ML20151G995
| ML20151G995 | |
| Person / Time | |
|---|---|
| Site: | Saxton File:GPU Nuclear icon.png |
| Issue date: | 04/07/1988 |
| From: | Hoffman J MARSH & MCLENNAN, INC. |
| To: | Dinitz I Office of Nuclear Reactor Regulation |
| References | |
| NUDOCS 8804200211 | |
| Download: ML20151G995 (41) | |
Text
Marsh &
Moennan M & M Nuclear Consultants 1221 Asenue of the Amerkas New iork. New York 10020-1011 Telephone 212 997-2000 April 7, 1988 Mr. Ira Dinitz Insurance Liability Specialist Office of Nuclear Reactor Regulation Mail Stop 128 Nuclear Regulatory Commission Washington, DC 20555 Re: Saxton Nuclear Experimental Corporation Worker Certificates NW-49 and MW-134
Dear Ira,
Enclosed are certified copies of the worker certificates and accompanying endorsements for Saxton Nuclear.
Regards,
.j ohn Hoffman JH:ef enc.
cc: J. O'Marra, GPU I
OD II e804200n11 PDR RMK eBoj07f/V6 R
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6 NUCLFAR ENERGV LYABILITY INSURANCE ASSOC 1ATION NUCLEAR ENERSY LIAB{. LIT'1 POLICY (Facility. Worker FCm; herein called the MASTER WORKERtPOLICY C l' R T I PIC A. T E OF INSURANCE Certificate No. NW-49 Date of Issue Jan. 25, 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:
Saxton Nuclear Er.perirental Corporation P.O. Box 542 Reading, Pennsylvania 19608 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
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-t Item 3. Description of the Facility:
Location: All buildings and premises owned or occupied by or rented to Saxton Nuclear Experimental Corporation and Pennsylvania Electric Company and situated on the east bank of the Raystown Branch of the Juniata River approxi-mately 3/4 of a mile north of the Borough of Saxton in Liberty Township, Bedford County, Pennsylvania.
Type: Discontinued Operations Operator of the Facility: Saxton Nuclear Experimental Corporaticn 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: $ 388.00 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 bean issued by the companies to form a part of this certificate.
NMWPC-1 (1/1/88) Page 2
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IN WITNESS WHEREnP, the companias c"hacribing the Master Worker Policy have caused this certificate to be executed and attested on their behalf by the President of Nuclear Energy Liability Insurance Ass :ciation and duly counter-signed by an authorized representative.
For the Subscribing Companies of NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION Burt C. Pro , President By
- N (AuthorifbP Agent)
Countersigned by: X, tG1(Mc$ h MO11
( Authorijzed Rjprese.sitative)
This it. to certit'/ P. .* tn> is a tr :q c~ >/ of the O!!p;Nl Ccnificate bur:na D'a 1: Ji - <
a O fi: ' ' P r in " ' ;c c overage under th9*-' 't. * : r' ' L ', kj !/ 'l ^rLea Form) herein ct!:od t . '/ - ': ,
nict. m atforced by this copy.
.T . !!!y Underwriting John L ' utroceni, he Potident ....
American tguc! ear insurcrs NMWPC-1 (1/1/88) Page 3
a 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 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 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
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 guaranteed cost insurance element of standard premiums; "non-ratable incurred losses" means 5% of incurred Non-ratable incurred losses are the portion of losses.
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; "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 stated in the declarations, for the period from the ef fective 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
r 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.
HE-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 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 reserva premium refund, shall be determined by multiplyir the industry reserve premium charge or the industry reserve premium refund by the retrospective adjustment ratic applicable to this Certificate.
The amount of any reserve premium charge shal' be state.d 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.
S 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
i
\
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 Certificates by the policy through any and all 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 fo 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 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 itself, determined to be payable thereby agrees for 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.
Page 5 NE-W-1 (1/1/88)
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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 fonns a part.
Saxton Nuclear Experimental Corporation (First Named Insured - Print or Type)
Date / By 7t(2< C +< Q (Signature of Authorized Officer)
Michael B. Roche, Vice President (Print or Type Name and Title of Of ficer)
This is to cartify that thb is a inm ccpy of the original Endorserner:t having th9 0ndorserrent rium:; r and bMg m ade part c.f the Certificate of insuraMe tieming the numt ur ra ng M orevn for insurance covr,ra: - one the Auf:.tr Emy L .mt y Poi;cy (FacWty Workets i
te t- A ~-t cr.
Form). b in ~
John L. ^ attracchi. Vice Precider.t - Lievikty Underwriting American fluc!aar Insurers l
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l To form a part of Effective Date of of Certificate No. Nwag this Endorsement January I, 1988 12:01 A.M. Standard Time Issued to Saxton Nuclear Exoerimental Corocration Date of Issue October 19, 1987 For the scribing companies By 1 General Manager Endorsement No. I Countersigned by Dh' !?
- / -
NE-W-1 (1/1/88)
Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION .
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:
$ 388.00 .
- 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 Retrqspective Rating Plan, the Standard Premium is said Advance Premium and the estimated Reserve Premium element of the Standard Premium is:
$ 298.00 This l' O. certify that this is a true repy of the original Endorsement hanng thc emdoraement number and being made part 6f the Certificate ofincuranca: aring the number dst;n 'tcd hereon for insurant,a camag ud;r tha Nuc!;Ji EnerCy Lu !ity Felicy (Facility Workers form). ! 3 im eo F v 'o. ,_. ' ' r.
John L u ;ttrocchi, Vice Pics! dent .lity Underwriting American Nuclear Insurers Effective Date of this Endorsement January 1. 1988 To form a part of certificate No. NW-49 12:01 A.M. Standard Time
! Issued to Saxton Nuclear Exoerimental Cnennratinn Date of Issue January 25, 1988 For the Su ribing Co anies l
By F PRESIDENT l t : .. . . :~....:.;. n, t = .
Endorsement No. 2 countersigned by ,'y - t<24((M,F 7
NE-U-2 (1/1/88)
A 5
NUCLEAR ENEROY LIABILITY INSURANCE ASCOCIATION NUCLEAR ENERGY LIABILITY POLICY (Facility Worker Forn) herein called the MASTER WORKER POLICY CERTIFICATE OF INSURANCE Certificate Nc. NW-49 Date of Issue Jan. 25, 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:
Saxton Nuclear Experimental Corporation P.O. Box 542 Reading, Pennsylvania 19608 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.
1 NMWPC-1 (1/1/88) Page 1
6 Item 3. Description of the Facility:
- Location: All buildings and preri.f ses owned or occupied by or rented to Saxton Nuclear Experimental Corporation and Pennsylvania Electric Company and situated on the east bank of the Raystown Branch of the Juniata River approxi-mately 3/4 of a mile north of the Borough of Saxton in Liberty Township, Bedford County, Pennsylvania.
Type: Discontinued Operations Operator of the Facility: Saxton Nuclear Experimental Corporation Item 4. Amount of Insurance Available:
The amcunt 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: $ 388.00 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 I!!DUSTRY RETROSPECTIVE RATI!iG PLAli All insurance under the Master Worker Policy is subject to the Industry Retrospective Rating Plan in use by the companies. tio insurance is provided under this Certificate unless and until the first Named Insured has accepted in writin.. 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.
IIMWPC-1 (1/1/88) Page 2
V IN WITNESS WHEREOF, the ccmpanies 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 authorized representative.
For the Subscribing Companies of NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION Burt C. Pro , President By 8. O d N (Authori!bPAgent)
L Countersigned by: X (_110tc.k i) 2. 4(LF3 (Author 3) zed Rfpresahtative)
Thi s- is ta ce-lif y th^' +h is a truo copy of the original Certificate bearing thr' t % . ' - l,, , ;1:,c, nan, for i/} ur.1nco A,//Norners coverage Form) heroin under
- , . r .> ,
px aHOM WWU John L. (Juatl, ; chi, Vice Prddent - Liability Underwriting Araerican NJciear insums i
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P NMWPC-1 (1/1/88) Page 3
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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, t profit and contingencies, guaranteed cost insurance and estimated reserve premium. The elements of standard premium, other than for premium taxes and estimated i reserve premium, are not subject to retrospective adjustment; l "reserve premium" means that portion of the premium for
} a certificate (including reserve premium charges paid) that is specifically allocated under the Industry Retro-i 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 l
ratio of the reserve premium for this certificate for that period to the industry reserve premium s.or 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
s /
fy
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because of obligations: assumed and expenses incurred in '[
connection with such obligations by the members of.HELIA under the Master Worker Policy; "ratable incurred losses" means 95% of hs.
Ratable incurred losses ' are the portion incurredIcIshred of idcu 7 losses which are not covered by the guaranteed gast insurance element of standard premiums; ) 'e
-j s.r '
l:
"non-ratable incurred ses" means 5%.of incucred '
losses. Non-ratable inu .ed losser, are the portion [af '
-l incurred losses which areicovered b% the guaranteed cost insurance element of sitandard premi~ubs; t
/, , i "reserve forbetween:
refunda"I 1A's of any date, is 't.hc algebraic difference (1) all industry resierve premium for the period from January 1, 1988 through such date, minus (2) the total Gr the sa6e period of (a) all ratable incurred losus and (b), all industry reserve pro-mium refunde; made under ithe Industry Retrospective Rating Plan by members of NELIA; "industry reserve premium charge", for any period, meabs the amount determined pursuant to the provisions of Section 4 of this endorsement for payment by the Named Insureds under Certificates; i
"reserve premf62 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 perieb, means the amount determined pursuant to the provisions of Section 4 of this endorsement for return to the Named Insuredo under Certificates; '
"reserve premium refund" means the portion of an indus--
try reserve premium refund returnable t's the Named In-sureds under this Certificate.
- 2. PAYMENT OF ADVANCE AND STANDARD PREMI,UMS The Named Insurada shall pay the companies the advance ',
premium stated in the declarations, for the period from the ef fective date of this Cwtificate through December 31 following. Tnereafter, at the beginning of each calendar year while tais' Certificate is in force, the Named Insureds shall pay the advance premium for such year to the compansos. -
The advance premium for each calhndar year shall be stated in the Advance and Standard Premium Endorsement NE-W-1 (1/1/88) Page 2
, -} }
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for the year issued by the campanies as soon as practic-able prior to or af ter 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-vanco 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,snall maintain records of the inform-ation necessary fe: ~ premium computation and shall send copies of such records to the compahies 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 diaect.
- 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 is::ued to form a part of the Master Worker Policy. Such premiums, together with any undistributed net income realized there an af ter taxes and inventnent 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 subscribiag tne policy, to reimburse such members as a natter of first priority for the funds advanced; t (2) to refund a.ny 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 Accourt, 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 merbers 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 ,
t Master Worker Policy.
Page 3 NE-W-1 (1/3/88)
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- 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 j,. and report their findings to all Certificate Holders.
)
3,/ 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.
3 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 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 af ter 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 Cettificate shall be (n) 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.
l
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6 RESERVE PREMIUM CHARGE AGREEMENT In consideration of (a) the participation of Named l Inscreds in other Certificates subject to the Industry Retrospective Rating Plan, (b) the underteking 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 undcr the Master Worker NE-W-1 (1/1/88) Page 4 s 1
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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 recoive reserve premium refunds and the 6
~
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 Insureds under a certificato 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 for itself, determined to be payable thereby agrees 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.
i.
9 Page 5 NE-W-1 (1/1/88)
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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.
Saxton Nuclear Experimental Corporation (First Named Insured - Pr. int or Type)
Date I ?E 1 By 7de J l' +< 'Q (Signature of Authorized Officer)
Michael B. Roche, Vice President (Print or Type Name and Title of Officer)
his is to cMify that this is a tne copy of the original Endorsement i
having the en Ernment rut;ct c od trmg n,000 part of the Certificato of Insuraxe t:cr.<me; Ine rvnbor dWW nd hereon for insurance coverag urc the N A f-nmv Li . htv Pokey (Facihty Workem e'.
r Form). r i !- g',n John L u tirecchi, Vice Picsident - Liability Underwriting American Nrlear Insurers I
To form a part of l Effective Date of of Certificate No. NM 49 this Endorsement January 1, 1988 12:01 A.M. Standard Time Issued to Saxton Nuclear Exoerimental Corocration For the scribing companies l Date of Issue October 19, 1987 l
By '
, . General Manager I Countersigned by db/ I'/
Endorsement No. y
/ ]
NE-w-1 (1/1/88) i
Nuclear Energy Liability Insurance
[.
NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION .
ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT CALENDAR YE/R 1988
- 1. ADVANCE PREMIUM: It is agreed that the Advance Premium cue the companies for the period designated above is:
$__388. 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:
$ 298.00 This is to celtify that th!s is a true copy of the original Endorsement nu..a3 a o encarsement numberand being rnade part of the Certificate of lasur6ac9 bt"ring the nuraber ddgn'ic,1 hereon for insurance coverag' undar the Nuderr Energy tic ,11y TY: icy (Fccility Workers Form). is > .cr e la . 'o % Or.
John L. 'ttrocchi, he Frcsident .u. Sty Underwriting American Pluebar Insurers EffGetive Date of this Endorsement January 1. 1988 To form a part of Certificate No. NW-49 12:01 A.M. Standard Time Issued to Saxton Nuclear Exoerimental Cornnratinn Dste of Issue January 25, 1988 For the Su ribing Co antes By N
- PRESIDENT U .. . . . . . . '.J.
O ,4*3 Endorsement No. 2 countersigned by n' --
/ ,
'bY NE-U-2 (1/1/88)
a e
MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS NUCLEAR ENERGY LIABILITY POLICY (Facility Worker Form) herein called the MASTER WORKER POLICY CERTIFICATE OF INSURANCE Certificate No. MW-134 Date of Issue Jan. 25, 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 Policy.
1 DECLARATIONS Item 1. Named Insureds and Addresses:
Saxton Nuclear Experimental Corporation P.O. Box 542 Reading, Pennsylvania 19608 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
- _ _ - 1
- D cr Item 3. Description of the Facility: .
Location: All buildings and premises owned or occupied by or rented to Saxton Nuclear Experimental Corporation and Pennsylvania Electric Company and situated on the east bank of the Raystown Branch of the Juniata River approxi-mately 3/4 of a mile north of the Borough of Saxton in Liberty Township, Bedford County, Pennsylvania.
Type: Discontinued Operations operator of the Facility: Saxton Nuclear Experimental Corporation Item 4. Anount of Insurance Available:.
t 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: $ 112.00 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 jnsurance 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
P 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' nnell, Mar gar By (Authorized Agent) g Countersigned by: '
// //
( AuthorizecMepresentative)
This is to certify that th:s is a true ccpy of tho Original Codificate nceranco coverage under bearing the Nuc'. -the Ene'Oynumcer Li Anty d;cra'ed Pc; icy (Faci'hereon,ferg/
fW orkers Fcrm) herein called tr.o t. ett " 4wis afforded by this copy.
. M .r; o r, ..
John L. Q. reccht. Vice Pscs; dent - Lmb.. .y Underwriting Amence.n Nucicar Incurers
!GIWPC-1 (1/1/88) Page 3
s l
Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS INDUSTRY RETROSPECTIVE RATING PLAN PREMIUM ENtecRSEMENT 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 Polic'/
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 end contingancies, 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 n - iii
h 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 batween: ,
(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 prenium 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 fer 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 calandar 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 fcr 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 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 I
of its members under the Master Worker Policy with re-i spect to the above purposes and arising out of claims j
made under any Certificate issued to form a part of the l Master Worker Policy.
l l
ME-W-1 (1/1/88) Page 3 l
l
i h
- 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.
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:
l (1) payable by the Named Insureds as a reserve premium i charge, or I (2) due such insureds as a reserve premium refund, shall be determined by multiplying the industry reserve l
premium charge or the industry reserve premium refund by the retrospective adjustment ratio applicable to this Certificate.
I
' 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 j 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 s
The final premium for this Certificate shall be (a) the sum of the standard premiums for each calendar year, or por'c ion thereof, during which the Certificate remains in forch 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 MAELU under the Master Worker ME-W-1 (1/1/88) Page 4
i l
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 sucit 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 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 j Policy for any calendar year, or portion thereof, with l 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 Workar 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 provinions of this endorsement.
1 ME-W-1 (1/1/88) Page 5
6 page 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.
Saxton Nuclear Experimental Corporation (First Named Insured - Print or Type)
Date f L/ /;
'5 ' By &<
(Signature of Authorized Of ficer)
['f s c h a e ( b e.c h e -Vice President & Secretar;-
(Print or Type Name and Title of Officer)
This is to certify that this is a true copy of the original Endorsement hasing tho endorsument r.un b:4r and bXog muda part of the Certificate of Insunn: > h 1 ' o ine twrnbc" d%n. 'ed he con for insurance com a; ,xt " a N & Er.rgy U d ,1y Pci!cy (Facility Workors Form). N Insu - no ia
, m.
.T . ly Underwnting John L. . trocuo, Vicu vraidant -
American Nuclear insurcrs i
(
l Effective Date of To form a part of l this Endorsement January 1, 1988 of Certificate No. W-134 12:01 A.M. Standard Time Issued to Saxton Nuclear Ewrimental Corporation l Date of Issue October 19. 1987 For the Subscribing Companies I MU111AL ATOMIC ENERGY LIABILITT ERWRITERS By
.R , >%_UA ~
, r - -m Endorsement No. 1 Countersigned by -
/& 9 /MJW
, Authorizeddepresent'ativej l
ME-W-1 (1/1/88)
Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS 4
ADVANCE PREMIUM AND STANDARD PREMIUM ENCORSEMENT CALENDAR YEAR 1988
- 1. ADVANCE PREMIUM: It is agreed that the Advance Premium cue the :cmpanies for the period designated above is:
S 112.00 .
2, STANDARD PREMIUM AND RESERVE PREMIUM: In the absence of a cnange in tne 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:
This is to certify that this is a true copy of the original Endorsem nnt S 87.00 havirm >hn endersement numberand being madapartof tha certificate of insurante bearing the nurnber d:;signated nercon for insurance coverace i nd^r the Nucicar Enctpy leb]/ Policy (Facilt:y Workers Form). ik Inauranto ia ti'mcM *+wp r.
John L C d '!. c. ,
.. . ity Underwriting American Nudear lasurers Elfsctive Date of To fort a part of Certificate No. MW-134 this Endorser.ent January 1, 1988 12:01 A.M. Standard Time l Issuad to Saxton Nuclear Experimental Corporation Date of Issue January 25, 1988 For the Subscribing Companies MUTUAL ATONIC ENERGY LIABILITY UNDERWRITERS A
By_ .s. h r m
Endorsement No. 2 Countersigned by ut W
- y. ..- _ j ME-W-2 (1/1/88)
l N.
MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS NUCLEAR ENERGY LIABILITY POLICY (Facility Worker Form)-
herein called the MASTER WORKER POLICY CERTIFICATE OF INSURANCE Certificate No. MW-134 Date of Issue Jan. 25. 19 88 This is to certify that the insureds named in Item 1 of tne Declaratio7s 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:
Saxton Nuclear Experimental Corporation P.O. Box 542 Reading, Pennsylvania 19608 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
i Item 3. Description of the Facility: ,
Location: All buildings and premises owned or occupied by or rented to Saxton Nuclear Experimental Corporation and Pennsylvania Electric Company and situated on the east bank of the Raystown Branch of the Juniata River approxi-mately 3/4 of a mile north of the Borough of Saxton in Liberty Township, Bedford County, Pennsylvania.
Type: Discontinued Operations Operator of the Facility: Saxton Nuclear Experimental Corporation 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 112.00 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 Retrospectivu 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 Cert.ficate. 4 MMWPC-1 (1/1/88) Page 2
6 1
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' nnell, Mar gar By (Authorized Agent)
Countersigned by:
C $N 7 //
W U
( AuthorizecMepresentative)
This is to certify that this is a trua ccpy of the original Certificate bearing Se numt er &1:gnmed hereon forjn:uranca comrage under the Nucle; Er.ergy LobM e Foilev (FacP calica thc h / Workers Fc'm) heroin
,to g r iv '
4t+ is affordad by this copy.
John L. Ou-American NJclear Insurcra'occhi, Vice President - Laom y Underwntirg i
l MMWPC-1 (1/1/88) Page 3 l
l
6 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" W,ans 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 i_
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-l cates issued to form a part of the Master Worker Policy; l "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 I
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 i
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 i
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
9 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 companiss; 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 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 members as a matter of first priority for tne 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 c,r 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.
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 report, and shall determine a final industry reserve premium cnarge or industry reserve premium refund equal to 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 t
foreb 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, (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
i i
Policy, the Named Insureds, by acceptance of the Mastor 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 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.
l
\
l l
l ME-W-1 (1/1/88) Page 5
7 6
rage 6 Accepted and agreed by the first Named Insured in behalf of itself and every other Named Insured stated in the Dec3 ara-tions of the Certificate of which this endorsement fortr a part.
Saxton Nuclear Experimental Corporation (First Named Insured - Print or Type)
Date t Q S '_By 71u a 5-c .
(Signature of Authorized Of ficer) kf:c h 3 e( b , o c !, e Vice President & Secretar:
TPrint or Type Name and Title of of ficer)
This is to Cortify that this is a true copy of the original Endorson,ent having the endorsement nuniber and being rnada part of the Certifusta of insura ice banna the nurnb r dr., gnf ed herean for insurance coverago nAr thn Nuc' r F- ' ' '.1/dy Poucy (Faci!Ity Workers Forrn). ' ' s,$q l
~
r wr.
John L. Quattrccchi, Vice f'rer,idant - Liabihty Jndcrwriting An.oricon Nu:! car Insurers Effective Date of To form a part of this Endorsement January 1,1988 of Certificate No, MW-131 12:01 A.M. Standard Time Issued to Saxton Nuclear Frimntal Corporation Dste of Issue October 19, 1087 For the Subscribing Companies MUTUAL ATOMIC ENERGY LIABILITY ERWkITERS By . ,. n., 7 e w Endorsement No. I Countersigned by_ r- /6ff[M5 4/OMM ME-k'-1 (1/1/88)
l 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 cue the compa'11es for the period designated above is:
$ 112.00 .
- 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 Standard Premium is said Advance Premium and the estimated Reserve Premium element of the Standard Premium is:
This is to cortify that this is a true copy of the original Endorsement 8L 00 g, p _;,ndorsement number and being mada part of the Certificate of Insurance boring the number dce'onated hcreon for insurance coverago una r the Nucient Encrgy UP ty PoHcy (Facihty V/orkere Form). F > Insurence a : or o""- g r.
John L .uf ,,E- sv .um "ity Undcrwriting Amencan aclear insurers Effective Date of this Endorsement January 1, 1988 To form a part of Certificate No. MW-134
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- 01 A.M. Standard Time bsued to Saxton Nuclear Experimental Corporation Date of Issue January 25, 1988 For the subscribing Companies MUTUAL ATOMIC i!NERCT LIA3ILITY UNDERWRITERS A
By .s hr .- - -
Endorsement No. 2 Countersigned by 2B1MY!NfOhW p/
t ME-w-2 (1/1/s8)
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