ML18095A254

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Forwards Endorsements 118-120 & 122-127 to Nelia Policy NF-208,Endorsements 105-107 & 109-114 to Maelu Policy MF-77 & Endorsements 13-14 to Certificates N-7/M-7 & N-47/M-47
ML18095A254
Person / Time
Site: Salem, Indian Point, Hope Creek, FitzPatrick  PSEG icon.png
Issue date: 05/29/1990
From: Oconnor D
MARSH & MCLENNAN, INC.
To: Dinitz I
Office of Nuclear Reactor Regulation
References
NUDOCS 9006060262
Download: ML18095A254 (121)
v • d • e


Text

Marsh & Mclennan Nuclear 1166 Avenue of the Americas New York, NY 10036-2774 Telephone 212 345 6000 May 29, 1990 MARSH&

MCWNNAN Mr. Ira Dinitz Insurance Liability Specialist Off ice of Nuclear Reactor Regulation Mail Stop 12E8 U.S. Nuclear Regulatory Commission Washington, D.C. 20555 Nuclear Energy Liability Insurance Policy/Certificate Endorsements

Dear Ira:

Enclosed are two certified copies each of the following documents from the indicated licensees.

Power Authority of the State of New York Endorsements 118 - 120 to NF-208; Endorsements 122 - 127 to NF-208; Endorsements 105 - 107 to MF-77; Endorsements 109 - 114 to MF-77; Endorsements 13 - 14 to N-7/M-7; Endorsements 13 - 14 to N-47/M-47.

Public Service Electric & Gas Company, et al Endorsements 115 - 124 to NF-230; Endorsements 99 - 108 to MF-90; Endorsements 13 - 14 to N-60/M-60; Endorsements 13 - 14 to N-72/M-72; Endorsements 8 - 9 to N-104/M-104.

Please contact me with any questions or comments.

Regards,

~(fr.

Assistant Vice President r'--

i'\

Enc.

MOOI

Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION l

Docket# .Yo -cJ- 7 ~

Accession # 9 0 l.J & t> & 0 2 t-L Date .:J/,;;_ 9' / 9tJ tL -

ReguIatoay Docket File o tr RESTORATION OF LIMIT OF LIABILITY ENDORSEMENT It is agreed that:

1. Payments made and expenses incurred by the companies under this policy have reduced, in accordance with Condition 3 of the policy, the limits of the companies' liability stated in Item 4 of the Declarations and in all Increase of Limit of Liability Endorsements.
2. The limit of liability stated in Endorsement No. 115 which has been reduced is hereby restored to $ 155,000,000.00 This restored limit applies only with respect to obligations assumed or expenses incurred because of bodily injury, property damage or environmental damage caused by the nuclear energy hazard _on or after the effective date of this endorsement.
3. The limits of liability stated in the policy shall not be cumulative.

Each payment made by the companies after the effective date of this endorsement for any loss or expense covered by the policy shall reduce by the amount of such payment every limit of liability, regardless of which limit of liability applies with respect to the bodily injury, property damage or environmental damage out of which such loss or expense arises.

This is to certify that this is a true copy of the origi~al Endorsement having the ,zndcin;i;~ment number and bemg made part

  • f the l\iudear En.erg:.' "j~biliiy Policy (F, rility Form) as des-0 ignated~'reon. No k:0ur::ince is afforde hereunder.
-"8. ~~.t!~~-t~

John L C 1* trocchi, Vice Pi'TZKrenf-UnderwmWf~

American Nuclear Insurers Effective Date of this Endorsement --~J~a~n~u~a~r~y-=1~*~19~9=0~--::--=::--~ To form a part of Policy No NF-208 12:01 A.M. Standard Time For the subscribing companies Date of Issue April 9, 1990 Endorsement No 118

---'~-------

Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION

  • ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT CALENDAR YEAR 1990 It is agreed that Items 1 and 2 of Endorsement No. 117 are amended to read:
1. ADVANCE PREMIUM: It is agreed that the Advance Premium due the companies for the period designated above is: $ 651.859.00
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 Industry Credit Rating
  • Plan, the Standard Premium is said Advance Premium and the Reserve Premium is:

Additional Premium:

$ 493, 088. 00

$ 78.00 Effective Date of this Endorsement_-=.J~a~n~ua~r~y'--=l~,:.....::1~9~9~0---..,.-~~----To form a part of Policy No NF-208 12:01 A.M. Standard Time Date of Is sue__-.. .:A:. .:.pc:. ;r:. . 1.:. . 1'--=9;...z*~l~9..=..9..=..0

  • _____ For the Companies E-ement No 119 NE-36 --------

Nuclear Energy Liability Insurance

  • 1.

NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION CHANGES IN SUBSCRIBING COMPANIES AND IN THEIR PROPORTIONATE LIABILITY ENDORSEMENT CALENDAR YEAR 1990 It is agreed that with respect to bodily injury, property damage or environmental damage caused, during the effective period of this endorsement, by the nuclear energy hazard:

a. The word "companies" wherever used in the policy means the subscribing companies listed below.
b. The policy shall be binding on such companies only.
c. Each such company shall be liable for its proportion of any obligation assumed or expense incurred under the policy because of such bodily injury, property damage or environmental damage as designated below.
2. It is agreed that the effective period of this endorsement is from the beginning of the effective date of this endorsement stated below to the close of December 31, 1990, or to the time of the termination or cancellation of the policy, if sooner.

Aetna Casualty & Surety Co. 12. 917337".4 Allianz Insurance Company 1.515634%

Allstate Insurance C~ny 5.535510%

American Home Assurance Co. 0. 692369"-'

Continental Casualty Corrpany 5.341750%

Continental Insurance Company 10.333870%

Federal Insurance Company 2.755699%

General Ins. Co. of America 1. 722312%

Hanover Insurance Company 0.595059%

Hartford Fire Insurance Co. 10. 3338700-'

Highlands Insurance Company 0.344462%

Hane Indenrlity Corrpany 1.614667%

Ins. Co. of North America 7. 750403%

Motors Insurance Corporation 0.430578%

Ohio Casualty Insurance Co. 0. 172231%

Providence Washington Ins. Co. 0.193760%

Reliance Insurance C011pany 0.516694%

Royal Ins. Co. of America 3.616855%

St. Paul Fire & Marine Ins. Co. 5.991922%

State Farm Finn &Casualty Co. 0.861156%

Tokio Marine & Fire Ins. Co. 0.516694%

Transamerica Insurance Co. 0.861156%

Travelers lrdemnity Company 12.856195%

U. s. Fire Insurance C~ny 2.325121%

U.S. Fidelity & Guaranty Co. 8.611558%

Universal Urderwriters Ins. Co. 0. 172231%

Zurich Insurance C~ny 1.420907%

Total 100.000000% '

NE-90 Effective Date of this Endorsement January 1, 1990 To form a part of Policy No. NF-208 12:01 A. M. Stardard time Issued to --~P_o_w~e~r~A_u~t~h~o~r~i~t~v_o_f..__t~h_e___S~t=a~t~e_o~f..__N_e_w~Y_o_r_k~----~--~~--~~----~----

~ te of Issue April l, 1990 For Endorsement No.

Nuclear Energy LJablllty Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION WAIVER OF DEFENSES ENDORSEMENT (Extraordinary Nuclear Occurrence)

Effective August 20, 1988, the named insured, acting for himself and every other insured under the policy, and the members of Nuclear Energy Liability Insurance Association 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 the insureds, including but not limited to:

(i) negligence, (ii) contributory negligence, (iii) assumption of risk, and (iv) unforeseeable intervening causes, whether involving 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.

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

2. The waivers set forth in paragraph 1. above do not apply to NE-33b Page 1 of 3

(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 workmen's 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 law.

3* The waivers set forth in paragraph 1. above shall be effective only with respect to bodily injury or property damage to which the pol icy applies under its terms other 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 (20) 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 Atomir: Energy Act of 1954, as amended; and (c) the limit of liability provisions of Subsection 170e.

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 NE-33b Page 2 of 3

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 occurrence as defined in the Atomic Energy Act of 1954, as amended.

"Financial protection" and "nuclear incident" have the meanings given them in the Atomic Energy Act of 1954, as amended.

"claimant" means the person or organization actually sustaining the bodily injury or property damage and also includes his assignees, legal representatives and other persons or organizations entitled to bring an action for damages on account of such injury or damage.

Effective Date of this Endorsement __A_u_g_u_s_t__2_0_,_1_9_8_8_____________ To form a part of Policy No. NF-208 12:01 A.H. Standard time Issued to Power Authority of the State of New York Date of issue February 16, 1990 For the By

~Endorsement No. 122

~

NE-33b Page 3 of 3

Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION SUPPLEMENTARY ENDORSEMENT WAIVER OF DEFENSES REACTOR CONSTRUCTION AT THE FACILITY Effective August 20, 1988, it is agreed that in construing the application of paragraph 2(b) of the WAIVER OF DEFENSES ENDORSEMENT NE-33b 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) no operating license 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 this Endorsement August 20, 1988 To form a part of Policy No. NF-208

~~~----~-------------

12: 01 A. H. Standard time Power Au thority of the State of New York Issued to ----------------------------------------------------------------------

Date of Issue February 16, 1990 For the dy 123 dorsement No.

NE-39b

Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION Restriction of Companies Obligation to Defend, Investigate, Negotiate or settle Any Claim or Suit (Section 170 o. of the Atomic Energy Act of 1954, as amended)

Effective August 20, 1988, it is agreed that whenever, pursuant to subsection 170 o. of the Atomic Energy Act of 1954~ as amended, an appropriate U.S. District Court determines that liability from a single nuclear incident may exceed the limit of liability under the applicable limit of liability under subsection 170 e.(1) (A), (B) and (C) of the Atomic Energy Act of 1954, as amended, the companies obligations under Insuring Agreement I, to defend, investigate, negotiate or settle any claim or suit under the policy do not include any obligation that would necessitate or result in the companies incurring legal costs, including costs of initiating, prosecuting, investigating, settling, or defending claims or suits, which are not authorized for payment by a court pursuant to such subsection 170 o.

Effective Date of this Endorsement August 20, 1988 To form a part of Policy No. NF-208 12:01 A.M. Standard time Issued to Power Authority of the State of New York Date of issue February 16, 1990

~dorsement No. 124 NE-70

Nuclear Energy Uablllty Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION WAIVER OF DEFENSES ENDORSEMENT (Extraordinary Nuclear occurrence)

The named insured, acting for himself and every other irisured under the policy, and the members of Nuclear Energy Liability Insurance Association 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 (l} any issue or defense as to the conduct of the claimant or the fault of the insureds, including but not limited to:

( i} negligence, (ii) contributory negligence, (iii} assumption of risk, and (iv) unforeseeable intervening causes, whether involving the conduct of a third person, or an act of Cod.

(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.

The waiver of any such issue or defense shall be effective regardless of whether such issue or defense may otherwise be deemed jurisdictional or 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. property damage or environmental damage which is intentionally sustained by the claimant or which results from a nuclear *incident intentionally and wrongfully caused by the claimant:

NE-33c (1/1/90) Page 1 of 3

(b) bodily injury sustained by any claimant who is

  • (c) 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 workmen's compensation or occupational disease law:

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 law.

3* The waivers set forth in paragraph 1. above shall be effective only with respect to bodily injury, property damage or environmental damage to which the policy applies under its terms other than this endorsement: provided, however, that with respect to bodily injury. property damage or environmental damage resulting from an extraordinary nuclear occurrence, the provisions of COVERAGES A and c of the policy providing coverage for bodily injury, property damage or environmental damage caused during the policy period by the nuclear energy hazard and which is discovered and for which written claim is made against the insured not later than ten (10) years after the end of the policy period shall not operate to bar coverage for bod! ly injury. property damage or environmental 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 ( 20) 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 170e.

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.

NE-33c (1/1/90) Page 2 of 3

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, property damage or environmental 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 occurrence as defined in the Atomic Energy Act of 1954, as amended.

"Financial protection" and "nuclear incident" have the meanings given them in the Atomic Energy Act of 1954, as amended.

"claimant" means the person or organization actually

- *--~- sustaining the bodily injury, property damage or environmental damage and also includes his assignees,*

legal representatives and other persons or organizations entitled to bring an action for damages on account of such injury or damage.

' . ~h* ." t ue copy of the original This is to certify that L is t~ a r t mbar and being made part

~ *. the endorsemen nu Endorsement lc.vmg l . .. p r ( cility Form) as des-of the Nuc12ar Energy Llab1hty_ o icy hereunder.

ignated~on. No Insu nc . .

--8'.

John L, Q trocchi, Vice President-Underwriting American Nuclear Insurers Effective Date of this Endorsement ___J_a_nu_a_r_y_l_,_1_99_0_ _ __ To form a part of Policy No. NF-208 12:01 A. M. Standard time Issued to ---~P~o~w~e~r_;A'.:!:u~t:.:,h~o:.!.r..!.i..:::ty~o:,:f_:t.:.:.he:.....:S:..:t:.:a.:.t.=.e_o:..:f_.;N.:.e_w_Y_o_r_k_ _ _ _ _ _ _ _ _ _ _ __

Date of Issue February 16, 1990 For orsement No. 125 Countersigned by ------------------------------~

NE-33c (1/1/90) Page 3 of 3

Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION 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 NE-33c 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) no operating license 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 this Endorsement January l, 1990 To form a part of Policy No. NF-208 12:01 A. H. Standard time Power Authority Issued to _________:_:..:.:..:::.:_.:..:..:.._:__ of the State of New York

___:____________________________________ -:--------~

Date of Issue February 16, 1990 For

  • . Endorsement No.

NE-39c (1/1/90) 126

  • Nuclear Energy Llablllty Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION AllEHDATORY EHDORSEMEMT (Facility For.)

It is agreed that:

1. INSURING AGREEMENT I is replaced by the following:

I COVERAGE A - LIABILITY To pay on behalf of the insured all sums which the insured shall become legally obligated to pay as covered damages because of bodily injury or property damage, or as covered environmental cleanup costs because of environmental damage.

This Coverage applies only to bodily injury, property damage or environmental damage caused during the policy period by the nuclear energy hazard, and which is discovered and for which written claim is made against the insured, not later than ten (10) years after the end of the policy period.

The companies shall have the right and duty to defend any claim or suit against the insured alleging such injury or damage, and seeking_ damages or costs which are payable under the terms of this pol icy; but the companies may make such investigation, negotiation and settlement of the claim or suit as they deem expedient.

The companies' duty to defend shall be limited, as described in INSURING AGREEMENT IV, if the claim or suit also seeks any of the following, which in no event shall be construed as covered by this policy:

(1) damages for on-site property damage; (2) recovery of on-site cleanup costs or any other cleanup costs except covered environmental cleanup costs;

( 3) performance of an insured' s environmental protection obligations or on-site cleanup obligations; or (4) any other relief or recovery except payment of covered damages or covered environmental cleanup costs.

The companies' duty to defend claims or suits ends when the limit o.f their liability has been exhausted pursuant to CONDITION 3.

Subject to INSURING AGREEMENT IV, the companies shall pay, with respect to any claim or suit they defend, the costs incurred in the defense, including

( 1) costs taxed against the insured in any such suit and interest on any judgment therein; NE-71 (1/1/90) Page 1 of 10

(2) premiums on appeal bonds and bonds to release attachments in any such suit, but without obligation to apply for or furnish such bonds; (3) reasonable expenses, other than loss of earnings, incurred by the insured at the companies' request.

COVERAGE B - DAMAGE TO PROPERTY OF AH INSURED AWAY FROM THE FACILITY With respect to property damage caused during the policy period by the nuclear energy hazard to the property of an insured which is away from the facility, to pay to such insured those sums which such insured would have been legally obligated to pay as covered damages therefor, had such property belonged to another.

COVERAGE C - SUBROGATIOR - OFFSITE EMPIDYBBS With respect to bodily injury caused during the policy period by the nuclear energy hazard to any employee of an insured, and which is discovered and for which written claim is made against the insured, not later than ten (10) years after the end of the pol icy period, to pay to the workmen's compensation carrier of such insured as follows:

All sums which such carrier would have been entitled to recover and retain as damages from another person or organization, had such person or organization alone been legally responsible for such bodily injury, by reason of the rights acquired by subrogation by the payment of the benefits required of such carrier under the applicable workmen's compensation or occupational disease law. An employer who is a duly qualified self-insurer under such law shall be deemed to be a workmen's compensation carrier within the meaning of this Coverage.

This Coverage does not apply to bodily in]ury to any person who is employed at and in connection with the facility; nor shall it constitute workmen's compensation insurance as required under the laws of any state.

2. INSURING AGREEMENT II is replaced by the following:

II DBPDO:TIOR OF DISURED The unqualified word "insured" includes (a) the named insured and (b) any other person or organization with respect to his legal responsibility for covered damages or covered environmental cleanup costs because of bodily injury, property damage or environmental damage caused by the nuclear energy hazard .

Subdivision (b) above does not include as an insured the United States of America or any of its agencies, except the Tennessee Valley Authority.

NE-71 (1/1/90) Page 2 of 10

Subject to CONDITION 3 and the other provisions of this policy, the insurance applies separately to each insured against whom claim is made or suit is brought.

3. INSURING AGREEMENT III is replaced by the following:

III DBPDIITIOHS Wherever used in this policy:

"bodily injury" means bodily injury, sickness or disease, including death resulting therefrom, sustained by any person.

"covered damages" means damages because of bodily injury or property damage to which this policy applies; but covered damages do not include environmental cleanup costs or on-site cleanup costs.

"covered environmental cleanup costs" means only those environmental cleanup costs which are incurred directly for monitoring, testing for, cleaning up, neutralizing or containing environmental damage as the result of an extraordinary nuclear occurrence or a transportation incident; but covered environmental cleanup costs do not include on-site cleanup costs.

"disposal site" means any structure, basin, excavation, premises or place prepared as a dump or site for the disposal of waste materials of a general nature, but which may also be used for the disposal of waste materials containing small amounts of nuclear material.

"environment" includes land, the atmosphere, and all watercourses, bodies of water and natural resources, whether on, above or below the surface of the ground.

"environmental cleanup costs" include all loss, cost or expense arising out of any governmental decree, order or directive (other than an award of covered damages in an action at law) requiring or requesting a person or organization to undertake or pay for monitoring, testing for, cleaning up, neutralizing or containing contamination of the environment, whether the contamination is on, above or below the surface of the ground.

"environmental damage" means contamination of the environ-ment by nuclear material.

"environmental protection obligations" include all obligations of any person or organization

( 1) relating to the protection of the environment from contamination or imminent danger of contamination, and (2) imposed by any governmental laws, regulations or ordinances.

NE-71 (1/1/90) Page 3 of 10

"extraordinary nuclear occurrence" means an event which the United States Nuclear Regulatory Commission has determined to be an extraordinary nuclear occurrence as defined in the Atomic Energy Act of 1954, or in any law amendatory thereof.

"governmental" refers to federal, state and local governments and authorities, including courts, agencies and political subdivisions thereof.

"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 Mutual Atomic 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.

"insured shipment" means a shipment of source material, special nuclear material, spent fuel, waste, or tailings or wastes produced 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 transportation of the material is not by predeter-mination to be interrupted by removal of the material from a transporting conveyance for any purpose other than the continuation of its transpor-tation, 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.

"nuclear energy hazard" means the radioactive, toxic, explosive or other hazardous properties of nuclear material, but only if (1) the nuclear material is at the facility or has been discharged or dispersed therefrom without intent to relinquish possession or custody thereof to any other person or organization, or

( 2) the nuclear material is in an insured shipment which is away from any other nuclear facility and is. in the course of transportation, including handling and temporary storage incidental thereto, within (a) the territorial limits of the United States of America, its territories or possessions, or Puerto Rico; or NE-71 (1/1/90) Page 4 of 10

(b) international waters or ~irsp.ace, provided that the nuclear material is in the course of

  • transportation between two points located within the territorial limits described in (a) above and there is no deviation in the course of the transportation for the purpose of going to any other country, state or nation, except for the purpose of going to or returning from a port or place of refuge as the result of an emergency.

"nuclear facility" means "the facility" as defined in any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters. The term "nuclear facility" also means (1) any nuclear reactor, (2) any equipment or device designed or used for (a) separating the isotopes of uranium or plutonium, (b) processing or utilizing spent fuel, or (c) handling, processing or packaging waste, (3) any equipment or device used for the processing, fabricating or alloying of special nuclear material if at any time the total amount of such material in the custody of the insured at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams

  • ( 4) of uranium 235, any structure, basin, excavation, premises or place prepared or used for the storage --. disposal of waste, 1

and includes the site *on which any of the foregoing is located, all operations conducted on such site and all premises used for such operations.

"nuclear material" means source material, special nuclear material or byproduct material.

"nuclear reactor" means any apparatus designed or used to sustain nuclear fission or a self-sustaining chain reaction or to contain a critical mass of fissionable material.

"on-site cleanup costs" include all loss, cost or expense arising out of on-site cleanup obligations.

"on-site cleanup obligations" include all obligations of any person or organization, imposed by common law or otherwise, to undertake or pay for monitoring, testing for, cleaning up, neutralizing or containing contamination . by nuclear material at the facility, whether the material is on, above or below the surface of the ground.

NE-71 (1/1/90) Page 5 of 10

"on-site property damage" includes all property damage to any property at the facility, whether the property is on, above or below the surface of the ground, other than aircraft, watercraft or vehicles licensed for highway use, provided such aircraft, watercraft or vehicles are not used in connection with the operation of the facility.

"property damage" means physical injury to or destruction or radioactive contamination of property, and loss of use of property so injured, destroyed or contaminated, and loss of use of property while evacuated or withdrawn from use because possibly so contaminated or because of imminent danger of contamination.

"source material," "special nuclear material," and "byproduct material" have the meanings given them in the Atomic Energy Act of 1954, or in any law amendatory thereof.

"spent fuel" means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in any nuclear reactor.

"the facility" means the facility described in the declarations and includes the location designated in Item 3 of the declarations and all property and operations at such location .

  • "transportation incident" means a discharge or dispersal of nuclear material from an insured shipment caused by collision or upset of ~he transporting conveyance, or an accident that breaks open, punctures or ruptures the shipping containers or *containment thereon; but only if both the discharge or dispersal and the collision, upset or accident take place away from any nuclear facility and away from any disposal site, and both occur in the course of the transportation, including handling and temporary storage incidental thereto.

"waste" means any waste material (1) containing byproduct material and (2) resultinq from the operation by any person or organization of any nuclear facility included within the definition of nuclear facility under paragraph (1) or (2) thereof.

4* INSURING AGREEMENT IV is replaced by the fallowing and INSURING AGREEMENT IV-A added by the "Amendment of Coverage Endorsement for Workers Claims (Facility Form)" continues to apply:

IV LDIITED DEPEHS~ OP PAR'l'IALLY COVERED CIADIS OR SUITS The following provisions apply with respect to any partially covered claim or suit for which the companies' duty to defend has been limited by INSURING AGREEMENT I:

NE-71 ( 1/1/90) Paqe 6 of 10

(1) The companies will defend the claim or suit unless the companies and the first named insured mutually agree on

  • (2) a different defense arrangement. By making such a defense, the companies shall not be considered as having waived their rights under this policy to deny payment or reimbursement of the items not covered.

As soon as practicable, the first named insured, acting on behalf of all insureds, and the companies shall endeavor to reach an equitable arrangement for handling the defense and sharing the costs thereof.

(3) The companies' share of defense costs shall not exceed the portion of the total defense costs that represents the costs which would be reasonably and necessarily incurred in the defense of the claim or suit in the absence of any claim or demand for the items not covered.

(4) The companies shall have a right to contribution from the first named insured for all defense costs as they are incurred in excess of the amount of the companies' share, including reimbursement by the first named insured of all such excess costs paid by the companies.

(5) If the companies and the first named insured cannot agree on the companies' share of defense costs, the dispute shall be submitted, as a condition precedent to any right of recovery on this policy, to arbitra-tion for a final and binding resolution, as provided in condition 19 *

  • 5. In EXCLUSIONS (d) and (e), and in all endorsements to this policy relating thereto, the words "bodily injury or property damage" are replaced by "bodily injury, property damage or environmental damage."
6. EXCLUSION (f) is replaced by the following exclusion:

[This policy does not apply:]

(f) to on-site property damage;

7. In CONDITION 3, and in all endorsements to this policy modifying the dollar amount of the limit of liability stated in Item 4 of the declarations, the words "bodily injury or property damage" are replaced by "bodily injury, property damage or environmental damage."
a. In CONDITION 4, and in all endorsements to this policy modifying the dollar amount of the total aggregate liability of the companies with respect to a common occurrence:

(a) the words "bodily inJury or property damage" are replaced by "bodily* injury, property damage or environmental damage"; and NE-71 (1/1/90) Page 7 of 10

(b) the words "bodily 1nJury and property damage" are replaced by "bodily injury, property damage and

  • 9.

environmental damage."

In CONDITIONS s, 11, 15 and 18, and in all endorsements to this policy relating thereto, the words "bodily injury or property damage" are replaced by "bodily injury, property damage or environmental damage."

10. CONDITION 19, DECLARATIOHS, is renumbered CONDITIONS 20.
11. The following CONDITION is added to the policy:

19 ARBITRATIOH OF DISPUTES RELATIHG TO THE APPLICATION OF IHSORDIG AGREEllEHT IV All such disputes subject to paragraph ( 5) of INSURING AGREEMENT IV shall be submitted to a Board of Arbitration (the "Board") for a final and binding resolution of the dispute.

There shall be two parties to the arbitration: the first named insured, acting on behalf of all insureds as their duly authorized representative, and Nuclear Energy Liability Insurance Association, acting on behalf of the companies as their duly authorized representative.

Except to the extent the parties mutually agree otherwise, the following principles will apply:

(a) The arbitration will take place in New York, New York, and will be governed by the laws of the State of New York.

(b) Either party may begin the* process of arbitration by giving notice to the other party in writing of its intention to do so and the name of the arbitrator that it has appointed.

(c) The other party shall then appoint in writing anarbitrator, and the arbitrators shall appoint in writing an umpire before they begin the arbitration.

The umpire shall act as chairman of the Board.

(d) If a party fails to name its arbitrator within thirty (30) days of the other party's written request that it do so, the requesting party may appoint an arbitrator for the party in default.

(e) If the two arbitrators fail to agree on the selection of an umpire within thirty ( 3 o) days after they have both been appointed, each of them shall name two, of whom the other shall decline one. The choice shall be made by drawing lots.

(f) The arbitrators and umpire shall be executive officers or former executive officers of insurance companies licensed to do business in the United States or of organizations designated as the first named insured NE-71 (1/1/90) Page 8 of 10

under a Nuclear Energy Liability Policy issued by Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters; provided that the current employees of the following shall not be eligible for service without the consent of both parties:

(1) any party or likely party to the underlying claim or suit; (2) American Nuclear Insurers, MAERP Reinsurance Association or their members; or (3) any other insurer or reinsurer which has casualty insurance or reinsurance in force on any of the foregoing which may be materially affected by the Board's decision.

(g) Within thirty (30) days after the appointment of the umpire, each party shall submit its case in writing to the Board.

(h) The Board shall determine its rules of procedure, and the nature and extent of any discovery, testimony, examination or cross-examination of witnesses and oral argument permitted. The decision of any two members of the Board shall be final and binding on all parties.

All discovery, submissions of evidence, hearing of witnesses and argument shall be completed within sixty (60) days of the appointment of the umpire, provided the Board may grant one extension of thirty (30) days.

(i) The arbitrators and the umpire are not to be bound by any strict rules of legal procedure, evidence or legal precedents. They shall, however, be governed by the terms of this policy, and shall have no power to add to or change its provisions. Subject to this admonition, they shall interpret the relevant provisions of this policy as an honorable business agreement, and shall be entitled to decide, in accordance with such provisions together with the other materials submitted to them, what they think is the fair and right thing to be done between the parties from a business point of view, without favoring the interest of either party.

(j) The Board shall make its award in writing within thirty (30) days after the close of the period, including any extension granted, described in paragraph (h) above.

(k) If the Board fails to make an award within the time prescribed by paragraph (j) above, then unless an extension is agreed to by the parties, a new arbitration shall be commenced and completed in accordance with the procedure set out in paragraphs (a) through (j) above.

(1) The award of the Board signed by any two members shall be final, not subject to appeal and binding on all parties, including all insurers subscribing the policy and all insureds thereunder. The award shall be treated as a matter involving interstate commerce, and may be filed or confirmed in any NE-71 (1/1/90) Page 9 of 10

court of competent jurisdiction, state or federal, and judgment thereon entered and enforced, in accordance with the law and practice of the forum.

(m) Unless the Board decides otherwise, each party shall pay the expenses of the arbitrator appointed by or for it and one half of the other costs of arbitration.

(n) If an arbitrator or umpire is unable or unwilling to act, a new arbitrator or umpire, as the case may be, shall be appointed to act in his or her place, in accordance with the provisions set forth above.

(o) All materials relevant to the arbitration shall be submitted to the Board in triplicate and the filing party shall send simultaneously a copy thereof to the opposing party.

12. This endorsement applies to all claims for damages~ costs, expenses or other relief or recovery for which coverage is sought under this policy, and which are first made in writing against any insured on or after the effective date of this endorsement stated below.

Effective Date of this Endorsement _ _.::;J~a~n-ua_r....vi.-.:1_..--.1-..99_0______ To form a part of Policy No. __N_F_-2_o_s_ _

12:01 A. M. Stiindard time Power Authority of the State of New York Issued to ----------------------------------~

Date of Issue May 10. 1990 For the Subsc Endorsement No. 127 NE-71 (1/1/90) Page 10 of 10

Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS RESTORATION OF LIMIT OF LIABILITY ENDORSEMENT It is agreed that:

1. Payments made and expenses incurred by the companies under this policy have reduced, in accordance with Condition 3 of the policy, the limits of the companies' liability stated in Item 4 of the Declarations and in all Increase of Limit of Liability Endorsements.
2. The limit of liability stated in Endorsement No. 102 which has been reduced is hereby restored to $ 45,000,000.00 This restored limit applies only with respect to obligations assumed or expenses incurred because of bodily injury, property damage or environmental damage caused by the nuclear energy hazard on or after the effective date of this endorsement.
3. The limits of liability stated in the policy shall not be cumulative.

Each payment made by the companies after the effective date of this endorsement for any loss or expense covered by the policy shall reduce by the amount of such payment every limit of liability, regardless of which limit of liability applies with respect to the bodily injury, property damage or environmental damage out of which such loss or expense arises.

This is to *certify that this is a true copy of the original Endorsement having the endorsement number and being made part of the Nuclear En£rgy Liability Policy (Facility Form) as des-ignat~eher;:;o lnsuran:e is affor, d hernunder.

John L. attrocchi, Vic~n American !uclear Insurers Effective Date of To form a part this Endorsement January 1, 1990 of Policy No_____M_F_-_7~7_________________

12:01 A.M. Standard Time Issued to Power Authority of the State of New York Date of Issue _____~A~p~r~1~*1L-o9~,~1~9~9~0~----- For the Subscribing Companies MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS By*---~....s:~~~~~~~~~c--~~~~~

rs emen t No___ 10

.........S...____ Countersigned by______________________)__ ~------lL--

NUCLEAR ENERGY LIABJLITY INSURANCE MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT CALENDAR YEAR 1990 It is agreed that Items 1 and 2 of Endorsement No. 104 are amended to read:

1. ADVANCE PREMIUM: It is agreed that the Advanc~

Premium due the companies for the period designated above is: $ 189,249.00

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 Industry Credit Rating Plan, the Standard Premium is said Advance Premium and the Reserve Premium is: $ 143,154.00 Additional Premium: $ 22.00 This is to certify that this is a true cop~; of the original E ,..,01-,1*~-~"**crt h- *11*~.-. Al.. 1 ' b
'~*~ "':='~ '"": 1 i *:~: <> w~ '2'.no.orsement num er and being made part ot* ll-o l'J1*r10-,,. t*1**~i---1 I:.*;;*~ ,.... ,. If' ... ,_ )

.,.. * "-'****'-'-" .. '"" '=:;). ~.1ctOL!ltY FCillcy , acllltv rorm as des-ignate~,) h*.3r<:'on. No Insurance is afford-- he;eunder.

..*~-.

~ . I

,r;t--

r John L.. *- .nroc~J1b2 _ ~*. ., Ue 4 .t:rff . , . ~

American clear Insurers Effective Date of this Endorsement January 1, 1990 To form a part o f Po li cy No. MF-77

_,,.1~2-:~01=--=A~.~M~.-S-t_a_n~d-a-rd_T_i_m_e-~

r ssued to _ _P_o_w_e_r_A_u_t_ho_r_1_*t...:.y_o_f_t_h_e_S_t_a_te_o_f_N_e_w_Yo_r_k______..,...._.-'-------~--

Date of Issue April 9, 1990 For the Subscribing Companies llllTUAL A7lll!IC l!1IEllGY LIABILITY 7=RWI.TERS By ~ :?:, ~;-:&;;~

Endorsement No. 106 Countersigned by-----------~--

Authorized Representative ME-36

NiJc.lear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS CHANGES IN SUBSCRIBING COMPANIES AND IN THEIR PROPORTIONATE LIABILITY ENDORSEMENT CALENDAR YEAR ~
1. It is agreed that with respect to bodily injury, property damage or environmental damage caused, during the effective period of this endorsement, by the nuclear energy hazard:
a. The word "companies" wherever used iri the policy means the subscribing companies listed below.
b. The policy shall be binding on such companies only.
c. Each such company shall be liable for its proportion, as designated below, of any obligation assumed or expense incurred under the policy because of such bodily injury, property damage or environmental damage.

It is agreed that the effective period of this endorsement is from 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 Companies and/or their proportions as listed in this endorsement, or to the time of the termination or cancellation of the policy, if sooner.

Arkwright Mutual Insurance Corrpany 21%

Errployers Insurance of Wausau, A Mutual Corrpany 21%

Liberty Mutual Insurance COfil)any 28%

Lunbermens Mutual Casualty Corrpany 30%

"' l5

s 0 (j)

.bwO..lll Cl) **

NOTICE OF AIDIJAL IEETINGS

. <fl *-

(() 5,.qlll The annual meetings of Arkwright The annual meetings of Errployers r.ri *o ,-;;: g Insurance Mutual Corrpany are held Insurance of Wausau A Mutual

  • - i:: "i5 ro at its home office in Waltham, Corrpany, are held at its home

-~ Cl) :.:i ~

-:S

..,.;.

1...... <fl

>. t::

Massachusetts, on the second Wednesday office in Wausau, Wisconsin, on

((l t1l ..... of March in each year, at ten*thirty the fourth Friday of May in each

...c:g.15lo o'clock in the morning. year, at nine o'clock in the morning.

*5

..;;..* (\I.......

,f, z ' ..c*-* - i:;

-~..c.:~c *e~ The annual meetings of Liberty Mutual The annual meetings of Lunberrnens

~~ 1:: ~ (() 0 ~ 0 " '

8 ;!J\'\\:l:l ~

Insurance Company are held at its home Mutual casualty Corrpany are held f'ilJcc.:? _office in Boston, Massachusetts, on at its home office in Long Grove 0

8t\JUQ)

(l) z

l ...c:

' ... O',::;

i .... the third ~ednesday of April in each Illinois, on the third Tuesday of ll) ll) "O . "' year, at ten o'clock in the morning. May in each year, at eleven o'clock
  • - b (j) $ ! -l g in the morning.

lllro-:S ro - i:;"'

E c ......,,.

r-- UJ 0 .9? ~-. .~~ ex:E Effective Date of this Endorsement ~~~-J~a=n=u=a=r~y"-'l~,......_,1~9~9~0---~~~- To form a part of Policy No. MF-77 12:01 A.M. Standard time Issued to Power Authority. of the State of New York Date of issue April 1 , 1990 For the Subscribing Companies MUTUAL ATOMIC By Endorsement No. 107

Nuclear Energy Liability Insurance

  • MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS WAIVER OF DEFENSES ENDORSEMENT (Extraordinary Nuclear Occurrence)

Effective August 20, 1988, the named insured, acting for himself and every other insured under the pol icy, and the members of Nuclear Energy Liability Insurance Association 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 the insureds, including but not limited to:

(i) negligence, (ii) contributory .negligence, (iii) assumption of risk, and (iv) unforeseeable intervening causes, whether involving 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.

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

2. The waivers set forth in paragraph 1. above do not apply to
  • ME-33b Page 1 of 3

(a) bodily injury or property damage which is intentionally sustained by the claimant or which

  • (b) results from a nuclear incident intentionally and wrongfully caused by the claimant; 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 workmen's 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 law.
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 other 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 (20) 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 170e.

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.

ME-3Jb Page 2 of 3

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 occurrence as defined in the Atomic Energy Act of 1954, as amended.

"Financial protection" and "nuclear incident" have the meanings given them in the Atomic Energy Act of 1954, as amended.

"claimant" means the person or organization actually sustaining the bodily injury or property damage and also includes his assignees, legal representatives and other persons or organizations entitled to bring an action for damages on account of such injury or damage.

Effective Date of this Endorsement _A_u_g_u_s_t_20_,_1_9_B_s_______ To form a part of Policy No. MF-77 12:01 A.M. Standard time Issued to Power Authority of the State of New York Date of issue February 16, 1990 For the Subscribing Companies dorsement No. 109 ME-33b Page 3 of 3

Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS SUPPLEMENTARY ENDORSEMENT WAIVER OF DEFENSES REACTOR CONSTRUCTION AT THE FACILITY Effective August 20, 1988, it is agreed that in construing the application of paragraph 2(b) of the WAIVER OF DEFENSES ENDORSEMENT ME-3 3b 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) no operating license 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 this Endorsement August 20, 1988

  • To form a part of Policy No. MF-77 12:01 A.M. Standard time Issued to Power Authority of the State of New York Date of issue February 16, 1990 For the Subscribing Companies Endorsement No. 110 ME-39b

Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION Restriction of Companies Obligation to Defend, Investigate, Negotiate or Settle Any Claim or Suit (Section 170 o. of the Atomic Energy Act of 1954, as amended)

Effective August 20, 1988, it is agreed that whenever, pursuant to subsection 17 O o. of the Atomic

  • Energy Act of 19 54 ~ as amended, an appropriate U.S. District Court determines that liability from a single nuclear incident may exceed the limit of liability under the applicable limit of liability under subsection 170 e.(1) (A), (B) and (C) of the Atomic Energy Act of 1954, as amended, the companies obligations under Insuring Agreement I, to defend, investigate, negotiate or settle any claim or suit under the policy do not include any obligation that would necessitate or result in the companies incurring legal costs, including costs of initiating, prosecuting, investigating, settling, or defending claims or suits, which are not authorized for payment by a court pursuant to such subsection 170 o
  • Effective Date of this Endorsement _A_u_,g_u_s_t_20_,_1_9_8_8_ _ _ _ _ _ To form a part of Policy No. _MF_-_7_7_

12:01 A.M. Standard time Issued to Power Authority of the State of New York Date of issue February 16, 1990 For the By

~dorsement No. 111 NE-70

Nuclear Energy Uablllty Insurance

  • MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS WAIVER OF DEFENSES ENPORSEMENT (Extraordinary Nuclear Occurrence)

The named insured. acting for himself and every other insured under the policy. and the members of Nuclear Energy Liability Insurance Association agree as follows:

l. 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 the insureds. including but not limited to:

  • (i)

(ii)

(iii)

(iv) negligence.

contributory negligence.

assumption of risk. and unforeseeable intervening causes. whether involving 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.

The waiver of any such issue or defense shall be effective regardless of whether such issue or defense may otherwise be deemed jurisdictional or 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. property damage or environmental damage which is intentionally sustained by the claimant or which results from a nuclear incident intentionally and wrongfully caused by the claimant; ME-33c (1/1/90) Page 1 of 3

(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 workmen's 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 law.

J. The waivers set forth in paragraph l. above shall be effective only with respect to bodily injury. property damage or environmental damage to which the policy applies under its terms other than this endorsement: provided, however, that with respect to bodily injury, property damage or environmental damage resulting from an extraordinary nuclear occurrence, the provisions of COVERAGES A and C of the policy providing coverage for bodily injury. property damage or environmental damage caused during the policy period by the nuclear energy hazard and which is discovered and for which written claim is made against the insured not later than ten (10) years after the end of the policy period shall not operate to bar coverage for bodily injury, property damage or environmental damage (a) which is caused during the policy period by the nuclear energy haza.rd and (b) which is discovered and for which written claim is made against the insured not later than twenty (20) 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 170e.

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.

ME-33c (1/1/90) Page 2 of 3

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, property damage or environmental 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 occurrence as defined in the Atomic Energy Act of 1954, as amended.

"Financial protection" and "nuclear incident" have the meanings given them in the Atomic Energy Act of 1954, as amended.

"claimant" means. the person or organization -actually sustaining the bodily injury, property damage or environmental damage and also includes his assignees, legal representatives and other persons or organizations entitled to bring an action for damages on account of such injury or damage

  • Effective Date of MF-77 this Endorsement January 1, 1990

~~~~~~~~~~~~,.....-~

To form a part of Policy No.

12:01 A.M. Standard time Issued to Power Authority of the State of New York Date of issue February 16, 1990 For the Subscribing Companies KUTUAL ATOMIC ENERGY LIABILITY UHDERVRITERS By orsement No. 112 ME-33c (1/1/90) Page 3 of 3

Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS 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 NE-33c 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) no operating license 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 MF-77 this Endorsement January 1, 1990

~~~~~~~~~~~~~~

To form a part of Policy No.

12:01 A.M. Standard time Issued to Power Authority of the State of New York Date of issue *February 16, 1990 For the Subscribing Companies ndorsement No. 113 ME-39c {1/1/90)

Nuclear Energy Llablllty Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS AMENDATORY ENDORSEMENT (Facility For11)

It is agreed that:

1. INSURING AGREEMENT I is replaced by the following:

I COVERAGE A - LIABILITY T~ pay on behalf of the insured all sums which the insured shall become legally obligated to pay as covered damages because of bodily injury or property damage, or as covered environmental cleanup costs because of environmental damage. This coverage applies only to bodily injury, property damage or environmental damage caused during the policy period by the nuclear energy hazard, and which is discovered and for which written claim is made against the insured, not later than ten (10) years after the end of the policy period.

The companies shall have the right and duty to defend any claim or suit against the insured alleging such injury or dama~e, and seeking damages or costs which are payable under the terms of this policy: but the companies may make such investigation, negotiation and settlement ot the claim or suit a* they deem expedient.

The companies' duty to defend shall be limited, as described in INSURING AGREEMENT IV, it the claim or suit also seeks any of the following, which in no event shall be construed as covered by this policy:

(1) damages for on-site property damage:

(2) recovery ot on-site cleanup costs or any other cleanup costs except covered environmental cleanup costs:

( 3) per! ormance ot an insured' s environmental protection obligations or on-site cleanup obligations: or (4) any other relief or recovery except payment of covered damages or covered environmental cleanup costs.

The companies' duty to defend claims or suits ends when the limit ot their liability has been exhausted pursuant to

-CONDITION J.

Subject to INSURING AGREEMENT IV, the companies shall pay, with respect to any claim or suit they defend, the costs incurred in the defense, including (1) costs taxed against the insured in any such suit and interest on any judgment therein:

(2) premiums on appeal bonds and bonds to release attachments in any such suit, but without obligation to apply for or furnish such bonds;

. ME-71 (1/1/90) Page 1 of 10

  • (3) reasonable expenses, other than loss of earnings, incurred by the insured at the companies' request.

COVER.AGE B - DAMAGE TO PROPERTY OF AN INSUR.ED AWAY FROM THE FACILITY With respect to property damage caused during the pol icy period by the nuclear energy hazard to the property of an insured which is away from the facility, to pay to such insured those sums which such insured would have been legally obligated to pay as covered damages therefor, had such property belonged to another.

COVERAGE C - SUBROGATION - OFFSITE EMPLOYEES With respect to bodily injury caused during the policy period by the nuclear energy hazard to any employee of an insured, and which is discovered and for which written claim is made against the insured, not later than ten (10) years after the end of the policy period, to pay to the workmen's compensation carrier of such insured as follows:

All sums which such carrier would have been entitled to recover and retain as damages from another person or organization, had such person or organization alone been legally responsible for such bodily injury, by reason of the rights acquired by subrogation by the payment of the benefits required of such carrier under the applicable workmen's compensation or occupational disease law. An employer who is a duly qualified self-insurer under such law shall be deemed to *be a workmen's compensation carrier within the meaning of this coverage.

This Coverage does not apply to bodily injury to any person who is employed at and in connection with the facility; nor shall it constitute workmen's compensation insurance as required under the laws of any state.

2. INSURING AGREEMENT II is replaced by the following:

II DEFINITION OF INSUR.ED The unqualified word "insured" includes (a) the named insured and (b) any other person or organization with respect to his legal *responsibility for covered damages or covered environmental cleanup costs because of bodily injury, property damage or environmental damage caused by the nuclear energy hazard.

Subdivision (b) above does not include as an insured the United States of America or any of its agencies, except the Tennessee Valley Authority

  • ME-71 {1/1/90) Page 2 of 10

Subject to CONDITION 3 and the other provisions of this policy. the insurance applies separately to each insured against whom claim is made or suit is brought.

3. INSURING AGREEMENT III is replaced by the following:

III DEFINITIONS Wherever used in this policy:

"bodily injury" means bodily injury. sickness or disease.

including death resulting therefrom. sustained by any person.

"covered damages" means damages because of bodily injury or property damage to which this policy applies: but covered damages do not include environmental cleanup costs or on-si te cleanup costs.

"covered environmental cleanup costs" means only those environmental cleanup costs which are incurred directly for monitoring. testing for, cleaning up. neutralizing or containing environmental damage as the result of an extraordinary nuclear occurrence or a transportation incident: but covered environmental cleanup costs do not include on-site cleanup costs.

"disposal site" means any structure. basin. excavation.

premises or place prepared as a dump or site for the disposal of waste materials of a general nature, but which may also be used for the disposal of waste materials containing small amounts of nuclear material.

"environment" includes land. the atmosphere, and all watercourses. bodies of water and natural resources, whether on. above or below the surface of the ground.

"environmental cleanup costs" include all loss. cost or expense arising out of any governmental decree. order or directive (other than an award of covered damages in an action at law) requiring or r.equesting a person or organization to undertake or pay for monitoring. testing for. cleaning up. neutralizing or containing contamination of the environment, whether the contamination is on. above or below the surface of the ground.

"environmental damage" means contamination of the environ-ment by nuclear material.

"environmental protection obligations" include all obligations of any person or organization (1) relating to the protection of the environment from contamination or imminent danger of contamination, and (2) imposed by any governmental laws, regulations or ME-71 (1/1/90) Page 3 of 10

ordinances.

"extraordinary nuclear occurrence" means an event which the United States Nuclear Regulatory Commission has determined to be an extraordinary nuclear occurrence as defined in the Atomic Energy Act of 1954. or in any law amendatory thereof.

"governmental" refers to federal. state and local governments and authorities. including courts. agencies and political subdivisions thereof.

"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 Mutual Atomic 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.

"insured shipment" means a shipment of source material.

special nuclear material. spent fuel. waste. or tailings or wastes produced 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 transportation of the material is not by predeter-mination to be interrupted by removal of the material from a transporting conveyance for any purpose other than the continuation of its transpor-tation. 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.

"nuclear energy hazard" means the radioactive. toxic.

explosive or other hazardous properties of nuclear material. but only if (1) the nuclear material is at the facility or has been discharged or dispersed therefrom without intent to relinquish possession or custody thereof to any other person or organization. or (2) the nuclear material is in an insured shipment which is away from any other nuclear facility and is in the course of transportation. including handling and temporary storage incidental thereto, within

  • ME~71 (1/1/90) Page 4 of 10
  • (a)

(b) the territorial limits of the United States of America, its territories or possessions, or Puerto Rico: or international waters or airspace, provided that the nuclear material is in the course of transportation between two points located within the territorial limits described in (a) above and there is no deviation in the course of the transportation for the purpose of going to any other country, state or nation, except for the purpose of going to or returning from a port or place of refuge as the result of an emergency.

"nuclear facility" means "the facility" as defined in any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters. The term "nuclear facility" also means (1) any nuclear reactor, (2) any equipment or device designed or used for (a) separating the isotopes of uranium or plutonium, (b) processing or utilizing spent fuel, or (c) handling, processing or packaging waste, (3) any equipment or device used for the processing, fabricating or alloying of special nuclear material if at any time the total amount of such material in the custody of the insured at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams of uranium 235, (4) any structure, basin, excavation, premises or place prepared or used for the storage or disposal of waste, and includes the site on which any of the foregoing is located, all operations conducted on such site and all premises used for such operations.

"nuclear material" means source material, special nuclear material or byproduct material.

"nuclear reactor" means any apparatus designed or used to sustain nuclear fission or a self-sustaining chain reaction or to contain a critical mass of fissionable material.

"on-site cleanup costs" include all loss, cost or expense arising out of on-site cleanup obligations.

"on-site cleanup obligations" include all obligations of any person or organization, imposed by common law or otherwise, to undertake or pay for monitoring, testing for,

  • ME-71 (l/1/90) Page 5 of 10

cleaning up, neutralizing or containing contamination by nuclear material at the facility, whether the material is on, above or below the surface of the ground.

"on-site property damage" includes all property damage to any property at the facility, whether the property is on, above or below the surface of the ground, other than aircraft, watercraft or vehicles licensed for highway use, provided such aircraft, watercraft or vehicles are not used in connection with the operation of the facility.

"property damage" means physical injury to or destruction or radioactive contamination of property, and loss of use of property so injured, destroyed or contaminated, and loss of use of property while evacuated or withdrawn from use because possibly so contaminated or because of imminent danger of contamination.

"source material," "special nuclear material," and "byproduct material" have the meanings given them in the Atomic Energy Act of 1954, or in any law amendatory thereof.

"spent fuel" means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in any nuclear reactor *

  • "the facility" means the facility described in the declarations and includes the location designated in Item 3 of the declarations and all property and operations at such location.

"transportation incident" means a discharge or dispersal of nuclear material from an insured shipment caused by collision or upset of the transporting conveyance, or an accident that breaks open, punctures or ruptures the shipping containers or containment thereon; but only if both the discharge or dispersal and the collision, upset or accident take place away from any nuclear facility and away from any disposal site, and both occur in the course of the transportation, including handling and temporary storage incidental thereto.

"waste" means any waste material (1) containing byproduct material and (2) resulting from the operation by any person or organization of any nuclear facility included within the definition of nuclear facility under paragraph (1) or (2) thereof.

4. INSURING AGREEMENT IV is replaced by the following and INSURING AGREEMENT IV-A added by the "Amendment of Coverage
  • Endorsement for Workers Claims (Facility Form)" continues to ME-71 (1/1/90) Page 6 of 10

apply:

  • IV LIMITED DEFENSE OF PARTIALLY COVERED CLAIMS OR SUITS The following provisions apply with respect to any partially covered claim or suit for which the companies' duty to defend has been limited by INSURING AGREEMENT I:

(1) The companies will defend the claim or suit unless the companies and the first named insured mutually agree on a different defense arrangement. By making such a defense. the companies shall not be considered as having waived their rights under this policy to deny payment or reimbursement of the items not covered.

(2) As soon as practicable, the first named insured, acting on behalf of all insureds. and the companies shall endeavor to reach an equitable arrangement for handling the defense and sharing the costs thereof.

(3) The companies' share of defense costs shall not exceed the portion of the total defense costs that represents the costs which would be reasonably and necessarily incurred in the defense of the claim or suit in the absence of any claim or demand for the items not covered.

(4) The companies shall have a right to contribution from the first named insured for all defense costs as they are incurred in excess of the amount of the companies' share, including reimbursement by the first named insured of all such excess costs paid by the companies.

(5) If the companies and the first named insured cannot agree on the companies' share of defense costs, the dispute shall be submitted, as a condition precedent to any right of recovery on this policy. to arbi tra-tion for a final and binding resolution. as provided in Condition 19.

5. In EXCLUSIONS (d) and (e). and in all endorsements to this policy relating thereto. the words "bodily injury or property damage" are replaced by "bodily injury. property damage or environmental damage."
6. EXCLUSION (f) is replaced by the following exclusion:

[This policy does not apply:]

(f) to on-site property damage;

7. In CONDITION 3. and in all endorsements to this policy modifying the dollar amount of the limit of liability stated in Item 4 of the declarations. the words "bodily injury or property damage" *are replaced by "bodily injury.

property damage or environmental damage."

  • ME .. 71 (1/1/90) Page 7 of 10
a. In CONDITION 4. and in all endorsements to this policy modifying the dollar amount of the total aggregate liability of the companies with respect to a common occurrence:

(a) the words "bodily injury or property damage" are replaced by "bodily injury. property damage or environmental damage"; and (b) the words "bodily injury and property damage" are replaced by "bodily injury. property damage and environmental damage."

9. In CONDITIONS 5. 11. 15 and 18. and in all endorsements to this policy relating thereto. the words "bodily injury or property damage" are replaced by "bodily injury. property damage or environmental damage."
10. CONDITION 19. DECLARATIONS. is renumbered CONDITIONS 20.
11. The following CONDITION is added to the policy:

19 ARBITRATION OF DISPUTES RELATING TO THE APPLICATION OF INSURING AGREEMENT IV All such disputes subject to paragraph (5) of INSURING AGREEMENT IV shall be submitted to a Board of Arbitration (the "Board") for a final and binding resolution of the dispute.

There shall be two parties to the arbitration: the first named insured. acting on behalf of all insureds as their duly authorized representative, and Nuclear Energy Liability Insurance Association. acting on behalf of the companies as their duly authorized representative.

Except to the extent the parties mutually agree otherwise.

the following principles will apply:

(a) The arbitration will take place in New York. New York, and will be governed by the laws of the State of New York.

(b) Either party may begin the process of arbitration by giving notice to the other party in writing of its intention to do so and the name of the arbitrator that it has appointed.

(c) The other party shall then appoint in writing anarbitrator. and the arbitrators shall appoint in writing an umpire before they begin the arbitration.

The umpire shall act as chairman of the Board.

(d) If a party fails to name its arbitrator within thirty (JO) days of the other party's written request that it do so, the requesting party may appoint an arbitrator for the party in default.

ME~71 (1/1/90) Page 8 of 10

  • {e)

(f)

If the two arbitrators fail to agree on the selection of an umpire within thirty {30) days after they have both been appointed, each of them shall name two, of whom the other shall decline one.

made by drawing lots.

The choice shall be The arbitrators and umpire shall be executive officers or former executive officers of insurance companies licensed to do business in the United States or of organizations designated as the first named insured under a Nuclear Energy Liability Policy issued by Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters; provided that the current employees of the following shall not be eligible for service without the consent of both parties:

(1) any party or likely party to the underlying claim or suit; (2) American Nuclear Insurers, MAERP Reinsurance Association or their members; or (3) any other insurer or reinsurer which has casualty insurance or reinsurance in force on any of the foregoing which may be materially affected by the Board's decision.

{g) Within thirty {30) days after the appointment of the umpire, each party shall submit its case in writing to the Board.

(h) The Board shall determine its rules of procedure, and the nature and extent of any discovery, testimony, examination or cross-examination of witnesses and oral argument permitted. The decision of any two members of the Board shall be final and binding on all parties.

All discovery, submissions of evidence, hearing of witnesses and argument shall be completed within sixty (60) days of the appointment of the umpire, provided the Board may grant one extension of thirty (30) days.

{i) The arbitrators and the umpire are not to be bound by any strict rules of legal procedure, evidence or legal precedents. They shall , however, be governed by the terms of this policy, and shall have no power to add to or change its provisions. Subject to this admonition, they shall interpret the relevant provisions of this policy as an honorable business agreement, and shall be entitled to decide, in accordanc~ with such provisions together with the other materials submitted to them, what they think is the fair and right thing to be done between the parties from a business point of view, without favoring the interest of either party.

(j) The Board shall make its award in writing within thirty (30) days after the close of the period, including any extension granted, described in paragraph {h) above *

  • ME~71 (.1/1/90)

(k) If the Board fails to make an award within the time Page 9 of 10

prescribed by paragraph (j) above, then unless an extension is agreed to by the parties. a new arbitration shall be commenced and completed in accordance with the pr9cedure set out in paragraphs (a) through (j) above *

. (1) The award of the Board signed by any two members

  • shall be final, not subject to appeal and binding on all parties, including all insurers subscribing the policy and all insureds thereunder. The award shall be treated as a matter involving interstate commerce, and may be filed or confirmed in any court of competent jurisdiction, state or federal, and judgment thereon *entered* and enforced, in accordance with the law and practice of the forum.

(m) Unless the Board decides otherwise. each party shall pay the expenses of the arbitrator appointed by or for it and one half of the other c'osts of arbitration.

(n) If an arbitrator or umpire is unable or unwilling to act, a new arbitrator or umpire, as the case may be, shall be appointed to act in his or her place. in accordance with the provisions set forth above.

(o) All materials relevant to the arbitration shall be submitted to the Board in triplicate and the filing party shall send simultaneously a copy thereof to the opposing party.

12. This endorsement applies to all claims for damages. _costs
  • expenses or other relief or recovery for which coverage is sought under this policy, and which are first made in writing against any insured on or after the effective date of this endottsementerSftaltedhi:be1owt.ie copy of the original Endorsement having the endorseme;1t number and being made part of the Nuclear Energy Liability Policy ( cility Form) as des-ignated~* 1ereon. No In;_rnyn~ - ~. ereunder.
-8'. ~A John L. . ttrocchi, Vice President-Underwriting American Nuclear Insurers Effective Date of this Endorsement _ _...;:;J..;;:a.:.:.n.=:.ua;;;:..;r'"""y~l_.,_...;...;l9_9_0"----- To form a part of Policy No. MF-7?

12:01 A.M. Standard time Issued to Power Authority of the State of New York Date of issue May 10, 1990 For the Subscribing Companies MU'l'UAL ATOMIC BNBBGY LIABILITY mmn:

By dorsement No. 114 ME-71 (1/1/90) Page 10 of 10

' I

~

Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ENDORSEMENT TO CERTIFICATE NO. N-7 Forming Part of Master Policy N~l Nuclear Energy Liability Insurance (Secondary Financial Protection)

It is agreed that effective August 20, 1988:

I.) Subparagraph (c) on Page 1 of the certificate is amended to read as follows:

(c) to bodily injury or property damage (1) with respect to which the primary fi~ancial protection described in Item 4 of the Declarations would apply but for

( i) exhaustion of its limit of liability as described in Condition 6 of the Master Policy, or (ii) the application of Insuring Agreement IV, "Application of Policy" of the primary financial protection, as amended by paragraph 3 of the Waiver of Def ens es Endorsement attached thereto, and (2) which is caused during the certificate period stated in Item 6 of the Declarations by a nuclear incident arising out of, or in connection with the nuclear reactor described in Item 3 of the Declarations, and (3) which is discovered and for which written claim is made against the insured not later than ten (10) years after the end of the certificate period stated

-in Item 6 of the Declarations. However, this subparagraph ( 3) shall not operate to bar coverage for bodily injury or property damage caused by an extraordinary nuclear occurrence.

II.) Item 4.(b) of the certificate is deleted.

III.) Item 7. of the certificate is amended to read as follows:

NE-S-14 Page 1 of 2

  • Item 7. Maximum retrospective premium (exclusive of allowance for premium taxes) payable pursuant to Condition 2 of the Master Policy with respect to each nuclear incident: $51,266 ,250.

Effective Date of this Endorsement _ _..!..A!.l<u~g~u.=.s~t.....=;20~ ......l....9~81..:.8:....___ __ To form a part of Certificate No.~N~-~7__

12:01 A. M. Standard time Issued to _...:.P..:o...:.w:..=e..:...r_A...:..u=-t:..:.h.:...:o...:..r...:..i...:..ty~o;...f;__;t...:..h...:..e-.:..S...:..ta..,..t...:..e_..;;o_f_Ne_w_Y_o_r_k_ _ _ _ _ _ _ _ _ _ _ _ _ __

,./)

Date of Issue March 23, 1990 For the ~ubsqribing C~m~anies, By 1\Jh~/-~

t 1 :re

'Presid\t

.ndorsemen t No. __.1....3.____ Countersigned by ~ .'"8', ~~~

NE-S-14 Page 2 of 2

Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ENDORSEMENT TO CERTIFICATE NO. N-7 FORMING PART OF MASTER POLICY ---- NO. 1 NUCLEAR ENERGY LIABILITY INSURANCE (Secondary Financial Protection) 1 . In paragraph (c) on Pages 1 and 2 of the certificate. and in all endorsements to the certificate relating thereto. the words "bodily injury or property damage" are amended to read "bodily injury. property damage or environmental damage".

2. This endorsement applies to all claims for damages. costs.

expenses or other relief or recovery for which coverage is sought under the policy. and which are first made in writing against any insured on or after the effective date of this endorsement stated .below .

    • .~"* . .:*~::~~:.:.

Effective Date of this Endorsement --~J..;;a.;.;.n,;,..ua;;..r_.,y;___l~,-19_9_0_ _ __ To form a part of Certificate No. N-7 12:01 A. M. Standard time Issued to Power Authority of the State of New York Date of Issue March 23, 1990 For the

.Endorsement No. 14 NE-S-18 (1/1/90)

t ..

Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS ENDORSEMENT TO CERTIFICATE NO.M-7 Forming Part of Master Policy No. 1 Nuclear Energy Liability Insurance (Secondary Financial Protection)

It is agreed that effective August 20, 1988:

I.) Subparagraph (c) on Page 1 of the certificate is amended to read as follows:

(c) to bodily injury or property damage (1) with respect to which the primary financial protection described in Item 4 of the Declarations would apply but for (i) exhaustion of its limit of liability as described in condition 6 of the Master Policy, or (ii) the application of Insuring Agreement IV, "Application of Policy" of the primary financial protection, as amended by paragraph 3 of the Waiver of Def ens es Endorsement attached thereto, and (2) which is caused during the certificate period stated in Item 6 of the Declarations by a nuclear incident arising out of, or in connection with the nuclear reactor described in Item 3 of the Declarations, and

( 3) which is discovered and for which written claim is made against the insured not later than ten ( 10) years after the end of the certificate period stated in Item 6 of the Declarations. However, this subparagraph ( 3) shall not operate to bar coverage for bodily injury or property damage caused by an extraordinary nuclear occurrence.

II.) Item 4.(b) of the certificate is deleted.

III.) Item 7. of the certificate is amended to read as follows:

  • ME-S-14 Page 1 of 2
  • Item 7. Maximum retrospective premium (exclusive of allowance for premium taxes) payable pursuant to Condition 2 of the Master Policy with respect to each nuclear incident :$14 ,883, 750.

Effective Date of this Endorsement ~~A~u~g~u~s~t-=-2~0~,~1~9~8~8;__~~~~ To form a part of Certificate No. M-7 12:01 A.H. Standard time Issued to Power Authority of the State of New York Date of issue March 23 1990 For the Subscribing Companies Endorsement No. 13

~~~~~~~~

ME-S-14 Page 2 of 2

Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS ENDORSEMENT TO CERTIFICATE NO. _M_-_7_ _

FORMING PART OF MASTER POLICY NO. 1 NUCLEAR ENERGY LIABILITY INSURANCE (Secondary Financial Protection)

1. In paragraph (c) on Pages 1 and~ of the certificate, and in all endorsements to the certificate relating thereto. the words "bodily injury or property damage" are amended to read "bodilv iniury. property damage or environmental damage".
2. This endorsement applies to all claims for damages. costs, expenses or other relief or recovery for which coverage is sought under the policy. and which are first made in writing against any insured on or after the effective date of this endorsement stated below.

~

Effective Date of this Endorsement ---=J~a~n~u-a~ry"-"1~,:.-;;1_9~90___~ To form a part of Certificate No. M-7 12:01 A.M. Standard time Issued to Power Authority of the State of New York Date of issue March 23, 1990 For the Subscribing CompanieE ndorsement No. __ 14_ _ _ _ __

ME-S-1.8. (1/1/90)

Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ENDORSEMENT TO CERTIFICATE NO.N-47 Forming Part of Master Policy N~l Nuclear Energy Liability Insurance (Secondary Financial Protection)

It is agreed that effective August 20, 1988:

I.) Subparagraph (c) on Page 1 of the certificate is amended to read as follows:

(c) to bodily injury or property damage (1) with respect to which the primarv financial protection described in Item 4 of the Declarations would apply but for (i) exhaustion of its limit of liability as described in Condition 6 of the Master Policy, or (ii) the application of Insuring Agreement IV, "Application of Policy" of the primary financial protection, as amended by paragraph 3 of the Waiver of Def ens es Endorsement attached thereto, and (2) which is caused during the certificate period stated in Item 6 of the Declarations by a nuclear incident arising out of, or in connection with the nuclear reactor described in Item 3 of the Declarations, and (3) which is discovered and for which written claim is maqe against the insured not later than ten (10) years after the end of the certificate period stated in Item 6 of the Declarations. However, this subparagraph ( 3) shall not operate to bar coverage for bodilv injury or property damage caused by an extraordinary nuclear occurrence.

II.) Item 4. (b) of the certificate is deleted.

III.) Item 7. of the certificate is amended to read as follows:

NE-S-14 Page 1 of 2

{

Item 7. Maximum retrospective premium (exclusive of allowance for premium taxes) payable pursuant to Condition 2 of the Master Policy with respect to each nuclear incident:$51,266,250 .

.. '** ... ***-***-.:.~

Effective Date of this Endorsement __..:..A.!..::u~g~u=-=s~t:......b2~0..:i..._...19...,8....8><------ To form'a part of Certificate No. N-47 12 :01 A. H. Standard time Issued to Power Authority of the State of New York Date of Issue March 23, 1990 For the Endorsement No. 13 NE-S-14 Page 2 of 2

Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ENDORSEMENT TO CERTIFICATE NO. N-47 FORMING PART OF MASTER POLICY NO. 1 NUCLEAR ENERGY LIABILITY INSURANCE (Secondary Financial Protection)

1. In paragraph (c) on Pages 1 and 2 of the certificate, and in all endorsements to the certificate relating thereto, the words "bodily injury or property damage" are amended to read "bodily injury, property damage or environmental damage".
2. This endorsement applies to all claims for damages, costs, expenses or other relief or recovery for which coverage is sought under the policy, and which are first made in writing against any insured on or after the effective date of this endorsement stated below.

., ... ... ~~::.

Effective Date of this Endorsement ___J_a_nu_a_r_..y'--1...,_1_99_0_ _ __ To form a part of Certificate No. N-47 12:01 A. M. Standard time Issued to Power Authority of the State of New York Date of Issue March 23, 1990 For the ribing Companies, By __ ___i~l_,L,.;-=...;;~~-7='~-(~_J...:;:..;.:.*~.._...;;;;=---------

\JPUSmir _/}

Endorsement No. __ 14_ __ Countersigned by ~ *'-8. ~

NE-S-18 (1/1/90)

I*.

  • Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS ENDORSEMENT TO CERTIFICATE NO. M-47 Forming Part of Master Policy N--0:--1 Nuclear Energy Liability Insurance (Secondary Financial Protection)

It is agreed that effective August 20, 1988:

I.) Subparagraph (c) on Page 1 of the certificate is amended to read as follows:

(c) to bodily injury or property damage (1) with respect to which the primary financial protection described in Item 4 of the Declarations would apply but for

( i) exhaustion of its limit of liability as

  • (ii) described in Condition 6 of the Master Policy, or the application of Insuring Agreement IV, "Application of Policy" of the primary financial protection, as amended by paragraph 3 of the Waiver of Def ens es Endorsement attached thereto, and (2) which is caused during the certificate period stated in Item 6 of the Declarations by a nuclear incident arising out of, or in connection with the nuclear reactor described in Item 3 of the Declarations, and

( 3) which is discovered and for which written claim is made against the insured not later than ten ( 10) years after the end of the certificate period stated in Item* 6 of the Declarations. However, this subparagraph ( 3) shall not operate to bar coverage for bodily injury or property damage caused by an extraordinary nuclear occurrence.

II.) Item 4.(b) of the certificate is deleted.

III.) Item 7. of the certificate is amended to read as follows:

ME-S-14 Page 1 of 2

  • Item 7. Maximum retrospective premium (exclusive of allowance for premium taxes) payable pursuant to Condition 2 of the Master Policy with respect to each nuclear incident:$14,883,750 .
  • ... ::j

.. **-.. ***-* . *.***....*.*. *, :_ '* .;;._ :. ~::. :,.L:';,,:::~:.~:~

Effective Date of this Endorsement ~-A_u~g~u~s_t~20_._,_1_9_8_8~~~~~ To form a part of Certificate No. M-47 12:01 A.M. Standa'rd time Issued to Power Authority of the State of New York Date of issue March 23, 1990 For the Subscribing Companies I~KR.'ilRITKRS KU'l'UAL ATOMIC KNKRGY Endorsement No. 13 By ~~*~\l)) ~

Countersigned b y ; ; .

ME-S-14 Page 2 of 2

Nuclear Ener_gy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS

  • ENDORSEMENT TO CERTIFICATE NO. .-. .M-_.4. -.7__

FORMING PART OF MASTER POLICY NO. 1 NUCLEAR ENERGY LIABILITY INSURANCE

{Secondary Financial Protection)

1. In paragraph (c) on Pages 1 and 2 of the certificate, and in all endorsements to the certificate relating thereto, the words "bodily injury or property damage" are amended to read "bodily iniury, property damage or environmental damage".
2. *This endorsement applies to all claims for damages, costs_,

expenses or other relief or recovery for which coverage is sought under the policy, and which are first made in writing against any insured on or after the effective date of this endorsement stated below.

Effective Date of this Endorsement ___..;:;J~a~n~ua_r~y~l~,---..19~9_0________ To form a part of Certificate No. M-47 12:01 A.M. Standard time Issued to Power Authority of the State of New York Date of issue March 23, 1990 For the Subscribing Companies

.ndorsemen t No. _____1_4_________

ME-S-18 (1/1/90)

  • Nuclear Energy LlabHlty Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION WAIVER OF DEFENSES ENDORSEMENT (Extraordinary Nuclear Occurrence)

Effective August 20, 1988, the named insured, acting for himself and every other insured under the policy, and the members of Nuclear Energy Liability Insurance Association 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 con~uct of the claimant or the fault of the insureds, including but not limited to:

(i)

,(ii) negligence, contributory negligence, (iii) assumption of risk, and (iv) unforeseeable intervening causes, whether involving 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.

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

2. The waivers set forth in paragraph 1. above do not apply to NE-33b Page 1 of 3

(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 workmen's 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 law.

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 other 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 (20) 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 170e.

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 NE-33b Page 2 of 3

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 occurrence as defined in the Atomic Energy Act of 1954, as amended.

"Financial protection" and "nuclear incident" have the meanings given them in the Atomic Energy Act of 1954, as amended.

"claimant" means the person or organization actually sustaining the bodily injury or property damage and also includes his assignees, legal representatives and other persons or organizations entitled to bring an action for damages on account of such injury or damage .

This is tp certify that this is a true copy of the original Endorsement having the endorsement number and being made part

?f the Nuclear Energy Liability Policy (Facility Form) as des-ignated ~1 rear~ Insurance is afforded;1iereunder .

..__. * ,,_,.) 'Jr-IL

~~~;z-.*~  ; :r,* ~

John L Q t rocchi, Vice Prc?Sr~nFtrnlre~/,{

American Nuclear Insurers ---~

Effective Date of -

this Endorsement August 20, 1988 To form a part of Policy No. NF-230

~12:01 A.M. Standard time Public Service Electric &Gas Company, Philadelphia Electric Company, Delmarva Power & Light Company, Atlantic City Electric Company Issued to Date of issue February 16, 1990 For the By

  • ndor semen t No. 115 NE-33b Page 3 of 3

Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION SUPPLEMENTARY ENDORSEMENT WAIVER OF DEFENSES REACTOR CONSTRUCTION AT THE FACILITY Effective August 20, 1988, it is agreed that in construing the application of paragraph 2 (b) o*f the WAIVER OF DEFENSES ENDORSEMENT NE.-33b with respect to an extraordinary nuclear occurrence occurring at the facility, a claimant who is employ~d 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) *rio operating license 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.

This is to certify that this "is a true copy of the original Endorsement having the endorsement number and being made part of the~ Iuclear Energy Liability Policy _(Fftility Form) as des-ignated ereon ..,,..No Ins~r- nc~ ...~~hereunder.

~'?>-

  • e::> * . .~

--11/  :/.1-

£.,~-A John L. Q *, rocchi, Vice President-UnderwritM'S' ...;::,,.

l'\.111erican Nuclear Insurers ii,j*:...,~ ......... . .. - .. ::

Effective Date of this Endorsement August 20, 1988 To form a part of Policy No. NF-230

~-----------------------

12: 01 A. M. Standard time Public Service Electric &Gas Company, Philadelphia Electric Company, Delmarva Power & Light Company, Atlantic City Electric Company Date of Issue February 16, 1990 3y ----"'t-+~........:--lo..,._-=-~-.....-==--~-----------

  • ~orsement No. _ 1_16_ __ Coun t ers i gned by ~.

NE-39b

Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION Restriction of Companies Obligation to Defend, Investigate; Negotiate or Settle Any Claim or Suit (Section 170 o. of the Atomic Energy Act of 1954, as amended)

Effective August 20, 1988, it is agreed that whenever, pursuant to subsection 170 O. of the Atomic Energy Act of 1954 ~ as amended, an appropriate U.S. District Court determines that liability from a single nuclear incident may exceed the limit of liability under the applicable limit of liability under subsection 170 e.(1) (A), (B) and (C) of the Atomic Energy Act of 1954, as amended, the companies obligations under Insuring Agreement I, to defend, investigate, negotiate or settle any claim or suit under the policy do not include any obligation that would necessitate or result in the companies incurring legal costs, including costs of initiating, prosecuting, investigating, settling, or defending claims or suits, which are not authorized for payment by a court pursuant to such subsection 170 0. .

This is to certify that this is a true copy of the origfna~ ** **

Endorsement having the endorsement number and being made part

?f the l uclear Energy Liability P*o. licy (F~~ility Form) C\S des-ignated I reon. No Ins~r 1ce is_afforde hereunder.

'-~ ~.1/~ .

. cs . ~ ~'l~*~~i!li John L Qu rocchi, Vice President-lJnde~rit'i~\;..

American Nuclear Insurers Effective Date of this Endorsement August 20, 1988 To form a part of Policy No. NF-230 12:01 A.M. Standard time Public Service Electric &Gas Company, Philadelphia Electric Company, Issued to Delmarva Power & Light Company, Atlantic City Electric Company Date of issue February 16, 1990 For the By

  • Endorsement No. 117 NE-70

Nuclear Energy Llablllty Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION WAIVER OF DEFENSES ENDORSEMENT (Extraordinary Nuclear occurrence)

The named insured. acting for himself and every other insured under the policy. and* the members of Nuclear Energy Liability Insurance Association 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 transportati~n 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 the insureds. including but not limited to:

(i) negligence.

(ii) contributory negligence, (iii) assumption of risk. and (iv) unforeseeable intervening causes. whether involving th.e conduct of a third person. or an act of Cod,

  • (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 insiituted 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.

The waiver of any such issue or defense shall be effective .

regardless of whether such issue or defense may otherwise be deemed jurisdictional or 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, property damage or environmental
  • NE-33c (1/1/90) damage which is intentionally sustained by the cla*imant or which results from a nuclear incident intentionally and wrongfully caused by the claimant;
  • Page 1 of 3

(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 workmen's 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 law.

3* The waivers set forth in paragraph l. above shall be effective only with respect to bodily injury. property damage or environmental damage to which the policy applies under its terms other than this endorsement: provided.

however, that with respect to bodily injury. property damage or environmental damage resulting from an extraordinary nuclear occurrence, the provisions of COVERAGES A and C of the policy providing coverage for bodily injury, property damage or environmental damage caused during the policy period by the nuclear energy hazard and which is discovered and for which written claim

  • is made against the insured not later than ten (10) years after the end of the policy period shall not operate to bar coverage for bodily injury, property damage or environmental 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 ( 20) 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 witpin the protection afforded under (a) the provisions of the policy applicable to the financial protection required of the named insured:

(b) the agreement of indemnif !cation 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 170e.

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.

NE-33c (1/1/90) Page 2 of 3

4. Subject to all of the limitations stated in this endorsement and in the Atomic Energy Act of 19 54. 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. property damage or environmental 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 occurrence as defined in the Atomic Energy Act of 1954, as amended.

"Financial protection" and "nuclear incident" have the meanings given them in the Atomic Energy Act of 1954, as amended.

"claimant" means the person or organization actually sustaining the bodily injury, property damage or environmental damage and also includes his assignees, legal representatives and other persons or organizations entitled to bring an action for damages on account of such injury or damage .

  • This is to certi'fy th a t th'1s 1s
  • a true copy of the original *,*t Endorsement having the endorsement number and bein

?f tl;edt~..Juclear E1:er9v Liability Policy (F:i ility Form) a~ ~:~e part tgna e xeon. No Ins~- r- ;ce is C\tforde - hereunder -

~ '"<&;:('I .

C:,';) * ~~--'t' *~ *~~-.

  • . ~ -

John _L Que t occhi, Vice President-Underwritii ~

American Nuclear Insurers Effective Date of this Endorsement ___J_a_n_u_a_r_y_l_,_l_9_9_o____ To form a part of Policy No. _ _N_F_-_2_3_0__

12:01 A. M. Standard time Public Service Electric &Gas Company, Philadelphia Electric Company, DelMarva Power &Light Company, Atlantic City Electric Company Issued to ----------------------------------------------------

Date of Issue February 16, 1990

~dorsement No. 118 NE-33c (1/1/90) Page 3 of 3

~

I Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION 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 NE-JJc 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) no operating license has been issued by the Nuclear Regulatory Commission with respect to the nuclear reactor, and

( J) the claimant is not employed in connection with the possession, storage, use or transfer of nuclear material at the facility.

This is to certify that this 'is a true copy of the originqJ Endorse~ent h':'_ving the endorsement number and being made rt

?f the~Nuclear .!:i:ergy Liability Policy C cility Form) as des* pa 1gnate hGreon. l'~o 1~.sance i,§, affor .

  • hereunder.

1

~ <:::,{;I; '

  • c=..' * ~2£;~{~

John ,L 1 ttrocchi, Vice President-Underwr '/fg~

Amencan Nuclear fnsurers

  • Effective Date of NF-230 this Endorsement January l , 1990 To form a part of Policy No.

12:01 A. M. Standard time Public Service Electric & Gas Company, Philadelphia ~lectric Company, Delmarva Power & Light Company, Atlantic City Electric Company Issued to _____:::..:.:,=.,:_:_:::__:_-=..:_.:______.:;_____~------------------------------~------~

Date of Issue February 16, 1990 For

~ndorsement No. 119 NE-39c (1/1/90)

Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION

  • It is agreed that:

1.

AMENDATORY ENDORSEMENT (Facility Form)

INSURING AGREEMENT I is replaced by the following:

I COVERAGE A - LIABILITY

--To pay on behalf of the insured all sums which the insured shall become legally obligated to pay as covered damages because of bodily injury or property damage. or as covered environmental cleanup costs because of environmental damage. This Coverage applies only to bodily injury.

property damage or environmental damage caused during the policy period by the nuclear energy hazard. and which is discovered and for which written claim is made against the insured. not later than ten (10) years after the end of the policy period.

The companies shall have the right and duty to defend any claim or suit against the insured alleging such injury or damage. and seeking damages or costs which are payable under the terms of this policy; but the companies may make such investigation. negotiation and settlement of the claim or suit as they deem expedient.

The companies' duty to defend shall be limited. as described in INSURING AGREEMENT rv. if the claim or suit also seeks any of the following. which in no event shall be construed as covered by this policy:

(1) damages for on-site property damage:

(2) recovery of on-site cleanup costs or any other cleanup costs except covered environmental cleanup costs; (3) performance of an insured's environmental protection obligations or on-site cleanup obligations; or (4) any other relief or recovery except payment of covered damages or covered environmental cleanup costs.

The companies' duty to defend claims or suits ends when the limit of their liability has been exhausted pursuant to CONDITION J.

Subject to INSURING AGREEMENT IV. the companies shall pay.

with respect to any claim or suit they defend. the costs incurred in the defense, including (1) costs taxed against the insured in any such suit and interest on any judgment therein:

(2) premiums on appeal bonds and bonds to release attachments in any such suit. but without obligation to apply for or furnish such bonds;

( 3) reasonable expenses, other than loss of earnings, incurred by the insured at the companies' request.

COVERAGE B - DAMAGE TO PROPERTY OF AN INSURED AWAY FROM THE FACILITY With respect to property damage caused during the policy period by the nuclear energy hazard to the property of an insured which is away from the facility, to pay to such insured those sums which such insured would have been legally obligated to pay as covered damages therefor, had such property belonged to another.

COVERAGE C - SUBROGATION - OFFSITE EMPLOYEES With respect to bodily injury caused during the policy period by the nuclear energy hazard to any employee of an insured, and which is discovered and for which written claim is made against the insured, not later than ten (10) years after the end of the policy period, to pay to the workmen's compensation carrier of such insured as follows:

All sums which such carrier would have been entitled to recover and retain as damages from another person or organization, had such person or organization alone been legally responsible for such bodily injury, by reason of the rights acquired by subrogation by the payment of the benefits required of such carrier under the applicable workmen's compensation or occupational d-isease law. An employer who is a duly qualified self-insurer under such law shall be deemed to be a workmen's compensation carrier within the meaning of this Coverage.

This Coverage does not apply to bodily injury tc any person who is employed at and in connection with the

_facility: nor shall it constitute workmen's compensation insurance as required under the laws of any state.

2. INSURING AGREEMENT II is.replaced by the following:

II DEFINITION OF INSURED The unqualified word "insured" includes (a) the named insured and (b) any other person or organization with respect to his legal responsibility for covered damages or covered environmental cleanup costs because of bodily injury, property damage or environmental damage caused by the nuclear energy hazard.

Subdivision (b) above does not include as an insured the United states of America or any of its agencies, except the Tennessee Valley Authority.

Subject to CONDITION 3 and the other provisions of this policy, the insurance applies separately to each insured

  • against whom claim is made or suit is brought.

2

3. INSURING AGREEMENT III is replaced by the following:
  • III DEFINITIONS Wherever used in this policy:

"bodily injury" means bodily injury. sickness or disease.

including death resulting therefrom. sustained by any person.

"covered damages" means damages because of bodily injury or property damage to which this policy applies: but covered damages do not include environmental cleanup costs or on-site cleanup costs.

"covered environmental cleanup costs" means only those environmental cleanup costs which are incurred directly for monitoring. testing for. cleaning up. neutralizing or containing environmental damage as the result of an extraordinary nuclear occurrence or a transportation incident: but covered environmental cleanup costs do not include on-site cleanup costs.

"disposal site" means any structure. basin. excavation.

premises or place prepared as a dump or site for the disposal of waste materials of a general nature. but which may also be used for the disposal of waste materials containing small amounts of nuclear material.

"environment" includes land. the atmosphere. and all watercourses. bodies of water and natural resources.

whether on. above or below the surface of the.ground.

"environmental cleanup costs" include all loss. cost or expense arising out of any governmental decree, order or directive (other than an award of covered damages in an action at law) requiring or requesting a person or organization to undertake or* pay for monitoring. testing for. cleaning up, neutralizing or containing contamination of the environment. whether the contamination is on. above or below the surface of the ground.

"environmental damage" means contamination of the environ-ment by nuclear material.

"environmental protection obligations" include all obligations of any person or organization

( 1) relating to the protection of the environment from contamination or imminent danger of contamination.

and (2) imposed by any governmental laws. reg~lations or ordinances.

"extraordinary nuclear occurrence" means an event which the United States Nuclear Regulatory commission has

  • determi-ned to be an extraordinary nuclear occurrence as 3

defined in the Atomic Energy Act of 1954, or in any law amendatory thereof *

  • kgovernmental" refers to federal, state and local governments and authorities, including courts, agencies and political subdivisions thereof.

"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 Mutual Atomic Energy Liability Underwriters, or

(~) 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.

"insured shipment" means a shipment of source material, special nuclear material, spent fuel, waste, or tailings or wastes produced 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 th*e transportation of the material is not by predeter-mination to be interrupted by removal of the material from a transporting conveyance for any' purpose other than the continuation of its transpor-tation, or (2) from the facility to any other location, but cmly until the material is removed from a transporting conveyance for any purpose other th&n the continuation of its transportation.

"nuclear energy hazard" means the radioactive, toxic, explosive or other hazardous properties of nuclear material, but only if (1) the nuclear material is at the facility or has been discharged or dispersed therefrom without intent to relinquish possession or custody thereof to any other person or organization, or (2) the nuclear material is in an insured shipment which is away from any other nuclear facility and is in the course of transportation, including handling and temporary storage incidental 'thereto, within (a) the territorial limits of the United states of America, its territories or possessions, or Puerto Rico: or (b) international waters or airspace, provided that the nuclear material is in the course of

  • transportation between two points located within 4

the territorial limits described in (a) above and there is no deviation in the course of the transportation for the purpose of going to any other country, state or nation, except for the purpose of going to or returning from a port or place of refuge as the result of an emergency.

"nuclear facility" means "the facility" as defined in any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters. The term "nuclear facility" also means (1) any nuclear reactor, (2) any equipment or device designed or used for (a) separating the isotopes of uranium or plutonium, (b) processing or utilizing spent fuel, or (c) handling, processing or packaging waste, (3) any equipment or device used for the processing, fabricating or alloying of special nuclear material if at any time the total amount of such material in the custody of the insured at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams of uranium 235, (4) any structure. basin, excavation, premises or place prepared or used for the storage or disposal of

-waste, and includes the site on which any of the foregoing is located, all operations conducted on such site and all premises used for such operations.

"nuclear material" means source material, special nuclear material or byproduct material.

"nuclear reactor" means any apparatus designed or used to sustain nuclear fission or a self-sustaining chain reaction or to contain a critical mass of fissionable material.

"on-site cleanup costs" include all loss, cost or expense arising out of on-site cleanup obligations.

"on-site cleanup obligations" include all obligations of any person or organization, imposed by common law or otherwise, to undertake or pay for monitoring, testing for, cleaning up, neutralizing or containing contamination by nuclear material at the facility, whether the material is on, above or below the surface of the ground.

"on-site property damage" includes all property damage to any property at the facility, whether the property is on, above or below the surface of the ground, other than aircraft, watercraft or vehicles licensed for highway use, 5

provided such aircraft. watercraft or vehicles are not used in connection with the operation of the facility *

  • "property damage" means physical injury to or destruction or radioactive contamination of property. and loss of use of property so injured, destroyed or contaminated, and loss of use of property while evacuated or withdrawn from use because possibly so contaminated or because of imminent danger of contamination.

"source material," "special nuclear material," and "byproduct material" have the meanings given them in the Atomic Energy Act of 1954, or in any law amendatory thereof.

"spent fuel" means any fuel element or fuel component.

solid or liquid, which has been used or exposed to radiation in any nuclear reactor.

"the facility" means the facility described in the declarations and includes the location designated in Item 3 of the declarations and all property and operations at such location.

"transportation incident" means a discharge or dispersal of nuclear material from an insured shipment caused by collision or upset of the transporting conveyance, or an accident that breaks open. punctures or ruptures the shipping containers or containment thereon; but only if both the discharge or dispersal and the collision, upset or accident take place away from any nuclear facility and away from any disposal site, and both occur in the course of the transportation. including handling and temporary storage incidental thereto.

"waste" means any waste material (1) containing byproduct material and (2) resulting from the operation by any person or organization of any nuclear facility included within the- definition. of nuclear facility under paragraph (1) or (2) thereof.

4. INSURING AGREEMENT IV is replaced by the following and INSURING AGREEMENT IV-A added by the "Amendment of Coverage Endorsement for Workers Claims (Facility Form)"

continues to apply:

IV LIMITED DEFENSE OF PARTIALLY COVERED CLAIMS OR SUITS The following provisions apply with respect to any partially covered claim or suit for which the companies' duty to defend has been limited by INSURING AGREEMENT I:

(1) The companies will defend the claim or suit unless the companies and the first named insµred mutually

  • agree on a different defense arrangement.

6 By making

such a defense, the companies shall not be considered as having waived their rights under this policy to deny payment or reimbursement of the items not covered.

(2) As soon as practicable, the first named insured, acting on behalf of all insureds, and the companies shall endeavor to reach an equitable arrangement for handling the defense and sharing the costs thereof.

(3) The companies' share of defense costs shall not exceed the portion of the total defense costs that represents the costs which would be reasonably and necessarily incurred in the defense of the claim or suit in the absence of any claim or demand for the items not covered.

(4) The companies shall have a right to contribution from the first named insured for all defense costs as they are incurred in excess of the amount of the companies' share, including reimbursement by the first named insured of all such excess costs paid by the companies.

(5) If the companies and the first named insured cannot agree on the companies' share of defense costs, the dispute shall be submitted, as a condition precedent to any right of recovery on this policy, to arbitra-tion for a final and binding resolution, as provided in Condition 19.

5. In EXCLUSIONS (d) and (e). and in all endorsements to this policy relating thereto, the words "bodily injury or property damage" are replaced by "bodily injury, property damage or environmental damage."
6. EXCLUSION (f) is replaced by the following exclusion:

[This policy does not apply:]

(f) to on-site property damage;

7. In CONDITION 3, and in all endorsements to this policy modifying the dollar amount of the limit of liability stated in Item 4 of the declarations, the words "bodily injury or property damage" are replaced by "bodily injury, property damage or environmental damage."
8. In CONDITION 4, and in all endorsements to this policy modifying the dollar amount of the total aggregate liability of the companies with respect to a common occurrence:

(a) the words "bodily injury or property damage" are replaced by "bodily injury, property damage or environmental damage": and (b) the words "bodily injury and property damage" are replaced by "bodily - injury, property damage and environmental damage."

7

9. In CONDITIONS s. 11. 15 and 18. and in all endorsements to this policy relating thereto. the words "bodily injury or property damage" are replaced by "bodily injury. property damage or environmental damage."
10. CONDITION 19. DECLARATIONS. is renumbered CONDITION 20.
11. The following CONDITION is added to the policy:

19 ARBITRATION OF DISPUTES RELATING TO THE APPLICATION OF INSURING AGREEMENT IV All such disputes subject to paragraph (5) of INSURING AGREEMENT IV shall be submitted to a Board of Arbitration (the "Board") for a* final and binding resolution of the dispute.

There shall be two parties to the arbitration: the first named insured. acting on behalf of all insureds as their duly authorized representative. and Nuclear Energy Liability Insurance Association. acting on behalf of the companies as their duly authorized representative.

Except to the extent the parties mutually agree otherwise. the following principles will apply:

(a) The arbitration will take place in New Yol;'k. New York. and will be governed by the laws of the State of New York.

(b) Either party may begin the process of arbitration by giving notice to the other party in writing of its intention to do so and the name of the arbitrator that it has appointed.

(c) The other party shall then appoint in writin~ an arbitrator. and the arbitrators shall appoint in writing an umpire before they begin the arbit~ation.

The umpire shall act as chairman of the Board.

(d) If a party fails to name its arbitrator within thirty (30) days of the other party's written request that it do so. the requesting party may

-appoint an arbitrator for the party in default.

(e) If the two arbitrators fail to agree on the selection of an umpire within thirty (30) days after they have both been appointed. each of them shall name two. of whom the other shall decline one. The choice shall be made by drawing lots.

(f) The arbitrators and umpire shall be executive officers or former executive officers of insurance companies licensed to do business in the United States or of organizations designated as the first named insured under a Nuclear Energy Liability Policy issued by Nuclear Energy Liability 'Insurance Association or Mutual Atomic Energy Liability Underwriters; provided that the current employees of the following shall not be eligible for service without the consent of both parties:

8

(1) any party or likely party to the underlying claim or suit; (2) American Nuclear Insurers, MAERP Reinsurance Association or their members: or (3) any other insurer or reinsurer which has casualty insurance or reinsurance in force on

-any of the foregoing which may be materially affected by the Board's decision.

(g) Within thirty (30) days after the appointment of the umpire. each party shall submit its case in writing to the Board.

(h) The Board shall determine its rules of procedure. and the nature. and extent of any discovery. testimony.

examination or cross-examination of witnesses and oral argument permitted. The decision of any two members of the Board shall be final and binding on all parties. All discovery. submissions of evidence.

hearing of witnesses and argument shall be completed within sixty (60) days of the appointment of the umpire. provided the Board may grant one extension of thirty (30) days.

(i) The arbitrators and the umpire are not to be bound by any strict rules of legal procedure, evidence or legal precedents. They shall. however. be governed by the terms of this policy. and shall have no power to add to or change its provisions. Subject to this admonition. they shall interpret the relevant provisions of this policy as an honorable business agreement. and shall be entitled to decide. in accordance with such provisions together with the other materials submitted to them. what they think is the fair and right thing to be done between the parties from a business point of view, without favoring the interest of either party.

- (j) The Board shall make its award in writing within thirty (30) days after the close of the period, including any extension granted. described in paragraph (h) above.

(k) If the_ Board fails to make an award within the time prescribed by paragraph (j) above. then unless an extension is agreed to by the parties. a new arbitration shall be commenced and completed in accordance with the procedure set out in paragraphs (a) through (j) above.

(1) The award of the Board signed by any two members shall be final, not subject to appeal and binding on all parties. including all insurers subscribing the policy and all insureds thereunder. The award shall be treated as a matter involving interstate commerce.

and may be filed or confirmed in any court of competent jurisdiction, state or federal. and judgment thereon entered and enforced. in accordance with the law and practice of the forum *

  • 9

(m) Unless the Board decides otherwise. each party shall pay the expenses of the arbitrator appointed by or for it and one half of the other costs of arbitration.

(n) If an arbitrator or umpire is unable or unwilling to act. a new arbitrator or umpire. as the case may be.

shall be appointed to act in his or her place. in accordance with the provisions set forth above.

(o) All materials relevant to the arbitration shall be submitted to the Board in triplicate and the filing party shall send simultaneously a copy thereof to the opposing party.

12. This endorsement applies to all claims for damages. costs.

expenses or other relief or recovery for which coverage is sought under this policy. and which are first made in writing against any insured on or after the effective date of this endorsement stated below.

This is to certify that this is a t P

  • Endorsement havino th d ru_ copy of the original f h ~ e en orsement nu b d

? ~ e~~uclear Energy Liability P*o.lic11 (F-~\~r an being made part ignated ereon. No Insuranc . ~"" <lCl ity Form) as des-

. ~ ..... ') e is~ a11orde hereunder. .

. C ~ '<::.:~r?'

~ohn _L .. 'trocchi, Vic~ Pres~~~~-...

mencan Nuclear Insurers '~* 1~

10 Effective Date of this Endorsement____~~J~a~n~u~a~r~v~l~*--=1~9~9~0--:---:-:----_,....--~To form a part of Policy No NF-230 12:01 A.M. Standard Time Public Service & Electric & Gas Company, Philadelphia Electric Company, Issued t 0,___gD~e~lmma~rJV@a~P£OW~e~rc...;&L.!:L~i~g~ht~C~o~m~p~alln~y~,~A~t~l~a~n~t~ic::.........::C~i~t~y-=-E~le~c~t~r~i~c~C~om~p~a~n~y~~~~~~~~~

Date of Issue _________.!.F~e~b~r~u~a~r~v~l~6~*--=-19~9~0..__

dorsement No __~1_2_0___________

iE-7i (l/i/90)

Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION RESTORATION OF LIMIT OF LIABILITY ENDORSEMENT It is agreed that:

1. Payments made and expenses incurred by the companies under this policy have reduced, in accordance with Condition 3 of the policy, the limits of the companies' liability stated in Item 4 of the Declarations and in all Increase of Limit of Liability Endorsements.
2. The limit of liability stated in Endorsement No. 111 which has been reduced is hereby restored to $ 155,000,000.00 This restored limit applies only with respect to obligations assumed or expenses incurred because of bodily injury, property damage or environmental damage caused by the nuclear energy hazard on or after the effective date of this endorsement.
3. The limits of liability stated in the policy shall not be cumulative.

Each payment made by the companies after the effective date of this endorsement for any loss or expense covered by the policy shall reduce by the amount of such payment every limit of liability, regardless of which limit of liability applies with respect to the bodily injury, property damage or environmental damage out of which such loss or expense arises.

Effective Date of 30 this Endorsement __J_a_nu_a_r_y_l_,_1_9_9_0_ _ _ _ _ _ _ To form a part of Policy No NF- 2 12:01 A.M. Standard Time Public Service Electric & Gas Company, Philadelphia Electric Company, Is sued t 0 -~De::..l..'....'.m.:.::a::...:r_:V:....::a:__:_P.:::.o..:.:w.::.e..:...r-=.&_;L:..1~*g?.:.h.:..:t:.....:C:..:o.:..:.:m:i:.p.::.a:..;;nY~*. . :.A.:. .t:. .:l. . :.a:. .:n. . :.t. :. i..:..c_C.:..,__it...;Y:...._E_l_e_c_t_r_i_c_C_om-'p'-a_n...;;;y_ _ _ _ _ _ __

For the subscribing companies Date of Issue April 13, 1990

~

~--=-----~----~

By Endorsement No 121

Countersigned by -----------~~-----

Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT CALENDAR YEAR 1990 It is agreed that Items 1 and 2 of Endorsement No. 113 are amended to read:

1. ADVANCE PREMIUM: It is agreed that the Advance Premium due the companies for the period designated above is: $ 1.253.067.00
2. STANDARD PREMIUM AND RESERVE PREMIUM: In the absence of a change in the Advance Premium indicated above, it is agreed that, subject to the provisions of the Indus'try Credit Rating Plan, the Standard Premium is said Advance Premium and the Reserve Premium is: $ 950,006.00 Additional Premium: $ _ _.;_78;;..*~o~o----~

Effective Date of this Endorsement January 1, 1990 To form a part of Policy No NF-230 12:01 A.M. Standard Time Public Service Electric &Gas Company, Philadelphia Electric Company, Issued to Delmarva Power & Light Company, Atlantic City Electric Company Date of Is s ue_ _--=-A.:. :p;. :. r. . :. i. . :. l__.;;;..13"-"-,-"1-.9_9.. ;;.0_____ For the Subsf ribing Companies Endorsement No NE-36

- - -122 ----

Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION

  • ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT CALENDAR YEAR 1989 It is agreed that Items 1 and 2 of Endorsement No. 114 are amended to read:
1. ADVANCE PREMIUM: It is agreed that the Advance Premium due the companies for the period designated above is: $ 1.174,059.00
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 Industry Credit Rating
  • Plan, the Standard Premium is said Advance Premium and the Reserve Premium is:

Addi ti ona l Premium:

$_*_88_9_,._9""""6_0-'-._00""------

$19,574.00

!his ~~ to cer~ify _that this i~ a true copy of the original Endo1..,ement navmg the endorseme,..,t num'oar a d b . d

?f the

    • ~ * *** " n

,Nuc~'ar .tr.1er;3y Liability Policy (fociF .. Form) as des-emg ma e part 1gnateo her n. li:.h,.~ura~c7.'t is .r

  • d
  • .*--*"'- "1 ~ .reun er.

'-1 * -~../~*fj.

John .L Quattrocchi, Vice President-Undeiwriting- ~

American Nuclear Insurers Effective Date of this Endorsement January 1, 1989 To form a part of Policy No NF-230 12:01 A.M. Standard Time Public Service Electric &Gas Company, Philadelphia Electric Company, Issued to Delmarva Power &Light Company, Atlantic City Electric Company Date of Issue April 13, 1990

_r_t_h_e~~u-b-~~:~r~i~b~i--~-g----C-.::om_p_a_n_i_e_s---__,,.~

---'----=-----------

Endorsement No NE-36 123

Countersigned by_ _ _ ~T-ir- -~-'8=P-R," "ES_:_. :=I~"-'*

D""":=:.... ""'""'-'-;f-"'1't---

1-Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY. INSURANCE ASSOCIATION CHANGES IN SUBSCRIBING COMPANIES AND IN THEIR PROPORTIONATE LIABILITY ENDORSEMENT CALENDAR YEAR 1990

1. It is agreed that with respect to bodily injury, property damage or environmental damage caused, during the effective period of this endorsement, by the nuclear energy hazard:
a. The word "companies" wherever used in the policy means the subscribing companies listed below.
b. The policy shall be binding on such companies only.
c. Each such company shall be liable for its proportion of any obligation assumed or expense incurred under the policy because of such bodily injury, property damage or environmental damage as designated below.
2. It is agreed that the effective period of this endorsement is from the beginning

-~0.. of the effective date of this endorsement stated below to the close of December 31, 1990, or to the time of the termination or cancellation of the policy, if

.{lj ' sooner.

'E~

° C/)

~ gi ~ Aetna Casualty & Surety Co. 12.917337%

  • 5, *@ ---
  • Al l i anz Insurance Canpany 1.515634X
  • r:.: ..o  !§ !ii Allstate Insurance COIJ1J6nY 5.535510X American Home Assurance Co. 0.692369X 1:-J'U~§ Continental Casualty C01J1J6ny 5.341750X
>. Q) Continental Insurance Canpany 10.333870X
El

... .s:: &> Federal Insurance Carpany 2.755699X

,,§* §i
: ._., &! ~-iS General Ins. Co. of America Hanover Insurance Carpany
1. 722312X 0.595059X CJ  !:': ::>, 0 Hartford Fire Insurance Co. 10.333870X ill Q) : -

Highlands Insurance Carpany 0.344462X

.a:::l E \)) r:i..o (/) Hane Indennity C01J1J6ny Ins. Co. of North America 1.614667X 7.750403%

ctl C/)

..... Z' ()) *-

Motors Insurance Corporation 0.430578%

{/)..g~ t) Ohio Casualty Insurance Co. 0.172231X

-~ s:: ~g § ., *-

.\2 ()) .~. ..... "' Providence Washington Ins. Co. 0.193760X

..c ()) ....l ;J -*~ Reliance Insurance Corrpany 0.516694%

<tlm'-' -£] 5!.E ~~ ~ *:Jai Royal Ins. Co. of America St. Paul Fire &Marine Ins. co.

3.616855%

5.991922X

...c:: s:::' ~ 0 ' ~

....,:;,, *-> fJl. c z "'

  • -- -r:.
5 State Farm Firm & Casualty Co. 0.861156%

"-!-<' I\} ...

  • Tokio Marine & Fire Ins. Co. 0.516694%
  • ~::: ..c:: I-* s::: v iii Transilllerica Insurance Co. 0.861156%

8t:.ffi~ ~*-8

()) t) ...  :::l Travelers Indennity C~ny 12.856195%

oE:J~  ::iz U. s. Fire Insurance Corrpany 2.325121%

_..., ni Z .. Gr:. U.S. Fidelity & Guaranty Co. 8.611558X

.~ O' <J) i-1 ('\) '"O~ro

(\) Universal Underwriters Ins. Co. 0.1n231X

.~ .g £

....c c: ........

"io

~

.*~ Zurich Insurance C01Tpany 1.420907X

[- w 0 .;:<.' -;> ~c:: Total 100.000000%

NE-90 Effective Date of this Endorsement __J;:;.;a:::n::..:u=-a...ry...._-=l'-',__,.1~9~90;:__ _ __ To form a part of Policy No. NF-230 12:01 A. M. Standard time Public Service Electric &Gas Company, Philadelphia Electric Company, Issued to Delmarva Power & Light Company, Atlantic City Electric Company

. .e of Issue April I, 1990 For the Spti~ibing Ct'"'ganies, By ( I lv.;<5~ .<.~

Endorsement No. 124 Countersigned by

  • ~~.~

'~"r-'<1,.....---*-

c;:)---~--------t:r11~::..--------

Nuclear Energy Liability Insurance

  • MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS WAIVER OF DEFENSES ENDORSEMENT (Extraordinary Nuclear Occurrence)

Effective August 20, 1988, the named insured, acting for himself and every other insured under the policy, and the members of Nuclear Energy Liability Insurance Association 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 the insureds, including but not limited to:

(i) negligence, (ii) contributory negligence; (iii) assumption of risk, and (iv) unforeseeable intervening causes, whether involving 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.

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

2. The waivers set forth in paragraph 1. above do not apply to
  • ME-33b Page 1 of 3

(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 workmen's 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 law.

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 other 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 (20) 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 ins~red; (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 170e.

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.

ME-33b Page 2 of 3

4. Subject to all of the limiiations 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 occurrence as defined in the Atomic En-ergy Act of 1954, as amended.

"Financial protection" and "nuclear incident" have the meanings given them in the Atomic Energy Act of 1954, as amended.

"claimant" means the person or organization actually sustaining the bodily injury or property damage and also includes his assignees, legal representatives and other persons or organizations entitled to bring an action for damages on account of such_ injury or damage

  • Effective Date of this Endorsement ~A_u_g_u_s_t_2_o_,__1_9_8_8__________~ To form a part of Policy No. MF-90 12:01 A.M. Standard time Public Service Electric &Gas Company~ Philadelphia Electric Company, Issued to Delmarva Power & Light Company, Atlantic City Electric Company Date of issue February 16, 1990 For the Subscribing Companies
  • ~orsement No. 99 ME-33b Page_ 3 of 3

Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS SUPPLEMENTARY ENDORSEMENT WAIVER OF DEFENSES REACTOR CONSTRUCTION AT THE FACILITY Effective August 20, 1988, it is agreed that in construing the application of paragraph 2(b) of the WAIVER OF DEFENSES ENDORSEMENT ME-3 3b 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) no operating license 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 this Endorsement August 20, 1988

  • To form a part of *Policy No. MF-90 12:01 A.M. Standard time Public Service Electric & Gas Company, Philadelphia Electric Company, Issued to Delmarva Power & Light Company, Atlantic City Electric Company Date of issue February 16, 1990 For the Subscribing Companies

~dorsement No. 100 ME-39b

Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS Restriction of Companies Obligation to Defend, Investigate, Negotiate or Settle Any Claim or Suit (Section 170 O. of the Atomic Energy Act of 1954, as amended)

Effective August 20, 1988, it is agreed that whenever, pursuant to subsection 170 o. of the Atomic Energy Act of 1954, as amended, an appropriate U.S. District Court determines that liability from a single nuclear incident may exceed the limit of liability under the applicable li~it of liability under subsection 170 e.(l) (A), (B) and (C) of the Atomic Energy Act of 1954, as amended, the companies obligations under Insuring Agreement I, to defend, investigate, negotiate or settle any claim or suit under the policy do not include. any obligation that would necessitate or result in the companies incurring legal costs, including costs of initiating, prosecuting, investigating, settling, or defending claims or suits, which are not authorized for payment by a court. pursuant to such subsection 170 o

  • Effective Date of this Endorsement _A_u_g_u_s_t_2_0_,_1_9_8_8 _ _ _ _ _ _ To form a part of Policy No. MF-90 12:01 A.M. Standard time Public Service Electric &Gas Company, Philadelphia Electric Company, Delmarva Power & Light Company, Atlantic City Electric Company Issued to Date of issue February 16, 1990 For the Subscribing Companies KU'rUAL ATOMIC ENKllGY LIABILITY UHDKR.VRITBRS dorsement No. 101 ME-70

.Nuclear Energy Llablllty 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 Nuclear Energy Liability Insurance Association 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 the insureds. including but not limited to:

{i) negligence.

{ii) contributory negligence.

{iii) assumption of risk. and

{iv).!i' unforeseeable intervening causes. whether involving 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.

The waiver of any such issue or defense shall be effective regardless of whether such issue or defense may otherwise be deemed jurisdictional or 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. property damage or environmental damage which is intentionally sustained by the claimant or which results from a nuclear incident intentionally and wrongfully*caused by the claimant;

.ME-33c (l/1/90) Page 1 of 3

(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 workmen's 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 law.

3. The waivers set forth . in paragraph 1. above shall be effective only with respect *to bodily injury, property damage or environmental damage to which the policy applies under its terms other than this endorsement: provided, however, that with respect to bodily injury, property damage or environmental damage resulting from an extraordinary nuclear occurrence, the provisions of COVERAGES A and c of the policy providing coverage for bodily injury, property damage or environmental damage caused during the policy period by the nuclear energy hazard and which is discovered and for which written claim is made against the insured not later than ten (10) years after the end of the policy period shall not operate to bar coverage for bodily injury. property damage or environmental damage (a) which is caused during the policy period by the nuclear energy haza-rd and (b) which is discovered and for which written claim is made against the insured not later than twenty ( 20) 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 17Ce.

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.

ME-33c (1/1/90) Page 2 of 3

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, property damage or environmental 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 occurrence as defined in the Atomic Energy Act of 1954, as amended.

"Financial protection" and "nuclear incident" have* the meanings given them in the Atomic Energy Act of 1954, as amended.

"claimant" means the person or organization actually sustaining the bodily injury, property damage or environmental damage and also includes his assignees, legal representatives and other persons or organizations entitled to bring an action for damages on account of such injury or damage~

~his is to certify _that this is a true copy of the original *

  • Endorsement having the endorsement number and bein d ¥.l of 'h ~ l'f , F ... i... g ma e pa1

~

u 1::~~

1qnateo her ~ on' - 1'* ~10 'rn'"uran~

0

~~"

  • ~

~

John L

  • ttrocchi, Vice I resident-Underwr " . ~

American Nuclear Insurers uciec:r .:.nergy Liauility Policy. (F cility Form) as des-

  • '--e b*- a fford , ' J1ereunder. .*

Effective Date of this Endorsement January 1, 1990

~~~~~~~~~~~~~~~

To form a part of Policy No. MF-90 12:01 A.H. Standar:d time Public. Service Electric*& Gas Company, Philadelphia Electric Company, Delmarva Power &-Light Company, Atlantic City Electric Company Issued to Date of issue February 16, 1990 For the Subscribin~ Companies HUrUAL ATOMIC KRKRGY LIABILITY OHDERVRITKRS By

~dorsement No. 102 ME-33c (1/1/90) Page 3 of 3

Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS SUPPLEMENTARY ENDORSEMENT WAIVER OF DEFENSES REACTOR CONSTRUCTION AT THE FACILITY It is a.greed that in construing the application of paragraph 2 (b) of the WAIVER OF DEFENSES ENDORSEMENT NE-33c 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 ~xclusively in connection

, with the construction of a nuclear reactor, including all related equipment and installations at the facility, and

( 2) no operating license has been issued by the Nuclear Regulatory Commission with respect to the nuclear reactor, and I

( 3) the claimant is not employed in connection with the possession, storage, use or transfer of nuclear material at the facility.

This is to cer<-if-y th"t 1.L;~ *

"" c.. :i,., is a true f h E'.ldcrserr:ent h"'v'*10 J-h~ e ' copy o t e origi'nai

.r , ; . - "- ., ~ LI ~ naorser;-;ent n* "nba ~" -l h

  • Of i;1c ]'>/udear Fnc*1*0 y L~ ;~h"1-.,, ~, l' * :: vr a,,'-< ~emg made p:.r/
  • *- _ * ~-

101 k:\LP---* '1or::.n;-i

- -G 0*

1\1 .. 1

    • -*uJ,Jty x-*o icy. (*-
  • 1*+. "::: -

CL!Ly ! arm) as dos

...,,.c.

  • -' --~- *" '--*~ .1~1suranc~~afford, r, hereunder. ,.* "

J ...... """'~""

_,. *-:e1/

"'*&.£"-, ~ :t.

Aohn L ,,*, ttrocchi, Vice President-Und ""~~-

1nencan 1'~ude.:ir Insurers . envn Effective Date of this Endorsement January 1, 1990

~~~~~~~~~~~~~~

To form a part of Policy No. MF-90 12:01 A.H. Standard time Public Service Electric &Gas Company, Philadelphia Electric Company, Delmarva Power & Light Company, Atlantic City Electric Company Issued to Date of issue February 16, 1990 For the Subscribing Companies MUTUAL ATOMIC EHKRGY LIABILITY mIDKR By ndorsement No. ~1_0_3~~~~~~

ME-39c (l/1/90)

Nuclear Energy Liability Insurance

  • MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS It is agreed that:

AMENDATORY ENDORSEMENT (Facility Form)

1. INSURING AGREEMENT I is replaced by the following:

I COVERAGE A - LIABILITY To pay on behalf of the insured all sums which the insured shall become legally obligated to pay as covered damages because of bodily injury or property damage. or as covered environmental cleanup costs because of environmental damage. This Coverage applies only to bodily injury.

property damage or environmental damage caused during the policy period by the nuclear energy hazard, and which is discovered and for which written claim is made against the insured. not later than ten (10) years after the end of the policy period.

The companies shall have the right and duty to defend any claim or suit against the insured alleging such injury or damage. and seeking damages or costs which are payable under the terms of this policy; but the companies may make such investigation9 negotiation and settlement of the claim or suit as they deem expedient.

The companies I duty to defend shall be limited. as described in INSURING AGREEMENT IV. if the claim or suit also seeks any of the following. which in no event shall be construed as covered by this policy:

(1) damages for on-site property damage; (2) recovery of on-site cleanup costs or any other cleanup costs except covered environmental cleanup costs; '

( J) performance of an insured r*s environmental protection obligations or on-site cleanup obligations; or (4) any other relief or recovery except payment of covered damages or covered environmental cleanup costs.

The companies' duty to defend claims or suits ends when the limit of their liability has been exhausted pursuant to CONDITION J.

Subject to INSURING AGREEMENT IV. the companies shall pay, with respect to any claim or suit they defend.. the costs incurred in the defense. including (1) costs taxed against the insured in any such suit and interest on any judgment therein; (2) premiums on appeal bonds and bonds to release attachments in any such suit. but without obligation to apply for or furnish such bonds;

( 3) reasonable expenses. other than loss of earnings.

incurred by the insured at the companies' request *

  • COVERAGE B -

THE FACILITY DAMAGE TO PROPERTY OF AN INSURED AWAY FROM With respect to property damage caused during the policy period by the nuclear energy hazard to the property of an insured which is away from the facility. to pay to such insured those sums which such insured would have been legally obligated to pay as covered damages therefor. had such property belonged to another.

COVERAGE C - SUBROGATION - OFFSITE EMPLOYEES With respect to bodily injury caused during the policy period by the nuclear energy hazard to any employee of an insured. and which is discovered and for which written claim is made against the insured. not later than ten (10) years after the end of the policy period. to pay to the workmen's compensation carrier of such insured as follows:

All sums which such carrier would have been entitled to recover and retain as damages from another person or organization. had such person or organization alone been legally responsible for such bodily injury. by reason of the rights acquired by subrogation by the_ payment of the benefits required of such carrier under the applicable workmen's compensation or occupational disease law. An employer who is a duly qualified self-insurer under such law shall be deemed to be a workmen's compensation carrier within the meaning of this Coverage.

This Coverage does not apply to bodily injury to any person who is employed at and in connection with the facility: nor shall it constitute workmen's compensation insurance as required under the laws of any state.

2. INSURING AGREEMENT II is replaced by the following:

II DEFINI~ION OF INSURED The unqualified word "insured" includes (a) the named insured and (b) any other person or organization with respect to his legal responsibility for covered damages or covered environmental cleanup costs because of bodily injury. property damage or environmental damage caused by the nuclear energy hazard.

Subdivision (b) above does not include as an insured the United States of America or any of its agencies. except the Tennessee Valley Authority.

Subject to CONDITION 3 and the other provisions of this policy. the insurance applies separately to each insured

  • again~t whom claim is made or suit is brought.

2

3. INSURING AGREEMENT III is replaced by the following:

III DEFINITIONS Wherever used in this policy:

"bodily injury" means bodily injury, sickness or disease, including death resulting therefrom, sustained by any person.

"covered damages" means damages because of bodily injury or property damage to which this policy applies: but covered damages do not include environmental cleanup costs or on-site cleanup costs.

"covered environmental cleanup costs" means only those environmental cleanup costs which are incurred directly for monitoring, testing for, cleaning up, neutralizing or containing environmental damage as the result of an.

extraordinary nuclear occurrence or a transportation incident: but covered environmental cleanup costs do not include on-site cleanup costs.

"disposal site" means any structure, basin, excavation, premises or place prepared as a dump or site for the disposal of waste materials of a general nature, but which may also be used for the disposal of waste materials containing small amounts of nuclear material.

"environment" includes land, the atmosphere, and all watercourses, bodies of water and natural resources, whether on, above or below the surface of the ground *

"environmental cleanup costs" include all loss, cost or expense arising out of any governmental decree, order or directive (other than an award of covered damages in an action at law) requiring or requesting a per9on or organization to undertake or pay for monitoring, testing for, cleaning up, neutralizing or containing contamination of the environment, whether the contamination is on, above or below the surface of the ground.

"environmental damage" means contamination of the environ-ment by nuclear material.

"envir6nmental protection obligations" include all obligations of any person or organization (1) relating to the protection of ythe environment from contamination or imminent danger of contamination, and (2) imposed by any governmental laws, regulations or ordinances.

"extraordinary nuclear occurrence" means an event which the United States Nuclear Regulatory Commission has determined to be an extraordinary nuclear occurrence as

  • 3

defined in the Atomic Energy Act of 1954, or in any law amendatory thereof *

  • "governmental" refers to federal. state and local governments and authorities. including courts. agencies and political subdivisions thereof.

"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 Mutual Atomic 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 t'o any activities or operations conducted thereat.

"insured shipment" means a shipment of source material.

special nuclear material, spent fuel, waste. or tailings or wastes produced 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 transportation of the material is not by predeter-mination to be interrupted by removal of the material from a transporting conveyance for any purpose other than the continuation of its transpor-tation. 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.

"nuclear energy hazard" means the radioactive. toxic, explosive or other hazardous properties of nuclear material. but only if (1) the nuclear material is at the facility or has been discharged or dispersed therefrom without intent to relinquish possession or custody thereof to any other person or organization. or (2) the nuclear material is in an insured shipment which is away from any other nuclear facility and is in the course of transportation. including handling and temporary storage incidental thereto. within (a) the territorial limits of the United States of America. its territories or possessions. or Puerto Rico; or (b) international waters or airspace. provided that the nuclear material is in the course of transportation between two points located within 4

the territorial limits described in (a) above* and there is no deviation in the course of the

. transportation for the purpose of going to any other country. state or nation. except for the purpose of going to or returning from a port or place of refuge as the result of an emergencyo "nuclear facility" means "the facility" as defined in any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters. The term "nuclear facility" also means (1) any nuclear reactor.

(2) any equipment or device designed or used for (a) separating the isotopes of uranium or plutonium.

(b) processing or utilizing spent fuel. or (c) handling~ processing or packaging waste.

( 3) any equipment or device used for the processing.

fabricating or alloying of special nuc.lear material if at any time the total amount of such material in the custody of the insured at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof. or more than 250 grams of uranium 235.

(4) any structure. basin. excavation. premises or place prepared or used for the storage or disposal of waste, and includes the site on which any of the foregoing is located. all operations conducted on such site and all premises used for such operations.

"nuclear material" means source material. special nuclear material or byproduct material.

"nuclear reactor" means any apparatus designed or used to sustain nuc~ear fission or a self-sustaining chain reaction or to contain a critical mass of fissionable material.

"on-site cleanup costs" include all loss, cost or expense arising out of on-site cleanup obligations.

"on-site cleanup obligations" include all obligations of any person or organization. imposed by common law or otherwise. to undertake or pay for monitoring. testing for. cleaning up. neutralizing or containing contamination by nuclear material at the facility. whether the material is on. above or belo~ the surf ace of the ground.

"on-site property damage" includes all property damage to any property at the facility. whether the property is on, above or below the surface of the ground. other than

  • aircraft. watercraft or vehicles licensed for highway use, 5

provided such aircraft, watercraft or vehicles are not used in connection with the operation of the facility.

"property damage" means physical injury to or destruction or radioactive contamination of property, and loss of use of property so injured,* destroyed or contaminated, and loss of use of property while evacuated or withdrawn from use because possibly so contaminated or because of imminent danger of contamination.

"source material," "special nuclear material," and "byproduct material" have the meanings given them in the Atomic Energy Act of 1954, or in any law amendatory thereof.*

"spent fuel" means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in any nuclear reactor.

"the facility" means the facility described in the declarations and includes the location designated in Item 3 of the declarations and all property and operations at such location.

"transportation incident" means a discharge or dispersal of nuclear material from an insured shipment caused by collision or upset of the transporting conveyance, or an accident that breaks open, punctures or ruptures the shipping containers or containment thereon; but only if both the discharge or dispersal and the collision, upset or accident take place away from any nuclear facility and away from any disposal site, and both occur in the course of the transportation, including *handling and temporary storage incidental thereto.

"wa.ste" means any waste material (1) containing byproduct material and (2) resulting from the operation by any person or organization of any nuclear facility included within the definition of nuclear facility under paragraph (1) or (2) thereof.

4. INSURING AGREEMENT IV is replaced by the following and INSURING AGREEMENT IV-A added by the 11 Amendment of Coverage Endorsement for Workers Claims (Facility Form)"

continues to apply:

IV LIMITED DEFENSE OF PARTIALLY COVERED CLAIMS OR SUITS The following provisions apply with respect to any partially covered claim *or suit for which the companies' duty to defend has been limited by INSURING AGREEMENT I:

(1) The companies will defend the claim or suit unless the companies and the first named insured mutually agree on a different defense arrangement. By making

  • 6

such a defense, the companies shall not be considered as having waived their rights under this policy to deny payment or reimbursement of the items not covered.

(2) As soon as practicable, the first named insured, acting on behalf of all insureds, and the companies shall endeavor to reach an equitable arrangement for handling the defense and sharing the costs thereof.

(3) The companies' share of defense costs shall not exceed the portion of the total defense costs that represents the costs which would be reasonably and necessarily incurred in the defense of the claim or suit in the absence of any claim or demand for the items not covered.

(4) The companies shall have a right to contribution from the first named insured for all defense costs as they are incurred in excess of the amount of the companies' share, including reimbursement by the first named insured of all such excess costs paid by the companies.

(5) If the companies and the first named insured cannot agree on the companies' share of defense costs, the dispute shall be submitted, as a condition precedent to any right of recovery on this policy, to arbitra-tion for a final and binding resolution, as provided in Condition 19.

s. In EXCLUSIONS (d) and (e), and in all endorsements to this policy relating thereto, the words "bodily injury or property damage" are replaced by "bodily injury, property damage or environmental damage."
6. EXCLUSION (f) is replaced by the following exclusion:

[This policy does not apply:]

(f) to on-site property damage:

7. In CONDITION 3, and in all endorsements to this policy modifying the dollar amount of the limit of liability stated in _Item 4 of the declarations, the words "bodily injury or property damage" are replaced by "bodily injury, property damage or.environmental damage."
8. In CONDITION 4. and in all endorsements to this policy modifying the dollar amount of the total aggregate liability of the companies with respect to a common occurrence:

(a) the words "bodily injury or property damage" are replaced by "bodily injury, property damage or environmental damage"; and (b) the words "bodily injury and property damage" are replaced by "bodily injury, property damage and environmental damage."

  • 7
9. In CONDITIONS 5, 11, 15 and 18, and in all endorsements to this policy relating thereto. the words "bodily injury or property damage" are replaced by "bodily injury, property
  • 10.

11.

damage or environmental damage."

CONDITION 19, DECLARATIONS. and CONDITION 20. MUTUAL POLICY CONDITION, are renumbered CONDITIONS 20 and 21.

The following CONDITION is added to the policy:

19 ARBITRATION OF DISPUTES RELATING TO THE APPLICATION OF INSURING AGREEMENT IV All such disputes subject to paragraph (5) of INSURING AGREEMENT IV shall be submitted to a Board of Arbitration (the "Board") for a final and binding resolution of the dispute.

There shall be two parties to the arbitration: the first named insured, acting on behalf of all insureds as their duly authorized representative. and Nuclear Energy Liability Insurance Association, acting on behalf of the companies as their duly authorized representative.

  • Except to the extent the parties mutually agree otherwise. the following principles will apply:

(a) The arbitration will take place in New York, New York, and will be governed by the laws of the State of New York.

(b) Either party may begin the process of arbitration by giving notice to the other party in writing of its intention to do so and the name of the arbitrator that it has appointed.

(c) The other party shall then appoint in writing an arbitrator, and the arbitrators shall appoint in writing an umpire before they begin the arbitration.

The umpire shall act as chairman of the Board.

(d) If a party fails to name its arbitrator within thirty (30) days of the other party's written request that it do so. the requesting party may appoint an arbitrator for the party in default.

(e) If the two arbitrators fail to agree on the selection of an umpire within thirty (30) days after they have both been appointed, each of them shall name two, of whom the other shall decline one. The choice shall be made by drawing lots.

(f) The arbitrators and umpire shall be executive officers or former executive officers of insurance companies licensed to do business in the United States or of organizations designated as the first named insured under a Nuclear Energy Liability Policy issued by Nuclear Energy Liability Insurance Association or Mutual Atomic Energy "Liability Underwriters: provided that the current employees of the following shall not be eligible for service 8

without the consent of both parties:

(1) any party or likely party to the underlying claim or suit;

  • (2) American Nuclear Insurers. MAERP Reinsurance Association or their members; or (3) any other insurer or reinsurer which has casualty insurance or reinsurance in force on any of the foregoing which may be materially affected by the Board's decision.

(g) Within thirty (JO) days after the appointment of the umpire. each party shall submit its case in writing to the Board.

(h) The Board shall determine its rules of procedure. and the nature and extent of any discovery. testimony.

examination or cross-examination of witnesses and oral argument permitted. The decision of any two members of the Board shall be final and binding on all parties. All discovery. submissions of evidence.

hearing of witnesses and argument shall be completed within sixty (60) days of the appointment of t~e umpire. provided the Board may grant one extension of thirty (JO) days.

(i) The arbitrators and the umpire are not to be bound by any strict rules of legal procedure. evidence or legal precedents. They shall. however. be governed by the terms of this policy. and shall have no power to add to or change its provisions. Subject to this admonition. they shall interpret the relevant provisions of this policy as an honorable *business agreement. and shall be entitled to decide. in accordance with such provisions together with the other materials submitted to them. what they think is the fair and right thing to be done between the parties from a business point of view. without favoring the interest of either party.

(j) The Board shall make its award in writing within thirty (30) days after the close of the period.

including any extension granted. described in paragraph (h) above.

(k) If the Board fails to make an award within the time prescribed by paragraph ( j) above. then unless an extension is agreed to by the parties. a new arbitration shall be commenced and completed in accordance with the procedure set out in paragraphs (a) through (j) above.

(1) The award of the Board signed by any two members shall be final. not subject to appeal and binding on all parties. including all insurers subscribing the policy and all insureds thereunder. The award shall be treated as a matter involving interstate commerce.

and may be filed or confirmed in any court of competent jurisdiction. state or federal. and judgment thereon entered and enforced. in accordance with the law and practice of the forum *

  • 9

(m) Unless the Board decides otherwise, each party shall pay the expenses of the arbitrator appointed by or for i t and one half of the other costs of arbitration.

(n) If an arbitrator or umpire is unable or unwilling to act, a new arbitrator or umpire, as the case may be, shall be appointed to act in his or her place. in accordance with the provisions set forth above.

(o)" All materials relevant to the arbitration shall be submitted to the Board in triplicate and the filing party shall send simultaneously a ~opy thereof to the opposing party.

12. This endorsement applies to all claims for damages, costs, expenses or other relief or recovery for which coverage is sought under this* policy. and which are first made in writing against any insured on or after the effective date
  • of this endorsement stated below.

This is to certify that this is a true copy of the originaf

/::n.-'on* ..,..

.<-*,.'.ne_n,.,. l *; -. " . J * , .

  • -;*'--'.

nr p-,,, i'-i"~'.-~ .. i:: ..,~ ** ,.,..I f. ' "1*'* p l"

  • '" .-.. -~-**
r.
~av,!ig me enoorsero.enL nurnoer end bemg made part-

.,.t 'C ) '

.........,,,:.*:::a 1~1:'::.'~'-~ _1ao; ..rt.y

  • o.*. 1c_ y. ,_' "'ClJl -y i-orm as oes-1sna:~*c:o. h::reon. No Ins~:."a.n'*"'
  • OJ cl hereunder.

"~ c_~ . ~- ~

~ '**"**--

,tf:;:,~,*~* ':

John L. Q** ttrocchi, Vice President-Underwriti~~***.. .

American Nuclear Insurers 10 Effective Date of this Endorsement January 1, 1990 To form a part of Policy No. MF-90 12:01 A.M. Standard Time -----

Issued to Public Service Electric &Gas Company, Philadelphia Electric Company, Delmarva Power &Light Company, Atlantic City Electric Company Date of Issue February 16, 1990 For the Subscribing Companies MUTUAL ATOMIC E~RGY LIABILITY UND!,RWRITERS

.r_sement No. 104 ME-71 (1/1/90)

Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS RESTORATION OF LIMIT OF LIABILITY ENDORSEMENT It is agreed that:

1. Payments made and expenses incurred by the companies under this policy have reduced, in accordance with Condition 3 of the policy, the limits of the companies' liability stated in Item 4 of the Declarations and in all Increase of Limit of Liability Endorsements.
2. The limit of liability stated in Endorsement No. 95 which has been reduced is hereby restored to $ 45,000,000.00 This restored limit applies only with respect to obligations assumed or expenses incurred because of bodily injury, property damage or environmental damage caused by the nuclear energy hazard on or after the effective date of this endorsement.
3. The limits of liability stated in. the policy shall not be cumulative.

Each payment made by the companies after the effective date of this endorsement for any loss or expense covered by the policy shall reduce by the amount of such payment every limit of liability, regardless of which limit of liability applies with respect to the bodily injury, property damage or environmental damage out of which such loss or expense arises. .

  • This is t,; certify thai: this is a true copy of the origi~al Endorsement having the endorsement numb&r and bemg made part of the 1' uclear Energy Liabiiity Policy (F ility Form) as des-ignated I ':!reon. No Ins~6\1c * ' hereunder.
-8 . ~_A:u.'-4&<&.i~;/"1 John L. Qu rocchi, Vice President-Underwriting American Nuclear Insurers _.

Effective Date of To form a part this Endorsement ______,..._J_a_nu~a_r~Y....,..,...*1_,-=-1_9_9~0,--_,_=-----------~ of Policy No_________M_F_-_9_0____________~

12:01 A.M. Standard Time Issued to Public Service Electric & Gas Company, Philadelphia Electric Company,

"-'~"'----------------------------'---"---------.......:....-------..,----------'--~------------~

Delmarva Power & Light Company, Atlantic City Electric Company Date of Issue April 13. 1990 For the Subscribing Companies MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS By*~--~~~==.._::_.=~~~~~=---~~~~

~sement No___ l~0~5. . _ _____ J~

NUCLEAR ENERGY LIABILITY INSURANCE

  • MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT CALENDAR YEAR 1990 It is agreed.that Items 1 and 2 of Endorsement No. 97 are amended to read:
1. ADVANCE PREMIUM: It is agreed that the Advanc~

Premium due the companies for the period designated above is: $ 363,793.00

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 Industry Credit Rating Plan, the Standard Premium is said Advance Premium and the Reserve Premium is: $__..27~5_.~a~o_a~*~oo___~~~~-

Additional Premium: $ 22.00 This is to certify that this is a true copy of the original Endorsement having the endorsement number and being made part of th2 Nuclear Energy Liability Policy (F>cility Form) as des-ignated~' l-iereon. No Ir~1suyance is afford hereunder.

~

  • c.:::>
  • John L. 1 ttrocchi, Vice President-Underwri * ...

American Nuclear Insurers Effective Date of this Endorsement January 1, 1990 To form a part of Policy No. MF-90 12:01 A.M. Standard Time Issued to ~ublic Service Electric &Gas Company, Philadelphia Electric Company, Delmarva Power &Light Company, Atlantic City Electric Company Date of Issue April 13, 1990 For the Subscribing Companies

  • Endorsement No. 106 ME-36

NUCLEAR ENERGY LIABJL1TY 1NSURANCE

    • MUTUAL ATOM1C ENERGY LIABILITY UNDERWRITERS ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT CALENDAR YEAR 1989 It is agreed that Items 1 and 2 of Endorsement No. 98 are amended to read:
1. ADVANCE PREMIUM: It is agreed that the Advance Premium due the companies for the period designated above is: $340,856.00
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 Industry Credit Rating Plan, the Standard Premium is said Advance Premium and the Reserve Premium is: $258,376.00

~--"'-~~~~~~~~

Addi tiona 1 Effective Date of this Endorsement January 1, 1989 To form a part of Policy No. MF-90 12:01 A.M. Standard Time Public Service Electric &Gas Company, Issued to Philadelphia Electric Company, Delmarva Power &Light Company, Atlantic City Electric Company Date of Issue April 23, 1990 For the Subscribing Companies

  • Endorsement No.

ME-36 107

Nuclear Energy Liability Insurance

  • 1.

MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS CHANGES IN SUBSCRIBING COMPANIES AND IN THEIR PROPORTIONATE LIABILITY ENDORSEMENT CALENDAR YEAR l£2Q.

It is agreed that with respect to bodily injury, property damage or environmental damage caused, during the effective period of this endorsement, by the nuclear energy hazard:

a. The word "companies" wherever used in the policy means the subscribing companies listed below.
b. The policy shall be binding on such companies only.
c. Each such company shall be liable for its proportion, as designated below, of any obligation assumed or expense incurred under the policy because of such bodily injury, property damage or environmental damage.

It is agreed that the effective period of this endorsement is from 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 Companies and/or their proportions as listed in this endorsement, or to the time of the termination or cancellation of the policy, if Arkwright Mutual Insurance Conpany 21%

Errployers Insurance of Wausau, A Mutual Canpany 21%

Liberty Mutual Insurance Conpany 28%

Lunbermens Mutual casualty Conpany 30%

NOTICE OF AIOl.W. IEETINGS The annual meetings of Arkwright The annual meetings of Errployers Insurance Mutual Conpany are held Insurance of Wausau A Mutual at its home office in Waltham, Conpany, are held at its hane Massachusetts, on the second Wednesday office in Wausau, Wisconsin, on of March in each year, at ten-thirty the fourth Friday of May in each o'clock in the morning. year, at nine o'clock in the morning.

The annual meetings of Liberty Mutual The annual meetings of Lutbermens Insurance Canpany are held at its home Mutual Casualty Canpany are held office in Boston, Massachusetts, on at its hane office in Long Grove

  • the third Wednesday of April in each Illinois, on the third Tuesday of year, at ten o'clock in the morning. May in each year, at eleven o'clock .

in the morning.

Effective Date of this Endorsement ~~~----J=an=u=a=ry---~1~,.......,1~9~9~0---~~~- To form a part of Policy No. MF-90 12:01 A.M. Standard time Public Service Electric &Gas Company, Philadelphia Electric Company, Issued to Delmarva Power & Light Company, Atlantic City Electric Company Date of issue April l, 1990 For the Subscribing Companies MUTUAL ATOMIC By Endorsement No. 108

I

'*;

Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ENDORSEMENT TO CERTIFICATE NO.N-60 Forming Part of Master Policy N~l Nuclear Energy Liability Insurance (Secondary Financial Protection)

It is agreed that effective August 20, 1988:

I.) Subparagraph (c) on Page 1 of the certificate is amended to read as follows:

(c) to bodily injury or property damage (1) with respect to which the primary financial protection described in Item 4 of the Declarations would apply but for (i) exhaustion of its limit of liability as described in Condition 6 of the Master Policy, or (ii) the application of Insuring Agreement IV, "Application of Policy" of the primary financial protection, as amended by paragraph 3 of the Waiver of Def ens es Endorsement attached thereto,. and (2) which is caused during the certificate period stated in Item 6 of the Declarations by a nuclear incident arising out of, or in connection with the nuclear reactor described in Item 3 of the Declarations, and (3) which is discovered and for which written claim is made against the insured not later than ten (10) years after the end of the certificate period stated in Item 6 of the Declarations. However, this subparagraph ( 3) shall not operate to bar coverage for bodily injury or property damage caused by an extraordinary nuclear occurrence.

II.) Item 4.(b) of the certificate is deleted.

III.) Item 7. of the certificate is amended to read as follows:

NE-S-14 Page 1 of 2

  • Item 7. Maximum retrospective premium (exclusive of allowance for premium taxes) payable pursuant to Condi ti on 2 of the Master Pol icy with respect to each nuclear incident: $51,266,250 *
  • THJS 18 TO CERTIFY f"HXf THIS IS A TRUE COPY OF THE ORIGINAL CERTIF!C.b.TE, Bf.ARii~G THE NUMBE!i DES!GNATED HEREON, FOR iNSUR/0.iGE covt:RAGE: Ui'JDEH THE MASr* I POUCY-NUCLEAR ENERGY UABIL!T\ INSUi~t\NCE (SE(/)Nflnv -;1>.1 .-,!AL PF-lOTECTION). NO INSURA .* r:i,,,!S~~p.

JOHf\f L. Q .... ATTROCCH!

. ' *o ~ . ~

VICE PfiESIDENT-UNDERWRITING AMERICAN NUCLEAR INSURERS Effective Date of this Endorsement _ _...l..A:..:::LI:.:;ia~u..=!.s~t-=-20~......1.....9....8...,8,___ __ To form a part of Certificate No. N-60 12:01 A. M. Standard time Public Service Electric & Gas Company, Philadelphia Electric Company, Issued to __D_e_l_m_a_rv_a_P_o_w_e_r_&_L_i~g~h_t_C_om_p~a_n~y__a_n~d.~A_t_l_a_n_t_i_c_C_1_*t~y__E_l_e_c_tr_1_*c__C_o_m~p_a~ny;;...._____~

Date of Issue March 23, 1990 For the ndorsement No. _1_3_____

NE-S-14 Page 2 of 2

Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ENDORSEMENT TO CERTIFICATE NO. N-60 FORMING PART OF MASTER POLICY NO. 1 NUCLEAR ENERGY LIABILITY INSURANCE (Secondary Financial Protection)

1. In paragraph (c) on Pages 1 and 2 of the certificate, and in all endorsements to the certificate relating thereto, the words "bodily injury or property damage" are amended to read "bodily injury, property damage or environmental damage".
2. This endorsement applies to all claims for damages, costs.

expenses or other relief or recovery for which coverage is sought under the policy, and which are first made in writing against any insured on or after the effective date of this endorsement stated below.

Effective Oat~ of this Endorsement _ _...;;J...;;a.;..;n..;..u.;.;.a_,ry,:__1-',=--1-9_9_0_ _ __ To form a part of Certificate No. N-60 12:01 A. M. Standard time Public Service Electric & Gas Company, Philadelphia Electric Company, Issued to Delmarva Power & Light Company and Atlantic City Electric Company Date of Issue March 23, 1990 For the

  • Endorsement No.

NE-S-18 (1/1/90) 14

  • Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS ENDORSEMENT TO CERTIFICATE NO. M-60 Forming Part of Master Policy ~1 Nuclear Energy Liability Insurance (Secondary Financial Protection)

It is agreed that effective August 20, 1988:

I.) Subparagraph (c) on Page 1 of the certificate is amended to read as follows:

(c) to bodily injury or property damage (1) with respect to which the primary financial protection described in Item 4 of the Declarations would apply but for (i) exhaustion of its limit of liability as described in Condition 6 of the Master Policy, or (ii) the application of Insuring Agreement IV, "Application of Policy" of the primary financial protection, as amended by paragraph 3 of the Waiver of Def ens es Endorsement attached thereto, and (2) which is caused during the certificate period stated in Item 6 of the Declarations by a nuclear incident arising out of, or in connection with the nuclear reactor described in Item 3 of the Declarations, and

( 3) which is discovered and for which written claim is made* against the insured not later than ten (10) years after the end of the certificate period stated in Item 6 of the Declarations. However, this subparagraph ( 3) shall not operate to bar coverage for bodily injury or property damage caused by an extraordinary nuclear occurrence.

II.) Item 4. (b) of the certificate is deleted.

III.) Item 7. of the certificate is amended to read as follows:

  • ME-S-14 Page 1 of 2

Item 7. Maximum retrospective premium (exclusive of allowance for premium taxes) payable pursuant to Condition 2 of the Master Policy with respect to each nuclear incident: $14,883,750.

THIS IS TO CERTIFY THAT THIS IS A TRUE COPY OF THE ORIGINAL CERTIFICATE, BEARING THE NUMBER DES :il'lATED HEREON, FOR INSURAMCE COVERAGE UNDER THE MAS . _R POLICY-NUCLEAR ENERGY LIABILI Y INSURANCE (SE ,(lr ' .... , L PROTECTION). NO INSUHAi "'E 1~rmr:** y

.-c:;,.

JOHN L. o ATTF10CCH!

VICE PFiESIDENT-UNDEnWFiiT!NG AMERICAN NUCLEAR il'JSURERS Effective Date of this Endorsement ~-A_u~g_u~s_t~20......._,_1_9_8_8~~~~~ To form a part of Certificate No. M-60 12:01 A.M. Standard time Public Service Electric &Gas Company, Philadelphia Electric Company, Issued to Delmarva Power &Light Company and Atlantic City Electric Company Date of issue March 23, 1990 For the Subscribing Companies HUrUAL ATOMIC KHKRGY I~KRVRITKRS Endorsement No. 13 By ~~.~~) ~

Countersigned by ME-S-14 Page 2 of 2

Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS

  • ENDORSEMENT TO CERTIFICATE NO. M-60 FORMING PART OF MASTER POLICY ----

NUCLEAR ENERGY LIABILITY INSURANCE (Secondary Financial Protection)

NO. 1

1. In paragraph (c) on Pages 1 and 2 of the certificate. and in all endorsements to the certificate relating thereto. the words "bodily injury or property damage" are amended to read "bodily in1ury, property damage or environmental damage".
2. This endorsement applies to all claims for damages. costs.

expenses or other relief or recovery for which coverage is sought under the policy~ and which are first made in writing against any insured on or after the effective date of this endorsement stated below.

THIS IS TO CERTIFY THAT THIS IS A TRUE COPY OF THE ORIGINAL CERTiFICATE, BEJl.RIMG THE NUMBER DESIGNATED HEREON, FOR INSURANCE COVEJlAGE UMDEH THE MAS-rtl EB POLICY-NUCLEAR ENERGY LIABILll INSUR/\NCE (SECO/".JD!\RY FINA1 I . 1AL PROTECTION). NO I

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r-~::: f<-, 1E:;iDCr,J'i-iJ;'iD:0.:*:1WH!"r!NG AiV1CF~~L.;~Ji NUCL[f.\i;i lN:3un1::.t{S Effective Date of this Endorsement ----"J_.a__n_u_ar_.y.__1_,,___1_9_90~--- To form a part of Certificate No. M-60 12:01 A.M. Standard tine Public Service Electric & Gas Company, Philadelphia Electric Company, Issued to Delmarva Power &Light Company and Atlantic City Electric Company

. Date of issue March 23, 1990 For the Subscribing Companies MOTUAL ATOMIC ENERGY LIABILITY By

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ndorsement No. 14 ME-S-18 (1/1/90)

  • Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ENDORSEMENT TO CERTIFICATE NO. N-72 Forming Part of Master Policy N---0:--1 Nuclear Energy Liability Insurance (Secondary Financial Protection)

It is agreed that effective August 20, 1988:

I.) Subparagraph (c) on Page 1 of the certificate is amended to read as follows:

(c) to bodily injury or property damage (1) with respect to which the primary financial protection described in Item 4 of the Declarations would apply but for (i) exhaustion of its limit of liability as described in Condition 6 of the Master Policy, or (ii) the application of Insuring Agreement IV, "Application of Policy" of the primary financial protection, as amended by paragraph 3 of the Waiver of Defenses Endorsement attached thereto, and (2) which is caused during the certificate period stated in Item 6 of the Declarations by a nuclear incident arising out of, or in connection with the nuclear reactor described in Item 3 of the Declarations, and

( 3) which is discovered and for which written claim is made against the insured not later than ten (10) years after the end of the certificate period stated in Item 6 of the Declarations. However, this subparagraph ( 3) shall not operate to bar coverage for bodily injury or property damage caused by an extraordinary nuclear occurrence.

II.) Item 4. (b) of the certificate is deleted.

III.) Item 7. of the certificate is 'amended to read as follows:

NE-S-14 Page 1 of 2

'i *..

  • Item 7. Maximum retrospective premium (exclusive of allowance for premium taxes) payable pursuant to Condition 2 of the Master Policy with respect to each nuclear incident :$51,266 ,250.

Effective Date of this Endorsement _ _. .;. A.;. ;:u; .; ;q. ,.u=s-=t-=-2-=-0. . . _1...9,. ....

8 8._____ To form a part of Certificate No. N-72 12:01 A. M. Standard time Public Service Electric &Gas Company, Philadelphia Electric Company, Delmarva Power & Light Company and Atlantic City Electric Company Issued to - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Date of Issue March 23, 1990 For the

~ndorsement No. 13 Countersigned by - - - - - - - - - - - - - - - -

NE-S-14 Page 2 of 2

Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ENDORSEMENT TO CERTIFICATE NO. N-72 FORMING PART OF MASTER POLICY NO. 1 NUCLEAR ENERGY LIABILITY INSURANCE (Secondary Financial Protection)

~

1. _ In paragraph (c) on Pages 1 and 2 of the certificate. and in all endorsements to the certificate relating thereto. the words "bodily injury or property damage" are amended to read "bodily injury. property damage or environmental damage".
2. This endorsement applies to all claims for damages._ costs.

expenses or other relief or recovery for which coverage is sought under the policy. and which are first made in writing against any insured on or after the effective date of this endorsement stated below.

Effective Date of this Endorsement . . ;. ._. ;:;J..=.a.:. ;.n.;;.;ua:;..;r:.. ::y:.. . . .;;1;..::,. . .;;;.1.;. .99_0_ _ __ To form a part of Certificate No. N-72 12:01 A. M. Standard time Public Service Electric &Gas Company, Philadelphia Electri~ GompRny, Delmarva Issued to __..:..:..:......:.::...___ Power _ _& _Light _:_ _ Company

__;__ _ and

_ _Atlantic

_ _ _ _City_ _ Electric

_ _ _ _ Company Date of Issue March 23, 1990 For the Sµbs ribing C~mfanies, By __ ---1,-~!~/~~~*~;~--(~-~~-=---=-------

\JPBESmBN'r Endorsement No. _ _1_4__ Countersigned b y - - - - - - - - - - - - - - -

NE-S~lg (1/1/90)

  • Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS ENDORSEMENT TO CERTIFICATE NO. M-72 Forming Part of Master Policy N~l Nuclear Energy Liability Insurance (Secondary Financial Protection)

It is agreed that effective August 20, 1988:

I.) Subparagraph (c) on Page 1 of the certificate is amended to read as follows:

(c) to bodily injury or property damage (1). with respect to which the primary financial protection described in Item 4 of the Declarations would apply but for (i) exhaustion of its limit of liability as described in Condition 6 of the Master Policy, or (ii) the application of Insuring Agreement IV, "Application of Policy" of the primary financial protection, as amended by paragraph 3 of the Waiver of Def ens es Endorsement attached thereto, and (2) which is caused during the certificate period stated in Item 6 of the Declarations by a nuclear incident arising out of, or in connection with the nuclear reactor described in Item 3 of the Declarations, and

( 3) which is discovered and for which written claim is made against the insured not later than ten ( 1 o) years after the end of the certificate period stated in Item* 6 of the Declarations. However, this subparagraph (3) shall not operate to bar coverage for bodily injury or property damage caused by an extraordinary nuclear occurrence.

II.) Item 4. (b) of the certificate is deleted.

III.) Item 7. of the certificate is amended to read as follows:

ME-S-14 Page 1 of 2

Item 7. Maximum retrospective premium (exclusive of allowance for premium taxes) payable pursuant to Condition 2 of the Master Policy with respect to each nuclear incident:$14,883,750 .

Effective Date of this Endorsement ~~A~u~g~u~s~t_2~0"-'-,~1~9~8~8~~~~~ To form a part of Certificate No. M-72 12:01 A.H. Standard time Public Service Electric & Gas Company, Philadelphia Electric Company, Issued to Delmarva Power & Light Company and Atlantic City Electric Company Date of issue March 23, 1990 For the Subscribing Companies HilTUAL ATOMIC ENKRGY I~KRWITKRS

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  • Endorsement No.

ME-S-14 13 By

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Countersigned by Page 2 of 2

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D'.v'S,

Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS ENDORSEMENT TO CERTIFICATE NO. M-72 FORMING PART OF MASTER POLICY NO. 1 NUCLEAR ENERGY LIABILITY INSURANCE (Secondary Financial Protection)

1. In paragraph (c) on Pages 1 and 2 of the certificate. and in all endorsements to the certificate relating tl'lereto. the words "bodily injury or property damage" are amended to read "bodily iniury, property damage or environmental damage".
2. This endorsement applies to all claims for damages. costs.

expenses or other relief or recovery for which coverage is sought under the policy, and which are first made in writing against any insured on or after the effective date of this endorsement stated below

  • Effective Date of this Endorsement _ ___.J_..a....n_u_a_.rY.._1_.,"---1_9_90____ To form a part of Certificate No. M-72 12:01 A.H. Standard time Public Service Electric &Gas Company, Philadelphia Electric Company, Issued to
  • Delmarva Power & Light Company and Atlantic City Electric Company Date of issue March 23, 1990 For the Subscribing Companies H1JTUAL ATOMIC l!XKllGY LIABILITY~WITKRS

\ ~ - ) c::::z By s::s= . c:> * ~i;~(; '- L\

.ndorsement No. __1_*4_ _ _ _ __ Countersigned b y - - - - - - - - - - - - - -

ME-S-18 (1/1/90)

Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ENDORSEMENT TO CERTIFICATE No.N-104 Forming Part of Master Policy N~l Nuclear Energy Liability Insurance (Secondary Financial Protection)

It is agreed that effective August 20, 1988:

I.) Subparagraph (c) on Page 1 of the certificate is amended to read as follows:

(c) to bodily injury or property damage (1) with respect to which the primary financial protection described in Item 4 of the Declarations would apply but for

( i) exhaustion of its limit of liability as described in Condition 6 of the Master Policy, or (ii) the application of Insuring Agreement IV, "Application of Policy" of the primary financial protection, as amended by paragraph 3 of the Waiver of Defenses Endorsement attached thereto, and (2) which is caused during the certificate period stated in Item 6 of the Declarations by a nuclear incident arising out of, or in connection with the nuclear reactor described in Item 3 of the Declarations, and

( 3) which is discovered and for which written claim is made against the insured not later than ten (10) years after the end of the certificate period stated in Item 6 of the Declarations. However, this subparagraph ( 3) shall not operate to bar coverage for bodily injury or property damage caused by an extraordinary nuclear occurrence.

II.) Item 4. (b) of the certificate is deleted.

III.) Item 7. of the certificate is amended to read as follows:

NE-S-14 Page 1 of 2

  • Item 7. Maximum retrospective premium (exclusive of allowance for premium taxes) payable pursuant to Condition 2 of the Master Pol icy with respect to each nuclear incident: $51,266,250 *
  • THIS IS TO CERTIFY THAT THIS IS A TRUE COPY OF THE ORIGINAL CERTIFICATE, BEARING THE NUMBER DESIGNATED HEREON, FOR .1 I SURANCE CO'JERf.\GE UNDER TH ..... MASTER POLICY-NUCLEAR ENERGY

~ 1\BIUTY li\J~R~,i\~~*;"~E

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JO .N L. QUATTROCCHI

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SECON_Di\P VF1~i1\NC1f\L PROTECTION). Nd

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VICE PRESIDENT-UNDERWRITING AMERICAN NUCLEAR INSURERS

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Effective Date of this Endorsement ___,_A.:.::u~g""'u:.::::s_,.t_2,,..0..._._l...9..,,8""8.___ __ To form a part of Certificate No. N-104 12:01 A. H. Standard time Date of Issue March 23, 1990 For the ndorsement No. 8 Countersigned NE-S-14 Page 2 of 2

Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ENDORSEMENT TO CERTIFICATE NO. N-104 FORMING PART OF MASTER POLICY NO. 1 NUCLEAR ENERGY LIABILITY INSURANCE (Secondary Financial Protection)

1. In paragraph (c) on Pages 1 and 2 of the certificate, and in all endorsements to the certificate relating thereto. the words "bodily injury or property damage" are amended to read "bodily iniury, property damage or environmental damage".
2. This endorsement applies to all claims for damages, costs, expenses or other relief or recovery for which coverage is sought under the policy, and which are first made in writing against any insured on or after the effective date of this endorsement stated below.

....>d Effective Dat~ of this Endorsement _ _..;.J.;.;.an;...;u;...;a;...;r_..y_l~,-19_9_0_ _ __ To form a part of Certificate No. N-104 12:01 A. H. Standard time Issued to Public Service Elect.<'i:- ?. Gas Company, et al Date of Issue March 23, 1990 Endorsement No. __9_ __

NE-S-18 (1/1/90)

\

Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS ENDORSEMENT TO CERTIFICATE NO. M-104 Forming Part of Master Policy No. 1 Nuclear Energy Liability Insurance (Secondary Financial Protection)

It is agreed that effective August 20, 1988:

I.) Subparagraph (c) on Page 1 of the certificate is amended to read as follows:

(c) to bodily injury or property damage (1) with respect to which the primary financial protection described in Item 4 of the Declarations would apply but for (i) exhaustion of its limit of liability as described in Condition 6 of the Master Policy, or (ii) the application of Insuring Agreement IV, "Application of Policy" of the primary financial protection, as amended by paragraph 3 of the Waiver of Defenses Endor.sement attached thereto, and (2) which is caused during the certificate period stated in Item 6 of the Declarations by a nuclear incident arising out of, or in connection with the nuclear reactor described in Item 3 of the Declarations, and

( 3) which is discovered and for which written claim is made against the insured not later than ten ( 10) years after the end of the certificate period stated in Item 6 of the Declarations. However, this subparagraph ( 3) shall not operate to bar coverage for bodily injury or property damage caused by an extraordinary nuclear occurrence.

II.) Item 4.(b) of the certificate is deleted.

III.) Item 7. of the certificate is amended to read as follows:

ME-S-14 Page 1 of 2

    • Item 7. Maximum retrospective premium (exclusive of allowance for premium taxes) payable pursuant to Condition 2 of the Master Policy with respect to each nuclear incident :$14 ,883, 750 .

Effective Date of this Endorsement ~~A~u~g~u~s~t-=2~0~,~1~9~8~8~~~~~ To form a part of Certificate No. M-104 12:01 A.M. Standard tirre Issued to Public Service Electric &Gas Company9 et al Date of issue March 23 1990 For the Subscribing Companies HU'l'UAL ~TOKIC ENKRGY I~KRVRITKRS By _\ ~ * *J. ~ '/

ii Endorsement No. 8 ME-S-14 Page 2 of 2

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Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS

\

ENDORSEMENT TO CERTIFICATE NO. M-104 FORMING PART OF MASTER POLICY NO. 1 NUCLEAR ENERGY LIABILITY INSURANCE (Secondary Financial Protection)

1. In paragraph (c) on Pages 1 and 2 of the certificate, and in all endorsements to the certificate relating thereto. the words "bodily injury or property damage" are amended to read "bodily injury, property damage or environmental damage".
2. This endorsement applies to all claims for damages, costs, expenses or other relief or recovery for which coverage is sought under the policy, and which are first made in writing against any insured on or after the effective date of this endorsement stated below.

THIS IS TO CERTIFY THAT TH CERTIFICATE, BEARING TH:= ~JS '.~~.TR.~~ COPY OF THE ORIGIN INSUR.ll.NCE COVER,v1GE UNDEf~M~;*. ..?~~:_G~/\TED HEREON, FORAL lNIABILIT*Y lNSUFIM"iCE (-::;;::,-.,...,~:,:,!RI 'y- Fl*!A,i r?fotf< POLICY-NUCLEAR r:NERGY l ~URAf\J r- U'-'"-""*IJf*i 'I*'*'~,~ L

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" .: IS ~~OED :) 1:*:~1i)~."'~- PROTECTION). NO JOHN L u!J ~. T'O~t"'71 C,<~~;~:..~kt'.'\

VICE r: -* .' *V-c:G, _.. l.i-'ir~

AMERfc~~ N'-u-NcLr-uNoERWRITING EAR INSURERS

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Effective Date of this Endorsement ~--J~a~n~u=a~ry.__1~,'--1_9_9_0~~~- To form a part of Certificate No.M-104 12:01 A.M. Standard time Issued to Public Service Electric &Gas Company, et al Date of issue March 23, 1990 For the Subscribing Companies ndorsement No. 9 ME-S.-~g .(1/1/90)

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