

By Endsrsement No. 2 countersigne W' YMkW ME-W-2 (1/1/88)

o. .,.

Nuclear Energy Mability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS DESCRIPTION OF THE FACILITY ENDORSEMENT It is agreed that Item 3 of the Declarations, "Description of the Facility", is as follows:

-Location: All of the premises including the land and all buildings and structures known as the Big Rock Point Nuclear Generating Plant, consisting principally of, but not limited-to the reactor containment sphere, turbine building, service building, screen house, outdoor substation, warehouses, training centers and security building, including contents therein, located in the Township of Hayes, County of Charlevoix, and State of Michigan. This area is further depicted on Consumers Power Company Drawing No. S-G16408 Revision A, Sheet 3, and is described as follows:

1. Government Lots 1 and 2 and the E 1/2 of the SE 1/4 of Section 7; also that part of Government Lot 3 of said Section 7 lying N'ly of the East and West 1/4 line of said section; also the entire W 1/2 of Section 8; also all that part of the W 1/2 of the E 1/2 of Section 8 lying NW'ly of the center line of Highway US-31; also all that part of the N 1/2 of the N 1/2 of the SE 1/4 of Section 8 lying E'ly of the center line of Highway US-31; also the E 1/2 of the NW 1/4 of Section 17, except the right of way of The Chesapeake and Ohio Railway; being all in T34N, R7W; II. And also, all of the unpatented overflowed lands and lake bottom lands belonging to or held in trust by the State of Michigan upon which Consumers Power Company is the owner of the easement and right to erect, construct, lay, operate anti maintain a pipeline structures and facilities for the intake and transportation of water and to construct, erect, operate and maintain a channel for the transportation and discharge of water, said land lying N'ly of the W 1/2 of Section 8, T34N, R7W, Hayes Township, Charlevoix County, Michigan, and lying within the areas described as follows:

(A) A strip of land 100 feet in width being 50 feet on each side of a center line described as follows: to find the place of beginning of said center line, comence at the SW corner of Section 8. T34N, R7W, run thence due North along the West line of said section 3,948 feet to Meander Post No. 7 on the West line of said section, thence S 80' E along the meander line 1,297.92 feet to the place of beginning of the center line of said 100 foot strip, running thence N 04' S 1,420 feet to the place of ending.

..e ..

(B) A strip of land 100 feet in width being 50 feet on each side of center line described as follows: to find the place of beginning of said center line commence at Meander Post No. 7 on the West-line of said Section 8 as above described, thence S 80' E along the meander line 1,320 feet, thence due East along the meander line 115.76 feet to the

-place of beginning of the center line of said 100 foot strip, running thence N 30' 06' E 210 feet to the place of ending.

This is to certify that this is a true copy of the original Endorsement having the endorsement numberand being made part of the Certificate of Insurance boaring the number designated hgeon for insurance coverage under he Nuclear Energy Uability P#tcy (Facility Workers Form). No insu nce I ord e /~

John L Ouattro l1, het Pbsident5 abbty Ll Underwriting American Nucioar insurers Effsetive Date of this Endorsement January 1. 1988 To form a part of Certificate No. MW-137 12:01 A.M. Standard Time Issued to Consumers Power Company F r the subscribing companies Dat3 of Issue January 26, 1988 By

'~

Gempral Manager Endorsement No 3 Countersigned by - A'#7 Mv

I

.. 2o s' ..

NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION NUCLEAR ENERGY LIABILITY POLICY (Facility Worker Form) herein called the MASTER WORKER POLICY CERTIFICATE OF INSURA'NCE Certificate . No. NW-53 Date of Issue Jan. 26, 19 88 This is to certify that the insureds named in Item 1 of the

-Declarations hereof, hereinafter called the "Named Insureds", have obtained insurance under the Master Worker Policy issued by Nuclear Energy Liability Insurance Associa-tion on behalf of its members. The insurance is subject to all of the provisions of this "Certificate" and the Master Worker-Policy.

1 DECLARATIONS Item 1. Named Insureds and Addresses:

Consumers Power Company 212 West Michigan Avenue Jackson, Michigan 49201 Item 2. Certificate Coverage Period:

Beginning at 12:01 a.m. January 1, 1988 and ending at the close of December 31, 1992, Eastern Standard Time, or at the time and date this Certificate is cancelled or terminated, whichever first occurs.

NMWPC-1 (1/1/88) Page 1

Item 3. Description of the Facility:

Location: See Endorsement No. 3.

Type: Power Reactor (Operating)

Operator of the Facility: Consumers Power Company Item 4. Amount of Insurance Available:

The amount of insurance afforded by the Master Worker Policy through this Certificate ~shall be determined by S.ection VIII of the. Master Worker Policy and all of the other provisions of the policy relating thereto.

Item 5. Advance Premium: $ 16,663.00 2

APPLICATION OF CERTIFICATE This certificate applies only to bodily injury to a new worker (1) which is caused during the certificate Coverage Period by the nuclear energy hazard and (2) which is dis-covered and for which written claim is first made against an insured under the certificate within the discovery period of the Master Worker Policy.

3 INDUSTRY RETROSPECTIVE RATING PLAN All insurance under the Master Worker Policy is subject to the Industry Retrospective Rating Plan in use by the companies. No insurance is provided under this certificate unless and until the first Named Insured has accepted in writing the Industry Retrospective Rating Plan Premium En-dorsement and a copy of the signed endorsement has been issued by the companies to form a part of this certificate.

NMWPC-1 (1/1/88) Page 2

IN WITNESS WHEREOF, the companies subscribing the Master Worker Policy have caused this Certificate to be executed and attested - on their behalf by the President of Nuclear

, Energy Liability Insurance Association and duly counter-signed by an authori:ed representative.

For the Subscribing Companies of NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION Burt C. Proom, President By- .W , M mW F (Auftikrized Agent) vrs Countersigned by: M.<fW I h (Authorized Representative) i This is to cortify that th!:is a trua copy of the original Cadificate bearing tbo numt;er dedgnated hereon, for insgance coverngo under th Nadcar Enngy den!dy Pcbey (Scility ',//rkt:rt Form) herein calied :he Mash Worket Policy. 'o ' - - - f 4.? forded byth; scopy.

John L Quetts ,

  • T ii, he Er cant - Uabil.. . darwritina American Nuc:ca. Incorers NMWPC-1 (1/1/88) Page 3

l

.. 4-Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIAT10N INDUSTRY RETROSPECTIVE RATING PIAN PREMIUM ENDORSEMENT It is agreed that: i 1.- DEFINITIONS With reference to the premium for the certificate of which this endorsoment forms a part: 1 "Master ' Worker Policy" means the Master Worker Policy

. issued by NELIA; i "Certificate Holder" means the first Named Insured in a Certificate issued to form a part of the Master Worker l

%11cy; i "advance premium", for any calendar year, is the esti-mated standard premium for that calendar year; l t

"standard premium", for any calendar yer.r, is the pre-mium for that calendar year computed in accordance with the companies' rules, rates, rating plans (other than the Industry Retrospective Rating Plan), premiums and minimum premiums applicable to this insurance. Standard premium includes elements for premium taxes, expenses, profit and contingencies, guaranteed cost insurance and estimated reserve premium. The elements of standard premium, other than for premium taxes and estimated reserve premium, are not subject to retrospective adjustment; "reserve premium" means that portion of the premium for a certificate (including reserve premium charges paid) that is specifically allocated under the Industry Retro-spective Rating Plan for ratable incurred losses; "industry reserve premium", for any period, is the sum of the reserve premiums for that period for all Certifi-cates issued to form a part of the Master Worker Policy; "retrospective adjustment ratio", for any period, is the ratio of the reserve premium for this certificate for that period to the industry reserve premium for the same period; "incurred losses" means the sum of alls (1) losses and expenses paid by NELIA, and (2) reserves for losses and expenses as estimated by NELIA, NE-W-1 (1/1/88) Page 1

o -

l because of obligations assumed and expenses incurred in  !

connection with such obligations by the members of NELIA  :

under the Master Worker Policy; l "ratable incurred losses" means 95% of incurred losses.

Ratable incurred losses are the portion of incurred losses which are not covered by the guaranteed cost insurance element of standard premiums; "non-ratable incurred losses" means 5% of incurred losses. Non-ratable incurred losses are the portion of incurred losses which are covered by the guaranteed cost insurance element of standard premiums; "reserve for refunds", as of any date, is the algebraic difference between:

(1) all industry reserve premium for the period from January 1, 1988 through such date, minus (2) the total for the same period of (a) all ratable incurred losses and (b) all industry reserve pre-mium refunds made under the Industry Retrospective Rating Plan by members of NELIA; "industry reserve premium charge", for any period, means the amount determined pursuant to the provisions of

, Section 4 of this endorsement for payment by the Named Insureds under certificates; "reserve premium charge" means the portion of an indus-try reserve premium charge payable by the Named Insureds under this certificate; i

"industry reserve premium refund", for any period, means the amount determined pursuant to the provisions of Section 4 of this endorsement for return to the Named l Insureds under Certificates; i "reserve premium refund" means the portion of an indus-try reserve premium refund returnable to the Named In-sureds under this Certificate.

i

2. PAYMENT OF ADVANCE AND STANDARD PREMIUMS i

The Named Insureds shall pay the companies the advance premium stated in the declarations, for the period from i

the effective date of this certificate through December

! 31 following. Thereafter, at the beginning of each

! calendar year while this Certificate is in force, the

! Named Insureds shall pay the advance premium for such i year to the companies.

1

The advance premium for each calendar year shall be i

1 stated in the Advance and Standard Premium Endorsement i

ii

NE-W-1 (1/1/88) Page 2 1

for the year issued by the companies as soon as practic-able prior to or after the beginning of the year.

As soon as ?racticable after the end of a calendar year or the Cert;.ficate Coverage Period, the standard premium for the preceding year shall be finally determined and stated in the Advance and Standard Premium Endorsement for that year. If the standard premium exceeds the ad-vance premium paid for that year, the Named Insureds chall pay the excess to the companies; if less, the com-panies shall return to the Named Insureds the excess portion paid.

The Named Insureds shall maintain records of the inform-ation necessary for premium computation and shall send copies of such records to the companies as directed, at the end of each calelidar year, at the end of the certi-ficate Coverage Period and at such other times as the companies may direct.

3. SPECIAL RESERVE ACCOUNT; USE OF RESERVE PREMIUMS NELIA shall maintain on behalf of its members a Special Reserve Account for holding collectively all reserve premiums paid for all Certificates issued to form a part of the Master Worker Policy. Such premiums, together with any undistributed net income realized thereon after taxes and investment expenses, shall be used for the following purposes only:

(1) to pay ratable incurred losses or, in the event ratable incurred losses are paid under the Master Worker Policy from funds advanced by the members of NELIA subscribing the policy, to reimburse such members as a matter of first priority for the funds advanced; (2) to refund any amounts so held to the Named Insureds, as provided in Section 4.

No members of NELIA and no Named Insureds shall have any individual interest in or claim upon amounts held in the Special Reserve Account, except to participate propor-tionally in any refund or reimbursement provided for above.

All reserve premiums paid or payable for this Certifi-cate may be used by NELIA to discharge the obligations of its members under the Master Worker Policy with re-spect to the above purposes and arising out of claims made under any Certificate issued to form a part of the Master Worker Policy.

NE-W-1 (1/1/88) Page 3

. m ,

l

4. PAYMENT OF RESERVE PREMIUM CHARGES AND REFUNDS ,

As soon as practicable after each December 31 the com-panies will review the status of the reserve for refunds and report their findings to all Certificate Holders.

If, at any time,- the companies find that there is a negative balance in the reserve for refunds and that

such condition is likely to prevail, they shall deter-mine an appropriate industry reserve premium charge.

' Similarly, if the companies find that there is a' surplus positive balance, they shall determine an appropriate industry reserve premium refund.

i The portion of an industry reserve premium charge or an industry reserve premium refund that is:

2 (1) payable by the Named Insureds as a reserve premium charge, or (2) due such insureds as a reserve premium refund, shall be determined by multiplying the industry reserve premium charge or the industry reserve premium refund by the retrospective adjustment ratio applicable to this Certificate.

a The amount of any reserve premium charge shall be stated in a Retrospective Reserve Premium Charge Endorsement.

The charge shall be paid promptly after receipt of the endorsement.

When all claims covered by the Master Worker Policy are

closed the companies shall make a final review and re-

! port, and shall determine a final industry reserve

{ premium charge or industry reserve premium refund equal j to the amount of the balance.

)

i 5. FINAL PREMIUM The final premium for this certificate shall be (a) the j' sum.of the standard premiums for each calendar year, or i portion thereof, during which the certificate remains in force plus (b) the sum of all reserve premiums, includ-ing all reserve premium charges, minus (c) the sum of all reserve premium refunds.

6. RE3ERVE PREMIUM CHARGE AGREEMENT In consideration of (a) the participation of Named I Insureds in other Certificates subject to the Industry Retrospective Rating Plan, (b) the undertaking of such j Named Insureds to pay their appropriate share of any industry reserve premium charge and (c) the obligations
assumed by the members of NELIA under the Master Worker i

J

) .

NE-W-1 (1/1/88) Page 4

w t

Policy, the Named Insureds, by acceptance of the Master Worker Policy, agreet (1) That the insurance provided by the Master Worker  !

Policy applies collectively to all claims covered ,

by the policy through any and all Certificates issued to form a part of the policy.

(2) That the right of each Named Insured under a Cert-ificate to receive reserve premium refunds and the obligation of each such insured to pay reserve premiums charges applies to all claims covered by the Master Worker Policy and continues until all such claims are closed, whether or not such claims were before the incaption of the Certificate or l after its termination.

(3) To pay all reserve premium charges duo promptly '

after receipt of the Retrospective Reserve Premium Charge Endorsement, whether or not the Certificate is terminated. Any reserve premium charge shall be  ;

overdue if not paid within 60 days of the date of .

the invoice for the charge.  !

overdue reserve premium charges shall bear interest from the due date until paid at an annual rate equal to the sum of (a) 34 plus (b) a rate of in-terest equal to Moody's Average Public Utility Bond Yield described in the issue of Moody's Bond Survey current on the due date. Any reserve pre-

. mium refund due to Named Inaurada under a certificate shall be used to pay any overdue reserve premium chargta to such Named Insureds.

7. RESERVE PREMIUM REFUND AGREEMENT Each member of NELI4 subscribing the Master Worker Policy for any calendar year, or portion thereof, with respect to which an industry reserve premium refund is determined to be payable thereby agrees for itself, severally and not jointly, and in tha respective pro-portion of its liability assumed under the Master Worker Policy for that calendar year, to return promptly to the Named Insureds that portion of such refund due such Insureds, as determined in accordance with the provi-sions of this endorsement.

NE-W-1 (1/1/88) Page 5 i

  • PCg3 6 Accepted and agreed by the first Named Insured in behalf of itself and every other Named Insurod stated in the Declara-tions of the certificate of which this endorsement forms a-part.

Consumers Power Company (First Named Insured - Print or Type)

Date Pov 24. 1987 By # // 'e*** -

(Signature of Authorized Officer)

R M Griswold, Vice President & Treasurer (Print or Type Name and Title of of ficer)

APMr0WD #$ TO W.am W

cDMiuaEs ;cw a ;. e., .w .

LEGAL ODARTMhNT riginnt Endorsemor.t m e to cer4Jfy thst th s 13 {y'j, [ $partet the CMtificat0 h,dnpr.u enN5*TM "#' ' '", wn:ud PA con for herrsnco et luur:.ru Win ~1 0 * '[ '[.N *.v,w r/ficy (Fach!!y WTW3 f, g :; )  :

jenvriting

-- a John L.. Co .;trc- '.

gennn Nucl?Er ihM#

Ef fcetive Date of To form a part of this Endorsement January 1. 1988 of Certificate No. NW-53 12:01 A.M. Standard Time Issusd to Consumers Power Company D:ta of Issue October 19. 1987 For the scribing oopanies By M c...r.1 m ...,

A A Endorsement No. I Countersigne /M /%

NE-U-l (1/1/88)

I _

Nuclear Energy Liability insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION .

ADVAfiCE PREMlUM AND STANDARD PREMIUM ENDORSEMENT CALENDAR YEAR 1988

1. ADVANCE PREMIUM: It is agreed that the Advance Premium cue the companies for the period designated above is:

$ 16,663.00 ,

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 Indus-try Retrospective Rating Plan, the Standard Premium is said Advance Premium and the estimated Reserve Premium element of the Standard Premium is:

$ 13.330.00 m W to cortify that th's is a truo copy of the original Endorce nent having the endorsementnumber and being rnade partof the Certtic hereon forinsurance of insurance bearing the number des! gnat Policy (Facility Worker coverage under the Nuclear Energy Utbil' -

Ferrn). No surance is afford ~' ' :r John L C cc 1te @ ThDWy Underwriting American N ear Insurers Effcetive Date of this Endorsement January I. 1988 To fonn a part of Certificate No. fM-53 12:01 A.M. Standard Time Issu:d to Consumers Power Company D:te of Issue January 26, 1988 For the Su ribing Co antes By 8

FRESIDENT Endorsement No. 2 Countersigned by w h NE-W-2 (1/1/88)

o ,, . Neeleet Enegy Lieb4Hty inwonee

[UCLEAR ENEROY LIASH.lTY INSURANCE ASSOCIATION DESCRIPTION OF THE FACILITY ENDORSEMENT It is agreed that Item 3 of the Declarations, "Description of the Facility", is as follows:

Location: All of the premises including the land and all buildings and structures known as the Big Rock Point Nuclear Generating Plant, consisting principally of, but not limitad to the reactor containment sphere, turbine building, service building, screen house, outdoor substation, warehouses, training centers and security building, including contents therein, located in the Township of Hayes, County of Charlevoix, and State of Michigan. This area is further depicted on Consumers Power Company Drawing No. S-G16408 Revision A, Sheet 3, and is described as follows:

1. Government Lots 1 and 2 and the E 1/2 of the SE 1/4 of Section 7; also that part of Government Lot 3 of said Section 7 lying N'ly of the East and West 1/4 line of said section; also the entire W 1/2 of Section 8; also all that part of the W 1/2 of the E 1/2 of Section 8 lying NW'ly of the center line

- of Highway US-31; also all that part of the N 1/2 of the N 1/2 of the SE 1/4 of Section 8 lying E'ly of the center line of Highway US-31; also the E 1/2 of the NW 1/4 of Section 17, except the right of way of The Chesapeake and Ohio Railway; being all in T34N, R7W;

!!. And also, all of the unpatented overflowed lands and lake bottom lands belonging to or held in trust by the State of Michigan upon which Consumers Power Company is the owner of the easement and rig'it to erect, construct, lay, operate and maintain a pipeline structures and facilities for the intake and transportation of water and to construct, erect, operate and maintain a channel for the transportation and discharge of water, said land lying N'ly of the W 1/2 of Section 8. T34N, R7W, Hayes Township, Charlevoix County, Michigan, and lying within the areas described as follows:

(A) A strip of land 100 feet in width being 50 feet on each side of a center line described as follows: to find the place of beginning of said center line, commence at the SW corner of Section 8. T34N, R7W, run thence due North along the West line of said section 3,948 feet to Meander Post No. 7 on the West line of said section, thence S 80' E along the meander line 1,297.92 feet to the place of beginning of the center line of said 100 foot strip, running thence N 04* S 1,420 feet to the place of ending.

~ __

(B) A strip of land 100 feet in width beino 50 feet on each side of center line described as follows: to find the place of beginning of said 1 center line connence at Meander Post No. 7 on the West line of said Section 8 as above described, thence S 80' E along the meander line 1.320 feet, thence due East along the meander line 115.76 feet to the place of beginning of the center line of said 100 foot strip, running thence N 30 06' E 210 feet to the place of ending.

This is to cortify that this is e true copy son forinsurance of insurance bearing the number des! gnat licy (Facility Workers coverage un er the Nuclear Energy Uabili aff dingsgayg '

Form). No in uranc '

derwriting John L. Oua 'l.Tsco' President . Uabhe ,,

American Nuct r Insurers Eff ctive Date of this Endorsement January 1. 1988 To fom a part of Certificate No. fN.53 12:01 A.M. Standard Time Issued to Consumers Power Coneany Date of Issue January 26, 1988 For the subscribing companies By Gener 1 Manager M

End;rsement No 3 Countersigned 4 y _

Ws 9 , J%k4

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