ML20215N132

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Forwards Endorsements 1-7 & Declaration Page to Maelu Policy MF-128 & Endorsements 10 & 11 to Nelia Policy NF-294
ML20215N132
Person / Time
Site: Braidwood 
Issue date: 10/30/1986
From: Oster J
COMMONWEALTH EDISON CO.
To: Dinitz I
NRC OFFICE OF STATE PROGRAMS (OSP)
References
NUDOCS 8611040336
Download: ML20215N132 (23)


Text

] Comm::nwrith Edison

<0 < One First National Plaza, Chicago, Illinois Address Reply to: Post OllicWoT76T-~

Chicago, Ilhnois 60690 - 0767 s

October 30, 1986 Mr. Ira Dinitz Indemnity Specialist State and Licensee Relations Office of State Programs U.S. Nuclear Regulatory Commission Washington, D.C.

20555 1

Re:

Docket No. 50-456 (Braidwood)

Dear Mr. Dinitz:

Pursuant to the requirements of Part 140.15 of the Commission's Regulations, enclosed are two (2) certified copies of the following:

1.

The declarations page and Endorsements 1 thru 7 for MAELU Policy MF-128.

2.

Endorsements 10 and 11 to NELIA Policy'NF-294.

Sincerely, J. Oster System Insurance Superintendent J0/ck Enclosure 8611040336 861030 PDR ADOCK 05000456

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PDR f

Nuclear Energy Liability insurance NUCLEAR ENERGY LIABILITYINSURANCE ASSOCIATION INCREASE OF LIMIT OF LIABILITY END0RSEMENT It is agreed that:

1.

The ' limit of liability stated in Item 4 of the declarations of the policy is amended to read $ 124,000,000.00 This amended limit applies with respect to obligations assumed or expenses incurred because of bodily injury or property damage caused, during the perio'd from the effective date of this endorsement to the date of termination of the policy, by the nuclear energy hazard.

2.

The limit of liability stated in Item 4 of the declarations and the amended limit of liability stated in paragraph 1 above shall not be cumulative, and each payment made by the e

companies after the effective date of this endorseuent for any loss or expense covered by the policy shall reduce by the amount of such payment both the limit of liability stated in Item 4 of the declarations and the amended limit stated in paragraph 1 above, regardless of which limit of liability applies with respect to bodily injury or property damage out of which such loss or expense arises.

I This le to owttfy that this is a true copy of the orisn Endorsement having the endorsement number a of the Nudest Energy Liability Policy (Facility Fo g made part ignat reon. NoInsurance is afforde 'reunder.

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,n s k 'or em o' October 15, 1986 E"'

te To form a part of Policy No nt 12.01 A.M. Stancato Time j

issuedto Commonwealth Edison Comoany October 16, 1986 For the su scr: Ding cc panies care or issue By A

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General Manager Endorsement No 10 Countersioned by l

Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT CALENDAR YEAR ign It is agreed that Items 1 and 2 of Endorsement No.

7 are amended to read:

1.

ADVANCE PREMIUM:

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

7,253.27 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 Industry Credit Rating Plan, the Standard Premium is said Advance Premium and the Reserve Premium is:

$ 4,859.70 Additional Premium: $4,160.18 This la to certdy that this is a true copy of the original Endorsement having the endorsement number and being made part of the Nuclear Energy Liabdity Policy (Facility Form) as des.

ipased Noinsuranceis affordedpeunder.

/

JohnL Ameican Inswere Effective Date of this Endorsement January 1, 1986 To form a part of Policy No NF-294 12:01 A.M. Standard Time Issued to Commonwealth Edison Company Date of Issue October 16, 1986 For the subscribing companies 4

By General Manager Endorsement No Il Countersigned by NE-36

MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS 919 North Michigan Avenue This is to certify that this is a true copy of the, Chicago li, Illinois original Declarations being made part of the Nuclear Energy Liability Policy (Facility Form) having theNuclear Energy Liability Policy No. MF 128 number' designated hereon and including Endorsements (Facility Form) numbered 1 through 7.

No insura e is afforded hereunder.

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DECLARATIONS f

.unLQom n

Arnener.n Nuh unu Item 1.

Named Insurea Commonwealth Edison Company Addrea P.O. Box 767 Chicago, Illinois 60690 (No.

Street Town or City State)

Item 2.

Policy Period: Beginning at 12:01 A.M. on the 15.th day of October

,19 86.,

and continuing through the effective date of the cancelation or termination of this policy, standard time at the address of the named insured as stated herein.

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 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 Will County in Northeastern Illinois.

The site is located approximately 50 miles southwest of Chicago and 20 miles south-southwest of Joliet, Illinois.

Typ, Power Reactor s

The Operator of the facility i.

Commonwealth Edison Company item 4.

The limit of the companies' liability is $. 36,000,000.00

_ subject to all the terms of this policy having reference thereto.

Item 5.

Advance Premium $

1.399.96 Item 6.

These declarations and the schedules forming a part hereof give a complete description of the facility, insofar as it relates to the nuclear energy hazard, except as notea No exceptions.

Date of Issu, October 16, 1986 Countersigned by

/

Authorized Representative Nuclear Energy Liability Policy (Facility Form) 2/1/57 (Second Revision)

?

O MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS AMERICAN MUTUAL LIABIUTY INSURANCE COMPANY, Wakefield, Massachusetts EMPLOYERS MUTUAL LIABILITY INSURANCE COMPANY. OF WISc0NSIN, Wausau, Wisconsin HARDWARE MUTUAL CASUALTY COMPANY, Stevens Point, Wisconsin LIBERTY MUTUAL INSURANCE COMPANY, Boston, Massachusetts (i

LUMBERMENS MUTUAL CASUALTY COMPANY, Chicago, Illinois MICHIGAN MUTUAL LIABIUTY COMPANY, Detroit, Michigan I

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NUCLEAR ENERGY LIABILITY POLICY (FACILITY FORM) e u

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. _ _... _. _. _ _. _ _ _ _ _ _. ~ _..

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NUCLEAR ENERGY LIABILITY POLICY (FACILITY FORM)

MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS Ah1ERICAN MUTUAL LIABILITY INSURANCE COh1PANY, Walrefield, Massachusetts Eh1PLOYERS MUTUAL LIABILITY INSURANCE COh1PANY OF WISCONSIN,Wausau, Wisconsin HARDWARE MUTUAL CASUALTY C0h1PANY, Stevens Point, Wisconsin LIBERTY MUTUAL INSURANCE COh1PANY, Boston, Massachusetts LUh1BERh1 ENS MUTUAL CASUALTY COh1PANY, Chicago, Illinois MICIIIGAN MUTUAL LIABILITY COh1PANY, Detroit, Michigan The undersigned members of Mutual Atomic Energy Liability Underwriters, hereinsiter called the " companies," each for itself, severally and not jointly, and in the respective proportions hereinafter set forth, agree with the insured, named in the declarations made a part hereof, in consideration 'of the premium and in reliance upon the statements in the declarations and subject to the limit of liability, exclusions, conditions and other terms of this policy:

INSURING AGREEMENTS I Coversge A - BODILY INJURY AND PROPERTY DAMAGE DEFINITIONS Wherever used in this policy:

T' LIABILITY To pay on behalf of the insured:

" bodily Islery" means bodily injury, nickness or disease, including 1.

(I) all sums which the insured shall become legally obligated to pay death resulting therefrom, sustained by any person; as damages because of bodily injury or property damage caused

" property damage" means physical in*ury to or destruction or by the, nuclear energy hazard, and the compam,es shall, defend radioactive contamination of property, an loss of use of property so any suit agamst the insured alleging such bodily Injury or injured, destroyed or contaminated, and loss of use of property while property damage and seekmg damages which are psyable under the terms of this policy; but the companies may make such in-evacuated or withdrawn from use because possibly so contaminated vestigation, negotiation and settlement of any claim or suit as or because of imminent danger of such contamination; they deem expedient; "muclear materiel" means source material, special nuclear material (2) cons taxed against the insured in any such suit and interest on or byproduct matersal; any judgment therein;

" source meterfel," "special unclear material," and "hypredest (3) premiums os appeal bords and on bonds to release attachments meterfel" have the meanings given them in the Atomic Energy Act in any such suit, but without obligation to apply for or furnish of 1954, or in any 1sw amendatory thereof; such bonh ;

" spent feel" means any fuel element or fuel component, solid or (4) reasonable expenses, other than loss of earnings, incurred by the liquid, which has been used or exposed to radiation in any nucicar insured at the companies' request.

reactor; Coverage B-DAMAGE TO PROPERTY OF AN INSURED AWAY "weste" means any waste rnaterial (1) containing byproduct ma.

FROM THE FACILITY With respect to property damage caused by terial and (2) resulting from the operation by any person or organ-the nuclear energy hazard to property of an insured which is away iration of any nuclear facility included within the definition of from the facility, to pay to such insured those sums which such nuclear facility under paragraph (I) or (2) thereof; insured would have been legally obligated to pay as damages there.

"the factilty" means the facility described in the declarations and for, had such property belonged to another.

includes the location designated in Item 3 of the declarations and all property and operations at such location; Coverage C-SUIROGATION-OFFSITE EMPLOYEES With "suclear facility" means "the facility" as defined in any Nuclear respect to bodily injury sustained by any employee of an insured Energy Uability Policy (Facility Form) issued by the companies or and caused by the nuclear energy hazard, to pay to the workmen's by Nuclear Energy Uability Insurance Association. The term "nu-compensation carrier of such insund all sums which such carrier clear facility" also means would have been entitled to recc ;r and re+ain as damages from another person or organization, had such person or organization (1) any nuclear reactor, alone been legally responsible for such bodily injury, by reason of (2) any equipment or device designed or used for (a) separati,ng the rights acquired by subrogation by the payment of the benefits the isotopes of uranium or plutonium, (b) processing or utiha-required of sucb carrier under the applicable workmen's compensa.

ang spent fuel, or (c) handling, processing or packaging waste, tion or occupational disease law. An employer who is a duly quali-(3) any equipment or device used for the processing, fabricating or fied self-insurer under such law shall be deemed to be a workmen's alloying of special nuclear material if at any time the total compensation carrier within the meaning of this coverage. This Coverage C does not apply to bodily injury sustained by any person amount of such material in the custody of the insured at the premises where such equipment or dersce is located consists of who is employed at and in connection with the facility.

or contains more than 25 grams of plutonium or uranium 233 This Coverage C shall not constitute workmen's compensation or any combination thereof, or more than 250 grams of uranium insurance as required under the laws of any state.

235, (4) any structure, basin, excavation, premises or place prepared or used for the storage or disposal of waste, j

DEFINITION OF INSURED The unqualified word " insured

  • in-cludes (a) the named insured and (b) an other person or organi-and includes the site on which any of the foregoing is located, all astion with respect to his legal responsibi sty for dams es because operations conducted on such site and all premises used for such of bodily injury or property damage caused by the nuefear energy operations; hazard.

"lademmHied nuclear facility" means Subdivision (b) above does not include as an insured the United (1) "the facility" as defined in any Nuclear Energy Ushi!Ity Policy States of America or any of its agencies.

(Facility Form) Issued by the companies or by Nuclear Energy Subject to Con 6 tion 3. and the other provisions of this policy, Uability Insurance Association, or the insurance applies separately to each insured against whom claim (2) any other nuclear facility, is made or suit is brought.

if financial protection is required pursuant to the Atomic Energy Nuclear Energy unblity Polier (Facility Form) 2/1/51 (Second Revision)

NPF 100 (2R) 9...

P AG E 3

Act sf 195% or. aTy law' amend 5 tory thereof, with respect to cry "lasared shipment" rne:ns a shipment cf sourc2 miterld, specit!

activifes (r oper:tions conducted there:t; nuclerr mit:ri'1, spent fuel or wasti, herein call;d "m terial,"

, "meeleer reester" means any apparatus designed or used to sustain (1) to the fac,ility from a nuclear faciliry o,wned by the United States of Americg but only if the transportation of the material is a:uclear fission in a self-supportinf,' chain reaction or to contain a n t by predetermination critical mass of fissionable materia matenal from a transport,to be interrupted by the removal of the ing conveyance for any purpose other than "mesleer emely hesord" means the radioactive, toxic, explosive or other hazardous properties of nuclear material, but only if the continuation of its transportation, or (2) from the facility to any other location except an indemnified nuclear facility but only (1) the nuclear material is at the facility or has been dFeharged or until the material is removed from a transporting conve,yance for dispersed therefrom without intent to relinquish possession or any purpose other than the continuation of its transportation.

custody thereof to any person or organization, or (2) the nuclear rnaterial is in an insured shipment which is (a) in APPLICATION OF POLICY This policy applies only to bodily TT the course of transportation, including handlin,g and temporary storage incidental thereto, within the territonal 11 nits of the.

injury or property damage (1) which is caused during the policy.L Y period by the nuclear energy hazard and (2) he insured, not la which is discovered United States of America, its territories or possessions, Puerto and for which written claim is made against t Rico or the Canal Zone and (b) away from any other nuclear than two years after the end of the policy period.

facility; EXCLUSIONS This policy does not apply:

(c) to any obligation for which the insured or any carrier as his handling or use,at the location designated in Item 3 of the insurer may be held liable under any workmen's compensation declarations, in time of peace or war, of any nuclear weapon unemployment compensation or disability benefits law, or under or other instrument of war utilizing special nuclear maternal or any similar law; byproduct material; (b) except with respect to liabilit[y injury to any employee of the (e) to bodily injury or property damage due to war, wl}etlyer or not of another assumed by the in-sured under contract, to bodi declared, czvil war, insurrection, rebellion or revo4ution, or to insured arising out of and in the course of his employment by any act or cond. tion incident to any of the foregoing; the insured; but this exclusion does not apply to bodily injury (f) to property damt-= to any property at the location designated to any person who is not employed at and in connection wita in Item 3 of the declarations, other than aircraft, watercraft or the facility if the insured has complied with the requirements vehicles licensed for highway use, provided such aircraft, water-of the applicable workmen's compensation or occupational dis-craft or vehicles are not used in connection with the operation case law respecting the securing of compensation benefits there-of the facility; under to his employees; (g) to property damage to nuclear material in the course of trans-(c) to liability assumed by the Insured under contract, other than portation to or from the facility inclu(ing handling or storage an assumption in a contract with another of the liability of any ancidental thereto; person or organizatico which would be imposed by law on such (b) under Coverage B, to prohe means to save and pres rty dam sge due to neglect of the person or organization an the absence of an express assumption insured to use all reasona of liability; property after knowledge of the occurrence resulting in such (d) to bodify injt.ry or property damage due to the manufacturing, property damage.

CONDITIONS 1 PREMlUM The named insured shall pay the companies the advance Atomic Energy Commicsion, suspend the insurance with respect to premium stated in the declarations, for the period from the effective the named insured and such other perso, or organization effective dite of this policy through December 31 following. Thereafter, at 12:00 reidnight of the next business day of such Commission follow-the beginning of each calendar year while this policy is in force, ing the s' ate that such Commission receives such notice. The period the named insured shat! pay the advance premium for such year to of such suspension shall terminate as of the time stated in a written th> companies. The advance premium for each calendar year shall notice from the companies to the named insured and to each such be stated in a written notice given by the companies to the named person or organization that such condition has been corrected.

Insured as soon as practicable prior to or after the beginning of such year.

LIMIT OF LIABILITY: TERMINATION OF POLICY UPON EX-Such advance premiums are estimated premiums only., As soon HAUSTioN OF LIMIT Regardless of the number of persons and ts practicable after each December 31 and after the termination,of this policy, the earned premium for the preceding premium period organizations who are insureds under this policy, and regardless of the number of claims made and suits brought against any or all shill be computed in accordance with the companies' rules, rates, insareds because of one or more occurrences resulting in bodily rating plans, premiums and minimum premiums applicable to,this injury or property damage caused during the policy period by the insurance.

If the earned premium thus computed for any premium, period exceeds the advance premium previously paid for such period, nuclear energy hazard, the limit of the companies' liability stated thn named insured shall pay the excess to the cornpanies; if less, the in the declarations is the total liability of the companies for their companies shall return t, the named insured the unearned portion obligations under this policy and the expenses incurred by the com-prid by such insured.

panies in connection with such obligations, including The named Insured shall maintain records of the information (a) payments in settlement of claims and in satisfaction of judg.

necessary for premium computation and shall send copies of such ments against the insureds for damages because of bodily injury records to the companies as directed, at the end of each calendar or property damage, payments made under parts (2), ($) and (4) of Coverage A and payments made in setti-ent of claims yrir, at the end of the policy period and at such other times during under Coverages B and C; the policy period as the companies may direct.

(b) payments for expenses incurred in the investigation, negotiation, settlement and defense of any claim or suit, including, but nor 2 inspect the facility and to examine the insured's books and records INSPECTION: SUSPENSION The companies shall be permitted to limited to, the cost of such services by salaried employees of the companies, fees and expenses of independent adjusters,,attor-tt any time, as far as they relate to the subject matter of this neys fees and disbursements expenses for, expert testimony, insurance.

Inspection and appraisal of, property, examination, X-ray or If a represertative of the companies discovers a condition which aut Psy or medical expenses of any kind; he believes to be unduly dangerous with respect to the nuclear (c) payrnents for expenses incurred by the companies in investigat.

energy hazard, a representative of the companies may request that sng an occurrence resulting in bodily injury or property damage such condition be corrected without delay. In the event of non.

or in minimizing its effects.

compliance with such request, a representative of the companies Each payment made by the companies in discharge of their obliga-mty, be notice to the named insured, to any ceher person or organs-tions under this policy or for expenses incurred in connection v ith nation ' considered by the companies to be responsible for the con-such obligations shall reduce by the amount of such payment the tinuance of such dangerous condition, and to the United States limit of the companies' liability under this policy.

PAGE 4

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If,' during thr policy period or subsequent th:reto, thz tot;l cf h;ve czy right under this, policy ti join th comp:nies or (ny af such payments made by the companies shall exhaust the limit of them as parties to any action against the insured to determine the the companies' liability under this policy, all liability and obliga-insured's liability, nor shall the companies or any of them be im-tions of the companies under this policy shall thereupon terminate pleaded by the insured or his legal representative. Bankruptcy or and shall be conclusively presumed to have been discharged. This insolvency of the insured or of the insured's estate shall not relieve l

policy, if not theretofore canceled, shall thereupon automatically the companies of any of their obligations hereunder.

terrr.inate.

Regardless of the number of years this policy shall continue in ACTION AGAINST COMPANIES-Coverage B No suit or ac-the limit of the companies,remiums which shall be payable or pa,idliability stated in the declarations shall tion on this policy for the recovery of any claim for property dam-force and the number of p age to which Coverage B applies shall be sustainable in any court not be cumulative froca year to year.

of law or equity unless all the requirements of this policy shall have been com;!ied with and unless commenced within two years after LIMITATION OF LIARILITY; COMMON OCCURRENCE Any oc.

the occurrence resulting in such property damage.

4 currence or series of occurrences resulting in bodily injury or prop-erty damage arising out of the radioactive, toxic, explosive or other INSURED'S DUTIES WHEN LOSS OCCURS-Coverage B In Q hazardous properties ef the event of property damage to which Coverage B applies, the y (a) nuclear material dhcharged or dispersed from the faci,lity over insured shall furnish a complete inventory of the property damage

f. ;-

of such properties of other nuclear materia' so, discharged or days after the occurrence resulting in such property damage, unless a period or days, weeks, months or longer ar 4 also arising out claimed, showing in detail the amount thereof. Within ninety-one dispersed from one or more other nuclear facilities insured by such time is extended in writing by the companies, the insured shall

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the companies under a Nuclear Energy Liability Policy (Facility render to the companies a proof of loss, signed and sworn to by Form), or the insured, stating the knowledge and belief of the insured as to (b) source material, special nuclear material, spent fuel or waste in the following: identification of such occurrence; the interest of the the course of transportation for which insurance is afforded insured in the property destroyed or damaged, and the amount of under this policy and also arising out of such properties of each item of property damage claimed; all encumbrances on such j

other source material, special nuclear material, spent fuel or property; and all other contracts of insurance, whether valid or not, wane in the course of transportation for which insurance is covering any of such property. The insured shall include in the afforded under one or more other Nuclear Energy Liability proof of loss a copy of all descriptions and schedules in all policies.

l Policies (Facility Form) issued by the companies, Upon the cornpanies' request, the insured shall furnish verified plans and specifications of any such property.may be reasonably required, The insured, as o shall be deemed to be a common occurrence resulting in bodily in, ignated jury or property damage caused by the nuclear energy hazard.

With respect to such bodily injury and proper damage (1) the by the comparues any of such property, and submi,t to examinations under oath b any person named by the companies and subscribe total aggregate liability of the companies under a 1 Nuclear Energy Liability Policies (Facility Form, including this policy, applicable

'N '**U ""., as o ten as may be reasonaMy required, pall, produce i r examination all books of account, records, bills, invoices and to such common occurrence shall e the sum of the limits of liability of all such policies, the limit of liability of each such policy being michm, o,r certified copies thereof if ongina s be lost, at a

as determined by Condition 3 thereof, but in no event shall such such reasonable time and, place as may be designated by the corn-pan o l

tpresentatives, and shall permit extracts and copies total aggregate liability of the companies exceed $13,500,000; (2) te g to e d

the total liabihty or the companies under this pohey shall not exceed that proportion of the total aggregate liability of the companies, as stated in clause (1) above, which (a) the limit of liability of this APPAAISAL-Coverage B In case the insured a id the companies e

policy, as determined by Condition 3, bears to (b) the sum of the shall fail to agree as to the amount of property damage, then, on l

limits of liability of all such policies issued by the companies, the the written demand of either, each shall select a competent and limit of liability of each such policy being as determined by Con-disinterested appraiser and notify the other of the appraiser selected dition 3, thereof.

within twenty days of such demand. The appraisers shall first jJ*

The provisions of this condition shall not operate to increase the select a competent and disinterested umpire and, failing for fifteen limit of the companies' liability under this policy.

days to agree upon such umpire, then, on request of the insured or the companies, such umpire shall be selected by a judge of a court

"" '" * " * * * " which the property is located. The ap-NOTICE OF OCCURRENCE, CLAIM OR SUis pol.In the e. vent of 5 bodily injury or property damage to which th.IT praisers shall then appraise each item of property damage and, icy applies or,of fail ng to agree, shall submit their differences only to the umpire.

q an occurrence which may give rise to claims therefor, written notice An award in writing, so itemized, of any two when filed with the containing particulars,suHicient to n,dentify the insured, and also companies shall determine the amount of property damage. Each reasonably obtamable information with respect to the time, place appraiser shall be paid by the party selecting him and the expenses and circumstances thereof, and the names and addresses of the of the appraisal and umpire shall be paid by the parties equally.

injured and of available, witnesses, shall insured to Mutual Atomic Energy Liabih,be given by or for the The companies shall not be held to have waived any of their rights As ty Underwriters or the by any act relating to appraisal.

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coinpanies as soon as practicable. If claim is made or su,t is i

brought against the insured, he shall immediately forward to Mutual 9

Atomic Energy Liability Underwriters or the companies every de-SUIROGATION In the event of any payment under this policy, 1-yb mand, notice, summons or other process received by him or his the companies shall be subrogated to all the insured's rights of re-a j

representative.

covery therefor against any person or organization, and the insured " '

shall execute and deliver instruments and papers and do whatever body.necessary to secure such rights.

'I5' I' Prior to knowledge of AS$1 STANCE AND COOPERATION OF THE INSURED The in-injury or property dannge cau'ed by the, nuclear energy sured shall cooperate with the companies and, upon the cc,mpanies, request, attend hearings and trials and assist in making settlements, hazard the insured may waive,an writing any right of recovery securing and giving evidence, obtaining the attendance of witnesses agamst any person or orgamration, but after such knowled,ge the and in the conduct of any legal proceedings in connection with the insured shall not waive or otherwise prejudice any such right of subject matter of this insurance. The insured shall not, except at

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his own cost, make any payment, assume any obligation or incur The companies hereby waive any rights of subrogation acquired Q

any expense.

against the United States of America or any of its agencies by reason of any payment under this pohey.

^

FJ ACTION AGAINST COMPANIES-Coverages A and C No

.The companie,s do not relin,quish, by the foregoing provisions, any g action shall lie against the companies or any of them unless, as a right, to restitution from the insured out of any recoveries made by condition precedent thereto, the insured shall have fully complied the insured on account of a loss covered by this pohey of any with all the terms of this policy, ner until the amount of the in, ampunts to which the companies,would be entitled had such pro-sured's obligation to pay shall Lave been finally determined either visions, or any of them, not been included in this pohey.

by judgment against the insured after actual trial or by wrarten agreement of the insured, the claimant and the companies.

OTHER INSURANCE If the insurance afforded by this policy for Any person or organization or the legal representative thereof loss or expense is concurrent with insurance afforded for such loss who has secured such judgment or written agreernent shall there-or expense by a Nuclear Energy Liability Policy (Facility Form) after be entitled to recover under this policy to the extent of the issued to the named insured by Nuclear Energy J. lability Insurance insurance afforded by this policy. No person or organization shall Association, hereinafter called " concurrent insurance," the companies PAGE 5 l

_J

sh:!I not be tidli tnder th's policy for a gre ter proportion of such Premium cdjustment, if any, m:y be midt eith:r et thi time can-loss or. expense than the limit of liability stated in ene declarations celation is efected or as soon as practicable after cancelation becomes ef this policy bears to the sum cf such limit and the limit of lia-efective, but payment or tender of unearned premium is not a con-bility stated in the declarations of sus concurre?t policy.

dition of cancelation.

If the insured has other valid and collectible insurance (other 1

than such concurrent insurance or any other nuclear energy liability insurance issued by the companies or Nuclear Energy Liability In.

COMPANY REPRESENTATION jg applicable to (a) Anv notice, sworn statement or proof of loss which may be re-At surance Association to any person or organimation) forded by this quired by the provisions of this policy may be given to any one loss or expense covered by this policy, the insurance a policy shall be eacess insurance over such other insurance; provided, of the companies, and such notice, statement or proof of loss ao with respect to any person who is not employed at and in con-given shall be valid and binding as to all companies.

nection with the facility, such insurance as is attorded by this policy (b) In any action or suit against the companies, service of process for bodily injury to an employee of the insured arising out of and may be made on any one of them, and such service shall be in the course of his employment shall be primary insurance under deemed valid and binding service on all companies, such other insurance.

(c) hfutual Atomic Energy Liability Underwriters is the agent of the companies with respect to all matters pertaining to this in-CNANGES Notice to any agent or knowledge possessed by any surance. All notices or other communications required by this 13 rgent or by any other person shall not efect a waiver or a change policy to be given to the com anics may be given to such agent,

-f in any part of this policy or estop the companies from asserting any at its office at 91's North hiicfiigan Avenue, Chicago 11, Illinois right under 'he terms of this poliq; nor shall the terms of this with the same force and e6ect as if given directly to the com-policy be waived or changed, except by endorsement issued to form panies. Any requests, demands or agreements enade by such a part of this policy executed by hfutual Atomic Energy Liability agent shall be deemed to have been madt directly by the com-Underwriters on behalf of the companies.

panies.

ASSIGNMENT Assignment of in,terest by the named insured shall AUTHORIZATION OF NAMED INSURED Except with respect to P

not bind the companies until their consent is endorsed hereon; if' however, the named insured shall die or be declared bankrupt or co.mpliance with the obligations imposed o. n the insured by Condi.-

authorg' ed' to' 8, 9, to and 11 of this policy, the named insur,ed, i h "' I ' 7 insolvent, this policy shall cover such insured's legal representative, act for every other insured in all matters pertaining receiver or trustee as an insured under this poli but only with I

l respect to his liability as suc', and then only provihe,d. written notice to this insurance, cf his appointment as legs. representative, receiver or trustee is given to the companies within ten days atter such appointment.

CNANGES IN SUB5CRIBING COMPANIES AND IN TH PORTIONATE LIABILITY By acceptance of this policy the named 1,

)

1 C CANCELATION This policy may be canceled by the named insured insured agrees that the members of hfutual Atomic Energy Liability

.LJ by mailing to the companies and the United States Atomic Energy Underwriters liable under this policy, and the proportionate liability W

Commission written notice stating when, not 1*ss than thirty days of each auch member, may change from year to year. Any such thereafter, such cancelation shall be cHective. This olicy may be change shall be stated in an endorsement entitled " Changes in Sub-l canceled by the companies by mailing to the named fnsured at the scribing Companies and in Their Proportior. ate Liability" issued to address shown in this policy and to the United States Atomic Energy form a part of this policy, duly executed on behalf of the companies i

not less than ninety days subscribing such endorsement and mailed or delivered to the named Commission written notice stating when,ive; provided in the eventInsured, and the named insured further agrees that regardless of thycafter, such cancelation shall be efect of non-payment of premium or if the operator of the facility, as such changes:

designated in the declarations, is replaced by another person or (1) each company subscribing this policy upon les issuance shall be organiaation, this policy may be canceled by the companies by mail-liable only for its stated proportion of any obligation assumed ing to the named insured at the address shown in this policy and or expense incurred under this policy because of bodily injury to the United States Atomic Energy Commission written notice stat-or property damage caused, during the period from the efective d

ing when, not less than thirty days thereafter, such cancelation shall date of this policy to the effective date of the first such endorse-be eEcctive. The mailing of notice as aforesaid shall be sufficient ment, by the nuclear energy hazard; l

roof of notice. The effective date and hour of cancelation stated fn the notice shall become the end of the policy period. Delivery of (2) this policy shall remain continuously in effect from the effective date stated in the declarations until terminated in accordance such written notice either by the named insured or by the companies with Cbndition 3 or Condition 15; i

shall be equivalent to mailing.

(3) neither the liability of any company nor the limit of liability Upon termination or cancelation of th.is poh.ey, other than as of sti.ted in the declarations shall be cumulative from year to year.

l the end of December 31 in any year, the earned premium for the period this policy has been in force since the preceding December 31 shall be computed in accordance with the following provisionst DECLARATIONS By acceptance of this policy the named insured 1

(a) if this policy is terminated, pursuant to Condition 3 b reason agrees that the statements in the declarations are the, agreements and s

I of the exhaustion of the limit of the companies' llab lity, all representations of the named insured, that this policy is issued in premium theretofore paid or payable shd! be fully earned; reliance upon the t.uth of such representations and that this policy unbodies all agreements between the named ir.sured and the com-1 (b) if the named insured cancels, the earned premium for such panics or any of their agents relating to this insurance, period shall be computed in accordance with the customary annual short rate table and procedure, provided if the named j

insured cancels after knowledge of bodily injury or property MUTUAL POLICY CONDITION This policy is nonassessable. The damage caused by the nuclear energy hazard, all premiums named insured is a member of each of the companies and shall par-theretofore paid or payable shall be fully earned; ticipate, to the extent and upon the conditions fired and determined (c) If the companies cancel, the earned premium for such period by its board of directors in accordance with the provisions of law, k

shall be computed pro rata.

in the distribution of dividends so fixed and determined.

9 2

P AGE 6 l

l

NUCLEAR ENERGY LIABILITY POLICY No. MF.

MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS AMERICAN MUTUAL LIAntLITY INSURANCE COMPANY LIBERTY MUTUAL INSURANCE COMPANY WakeGeld, Massachusetts Boston, Massachusetts EMPwYERS MUTUAL LIABILITY INSURANCE COMPANY LUMBERMENS MUTUAL CASUALTY COMPANY OF WISCON51q Chicago, Illinois Wausau, W.isconsm HARDWARE MUTUAL CASUALTY COMPANY MrctiscAN MUTUAL LIABILITY COMPANY Stevens Point, Wisconsin Detroit, Michigan l

The named insured is hereby notined that by virtue of this policy he is a member of each of the companies and is entitled to vote either in person or by proxy at any and all meetings of each of the companies.

The annual meetings of each of the companies are held at the time and place stated herein.

This policy is nonassessable.

s l

NOTICE OF ANNUAL MEETINGS The annual meetings of Ah!ERICAN AfUTUAL LIABILITY The annual meetings of LinERTY MUTUAL INSURANCE INSURANCE COMPANY are held at its home 06cc in COMPANY are held at its home osce in noston, Massa.

Wakeneld, Massachusetts, on the third Wednesday of chusetts, on the second Wednesday of April in each year, March in each year, at eleven o' clock in the morning.

at eleven o' clock in the morning.

The annual meetings of EMPtoYERs AIUTUAL LIABILITY The annual meetings of LUMBrRMENs MUTUAL CAS.

INSURANCE COMPANY OF WISCONSIN are held at its UA1.TY COMPANY are held at its home oEce in Chicago, home o5ce in Wausau, Wisconsin, on the third Friday of Illinea, on the third Tuesday of May in each year, at February in each year, at ten o' clock in the morning.

eleven o' clock in the morning.

The annual meetings of HARDWARE MUTUAL CASUALTY The annual meetings of MICitroAN MUTUAL LtAntt TY COMPANY are held at its home o$ce In 8tsvens Foint, COMPANY are held at its home oEce in Detroit, Michigan, Wisconsin, on the third Wednesday of April in each year, on the last Thursday of March in each year at 10:30 at nine o' clock in the morning.

o' clock in the morning.

NUCLEAR ENERGY LIABILITY INSURANCE I-MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS r

INDUSTRY CREDIT RATING PLAN PREMIUM ENDORSEMENT l

It is agreed that Condition 1 of the policy is replaced by the following:

CONDITION 1.

PREMIUM (1)

Definitions: With reference to the premium for this policy:

" advance premium", for any calendar year, is the estimated 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 Credit Rating Plan)' premiums and minimum premiums applicable to this insurance;

" reserve premium" mes.ss that portion of the standard premium paid to the companies and specifically allocated under the Industry Credit Rating Plan for incurred losses. The amount of the " reserve premium" for this policy for any calendar year during which this policy is in force is the amount designated as such in the' Standard Premium Endorsement for that calendar. year;

" industry reserve premium," for any calendar year, is the sum of the reserve premiums for that calendar year for all Nuclear Energy Liability Policies issued by American Nuclear Insurers and Mutual Atomic Energy Liability Underwriters and subject to the Industry Credit-Rating Plan;

" policy refund ratio", for any calendar year, is the ratio of the named insured's reserve premium for that calendar year to the industry reserve premium for that calendar _ year; i

" incurred losses" means the sum of:

(1) All losses and expenses paid by American Nuclear Insurers and Mutual Atomic Energy Liability Underwriters, and (2) All reserves for unpaid losses and expenses as estimated by l

- American Nuclear Insurers and Mutual Atomic Energy

\\.

Liability Underwriters i

because of obligations assumed and the expenses incurred in connection with such obligations by members of American Nuclear Insurers and i

Mutual Atomic Energy Liability Underwriters under all Nuclear Energy u-

-2 o

Liability Policies issued by American Nuclear Insurers and Mutual Atomic Energy Liability Underwriters and subject to the Industry Credit Rating Plan;

-(

" reserve for refunds," at the end of any-calendar year, is the amount by which (1) the sum of all industry reserve premiums for the period from January 1,1957 through the end of such calendar year exceeds (2) the total for the same period of (a) all incurred losses, valued as of the'next following July 1, and (b) all reserve premium refunds made under the Industry Credit Rating Plan by members of American Nuclear Insurers and Mutual Atomic Energy Liability Underwriters;

" industry reserve premium refund," for any calendar year, is determined by multiplying the reserve for refunds at the end of the ninth calendar year thereafter by the ratio of the industry reserve premium for the calendar year for which the premium refund is being determined to the sum of such amount and the total industry reserve premiums for the next nine calendar years thereafter, provided that the industry reserve premium refund for any calendar year shall in no event be greater than the industry reserve premium for such calendar year.

(2)

Payment of Advance and Standard Premiums. The named inaured shall pay the companies the advance premium stated in the declarations, for the period from the effective date of this policy through' December 31 following. Thereafter, at the beginning of each calendar year while this policy is in force, the named insured shall pay the advance premium for such year to the companies. The advance premium for each calendar year shall be~ stated in the Advance Premium Endorsement for such calendar year issued to the named insured as soon as practicable prior to or after the beginning of such. year.

As.soon as practicable after each December 31 and after the termination of this policy, the standard premium for the preceding calendar year shall be finally determined and stated in the Standard Premium Endorse-ment for that calendar year. If the standard premium so determined exceeds the advance premium previously paid for such calendar year, the named insured shall pay the excess to the companies; if less, the companies sha11 return to the named insured the excess portion paid by such insured.

i The named insured shall maintain records of the information 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 l

the policy period and at such other times during the policy period as the i

company may direct.

(3)

Use of Reserve Premiums. All reserve premiums paid or payable for this policy may be used by the members of Mutual Atomic Energy

Liability Underwriters to discharge their obligations with respect to incurred losses whether such losses are incurred under this policy or under any other policy issued by American Nuclear Insurers or Mutual Atomic Energy Liability Underwriters.

(4)

Reserve Premium Refunds.

A portion of the reserve premium for this policy for the first calendar' year of any group of ten consecutive calendar years.shall be returnable to the named insured provided there is a reserve for refunds at the end of the tenth calendar year.

"$(5)

Computation of Reserve Premium Refunds. The reserve premium refund due the named insured for any calendar year shall be determined by multiplying any industry reserve premium refund for such calendar year by the. policy refund ratio for such calendar year. The reserve premium refund for any calendar year shall be finally determined as soon as practicable after July 1 of the tenth calendar year thereafter.

- (6)

Final Premium. The final premium for this policy shall be the sum of standard premiums for each calendar year, or portion thereof, during which this policy remains in force less the sum of all refunds of reserve premiums due the named insured under the provisions of this Condition 1.

' ' (7)

Reserve Premium Refund Agreement.- Each member of Mutual Atomic Energy Liability Underwriters subscribing this policy for any calendar year,-or portion there.cf, thereby agrees for itself, severally and not jointly, and.in the rerpective proportion of its liability assumed under this policy for that calendar year, to return to the named insured that portion of any reserve premium refund due the named insured for that calendar year, dete.rmined in accordance with the provisions of this Condition 1.

L Effective Date of To Form a Part this Endorsement October 15, 1986 of Policy No. MF-128 Iesusd to Commonwealth Edison Company Date of Issue October 16, 1986 For the Subscribing Companies MUTI[AL ATOMIC ENERGY LIABILIT hNDERWRITERE

/

BY A /h

[f A m

Endorsement No.

I Count rsigned by gth6rized Representative ME-17

7

^

NUCLEAR ENER3Y LIABILITY INSURANCE MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS WAIVER OF DEFENSES ENDORSEMENT (Extraordinary Nuclear Occurrence)

The named insured, acting for himself and every other insured under the policy, and the members of the Mutual Atomic Energy Liability Underwriters agree as follows:

^

1.

With respect to any extraordinary nuclear occurrence to which the policy applies as proof of' financial protection and which (a) arises out of or results from or occurs in the course of the construction, possession, or operation of the facility, or (b) arises out of or results from or occurs in the course of the transportation of nuclear material to or from the facility, the insureds and the companies agree to waive (1) any issue or defense as to the conduct of the claimant or the fault of of the insureds, including but not limited to:

(i) negligence, (ii) contributory negligence, (iii) assumption or risk, and (iv) unforeseeable intervening causes, whether involved the conduct of a third person, or an act of God, (2) any issue or defense as to charitable or governmental immunity, and (3) any issue or defense based on any statute of limitations if suit is instituted within three years from the date on which the claimant first knew, or reasonably could have known, of his bodily injury or property damage and the cause thereof, but in no event more than twenty years after the i

date of the nuclear incident.

The waiver of any such issue or defense shall be effective regardless of whether such issue or defense may otherwise be deemed jurisdictional lor relating to an element in the cause of action.

2.

The waivers set forth in paragraph 1. above do not apply to (a) bodily injury or-property damage which is intentionally sustained by the claimant.or which results from a nuclear incident intentionally and wrongfully caused by the claimant; (b) bodily injury sustained by any claimant who is employed at the site of and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits therefor are either payable or required to be provided under any workers' compensation or occupational disease law; (c) any claim for punitive or exemplary damages, provided, with respect to any

(

claim for wrongful death under any state law which provides for damages.

only punitive in. nature, this exclusion does not apply to the extent that the claimant has sustained actual damages, measured by the pecuniary injuries resulting from such death but not to exceed the maximum amount otherwise recoverable under such law.

2-3.

The waivers set forth in paragraph 1. above shall be effective only with respect to bodily injury or property damage to which the policy applies under its terms I

cther than this endorsement; provided, however that with respect to bodily injury or property damage resulting from an extraordinary nuclear occurrence, Insuring Agreement IV, " Application of Policy," shall not operate to bar coverage for bodily injury or property damage (a) which is caused during the policy period by the nuclear energy hazard and (b) which is discovered and for which written claim is made against the' insured not later than twenty years after the date of the extraordinary nuclear occurrence. Such waivers shall not apply to, or prejudice the prosecution or defense of any claim or portion of claim which is not within the protection afforded under (a) the provisions of the policy applicable to the financial protection required of the named insured; (b) the agreement of indemnification between the named insured and the Nuclear Regulatory Commission made pursuant to Section 170 of'the Atomic Energy Act of 1954, as amended; and (c) the limit of liability provisions of Subsection 170 e. of the Atomic Energy Act of 1954 as amended.

Such waivers shall not preclude a defense based upon the failure of the claimant to take reasonable steps to mitigate damages.

4. Subject to all of the limitations stated in this endorsement and in the Atomic.

Energy Act of 1954, as amended, the waivers set forth in paragraph 1. above shall be judicially. enforceable in accordance with their terms against any insured in an action to recover damages because of bodily injury or property damage to which the policy applies as proof of financial protection.

5. As used herein: " extraordinary nuclear occurrence" means an event which the Nuclear Regulatory Commission has determined to be an extraordinary nuclear occurrenc as defined in the Atomic Energy Act of 1954,'as amended. " financial protection" and " nuclear incident" have meanings given them in the Atomic Energy Act of 1954, l

as amended.

" claimant" mesas the person or organization actually sustaining the l

bodily. injury or property damage and also include his assignees, legal represen-l tatives and other persons or organizations entitled to bring an action for damages-on account of such injury or damage.

Efective Date of To fann a part October 15, 1986 af Policy No.

MF-128 this Endorsement w oed to Commonwealth Edison Company Date of Iw=,

October 16, 1986 For the Subscribing Companies M TUAL ATOMIC ENERGY LIABILITY ERWRITERS

.i Yb*

^

Byt

~

3 v

2 Endorsement No.

Countersigned by p e

ME-33'

~ NUCLEAR ENERGY LIABILITY INSURANCE

~

4,'

MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS i

Supplementary Endorsement Waiver of Defenses Reactor Construction at the Facility It is agreed that in construing the application of paragraph 2 (b) of the -

Waiver of Defenses Endorsement with respect to an extraordinary nuclear occurrence occurring at the facility, a claimant who 'is employed at the facility in connection with the construction of a nuclear reactor with respect to which no operating license has been issued by the Nuclear Regulatory Commission shall not be considered as employed in connection with the activity where the extraordinary nuclear occurrence takes place if:

(1) the claimant is employed exclusively in connection with the construction of a nuclear reactor, including all related equipment and installations at the facility, and 2

(2) no operating licens'e has been issued by the Nuclear Regulatory Commission with respect to the nuclear reactor, and (3)the claimant is not employed in connection with the possession, storage, use or transfer of nuclear material at the facility.

Effective Date of To Fo rm a Pa rt this Endorsement

-October 15,1986 of Policy No.

MF-128

-Issued to -

Commonwealth Edison Company-Date October 16, 1986 For the Subscribing Companies Mutu 1 Atomic Energy Llability Underw 2ers o

er C_,#&8cw

/

va/ A By l

y Endorsement No.

3 Countersigned by Aptfidrized Representative x

ME-39a

NUCLEAR ENERGY LIABILITY INSURANCE MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS ADVANCE PREM1UM ENDORSEMEKr and STANDARD PREMIUM ENDORSEMEKr Calendar Year 1986 1.

ADVANCE PREMIUM It is agreed that the Advance Premium due the-companies for the calendar year designated above is $ 1,399.96 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 Industry Credit Rating Plan, the Standard Premium and Reserve Premium are:

Standard Premium

$ 1,399.96 Reserve Premium 937.97 Effective Date of To form a part this Endorsement October 15, 1986 of Policy No.

MF-128 j

Icoued to Commonwealth Edison Corgany l

Date of Issue, October 16, 1986 For the Subscribing Companies MUT L ATOMIC ENERGY LIABILITY UNDER ITERS By w ho' VV V

~

T l

Endorsement No.

4 Countersigned by

/IUTHORIZED REPRESENTATIVE

.+

ME-41

Nuclear Energy Liability Insurance

(

Mutual Atomic Energy Liability Underwriters AMENDATORY ENDORSEMENT (Indemnified Nuclear Facility)

It is agreed that:

I.

In Insuring' Agreement III, " DEFINITIONS" A.

The first sentence of the definition of " nuclear facility" is amended to read:

" nuclear facility" means "the facility" as defined in any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association or by Mutual Atomic Energy Lia-bility Underwriters.

B.

The definition of " indemnified nuclear facility" is replaced by the following:

" indemnified nuclear facility" means (1)

"the facility" as defined in any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association or by Mutual Atanic Energy Liability Underwriters, or (2) any other nuclear facility, if financial protection is required pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, with respect to any activities or operations conducted thereat; C.

Solely with respect to an " insured shipment" to which this policy applies as proof of financial protection required by the Nuclear Regulatory Commission, Subdivision (2) of the definition of " nuclear energy hazard" is amended to reads (2) the nuclear material is in an insured shipment which is away from any other nuclear facility and is in the course of trans-portation, including the handling and temporary storace inci-dental thereto, within (a) the territorial limits of the United States of America, its territories or possessions, or Puerto Rico; or

( -

material is in the course of transportation between two.

(b) international waters or airspace, provided that the nuclear points located within the territorial limits described in (a) above and there are no deviations in the course of the ME-59 Page 1 of 4 (1/1/82)

f

~

l I

~

('

(b) transportation for the purpose of going to any other

\\

(cont) country, state or nation, except a deviation in the j

course of said transportation for the purpose of going to or returning frem a port or place of refuge as the result of an emergency.

D.

Ihe definition of " insured shipment" is replaced with the following:

" insured shipment" meane a shipment of source material, special nuclear material, spent fuel or waste, or tailings or wastes pro-

+

duced by the extraction or concentration of uranium or thorium from any ore processed primarily for its source material content, herein called " material", (1) to the facility from any location except an indemnified nuclear facility but only if the transpor-tation of the material is not by predetermination to be inter-i rupted by removal of the. material from a transporting conveyance for any purpose other than the continuation of its transportation, or (2) from the facility to any other location, but only until the material is removed from a transporting conveyance for any purpose other than the continuation of its transportation.

E.

As used herein, " financial protection" has the meaning given it in the Atomic Energy Act of 1954, as amended.

II.

Insuring Agreement IV is replaced by the following:

IV APPLICATION OF POLICY This policy applies only to bodily-injury or property damage (1) which is caused during the policy period t

by the nuclear energy hazard and (2) which is discovered and for which written claim is made against the insured, not later than ten years after the end of the policy period.

III.

Condition 2 is. replaced by the following:

2 INSPECTION; SUSPENSION The c apanies shall at any time be permitted but not obligated to inspect the facility and all operati~ons relat-ing'thereto and to examine the insured's books and records as far l

as they relate to the subject of this insurance and any property insurance afforded the insured through any company who is a member of Mutual Atomic Energy Reinsurance Pool.

If a representative of the companies discovers a condition which he believes to be unduly dangerous,with respect to the nuclear energy hazard, a representa-tive of the companies may request that such condition be corrected i

without delay. In the event of non-compliance with such request, a representative of the companies may, by notice to the named in-

[

sured, to any other person or organization considered by the ccm-panies to be responsible for the continuation of such dangerous l

condition, and to the United States Nuclear Regulatory Commission, I

suspend this' insurance with respect to the named insured and such other person or organization. effective 12:00 midnight of the next business day of such Commission following the date that such Com-

[

mission receives such notice. The period of such suspension shall k.

terminate as of the time stated in a written notice frcm the cm-l panies to the named insured and to each such person or organization that such condition has been corrected.

l NE-59 Page 2 of 4 (1/1/82)

(

Neither the right to make such inspections and examinations nor the making thereof nor any advice or report resulting therefrom shall constitute an undertaking, on behalf of or for the benefit

,of the insured or others, to determine or warrant that such fa-cility or operations are safe or healthful, or are in compliance with any law, rule or regulation. In consideration of the issu-ance or continuation of this policy, the insured agrees that nei-ther the companies nor any persons or organizations making such inspections or examinations on their behalf shall be liable with respect to injury to or destruction of property at' the facility, or any consequential loss or expense resulting therefrca, or any loss resulting from interruption of business or manufacture, aris-ing out of the making of or a failure to make any such inspection or examination, or any report thereon, or any such suspension of insurance, but this provision does not-limit the contractual ob-ligations of the capanies under this policy or any policy afford-ing the insured property insurance through any company who is a manber of Mutual Atomic Energy Reinsurance Pool.

IV.

Condition 4 is replaced by the following:

4 LIMITATION OF LIABILITY; COMMON OCCURRENCE Any occurrence or series of occurrences resulting in bodily injury or property damage arising out of the radioactive, toxic, explosive or other hazardous proper-ties of (a) nuclear material discharged or dispersed from the facility ever a period of days, weeks, months, or longer and also arising out of the properties of other nuclear material so discharged or dispersed from one or more other nuclear fa-cilities insured under any Nuclear Energy Liability Policy (Facility Form) issued by Mutual Atomic Energy Liability Underwriters, or i

(b) source material, special nuclear material, spent fuel, waste, or tailings or wastes produced by the extraction or c' ncen-o tration of uranium or thorium from 'any ore processed primarily for its source material content in the course of transportation j

for which insurance is afforded under this policy and also aris-ing out of such properties of other source material, special nuclear material, spent fuel, waste, or tailings or wastes pro-duced by the extraction or concentration of uranium or thorium from any ore processed primarily for its source material content in the course of transportation for which insurance is afforded under one or more other Nuclear Energy Liability Policies (Fa-cility Form) issued by Mutual Atomic Energy Liability Underwriters, shall be deemed to be a ccamon occurrence resulting in bodily injury or property damage caused by the nuclear energy hazard.

With respect to such bodily injury and property damage (1) the total aggregate liability of the members of the Mutual Atomic Energy Lia-(,

bility Underwritern under all Nuclear Energy Liability Policies (Fa-cility Form), including this policy, applicable to such censon occur-rence shall be the num of the limits of liability of all such policies, ME-59 Page 3 of 4 (1/1/82)

j

{

the limit of liability of each such policy being as determined by Condition 3 thereof, but in no event shall such total aggregate liability of such members exceed $36,000,000 (2) the total liability

- of the companies under this policy shall not exceed that proportion of the total aggregate liability of the members of Mutual Atmic Energy Liability Underwriters, as stated in clause (1) above, which (a) the limit of liability of this policy, as determined by Condition 3, bears to (b) the sum of the limits of liability of all such policies issu~ed by such members, the limit of liability of each such policy being as determined by condition 3 thereof.

The provisions of this condition shall not operate to increase the limit of the companies' liability under this policy.

V.

The second paragraph of Condition 12, "OTHER INSURANCE",. is amended to read:

If the intsured has other valid and collectible insurance (other than such concurrent insurance or any other nuclear energy liability in-surance issued by Nuclear Energy Liability Insurance Association or Mutual Atmic Energy Liability Underwriters to any person or organi-zation) applicable to loss or expense covered by this policy, the insurance afforded by this policy shall be excess insurance over such l

other insurance; provided, with respect to any person who is not en-ployed at and in connection with the facility, such insurance as is afforded by this policy for bodily injury to an employee of the insured arising out of and in the course of his employment shall be primary insurance under such other insurance.

VI.

Paragraph (c) of Condition 16, " COMPANY REPRESENTATION", is amended to reads (c) Mutual Atomic Energy Liability Underwriters is the agent of the companies with respect to all matters pertaining to this insurance. All notices or other cmmunications required by this policy to be given to the companies may be given to such agent, at its office at One East Wacker Drive, Chicago, Illinois 60601, with the same force and effect as if given directly to '

the empanies. Any requests, demands or agreements made by such agent shall be deemed to have been made directly by the companies.

I i

Effective Date of To Form a Part This Endorsement October 15, 1986 of Policy No.

MF-128

,12:01 A.M. Standard Time Icsoed to Commonwealth Edison Company D te of Issue October 16. 1986 For the Subscribing Companies l

By l

Endorsement No.

5

_, Countersigned by

/

ME-59 'Page'4 of 4 (1/1/82)

NUCLEAR ENERGY-LIABILITY INSURANCE MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS AMENDMENT OF DEFINITION OF INSURED (Tennessee Valley Authority)

It is agreed that regardless of the provisions of the second paragraph of Insuring Agreement II, part (b) of the Definition of Insured includes as an insured the Tennessee Valley Authority with respect to its legal responsibility for damages because of bodily injury or property damage caused by the nuclear energy hazard.

,}"p,[; y $'t I""

October 15, 1986 MF-128 th a do se ent Issue to Commonwealth Edison Company Date of Issua October 16, 1986 For the Subscribing Companies hil; UAI, ATOh11C ENERGY LIAlllLITY U 'j)ERWitITERS lty C

'F<t,/ i-

./

s 6

Encloraement No.

counti rsigne.1 i,y 4

g.....,,........ s._

ME-63

~

.+

NUCLEAR ENERGY LIABILITY INSURANCE

(

MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS SUBSCRIBING COMPANIES AND THEIR PROPORTIONATE LIABILITY ENDORSEMENT Calendar Year 1986 1.

It is agreed that with respect to bodily injury or property damage

. caused, during the effective period of this endorsement, by the nuclear energy hazard:

-The word " companies" wherever used in the policy means a.

the subscribing companies IIsted below.

b.

The policy shall be binding on such ccrnpanies only.

Each such ccrnpany shall be liable for its proportion of any c.

obilgation assuned or expense incurred under the policy because of such bodily injury or property damage as designated

]

below.

2.

It is agreed that the effective period of this endorsement is fran the beginning of the effective date of this endorsement stated below to the effective date that another " Changes in Subscribing Companies And In Their Proportionate Liability Endorsement" changes the Canpanies and/or their proportions as IIsted in this endorsement, or to th9 time of the termination or cancellation of the poIIcy, If sooner.

j Liberty Hutual Insurance Ccrnpany 50%

l Lurbermen's Mutual Casualty Ccamany 50%

l

[

Effective Date of i

this Endorsement Octob_er 15, 1986 To form a part of Policy No MF-128

!aue to Commonwealth Edison Company Date of Issue.

October 16, 1986 For the Subscribing Companies i

M UAL ATOMIC ENERGY LIAp,ILITY U ERWRITERS b,

By

-A y

m i

Endorsement No.

7 Countersigned by n-- --...

--