Text

Forwards Endorsements 1 to Nelia Certificates MW-186,MW-20, NW-150,NW-95 & NW-108,Endorsements 2 to Maelu Certificates MW-98,MW-5,MW-74,MW-28 & MW-37 & Endorsement 3 to Maelu Certificate MW-37
	ML20196F558
Person / Time
Site:	Dresden, Braidwood, Quad Cities, Zion, LaSalle, 05000000
Issue date:	02/29/1988
From:	Oster J; COMMONWEALTH EDISON CO.
To:	Dinitz I; Office of Nuclear Reactor Regulation
References
	NUDOCS 8803040109
	Download: ML20196F558 (105)
	v • d • e

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/~'N Commonwealth Edison j, / One First Nabonal Plaza, Chicago, Illinois 7 Address Reply tx Post Offc!) Box 767

-,/ Chicago, Illinois 60690 0767 February 29, 1988 Mr. Ira Dinitz Indemnity Specialist Mail Stop 128 Office of Nuclear Reactor Regulation U.S. Nuclear Regulatory Commission Washington, D.C.

20555

Dear Mr. Dinitz:

Pursuant to the requirements of Part 140.15 of the Commission's Regulations, enclosed are two (2) certified copies of Certificates and Endorsements evidencing Worker Liability Insurance as follows:

Docket No.

Station Cert. No.'s End. No.

50-456 Braidwood NW-186; MW-98 1,2 i

50-10 Dresden NW-20; MW-5 1,2 50-373 LaSalle County NW-150; MW-74 1,2 50-254 Quad-Cities NW-95; MW-28 1,2 50-295 Zion NW-108; MW-37 1,2,3 Sinc rel

. Oster System Insurance Superintendent e

JO/ck Enclosure f 00 5

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0358G 8803040109 880229 PDR ADOCK 0500001o PDR

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NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION NUCLEAR ENERGY LIABILITY POLICY (Facility Worker Form) herein called the MASTER WORKER POLICY CERTIFICATE OF INSURANCE Certificate No. NW-186 Date of Issue Feb. 8, 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:

Commonwealth Edison Company P.O. Box 767 Chicago, IL 60690 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.

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.s-i l-Item 3.

Description of the Facility:

Location: All of the premises including the land and all buildings and structures owned, occupied by or rented to Common-wealth Edison Company and known as the Braidwood Nuclear Station (including, but not limited to, Unit 1, Unit 2 and the pipeline corridor to and from the Kankakee River) comprising of approximately 4457 acres and situated in Reed Township of Will County in Northeastern Illinois.

The site is ic:ated approximately 50 niiles southwest of Chicago and 20 miles south-southwest of Joliet, Illinois.

Type: Power Reactor (Operating) operator of the Facility: Commonwealth Edison Com>any 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 there.o.

Item 5. Advance Premium:

$ 33,325.00 2

APPLICATION CF 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.

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IN WITNESS WHEREOF, the companies subscribing the Master i

Worker Policy have caused this Certificate to be executed and attested on their benalf by the President of Nuclear Energy Liability Insurance Assoc __cion and duly counter-signed by an authorized representative.

For the Subscribing Companies of NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION Burt C.

Proom, President By

.T.

k (Autho N ed Agent)

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Countersigned by:

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[/ (Authorized lepresentative) lhis is to certify that thb h a tra? ccpy of the original Ccrtific3tc bearing tho numbcr dsdgnattd horeon. for inNrence :0verago ue.du the Nuc!ctr Energy Lbbhity Foi!cy (Faciinv Wervera Forrn) boccin ca!'od tus Master Werker P0':cy. No in urance is Mf erded by this copy.

Jcha L. Quattro: h'. V!M Pr. Jcent - Uabony Underwriting Arr.cric n rduMer h :Urca i

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NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION o

l INDUSTRY RETROSPECTIVE RATING PLAN PREMIUM ENDORSEMENT It is agreed that:

1.

DEFINITIONS

+

With reference to the premium for the Certificate of

{

which this endorsement forms a part:

i "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; i

"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; 1

"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 i

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) resarves for losses and expenses as estimated by

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e 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 j

(2) the total fcr 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; i

"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-l 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)

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

4 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.

I 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 r,ollectively 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 onlyt (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 l

Insureds, ac provided in Section 4.

l 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 tor above.

All reserve premiums paid or payable for this Certifi-l cate may be used by NELIA to discharge the obligations I

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 l

Master Worker Policy.

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4.

PAYMENT bF RESERVE PREMIUM CHARGES AND REFUNDS i

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.

l 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 to the amount of the balance.

5.

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

6.

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

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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 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 I

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

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 l

respect to which an industry reserve premium refund is determined to be payable thereby agrees for

itself, l

severally and not jointly, and in the respective pro-l portion of its liability assumed under the Master Worker l

Policy for that calendar year, to return promptly to the l

Named Insureds that portion of such refund due such l

Insureds, as determined in accordance with the provi-l sions of this endorsement.

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Pcg3 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.

Commonwealth Edison Company (Fi t Named Insured - Print or Type)

Date

/ / - /[,. 9 7 By

[

'(Si$na e of Authorized Of ficer)

A cla n f4.DellsV Viu Tee [ideaT (Print or Type Name /alnd Title of Officer)

Th:s is to cettfy that this is a tras copy of the original Endorsement having the endo";4rncnt numbar and b:ing made part et the Certificate of insumn00 bea:ing tac number derignded bc ton for insurance coscrtga unacr ino Nuclear Energy Liabihty P cy (Facility Workers Forrn). Na ina r:c la Mbrdet w

.S.

arwriting John L. Quattro.

i, kv Pres.sant - Liabili v..

American Nucicar.uurcrs Effsetive Date of To form a part of this Endorsement January 1, 1988 of Certificate No. NW-186 12:01 A.M. Standard Time Issusd to Commonwealth Edison Company Dato of Issue October 19, 1987 For the scribing companies By j

General Manager Endorsement No.

I Countersigned by

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Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION

'l ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT cal.ENDAR YEAR 1988 1.

ADVANCE PREMIUM:

It is agreed that the Advance Premium cue the companies for the period designated above is:

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

S 26,660.00

'M ccrtify that this is a true copy of the original Endorsement having tha endorsement number cod being mado part of the Certificato j-of incurance bearing iho number do0!gnated hereon for insuranco coverage un er the Nuciear Energy Liabiht' licy (Facility Workert.

Form). No Ir. uran i-affors,d m

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..t Jnderwriting John L. Qua,, Ochi, Med Pscstdent - Lia American Nuclear insurcrs i

Effective Date of this Endorsement January 1.1988 To form a part of Certificate No. NW-186 12:01 A.M. Standard Time Issuod to Commonwealth Edison Comoany Doto of Issue February 8. 1988 Tor the Su ribing Co antes By F

PRESIDENT 1

Endorsement No.

2 Countersigned byr NE-V-2 (1/1/88)

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MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS i

NUCLEAR ENERGY LIABILITY POLICY (Facility Worker Form) herein called the MASTER WORKER POLICY CERTIFICATE OF INSURANCE Certificate No, MW.98

.Date of Issue Feb. 8.

19 88 i

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 Workar 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:

Comonwealth Edison Company P.O. Box 767 Chicago, IL 60690 Item 2.

Certificate Coverage Period:

Beginning at 12:01 a.n..

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.

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-Item 3.

Descr1ption of the Facility:

Location: All of the ' premises including the lan'd and all buildings and structures owned, occupied by or rented to Commonwealth

-Edison Company and known as the Braidwood Nuclear Station (including, but not limited to,-Unit 1. Unit 2 and the pipeline corridor to and from the Kankakee River) comprising of approximately 4457 acres and situated in Reed Township of Wi_11 County in Northeastern Illinois. The site is located approximately 50 miles southwest of Chicago and 20 miles south-southwest of Joliet. Illinois.

Type:

Power Reactor (Operating)

Operator of the Facility:

Commonwealth Edison' 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

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 PI.AN All insurance under the Mastor 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-dersement and a copy of the signed endorsement has been issued by the companies to form a part of this certificate.

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J IN WITNESS WHEREOF, the companies subscribing the Master Worker Policy have caused this Certificate to be executed and attested on their behalf by the Manager of Mutual Atomic

~ Energy Liablity Underwriters and duly countersigned by an authorized representative.

For the Subscribing Companies of MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS J. Michael O'Connell, Manage By

, _.W, eb_K IC (Auth M Zed Ageht) h Countersigned by:

J v

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M (Authorized Representative) f fh riginal Certifitete Th;e b to cartify that this is a true ccpy o t rage undct trio Nacir a Entray LiabUity PoHey (Fi:

acoisaf fordad by tnis copy.

s ker.f fic -

cModihn heterV a,si6ent -hity Underwriting

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,Vi Johr, L e urcc American Mclear insurera l

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Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABIL*TY UNDERWRITERS INDUSTRY RETROSPECTIVE RATING PIAN PRCMIUM ENDORSEMENT It is agreed that:

1.

DEFINITIONS With reference to the premium for the certificate of I

which this endorsement forms a part:

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

for any calendar year, is the premium for that calendar year computed in accordance with the companies' rules, rates, rating plans (other than the Industry Retrospective Rating Plan), premiums and minimum premiums applicable to this insurance.

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

(1) losses and expenses paid by MAELU, and (2) reserves for losses and expenses as estimated by

MAELU, I

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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 ircurred losses" means 5% of incurred I

losses.

Non-ratable incurred losses are the portion of incurred losses which are covered by the guaranteed cost j

insurance element of standard premiums; "reserve for refunds", as of any date, is the algebraic difference between:

(1) all industry reserve premium for the period from January 1, 1988 through such date, minus (2) the total for the same period of (a) all ratable incurred losses and (b) all industry reserve pre-mium refunds made under the Industry Retrospective Rating Plan by members of MAELU; "industry reserve premium charge", for any period, means the amount determined pursuant to the provisions of Section 4 of this endorsement for payment by the Named Insureds under Certificates; "reserve premium charge" means the portion of an indus-try reserve premium charge payable by the Named Insureds under this certificate; "industry reserve premium refund", for any period, means the amount determined pursuant to the provisions of Section 4 of this endorsement for return to the Named Insureds under Certificates; "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 date of this Certificate through December 31 following. Thereafter, at the beginning of each calendar year while this Certificate is in force, the Named Insureds shall pay the advance premium for such year to the companies.

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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 i

shall pay the excess to the companies; if less, the com-panies shall return to the Named Insureds the excess I

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, 1 hall 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 u on amounts held in the Special Reserve Account, except to participate propor-tionally in any refund or reimbursement provided for above.

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

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4.

PAYMENT OF RESERVE PREMIUM CHARGES AND REFUNDS I

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 l

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 Ins.1 reds 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 i

endorsement.

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

5.

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

6.

RESERVE PREMIUM CHARGE AGREEMENT In consideration of (a) the 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 i

assumed by the members of MAELU under the Master Worker ME-W-1 (1/1/88)

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

l (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 i

the Master Worker Policy and continues until all such claims are closed, whether or not such claims l

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 tc Named Insureds under a Certi-ficate shall be useci to pay any overdue reserve premium charges to such Nar'id 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.

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

Cormonwealth Edison Company (First Named I,nsured - Print or Type)

Date

// -/ (- 2 7 By

/

('Sig,nater of Authorized Officer)

Yatlan

.bl{.sV Yr

~L fKeAt 25f (Print or Type Name 'ind Title of 'Of ficer)

~

in. i N ce.Ufy 'het (n: i<. a tree cecy of the original Enc'orsemor;t l',,. j v.: ( x c t. c r.

L,.be r v. Lr.c 0 trede pertcfin0 Certica'e of i" _a > n be im :

n - c r & ic

=d' ria for insuranco eg f, -,.,.

%,_.g L.

..t, dcy (i'ac@,j \\wrkers i 3 m' i v,) i'.

J' John L Cu di

^i, '.c Pedem - UaNiity Underwr ling hmCICGf t LCI:'at IDJU'Crb l

l Effsetive Date of To form a part of this Endorsement Januar_y 1,1988 of Certificate No.

PfW.98 12:01 A.M. Standard Time Issu;d to Cormonwealth Edison Company Dato of Issue October 19, 1987 MURIAL ATOMIC ENERef LIABILITT U ERVRITERS B;

Endorsement No.

1 Countersigned by

}

,/

Authorized Representative V

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

I

Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS ADVANCE PREMIUM AND STANDARD PREMIUM ENCORSEMENT CALENDAR YEAR 1988 1.

ADVANCE PREMIUM:

It is agreed that the Advance Premium cue the companies for the period designated above is:

9.675.00 2.

STANDARD PREMIUM AND RESERVE PREMIUM:

In the absence of a enange 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 Premiu'.n is:

TNS is to rzr: fy th?! th!s is a tn;o cep/ of the orig!nat Endorsorront u nunc r cnd boir:q mado pan ctthe certi! cato hung tun.manace t;Mnng th0 nurnMr fJcssnetod horcon for insura 5 7,740.00 cccaga unir tha Nxtcir Enct;y Uot'

.y Pokey (FaciUty Workers fonn). N insuran:c o a

~

x Jchn L o.

.d 7.c. r:esicant -

L. s ' Underwriting

,1 American h.; lear Insurers Effective Date of this Endorsement January 1. 1988 To form a part of Certificate No. NW"98 12:01 A.M. Standard Time Issusd to Commonwealth Edison Company Dato of Issue Februa ry 8. 1988 For the Subscribing Companies MUTUAL ATONIC ENERGT LIABILITT EDIDERVRITERS A

.z.Msc By Endsrsament No.

2 Countersigned by 2

M-U-2 (1/1/88)

I

O.:?.

C NUCLEAR ENER'GY-LIABILITY INSURANCE ASSOCIATION NUCLEAR ENERGY LIABILITY POLICY (Facility Worker Form) herein called the MASTER WORKER POLICY CERTIFICATE O.T INSUR-ANCE Certificate No. _tjiW-20 Date_of Issue Jan. 28, 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:

Commonwealth Edison Company One First National Plaza P.O. Box 767 Chicago, Illinois 60690 l

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 Tjee, or at the time and date this certificate is cancelled or terminated, whichever first occurs.

l NMWPC-1 (1/1/88)

Page 1

2*i Item 3.

Description of the Facility:

Location: All of the premises including the land and all buildings and structures of Commonwealth Edison Company's Dresden Nuclear Station (including but not limited to Units 1, 2, & 3) within the plant security fence, the turbine rotor storage area outside and adjacent to the plant security fence, the railroad side-tracks located within the site perimeter fence, the Administration Annex, and the switchyards adjacent to but not enclosed by the plant security fence, all located in Goose Lake Township, Grundy County, Illinois.

Type:

Power Reactor (Operating)

Operator of the Facility: Commonwealth Edison 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:

$ 33,713.00 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.

l NMWPC-1 (1/1/88)

Page 2 l

t

9...

IN WITNESS WHEREOF, the companies subscribing the Master Worker Policy have caused this certificate to be executed

/

and attested on their behalf by the President of Nuclear Energy Liability Insurance Association and duly counter-signed by an authoriced representative.

For the Subscribing Companies of NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATIO!!

Burt C.

Pr om, President By

. _. W, d 1 _42 '

N

' (Authoff% Del Agent)

Countersigned by:

/

/7 (Authorized Representative)

This is to certify thst thb is a true copy of the origint! Certificato bearing the numbcr designr.tod hereon forinsuranco coyorng3 undar 153 NL tetr Energy Liabildy PcSc'/ (F W;y Workers Form) herein g.nceis af fordcd t'y thisccpy, ca!;;d t. :M

ar g

a i

John L.

unttrocchi, Vice Presid5Db!!!!y Underwriting American Nuclear Insurers l

l l

NMWPC-1 (1/1/88)

Page 3

6, 4 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 ary 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 4

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

because of obligations assumed and expenses incurred in connection with such obligations by the members of NELIA under the Master Worker Policy; j

"ratable incurred losses" means 95% of incurred losses.

Ratable incurred losses are the portion of incurred I

losses which are not covered by the guaranteed cost insurance element of standard premiums; i

"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 l

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

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 t

under this Certificate; j

1 "industry reserve premium refund", for any period, means l

4 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.

4 2.

PAYMENT OF ADVANCE AND STANDARD PREMIUMS L

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

[

J calendar year while this certificate is in force, the Named Insureds shall pay the advance premium for such year to the companies.

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

Page 2

for the year issued by the 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 yea'r 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 and 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 v

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.

l l

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

Page 3 I

i

-m.__

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.

i I

Similarly, if the companies firid 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 to the amount of the balance.

5.

FINAL PREMIUM The final premium for this certificate shall be (a) the sum of the standard premiums for each calendar year, or portion thereof, during which the certificate remains in force plus (b) the sum of all reserve premiums, includ-

)

ing all reserve premium charges, minus (c) the sum of all reserve premium refunds.

6.

RESERVE PREMIUM CHARGE AGREEMENT In consideration of (a) the participation of Named Insureds in other Certificates subject to the Industry Retrospective Rating Plan, (b) the undertaking of such Named Insureds to pay their appropriate share of any industry reserve premium charge and (c) the obligations assumed by the members of NELIA under the Master Worker NE-W-1 (1/1/88)

Page 4

I I

s 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.

That the right of each Named Insured under a cert-(2) 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.

pay all reserve premium charges due promptly (3)

To af ter receipt of the Retrospective Reserve Premium Charge Endorsement, whether or not the Certificate is terminated. Any reserve premium charge shall be overdue if not paid within 60 days of the date of the invoice for the charge.

Overdue reserve premium charges shall bear interest from the due date until paid at an annual rate equal to the sum of (a) 3% plus (b) a rate of in-terest equal to Moody's Average Public Utility Bond Yield described in the issue of Moody's Bond Survey current on the due date.

Any reserve 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 re spect 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.

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

Page 5

P;g3 6 h

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.

COMMONWEALTH EDISON 00.

(First Named Insured - Print or Type)

Date il ~} {-A ] By Y'1 (Signa ~ture o futhorized Officer),

H u lla f a 11s u \\l O % s u el e &

(Print or Type Name ar/#' Title of of ficer)

This is to certify that this is a truo copy cf the orlpinnt Endorscrnent having tho endort,oment number cnd bi! rig mcdc pi:rt of the Ce rtificata of Insurr nc9 t car!r.0 the number cM7nr.M:.! h::aaa for (neuran;c cc.u p i.n*r th; Nuhn ;w gy ca;f rc:gj (Faci stj Worktre zndcr.

TO m

fh

.n John uattrocchi, Vico Presict.. - Jcbility Underwnting American Nuclear insurers To fonn a part of Effective Date of of Certificate No.

NW-20 this Endorsement January 1, 1988 12:01 A.It. Standard Time Issued to Comonwealth Edison Company Date of Issue October 19, 1987 For the scribing oopanies By General Nasager Endorsement No.

I Countersigned by

!s-w-1 (1/1/83)

Nuclear Energy Linbility Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT CALENDAR YEAR'1988 1.

ADVANCE PREMILH:

It is agreed that the Advance Premium cue the companies for the period designated above is:

33,713.00 2.

STANDARD PREM!UM AND RESERVE PREMIUM:

In the absence of a change 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:

This is to certify that th!s is a true copy of the or!ginal Endorsement 26.970*00

] the endors erne nt number cnd tEfng mtde part of the Cerimcato H

cf Inturcaco ba:rs; the numtcr teilgnsted hercon for insuranco ccvara"o unJcr th0 N.icur Ene gy Lg;;.'ty Policy (Fccility Workers Forrn), No hwrc.nca lyf fm"-4 her/ facer.

rtL K R John L t alt... Mi,

. mw Ability Underwriting America. Nuclear insurers l

Effcctive Date of this Endorsement January 1.1988 To fom a part of Certificate No. NW-20 12:01 A.M. Standard Time Isst:d to Comonwealth Edison Company D:to of Issue January 28, 1988 For the Su ribing Ce antes By N

FRESIDENT i

End;rsement No.

2 Countersigned by fr NE-W-2 (1/1/88)

.. a MUTUAL ATOMIC ENERGY LIABILITY ~ UNDERWRITERS NUCLEAR ENERGY LIABILITY POLICY (Facility Worker Form) herein called the MASTER WORKER POLICY CERTIFICATE OF I-NSURANCE Certificate No. _jg3 Date of_ Issue Jan. 28.

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 DECL\\ RATIONS Item 1. Named Insureds and Addresses:

Connonwealth Edison Company One First National Plaza P.O. Box 767 Chicago. Illinois 60690 Item 2. Certificate Coverage Periods 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 of the _ premises including the land-and all ~ buildings and structures of Commonwealth Edison Company's Dresden Nuclear Station (including but not limited to Units 1, 2, & 3) within the. plant security fence, the turbine rotor storage. area _outside and adjacent to the plant security fence, the railroad side-tracks located within the site perimeter fence, the Administration Annex, and the switchyards adjacent to but not enclosed by the plant security fence, all located in Goose Lake Township,

~

Grundy County, Illinois.

Type:

Power Reactor (Operating)

Operator of the Facility: Commonwealth Edison 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:

9,787.00 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 'he signed endorsement has been issued by the companies to t: m a part of this certificate.

E MMWPC-1 (1/1/88)

Page 2

'... +

.,z 9

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. Michae O'Connell Manager By N

(Authorized Agent)

/M/n 6 /.

A Countersigned by:

[ '(Authorized Representative)

This is to certify that this is a truo copy of the originci Certificato bearing the number designated herco forinsuranca coveregs under the Ni..loar Enzgy UablIlty Policy ( c!!ity Workere Forrn) horcin ca:Tedi e M '- - Yo Pc

. ;ancoisafforded by thiscopy.

John L 'uattrocchi, ico Presider bility Underwriting American Nuclear losurers MMWPC-1 (1/1/88) page 3

\\

s 1

Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS i

INDUSTRY RETROSPECTIVE RATING PIAN PREMIUM ENDORSEMENT It is agreed-that:

1.

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

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

for any calendar year, is the premium for that calendar year computed in accordance with the companies' rules, rates, rating plans (other than the Industry Retrospective Rating Plan), premiums and minimum premiums applicable to this insurance.

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

(1) losses and expenses paid by MAELU, and (2) reserves for losses and expenses as estimated by

MAELU, ME-W-1 (1/1/88)

Page 1

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

Ratable incurred losses are the portion of incurred losses which are not covered by the guaranteed cost insurance element of standard premiums; "non-ratable incurred losses" means 5% of incurred losses.

Non-ratable incurred losses are the portion of incurred losses which are covered by the guaranteed cost insurance element of standard premiums; "reserve for refunds", as of any date, is the algebraic difference between:

(1) all industry reserve premium for the period from January 1, 1988 through such date, minus (2) the totsl 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 determinnd pursuant to the provisions of Section 4 of this endorsement for payment by the Named Insureds under Certificates; "reserve premium charge" means the portion of an indus-try reserve premium charge payable by the Named Insureds under this Certificate; "industry reserve premium refund", for any period, means the amount determined pursuant to the provisions of Section 4 of this endorsement for return to the Named Insureds under Certificates; "reserve premium refund" means the portion of an indus-try reserve premium refund returnable to the Named Insureds under this Certificate.

2.

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

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

Page 2

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

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

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

3.

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

Such premiums, together with any undistributed net income 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 oblicrations 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.