ML20148K700
| ML20148K700 | |
| Person / Time | |
|---|---|
| Site: | Seabrook  |
| Issue date: | 03/21/1988 |
| From: | Grillo M JOHNSON & HIGGINS |
| To: | Dinitz I Office of Nuclear Reactor Regulation |
| References | |
| NUDOCS 8803310275 | |
| Download: ML20148K700 (24) | |
Text
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. . . 125 Broad Street Cable Address "KERODEN" New Yortt. W Y.10004 Telex No 6720134 JANKNY UW 212 574 7000
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OHNSON ak _ IGGINS m._m March 21, 1988 Mr. Ira P. Dinitz office of Nuclear Reactor Regulation U.S. Nuclear Regulatory Commission Washington, DC 20555 Re: PUBLIC SERVICE OF NEW HAMPSHIRE New Hampshire Yankee Division
Dear Ira:
Enclosed are two certified copies of each Certificate of Insurance and Industry Retrospective Rating Plan Premium EndorGement to show participation in the Master Worker Policy by Seabrook Joint Owners. The attached table lists the policy numbers and titles of the enclosed endorsements.
Please call me at (212) 574-7960 if you have any questions.
Sincerely, L '
Michael Grillo Nuclear Advisory Group MG/as Enclosures cc: Ms. Laura Boeddinghaus, PSNH Mr. John Klepper, J&H B?ston 8803310275 880321 3 PDR ADOCK 0500 /[p#/
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ENDORSEMENT TITLE __
POLICY NO.
MW-97 1 Industry Retrospective Rating Plan Premium Endorsement MW-97 N/A Certificate of Insurance NW-188 1 Industry Retrospective Rating Plan Premium Endorsement NW-188 N/A Certificate of Insurance l
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4 MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS NUCLEAR ENERGY LIABILITY POLICY (Facility Worker Form) herein called the MASTER WORKER POLICY CERTI FICATE OF INSURANCE Certificate No. till.97 Date of Issue Jan. 15 19 88 This is to certify that the insureds named in Item 1 of the Declarations hereof, he.reinafter called the "Named Insu/eds", 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 Policy.
1 DECLARATIONS Item 1. Named Insureds and Addresses:
Seabrook Joint Owners P.O. Box 300 Seabrook, New Hampshire 03784 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
Item 3. Description of the Facility: ,
Location: All of the premises including the land and all buildings and structures located on an area of approximately 896 acres on the western shore of Hampton Harbor, on a point of land called "The Rocks," in the vicinity of two small tidal estuaries, the Browns River and the Hunts Island Creek in the township of Seabrook, Rockingham County, New Hanpshire.
Type: Power Reactor Operator of the Facility: Seabrook Joir.c Owners 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: S 4,837.00 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.
MMWPC-1 (1/1/88) Page 2
I!i WIT 11ESS 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 E!IERGY LI ABILITY UtIDERWRITERS J. Michae O'Connell, Manager By T.
N (Authorized Agent)
Countersigned by: M'
\! %'
( Authoriz d' Reprssentative)
This is to certify that inis is n true copy of the original Certificate bearing ino number designat0d here:> A f c r insu.ance coverage under the N -iesr Energy Uability roticv (//cihty Workers Forrn) heroin anceis af forded by this copy.
calledt e M Yor John L usttrocchi, Vice President - Liability UnderwritinD American Nuctoar insurers
!"G P C - 1 (1/1/88) Page 3
I Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS ADVANCE PREMIUM AND STANDARD PREMIUM ENCORSEMENT CALENDAR YEAR 1988
- 1. ADVANCE PREMIUM: It is agreed that the Advance Premium cue the companies for the period designated above is:
S 4,837.00 ,
- 2. STANDARD PREMIUM AND RESERVE PREMIUM: In the absence of a enange 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:
This is to certify that this is a true copy of the orfginal Endorsement
$ 3,870.On hv!ng the endorsement number and being made part of the Certificate of Insurance bearin0 the number designated hereon for Insurance coverage under the Nuclear Energy yibihty Policy (Facility Workers Form No insurance s afforrind hr/funder.
John Mh ability Underwriting Ameri i Nuclear insurers Effective Date of this Endorsement January 1, 1988 To form a part of Certificate No. Mil-97 12:01 A.M. Standard Time Issued to _ Seabrook Joint Owners Date of Issue January 15, 1988 For the Subscribing Companies MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS A
,, ss h end.,sement No. 2 c_tersi;. b, 19 Tm 0 ue-u ann,>
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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
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because of obligations assamed 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 ard (b) all industry reserve pre-mium refunds mada s.nder 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 preuium 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
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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 l or the Cert'ificate 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 fer 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 o.* 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 memberr of MAELU 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 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 reimbursement provided for above.
All reserve premiums paid or payable for this Certifi-cate may be used by MAELU 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.
ME-W-1 (1/1/88) Page 3
- 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 that such condition is likely to prevail, they shall deter-mine an appropriate industry reserve premium charge.
3imilarly, if the companies find that there is a surpius 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 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 report, 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 pa; icipation 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
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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 af ter 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 Insure's under a Certi-ficate shall be used to pay any overdue reserve premium charges to such Named Insureds.
- 7. RESERVE PREMIUM RETUND 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.
ME-W-1 (1/1/88) Page 5
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1 Accepted and agreed by the first Named Insured in behalf of itself and every other Named Insured stated in the Declarations of the Certificate of which this endorsement forms a part.
Seabrook Joint Owners Named below New Hampshire Yankee Division of Public Service Company of New Hampshire. Agent Date / Y 'l By 'd = =~ -
(Signature of Authorized Officer)
E.A. Brown - President (Print or Type Name and Title of Officer) i Named Insureds Public Service Company of New Hampshire The United Illuminating Company t Massachusetts Municipal Wholesale Electric Company ,
New England Power Company .
The Connecticut Light & Power Company !
Canal Electric Company !
Montaup Electric Company l
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FE-W-1 (1/1/88) Page 6
Page 7 Named Insureds cont.
New Hampshire Electric Cooperative, Inc.
Vermont Electric Generation ani Transmission Cooperative, Inc.
Taunton Municipal Lighting Plant Hudson Light and Power Department EUA Power Corporation This it to certify that this is a true copy of the original Endorsement having the endorsement number and bcing made part of the Certificate of insurance bearing the number decig' t'ed hereon for insurance covere under the Nuclear Energy Li Jhty Policy (Facility Workers ce f, .uer.
Form). In --
ttrocchi, e Pmsident ility Underwriting John L American clear insurers Effe:tive Date of To form a part of this Indorsement January 1. 1988 of certificate No. r% 97 12:01 A.11. Standard Time Issued to Seabrook Joint Owners Date of Issue October 19, 1987 For the Subscribing Companies MUTUAL ATOMIC ENERGY LIABILITT ERWRITERS By
- O Endorsement No. I Countersigned by d
Authorized ipresentative ME 'a'- 1 (1/1/88)
Fo
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I t NUCLEAR E!iERGY LIABILITY _ IllSURANCE ASSOCIATIOli
!!UCLEAR ENERGY LIABILITY POLICY , ,
(Facility Worker Form) '
i herein called the MASTER WORKER POLICY CERTIFICATE OF INSURANCE certificate No. NW-188 Date of Issue Jan. 15 19 88 This is to certify that the insureds named in Item 1 of the Declarations hereof, hereinafter called the "Nam <td Insureds", have obtained insurance under the Master Worker !
Policy issued by Nuclear Energy Liability Insurance Associa- F tion on behalf of its members. The insurance .is subject to all of the provisions of this "Certificate" and the Master Worker Policy.
1 I DECLARATIONS i Item 1. Named Insureds and Addresses; f
Seabrook Joint Owners i P.O. Box 300 Seabrook, New Hampshire 03784 e
i F
Item 2. Certificate Coverage Period:
Beginning at 12:01 a.m. January 1, 1988 and ending l at the close of December 31, 1992, Eastern Standard '
Time, or at the time and date this ce rtit'icate is cancelled or terminated, whichever first occurs.
i i
NMWPC-1 (1/1/88) Page 1 1
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. ., j Item 3.. Description of the Facility: !
Location: All of the premises including the land and all buildings and structures located on an area of approximately 896 acres on the western shore of Hampton Harbor, on a point of land called "The Rocks," in the vicinity of two small '
tidal estuaries, the Browns River and the Hunts Island Creek in the township of Seabrook, Rockingham County, New Hampshire.
t h
Type: Power Reactor I
operator of the Facility: Seabrook Joint Owners ,
I Item 4. Amount of Insurance Available:
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 ha::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 t the Master Worker Policy.
3 i INDUSTRY RETROSPECTIVE RATING PLAN !
All insurance under the Master Worker Policy is subject to
- the Industry Retrospectjve Rating Plan in use by the [
] companies. No insurance is provided under this certificate j
{ unless and until the first Named Insured has accepted in E 4 writing the Industry Retrospective Rating Plan Premium En- j dorsement and a copy of the signed endorsement has been ;
issued by the companies to form a part of this Certificate. l l
l NMWPC41 (1/1/88) Page 2 I
Y L------ - , _ - . . , _ . . , , , - - . - , - . . . _ _ , - , , . _ - - - - . . , . . - - - - - - - , , - - - - - - - - - - - - -
I Ill WIT!IESS WHEREOF, the companies subscribing the Master Worker Policy have caused this certificate to be executed and attested on their behalf by the President of liuclear Energy Liability Insurance Association and duly counter-signed by an authori:ed representative.
For the Subscribing Companies of
!!UCLEAR E!!ERGY LIABILITY I!! SURA!!CE ASSOCIATIOli Burt C. Pro m, President By .% ~K C - m ~
N ( AuthorfieT Agent) h Countersigned by: L iM (Authorizes.'RepreseRtative)
This la to certify that this is a truo copy of the original Certificate bearing the number designated hereon, for insurance coverage under the Nu ar Ener0y Uability Policy (Fajjeity Workers Form) hatein lim Mn inWanceisaffordod by this copy, calledth John L ti MasterWorker@bM@llity f, Presraerndp Underwriting American lear Insurers tim W P C - 1 (1/1/88) Page 3
Nuc! car Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT cal.ENDAR 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:
This la to cei11ty that this is a true copy of the original Endorsement 3 13.030.00 having ttie endorsement number and being made part of the certificate ci insurance bearing the number designated hereon for Insurance cover under the Nuclear Energy yIbility Policy (Facility Workers Insurance uf' Form).
John a
] rder.
chl,M Presideithbility Underwriting Ameri Nuclear insurers Effective Date of this Endorsement January 1. 1988 To form a part of certificate No. NW-188 12:01 A.M. Standard Time Issusd to Seabrook Joint Owners Dcto of Issue January 15, 1988 __
For the Su ribing Co antes By N
PRESIDENT A
Endorsement No. 2 Countersigned by .g. "ax. x\
NE-V-2 (1/1/88)
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2 i j
.l Nuclear Energy Liability insurance !
1 NUCLEAR ENERGY LIABILITY INSURANCE 5SSOCIATION i i
- INDUSTRY REIROSPECTIVE RATING PLAN PREMIUM ENDORSEMENT !
4 !
{ lt is agreed that:
, 1. DEFINITIONS l i
With reference to the premium for the Certificate of i
- which this endorsement forms a part
"Master Worker Policy" means the Master Worker Policy l issued by NELIA; l
i "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 yeart
! "standard premium", for any calendar year, is the pre-
) mium for that calendar year computed in accordance with 1
i the companies' rules, rates, rating plans (other than ;
the Industry Retrospective Rating Plan), premiums and i j minimum premiums applicable to this irssurance , standard
- premium includes elements for premium taxes, expenses, profit and contingencies, guaranteed cost insurance and i
estimated reserve premium. The elements of standard ,
premium, other than for premium taxes and estimated 3 reserve premium, are not subject to retrospective j adjustments "reserve premium" means that portion of the premium for a certificate (including reserve premium charges paid) j that is specifically allocated under the Industry Retro-
- spective Rating Plan for ratable incurred losses
I j
"industry reserve premium", for any period, is the sum ;
l of the reserve premiums for that period for all Certifi- j l cates issued to form a part of the Master Worker Policy ;
4 i
- "retrospective adjustment ratio", for any period, is the ratio of the reserve premium for this Certificate for l 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 l (2) reserves for losses and expenses as estimated by !
NELIA, I i
NE-W-1 (1/1/88) Page 1 :
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i 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 gttaranteed 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-l mium refunds made under the Induntry Retrospective !
Rating Plan by members of NELIA: l "industry reserve premium charge", for any period, means the amount determined pursuant to the provisions of Section 4 of this endorsement fer payment by the Named i Insureds under Certificatest i
"reserve premium charge" means the portion of an indus-try reserve premium charge payable by the Named Irsureds i under this certificatet "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 Insurods 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 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 l 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 l l
NE-W-1 (1/1/88) Page 2
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 af ter 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 NELIA shall maintain on behalf of its members a Special Reserve Account for holding collectively all retarve 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 cr, 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 Hamed 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 Reseirve 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
4
- 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 rese We 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.
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 the inductry 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 NE-W-1 (1/1/88) Page 4 s
i i
Policy, the Named Insureds, by acceptance of the Master j 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 af ter 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.
4 i 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 Insureds under a Certificate shall be used to pay any overdue reserve premium charges to such Named Insureds.
- 7. RESERVE PREMIUM RETUND 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 determined to be payable thereby agrees for itself, severally and not jointly, and in the respective pro- l portion of its liability assumed under the Master Worker Policy for that calehdar 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. '
i i
NE-W-1 (1/1/88) Page 5 I i
s Accepted and agreed by the first Named Insured in behalf of itself and every other Named Insured stated in the Declarations of the Certificate of which this endorsement forms a part.
Seabrook Joint Owners Named below New Hampshire Yankee Division of Public Service Company of New Hampshire, Agent Date / N _ By # * ' ~ -
(Signature of Authorized Officer)
E.A. Brown - President (Print or Type' Name and Title of Of ficer)
Named Insureds Public Service Company of New Hampshire The United Illuminating Company Massachusetts Municipal Wholesale Electric Company New England Power Company The Connecticut Light & Power Company Canal Electric Company Montaup Electric Company
!E-W-1 (1/1/88) Page 6
s Pago 7 Named Insureds cont.
New Hampshire Electric Cooperative. Inc.
Vermont Electric Generation and Transmiss'an Cooperative. Inc.
Taunton Municipal Lighting Plant Hudson Light and Power Department EUA Power Corporation This la 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 beartrig the number designated hereon for insurance under the Nuclear Ener0y ypbility Policy (Fact!Ity Workers Form). No insurance affordad he#2nde'.
- 6.9 .i. 6 WV John d ,._~r ,rQability Underwriting Ameri PAxlear insurers i
Effective Date of To form a part of this Endorsement January 1. 1988 of Certificate No._f81-188 12:01 A.M. Standard Time Issued to Seabrook Joint Owners Date of Issue October 19, 1987 ror the scribing companies l
By _i M 'A !
General Manager l Endorsement No. I Countersigned by -
- 3. mu " " ~
M NE-k'-l (1/1/88)