ML20148J662

Forwards Endorsements 114 & 115 to Nelia Policy NF-117

ML20148J662
Person / Time
Site:	Big Rock Point File:Consumers Energy icon.png
Issue date:	01/21/1988
From:	Frounfelker R CONSUMERS ENERGY CO. (FORMERLY CONSUMERS POWER CO.)
To:	Dinitz I NRC
References
NUDOCS 8801270458
Download: ML20148J662 (5)

Text

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. Consumers Power rowsmno nlKNIGAN'E PR66RE55 General Offices: 212 West Michigan Avenue, Jackson, MI 49201 *(517) 788-0550 January 21, 1988 Mr Ira Dinitz Mail Stop 128 US Nuclear Regulatory Commission Washington, DC 20555 ANI POLICY NF-ll7 DOCKET NO 50-155 Attached are two copies each of Endorsements 134 and 115 to ANI Policy NF-117 for Big Rock Point Nuclear Plant. Endorsement 114 is the Amendment of Coverage Endorsement for Workers Claims, and Endorsement 115 reflects the 1988 Advance Premium.

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R E Frounfelkr Property &Casualy)

Insurcnce Director i

l 8801270458 880121 PDR d ADOCK 05000155 PDR I

l OC0188-10-IN02 A C%15 ENE7?GYCOMPANY

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9 Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY PNSURANCE ASSOCIATION l

l AMENDMENT OF COVEF. AGE ENDORSEMENT FOR WORKERS CLAIMS (Facility Form)

PREAMBLE

1. The insurance and rating plan presently used by Nuclear Energy Liability Insurance Association ("NELIA") and Mutual Atomic Energy Liability Underwriters ("MAELU") do not make a distinction between workers claims arising from catastrophic events and those arising from lesser events;

2. NELIA and MAELU believe that the lack of such a distinc-tion will adversely affect their ability to continue to attract from world markets very large amounts of nuclear energy liability insurance for the nuclear industry;

3. NELIA and MAELU want to avoid this potential loss of capacity and to continue to provide nuclear energy lia-bility insurance for workers claims. Accordingly NELIA l and MAELU desire to restructure their present insurance programs, including this policy, effective Janurry 1, l 1988.

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j NOW, THEREFORE, the Named Insured and the companies do l hereby agree as follows:

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1. DEFINITIONS j When used in reference to this endorsement:

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"this policy" means the policy of which this endorsement forms a part; "nuclear related employment" means all work performed at one or more than one nuclear facility in the United

, States of America or in connection with the transporta-l tion of nuclear material to or from any such facility.

All of a worker's nuclear related employment shall be l considered as having begun on the first day of such l employment, regardless of the number of employers in-volved or interruptions in such employment; "worker" refers to a person who is or was engaged in nuclear related employment; NE-64 (1/1/88) Page 1

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• t "workers claims" means claims for damages because of bodily injury to a worker caused by the radioactive, toxic, explosive or other hazardous properties of nuc-lear. material and arising out of or in the course of the worker's nuclear related employment; "extraordinary nuclear occurrence" means an event which the United States Nuclear Regulatory Commission has determined to be an "extraordinary nuclear occurrence" as defined in the Atomic Energy Act of 1954, or in any law amendatory thereof.

2. APPLICATION OF THIS ENDORSEMENT This endorsement applies only to such insurance as is afforded by this policy for workers claims which do not arise in whole or in part out of an extraordinary nuclear occurrence.

3. EXCLUSION OF NEW WORKERS CLAIMS This policy does not apply to bodily injury to a worker which arises in whole or in part out of nuclear related employment that begins on or after January 1, 1988.

4. APPLICATION OF POLICY TO WORKERS CLAIMS NOT EXCLUDED With respect to such insurance as is afforded by this policy for workers claims which are not excluded, Insuring Agreement IV does not apply and the following Insuring Agreement IV-A does apply:

IV-A APPLICATION OF POLICY TO WORKERS CLAIMS This policy applies only to bodily injury (1) which is caused during the policy period by the nuclear energy hazard and (2) which is discovered and for which written claim is made against the insured not later than the close of December 31, 1997.

5. AVAILABILITY OF SUPPLEMENTAL INSURANCE NELIA and MAELU are offering to make insurance under one or more Master Worker Policies available to all holders of Nuclear Energy Liability Policies (Facility Form).

THIS OFFER IS CONTINGENT ON SUFFICIENT SUPPORT FROM POLICYHOLDERS, AND MAY BE WITHDRAWN OR MODIFIED BY NELIA OR MAELU AS THEY DEEM NECESSARY OR APPROPRIATE.

The Master Worker Policies will p rovide', under their separate terms and conditions, coverage for new workers claims. Premiums will be subject to a separate Industry Retrospective Rating Plan.

NE-64 (1/1/88) Page 2 l

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COVERAGE UNDER THE NEW MASTER WORKER POLICIES IS NOT AUTOMATIC. A WRITTEN REQUEST MUST BE SUBMITTED TO NELIA OR MAELU THROUGH REGULAR MARKET CHANNELS.

It is understood and agreed that all of the provisions of this endorsement shall remain in full force and effect without regard to this Section 5, and without regard to whether or not the Named Insureds become insureds under the Master Worker Policies, or whether or not NELIA or MAELU terminate such policies or withdraw or modify their offer to underwrite such policies.

Executed for the companies Date /!4 !

/ f By . C. _h Yw _/A N (Signaturb of Authori' zed Of ficer)

John L. Quattmcchi. Vice President-Liability Undenvriting (Print or Type Name and Title of Officer)

Executed for the Named Insured Consumers Power Company (Named I ured - Print or Type)

Date Nov 24, 1987 By t (Signature of Authorized Officer)

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

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This is to certify that this is a true copy of the origW Endorsement having the endorament nurnher and being ma& part of the Nvcht Energy Liabit:y Pohcy (F My Forrn) r.s des-

4++ wreunder.

l ignata. hereon. No !nsu ' nc

. trotcls,'he Prcedent LkbMey Ur.cerarung M n L.

Arrarran hx. V ar insurers Etfective Date of l this Endorsement January 1. 1988 To form a part of Policy No NF-117 i 12:01 A.M. Standard Time l Issusd to Consumers Power Company l Date of Issue October 19, 1987 For the subscribing companies By -

• l neral Mana er Endorsement No 114 Countersigne #T/4/ M N NE-64 (1/1/88)

NUCLEAR ENERGY LIABILITY INSURANCE

,- NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ADVANCE PREMlVM AND STANDARD PREMlVM CALENDAR YEAR 1988 ENDORSEMENT

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

$ 197.513.00 .

2. STANDARD PREMlUM AND RESERVE PREMlUM: 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:

$ 147,110.00 .

TNs is to cert fy that thi.; is a nue ccpy of the orbina!

Endorsement hung the ent xment nurnber end 'tema made part of th Nuclear Energy Us.H9ty Pon ey(F :Ny Foma e, des-ignats. ! herecm N ,",6 2 hereunder

8.o Ins an-m L u uunnru, % pr en, tm.ej m, em Artwncan Nw4v lmters Effective Date of Januay 1,1988 To form a part of Policy No. NF-117 This Endorsement 12:01 A.M. Standard Time issued to Consumers Power Company December 15,1987 For the s ;cribing com anies Date of issue By /A

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M General Meneger Endorument No. 115 Countersigned by