ML20149F032
| ML20149F032 | |
| Person / Time | |
|---|---|
| Site: | Calvert Cliffs  |
| Issue date: | 02/02/1988 |
| From: | Grillo M JOHNSON & HIGGINS |
| To: | Dinitz I Office of Nuclear Reactor Regulation |
| References | |
| NUDOCS 8802110379 | |
| Download: ML20149F032 (27) | |
Text
_ _..
125 Broad Street Cable Addrtss "KERODEN"
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212 574 7000
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Telax No. 6720134 JANHNY UW N:w York, N.Y.10004
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':OHNSON JkHIGGINS.....
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6 February 2,.1988 Mr. Ira P.
Dinitz.
Office of Nuclear Reactor Regulation i
U.S. Nuclear Regulatory Commission Washington, DC ~ 20555 i
.Re: ealtimore Gas & Electric Comoany r
Dear Ira:
Enclosed are two certified copies of each of the Amendment of Coverage Endorsements for Worker Claims for BG&Es facility form policies.
Also enclosed are two certified
[
copies of each certificate of Insurance and Industry i
Retrospective Rating Plan Premium Endorsements to show participation in the Master Worker Policy by BG&E.
The l
attached table lists the policy numbers and titles of the L
enclosed endorsements.
F Please call me at (212) 574-7960 if you have any questions.
Sincerely, kt U D
Michael Grillo Nuclear Advisory Group MG/vyc Enclosures i
t cc: Mr. Walter Moreau, BG&E Mr. Tom Duffy, J&H Baltimore
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Policv'No.'
Endorsement Title NF-216 68 Amendment of Coverage Endorsement for Workers Claims
~MF-76 54 Amendment of Coverage
-Endorsement for. Workers Claims MW-49 1
Industry Retrospective
~'
Rating Plan Premium Endorsement MW-49
.N/K' 2 Certificate of Insuranco NW-121 1
Industry Retrospective i
Rating Plan Premium l
Endorsement NW-121 Jif9L' 2 Certificate f Insurance l
i r
If 7 tb Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION AMENDMENT OF COVERAGE ENDORSEMENT FOR WORKERS CLAIMS y
(Facility Form) i PREAMBLE 1.
The insurance and rating plan presently used by Nuclear Energy Liability Insurance Association ("NELIA") and Mutual Atomic Energy Liability Underwriters ( "MAE LU" ) do not make a distinction between workers claims arising from catastrophic events and those arising from lesser events; s
z 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; I
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 and MAELU desire to restructure their present insurance
- programs, including this policy, effective January 1,
1988.
[
NOW, THEREFORE, the Named Insured and the companies do r
hereby agree as follows:
1.
DEFINITIONS
-r.
When used in reference to this endorsement:
"this policy" means the policy of which this endorsement forms a part; L
"nuclear related employment" means all work performed at y
one or more than one nuclear facility in the United States of America or in connection with the transporta-tion of nuclear material to or from any such facility.
All of a worker's nuclear related employment shall be considered as having begun on the first day of such 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:
a NE-64 (1/1/88)
Page 1 g
+
i
- workers - claims" means claims for damages because of bodily injury to a worker caused by the radioactive, toxic, explosive or' other hazardous propecties of nuc-i lear material and arising out of or in the course of the i
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.
l 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 i
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.
l 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 i
discovered and for which written claim is made t
against the insured not later than the close I
of December 31, 1997.
5.
AVAILABILITY OF SUPPLEMENTAL INSURANCE I
NELIA and MAELU are offering to make insurance under one or more Master Worker Policies available to all holders r
a 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 APPROPRIAVE.
1 t
The Master Worker Policies will provide, under their separate terms and conditions, coverage for new workers claims. Premiums will be subject to a separate Industry
)
Retrospective Rating Plan.
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NE-64 (1/1/88)
Page 2 F
Pago 3 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 Datefft/fffBy
.?.hbS]
m
/
~/
M (signature of Authorize 3 Of ficer)
John L. Quattrocchi. Vice President-Liability Undemriting (Print or Type Name and Title of Officer)
Executed for the Named Insured Baltiere Gas and Electric Company (Named Insu ed - P iht or Type)
Date 11/25/87 By J
d (SitJnkture p1VAuthor12ed Officer)
E. A. Cr:t>oke Vice President. F{nanen and Acenunefno_ and Rec.a (Print or Type Name and Title of Officer)tary the d that thisis a Due C09V g part t b e the M Form) *
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t of the Nuclear Ene@
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0 ignatb-berco_..-~~
_p NudearInse Effcettve Date of this Endorsement Januarv 1. 1988 To form a part of Policy No NF-216 12:01 A.M. Standard Time Issu:d to Baltimore Gas & Electric Company Dato of Issue October 19, 1987 For the subscribing companies f
By General Manager End2rsement No 68 Countersigned by_
NE-64 (1/1/SS)
/,t F 7b O
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Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS AMENDMENT OF COVERAGE ENDORSEMENT FOR WORKERS CLAIMS (Facility Form)
PREAMBLE 1.
The insurance and rating plan presently used by Mutual Atomic Energy Liability Underwriters ("MAELU")
and Nuclear Energy Liability Insurance Association ("NELIA")
do not make a distinction between workers claims arising from catastrophic events and those arising from lesser events; 2.
MAELU and NELIA believe that the lack of such a dis-tinction will adversely affect their ability to continue to attract from world markets very large amounts of nuclear energy liability insurance for the nuclear industry; i
3.
MAELU and NELIA vant to avoid this potential loss of capacity and to continue to provide nuclear energy lia-bility insurance for workers claims.
Accordingly MAELU and NELIA desire to restructure their present insurance
- programs, including this policy, effective January 1,
1988.
NOW, THEREFORE, the Named Insured and the companies do hereby agree as follows:
1.
DEFINITIONS When used in reference to this endorsement:
"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 t
States of America or in connection with the transporta-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 employment, regardless of the number of employers l
involved or interruptions in such employment; "worker" refers to a person who is or was engaged in i
nuclear related employment; ME-64 (1/1/88)
Page 1
4
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'"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 Comaission 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.
l S.
AVAILABILITY CF SUPPLEMENTAL INSURANCE MAELU and NELIA 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 MAELU OR NELIA AS THEY DEEM NECESSARY OR APPROPRIATE.
The Master Worker Policies will provide, under their separate terms and conditions, coverage for new workers claims. Premiums will be subject to a separate Industry Retrospective Rating Plaa.
ME-64 (1/1/88)
Page 2
P;go 3
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COVERAGE UNDER THE NEW MASTER WORKER POLICIES IS NOT AUTOMATIC. A WRITTEN REQUEST MUST BE SUBMITTED TO MAELU OR NELIA 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 MAELU or NELIA terminate such policies or withdraw or modify their offer to underwrite such policies.
Executed for the compar.ies
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. N t ht"^
Date
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T (Signature of AWm W of ficer)
John L. Quattrocchi. Vice President-Liability Underwritina (Print or Type Name and Title of Officer)
Executed for the Named Insured Baltimore Gas and Electric Cormpany (Named In ured Wint or Type)
Date 11/25/87 By
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(S'itJhatuVgfVhutihorized of ficer)
E. A. Cro,dke Vice President,_ Finance and Accountine. and Secretary (Print or Type Name and Title of Officer)
This is to certify that this is a true copy of the oripd Endorsement haws the endorsemerit number and being Me pr-of the Nuckar Energy Llabalty Poky (
ihty Form) as da-
, beteurder.
byut hereon. No insu e i* N mt J. Pw a 12tery tar.
2 Effeetive Date of Am.ne bar insurers this Endorsement January 1, 1988 To form a part of Policy No.
MF-76 12:01 A.H. Standard Time Issued to Baltimore Gas & Electric Company Dato of Issue October 19, 1987 For the Subscribing Companies MUn!AL ATOMIC ENERGY LIABILITY UN ERWRITERS By Endorsement No.
M Countersigned by Authorized Representative
MUTUAL kTOMIC ENERGY LIABILITY UNDERWRITERS NUCLEAR ENERGY LIABILITY POLICY (Facility Worker Form) herein called the MASTER WORKER POLICY CERTIFICATE OF INSURANCE Certificate No. MW-43 Date of Issue Jan.15.
19 88 This is to certify that the insuredo 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 Policy.
1 DECLARATIONS Item 1. Named Insureds and Addresses:
Baltimore Gas and Electric Company Gas and Electric Building Baltimore, Maryland 21203 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 occuru.
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 known as the Calvert Cliffs Nuclear Power Plant.
The Calvert Cliffs Nuclear Power Plant consists of approximately one thousand one hundred thirty-five (1,135) acres and is located on the western shore of the Chesapeake Bay in Calvert County, Maryland approximately ten and one-half (10h) miles southeast of Prince Frederick, Ma ryland.
Type:
Power Reactor (Operating)
Operator of the Facility: Baltimore Gas and Electric 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:
$ 9,675.00 2
APPLICATIOli 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 IllDUSTRY RETROSPECTIVE RATING ?LAN 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
T Iti WITNESS WHEREOF, the companies subscribing the Master Worker Policy have caused this Certificate to be executed and uttested on their behalf by the Manager of Mutual Atomic Energy Liablity Underwriters and duly countersigned by an authorised representative.
For the Subscribing Companies of MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS J.
Michael
'Connell, Manager /f
'S'h,W-h Lfs '
By N
(Authorized Agent)
Countersigned by:
k M
( Authorized ReprescMative) 1
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Thit is to certily that this is a true copy cf tho original Certificate bearing the number 6xi:~' """. fo insur.co coverage under the Nuclear Ene: y icw aI
- ( t.:Wity We ers Forrn) herein "orded by this copy.
called the Master 'ork r
,cy. u tru m
John L Quattroc *, hico Presi ent - t.labilit
.,rwriting American Nuclear insurers MMWPC-1 (1/1/88)
Page 3
3-
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&G:E Nuclear Energy Lieb.lity insurance d
MUTUAL ATOMIC ENERUY LIAE!L!TY UNDERWRITERS i
-INDUSTRY RETROSPECTIVE RATING PLAN PREMIUM ENDORSEMENT It is agreed-thatt
- 3
.1.
DEFINITIONS l
~
With reference to the premium for the certificate of f
which this endorsement forms a part:
"Master Worker Policy" means the Master Worker Policy issued by MAELU; j
"Certificate Holder" means the first Named Insured in a l
Certificate issued to form a part of the Master Worker l
Policy; "advance premium", for any calendar year, is the esti-mated standard premium for that calendar year; j
"standard premium",
for any calendar year, is the i
premium for that calendar year computed in accordance i
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 1
insurance and estimated reserve premium. The elements of j
standard premium, other than for premium taxes and 1
estimated reserve premium, are not subject to retrospec-tive adjustment; I
"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; I
h "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;
{
t "retrospective adjustment ratio", for any period, is the j
ratio of the reserve premium for this certificate for f
i that period to the industry reserve premium for the l
same period; "incurred losses" means the sum of all:
(1) losses and expenses paid by MAELU, and i
j (2) reserves for losses and expenses as estimated by 1
- MAELU, I
I i
ME-W-1 (1/1/88)
Page 1 l
1 o.
- 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 tho' 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 elemunt of standard premiums; "reserve for refunds", as of any date, is the algebraic difference betweent (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 rutable incurred losses and (b) all industry reserve pre-mium refunds made under the Industry Retrospective Rating Plan by members of MAELUt "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 Certificatast "reserve premium charge" means the portion of an indus-try reserve premium charge payable by the Named Insureds under this Certificate; "industry resarve 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 ef fective dcte 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 i
for the year issued by the ccdpanies 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 cert:,ficate coverage Period, the standard premium for the preceding year shall be finally determined and l
stated in 'the Advance and Standard Premium Endorsement for that year. If the standard premium exceeds the ad-l vance premium paid for that year, the Named Insureds shall pay the excess to the companiest if less, the com-panies shall. return to the Named Insureds the excess l
portion paid.
1 l
The Named Insureds shall maintain records of the inform-ation necessary for premium computation and shall send copies of such records to the c7mpanies as directed, at j
the end of each calendar year, at the end of the certi-ficate coverage Period and at such cther times as the l
companies may direct.
i 3.
SPECIAL RESERVE ACCOUNT; USE OF RESERVE PREMIUMS f
I MAELU shall maintain on behalf of its members a special Reserve ~ Account for holding collectively all reserve l
premiums paid for all certificates issued to form a part of the Master. Worker Policy.
such premiums, together with any undistributed not 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 MAELU subscribing the policy, to reimburse such j
members as a matter of first priority for the funds j
advanced; i
(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 clain upon amounts held in the Special Reserve Account, except to participate propor-tionally in any re7und or reimbursement provided for above.
t All reserve premiums paid or payable for this Certifi-f cate may be used by MAEW 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.
j ME-W-1 (1/1/88)
Page 3 I
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4 4.
PAYMENT OF RESERVE PREMIUM CMARGES 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, :,f 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 prenium charge or an industry reserve premium refund that ist (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 reservc 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 CMARGE AGREEMENT In consideration of (a) the participation of Named Insureds in other certificates subject to the Industry Retrospective Rating Plan, Ib) 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
i o
e 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 a]2 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 Avorage Public Utility Bond Yield described in the issue of Moody's Bond Survey current on tne 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.
RESIRVE PREMIUM REFUND AGREEMENT Each member of MAELU subscribing the Master Worker Policy for any calenda r yerr, or portion thereof, with respect to which an inedt.*
.;erve premium refund is determined to be payabla t' aeby agrees for itself, severally and not joint 1;, 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 endorsenent.
~
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ME-W-1 (1/1/88)
Page 5
}
Pr.gn 6 A-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.
Baltimore Gas and Electric Company (First Named Insured - Print or Type)
Date 11/25/87 By b
M
- [
(signature pf ~ Authorized Officer)
E. A. Crobko Vien precident. Finance and Accounting. and Secretary (Print or 1Ype Name and Title of Officer)
This is to certify that thic is a true ccp of insurance bearing the nu nber c'esignated acrcon for coverage under the Nucicar Energy Liability rance is affor d - t Form). No in nderwriting tfl e'Pr e t - Lia John L Quat American Nuc r Insurers
)
Effective Date of To form a part of this Endorsement January 1. 1988 of Certificate No.
11W-49 12:01 A.M. Standard Time Issued to Baltimore Gas & Electric Company Date of Issue October 19, 1987 For the Subscribing Companies MUTUAL ATOMIC ENERGY LIABILITY ERWRITERS
.R
> N.JA' By 1.
rh Endorsement No.
I Countersigned by A\\
M
' '#u t h o rized Repr4sentative ME-W-1
( /1/88) t
Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS
' ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT CALENDAR YEAR 1988 1.
ADVANCE PREMIUM:
It is agreed that the Advance Premium due the companies for the period designated above is:
$ 9,675.00 2.
STANDARD PREMIUM AND RESERVE PREMIUM:
In the absence of a change in the Aovance 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:
I O
This is to certify that this is a true c{py of having theendorserrwntrumberm,.; j
-r -on for insurance
$ 7*740 00 et-tnsw*ca bearing the number d w,c.'
cy (Facility Workers coverage und r the Nuctcar Energy Uability nderwriting O
h' eP Arnerican Nuct r Insurers Effsetive Date of this Endorsement January 1, 1988 To form a part of Certificate No. MW-49 12:01 A.M. Standard Time Issued to Baltimore Gas and Electric Company Date of Issue January 15, 1988 For the Subscribing Companies MUTifAL ATOMIC ENERGY LIABILITY UNDERWRITERS A
[
By N
_k Endorsement No.
2 Countersigned by k
ME-11-2 (1/1/88)
NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION NUCLEAR ENERGY LIABILITY POLICY (Facility Worker Form) herein called the MASTER WORKER POLICY CERTIFICATE OF INSURANCE Certificate No. NW-121 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 "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:
Baltimore Gas and Electric Company Gas and Electric Building Baltimore, Maryland 21203 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 l
cancelled or terminated, whichever first occurs.
NMWPC-1 (1/1/88)
Page 1
~T s
i Item'J. Description of the Facility:
Location:
All of the premises including the land and all buildings and structures known as the Calvert Cliffs Nuclear Power Plant.
The Calvert Cliffs Nuclear Power Plant consists of approximately one thousand one hundred thirty-five (1,135) acres and is located on the western shore of the Chesapeake Bay in Calvert County, Maryland approximately ten and one-half (10 ) miles southeast of Prince Frederick, Maryland.
Type:
Power Reactor (Operating)
Operator of the Facility: Baltimo,re Gas and Ele _ctric 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:
S 33,325.00 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)
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IN WITNESS WHEREOF, the companies subscribing the Master Workar 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-i signed by an authorized representative.
For the Subscribing Companies of NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION Burt C.
Pr om, President By T.
N (Authorized Agent) l l
Countersigned by:
b 6
( Authorized Represer,ta~tive )
s This is to certify that this is a +me cony of the original CortificLte bearing the nun Sc: ;m
- etcen, i.no rance coverage under the Nuclear E ra, t
..a (feculty ' rkers Form) herein called the Mas WorPa Pohc. Ngp :affordedbythiscopy, John L Quatt hi, vice 'Presideiit - LlaYh derwriting American Nuclear insurers NMWPC-1 (1/1/88)
Page 3
i
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Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION 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 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 estimated reserve premium. The elements of standard p..semium, 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 i
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 i
- NELIA, NE-W-1 (1/1/88)
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s 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 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 4
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; I
"reserve premium refund" means the portion of en 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 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 I', _
_ _. _ _ _ ~. _. _ _ _ _ _., -. _ _ _, _ _ _ _
y 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 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)
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s 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 repcrt 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 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 te the amount of the balance.
5.
FINAL PREMIUM l.
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 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.
6.
RESERVE PREMIUM CHARGE AGREEMENT l
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 l
assumed by the members of NELIA under the Master Worker l
NE-W-1 (1/1/88)
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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 after receipt of the Retrospective Reserve Premium Charge Endorsement, uhether 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 Mcody'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 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 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.
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a Pago 6 t-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.
Baltimore Gas and Electric Company (First Name,d Insu d - Print or Type)
Date 11/25/87 By j
(5ignatWe tif Authorized Of ficer)
E. A. Crodke Vice President, Finance and Accounting, and Secretary (Print or Type Name and Title of Officer)
This is to certify that this is a true copy of the original Endorsement having the endorsement number and being niado part of the Certificate of Insurance bearing the number designate hercon for insurance coverage un r the Nuclear Ener0y Liabt!!t blicy (Facility Workers Form). No I ra aff John L Qua chi, Vice P sident - Ua dorwriting American Nuct r Insurers Ef fective Date of To form a part of this Endorsement January 1, 1988 of Certificate No. NW-121 12:01 A.M. Standard Time Issued to Baltimore Gas & Electric Company Date of Issue October 19, 1987 For the scribing companies By i
General Manager 1
Endorsement No.
I Countersigned by_
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NE-W-1 (1/1/88)
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Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT CALENDAR YEAR 1988 1.
ADVANCE PREMIUM:
It i,s agreed that the Advance Premium cue the companies for the period designated above is:
$ 33,325.00 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 astimated Reserve Premium element of the Standard Premium is:
This is to cortify that this is a true copy ci the original Endorsement S 26,660.0D havino the endorsem ant number and being mado part of the Certificate of Insurance bearing the number designat hereon for insurance coveraDo under the Nuclear Eneigy Liabillt'. licy (Facility Workers Form). No I urance is affor ed 6 - d John L. Ou hMe
.- nt - ua nderwriting American r insurers Effective Date of 121 this Endorsement January 1,1988 To form a part of Certificate No.
12:01 A.M. Standard Time Issued to Date of Issue January 15, 1988 For the Su ribing Com anies
!v e r ~
sy s
PRESID NT i
Endorsement No.
2 Countersigned by i-i NE-W-2 (1/1/88)