ML20043F059

Forwards Endorsements 44-50 to Nelia Policy NF-261 & 25-31 to Maelu Policy MF-121 & 10 & 11 to Maelu Policy N-85 & M-85,respectively

ML20043F059
Person / Time
Site:	Clinton
Issue date:	06/06/1990
From:	Turner C ILLINOIS POWER CO.
To:	Dinitz I Office of Nuclear Reactor Regulation
References
NUDOCS 9006140128
Download: ML20043F059 (47)

Text

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,lLLIN0/S POWER COMPANY .

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+ 500 SO'JTH 27TH STREET, DECATUR. ILLINOIS 625251805 -

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f F June 6, 1990 i

Mr Ira Dinitz i Office of Nuclear Reactor Regulation Mail Stop 128 U. S. Nuclear Regulatory Commission Washington, D.C. 20555 Re: Illinois Power Company Clinton Power Station Nuclear Energy. Liability Policies

Dear Mr. Dinitz:

Enclosed please find two copies of the following policy endorsements:

No. 44 through 50 for Policy NF-261 No. 25 through 31 for Policy MF-121 Nos. 10 & 11 for Policies N-85 &.M-85 Sincerely,  ;

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C. /L. Turner Administrator-Risk Management h CUT:lkw B~

Enclosures l l

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9006140128 900606 ig PDR ADOCK 05000461 J PDC

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Nuclear Energy Liability Insurance 4 MUTUAL, ATOMIC ENERGY LIABILITY UNDERWRITERS  ;

l ENDORSEMENT TO CERTIFICATE No. M-85 '

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 eartificate, and in all endorsements to the Gartificate relating thereto, the words " bodily injury or property damage" are amended to read

" bodily i n iury , eroberty damana or.anvironmental damana".-

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,

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' G W" c0 CERTFY THAT THIS 13 A TRUE COPY OF THE OnlGINAL -

ntAmNG THE NUuSE9 DEslGNATED HEREON, FOR

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,g ' ' y '[U:ge ewn g e5.c: THEEN CARY MASTER POUCY-NUCLEAR

'tAL PROTECTION). NO ENERGY l

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AMUUCAN NUCLEAR INSURERS L

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' Effective Date of l this Endorsement January 1, 1990 To form a part of Certificate No, M-85 l

12:01 A.M. Stannard time Issued to Illinois Power Company, and Soyland Power Cooperative. Inc.

ll Date of issue March 23, 1990 For the Subscribing Companies MFFUAL ATOKIC MERGY LIABILITY VRITERS By Endorsement No. 11 Countersigned by

'ME-S'8(1/1/90)

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+i 1 Nuclear Energy Liability insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS i 1

l ENDORSEMENT TO CERTIFICATE NO. M-85 Forming Part of Master Policy No. 1 Nuclear Energy Liability Insurance (Secondary Financial Protection)- '

It'is agreed that effective August 20, 1988: I I.)

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

(c)' to bodily iniurv or procerty damaae (1) with respect to which the crimary financial nrotection apply described in Itata 4 of the Declarations would but for- -

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(i) exhaustion of its limit of liability as i described in Condition 6 of the- Master Policy, or >

(ii) the application of Insuring Agreement IV,

" Application of Policy" of the crimarv financial 3 of the orotection, as amended by paragraph Waiver attached thereto, and of Defenses Endorsement (2) which is caused during the certificate period stated -I 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

.in after the end of the certificate period stated Item 6 of the Declarations. However, this subparagraph (3) shall not. operate to bar coverage for bodily iniurv igjtpordinary or procerty nuclear occurrence. damaae caused by an II.)

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

L III.) Item 7.

L, of the certificate is amended to read as follows:

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l Item 7. Maximum retrospective premium; exclusive: of l

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allowance for premium taxes) pay (able. pursuant; '

to condition 2 of the Master Policy with respect to each nuclear incident: $14,883,7 50.

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4 THIS IS TO CERTIFY THAT THIS IS A TRUE COPY OF THE OR!GIN CERTRCATE, BEARING THE NUMBER DESIGNATED HEREON, FOR INSURANCE COVERAGE UNDER THE MASTER POLICY-NUCLEAR

'LIABit) Y INSURANCE (SECONDARY FINAf!AL PROTECTION), NO -

PbORA CE IS Af FORDEC 9Y m'c t'n0W JOHNt ( JA JChi l' VICE PRLiDENT-UNDERWR! TING AMERICAN NUCLEAR INSURERS .

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L. Effective Date of this Endorsement August 20, 1988 To form a part of Certificate No. M-85 12:01. A.M. standard time l Issued to Illinois Power Company, and Soyland Power Cooperative, Inc.

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Date of: issue March 23, 1990 For the Subscribing Companies NUTUAL ATOKIC ENERGY LIABILITY ERURrfERS .

By 2 hpN/g Endorsement No. 10 y '

ww countersigned by ME-S-14. Page 2 of 2 1

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Nuclear En:rgy Liability insuranca  !

, NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION' ENDORSEMENT TO CERTIFICATE NO. .N-85  !

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

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1. In paragraph (c) on Pages 1 and 2 of the certificatt, and in all: endorsements to the certificate relating thereto, the words " bodily injury or property damage" are amended to read-

" bodily in iurv, orocerty damane or environmental damace".

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

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, i

i TPS iS TO CRTTY TUT TH:S IR A 1 RUE COPY OF THE ORIG lc; by ta:SER DESIGNATED HEREON, FO'l cri a n c. a c MuP ANCE Omsc2 UER THE MAS ER POLICY 41UCLEAR d/ M T/ ;E PECE (FECONDA:1Y Fit; CIAL FROTECTION). NO l\SuF 4CE: " aw O'Q j ^1 5 RM1 ma'vC i X%

WJ Wu J1DLNT-UNDERWRITING AMERICAN NUCLEAR INSURERS i

Effective Date of this Endorsement January 1, 1990 To form a part of Certificate No. N-85 12:01 A. M. Standard time Issued to Illinois Power Company, and Soyland Power Cooperative, Inc.

Date of Issue March 23, 1990 For the Subs ribing coii'panies, By (I %C L kh LTRESIDert

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Endorsement No. 11 Countersigned by NE-S-18 (1/1/90)

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j Nuclear Energy Uability insurance NUCLEAR ENERGY UA8ILITY INSURANCE ASSOCIATION c -

ENDORSEMENT TO CERTIFICATE NO. N-85 Forming Part of Master Policy No. 1 Nuclear Energy Liability Insurance (Secondary Financial Protection)

-i It is agreed that effective August 20, 1988:  ;

i I.) Subparagraph (c) on Page 1 of the certificate is amended to '

read as follows:

(c) to bodily iniurv or oronerty damaae '

(1) with respect to which the crimarv financial i orotection described in Item 4 of the Declarations would apply but for (i) exhaustion of its limit of liability av.

described in Condition 6 of the Master Policy, or (ii) the application of Insuring Agreement IV,

" Application of Policy" of the crimary 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 l

in Item 6 of the Declarations by a nuclear incident  ;

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" 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 l

in Item 6 of the Declarations. However, this l subparagraph (3) shall not operate to bar coverage for bodily iniury or crocerty damaae caused by an extraordinary nuclear occurreAqg,.

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

p cc ain 1 :,- ,

e 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. ,

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TH!S IS TO CERTIFY THAT THIS IS A TRUE COPY OF THE ORIGINAL CERTIFICATE, CEAR!NG THE NUMBER DESIGNATED HEREON, FOR Ji INSURANCE COVERAGE UNDER THE MASTER POLICY-NUCLEAR ENERGY -

LIABit'TY INSURANCE (SECONDARY FIN / CIAL PROTECTION) NO i th5UD NCE IS AFFORDE' BY THW COP JOHN id'A J0Cr VICE PRustDENT-UNDERWRITING -

AMERICAN NUCLEAR INSURERS

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-Effective Date of this Endorsement August 20, 1988 '

To form a part of certificate Mo. N-85 12:01 A. M standard time

~ Issued to Illinois Power Company, and Soyland Power Coonerative, o 'Inc.

Date of Issue March 23, 1990 For the s bs ribing C antes, By 9Pfesident Endorsement No. 10 Countersigned by NE-S-14 Page 2 of 2

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Nuclear Energy Liability Insurance '

l MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS CHANGES IN SUBSCRillNG COMPANIES AND IN THElk PROPoRil0NATE LIABILITY ENDORSEMENT CALENDAR TEAR 1000-

-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 hazards

a. The word " companies" wherever used in the policy means the subscribing l companies listed below.

b. The policy shall be binding on such companies only. l

c. Each such company shall be liable for its proportion, as designated belov, of any obligation assumed or expense incurred under the policy because of t,

such bodily injury, property damage or environmental damage.

h 2. It is cgreed that the effective period of this endorsement is from the beginning- '

<Ejl of the effective date of this endorsement stated below to the effective date that  !

another " Changes In Subscribing Companies And In Their Proportionate Liability 3 5' a Endorsement" changes the companies and/or their proportions as listed in this in l ^ endorsement, or to the time of the termination or cancellation of the policy, if o76 sooner.

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'o -}.[Q g Arkwright Mutual Insurance Company 21%

Enployers Insurance of Wausau, A Mutual Ccupony 21% ,

D,3 C Liberty Mutual Insurance Company 28%

C* Luitennens Mutual Casualty Company 30%

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8 The amuel sieetinos of Arkwright Insurance Mutual Cospany are held The anrual sisetings of Employers E Insurance of Wausau A Mutual

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at its honie of fice in Waltham, Conpeny, are held at its home

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h. 4- Massachusetts, on the second Wedwsday office in Wausau, Wisconsin, on j *,* b g.{ of March in each )ver, at ten thirty the fourth Friday of May in each

.q j o' clock in the morning, year, at nine o' clock in the morning.

h.$w ci The annual meetines of Liberty Mutual The annual meetings of Luumennens I 'V IC ~ @ I E) Insurance Company are held at its home - Mutual Casualty Company are held T> office in Boston, Massachusetta, on at its home office in Long Grove h Q3

( 'S y 4.bZ the third uednesday of April in each Illinois, on the third Tuesday of

(~ g,,g E year, at ten o'etock in the morning. May in each year, at eleven o' clock in the morning.

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Effective Date of this Endorsement January 1. 1990 To form a part of Policy No. MF-121 12:01 A.M. Standard time Issued to Illinois power Company, and Soyland Power Cooperative, Inc.

Date of' issue Aoril 1. 1990 For the Subscribing Companies MUTUAL ATOMIC El GYLIABILITYUNDERVRIThS By

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Endorsement No. 31 Countersigned by

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'b Nuclear Energy: Liability ' Insurance

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MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS .

AMENDATORY ENDORSEMENT It is= agreed that (Facility Form)

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INSURING ACREEMENT I is replaced by the following:

I C0VERACE A - LIABILITY '

o 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, e

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

The companies shall have the right and duty to defend any.

claim or suit against the insured alleging such-injury or .t damage, and seeking damages or costs which are payable

- such -the under terms of this policy: but the companies may make investigation, negotiation and settlement of the claim or suit as they deem expedient. .

L The companies' duty to defend shall be limited, as  !

described in INSURING AGREEMENT'IV, if the claim or suit L also seeks any of the following, which in no event shall i

'be construed as-covered'by this policy:

. i (1)- damages for on-site property damage: I (2)- recovery of on-site cleanup ' costs or any other i L cleanup costs except covered environmental cleanup costs: .

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' (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-L 1 the limit of 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 (2) premiums on appeal bonds and bonds to release attachments in any such suit, but without obligation to apply for or furnish such bonds:

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.(3)- reasonable ' expenses other than loss of earnings,_

1 I L ' incurred by the insured at_the companies' request.- '

i1 COVERAGE B f THE FACILITY DAMAGE TO PROPERTY OF AN INSURED AWAY FRON ,

L With'- respect ' to property damage caused during the policy

period by the nuclear energy hazard to the property of an 0 l insured which 'is away- from the facility, to pay to 'such insured those suas which such insured would have been legally obligated to pay as covered damages therefor, had-such property belonged to another.

COVERAGE'C -SUgROGATION - 0FFSITE EMPLOYEES t With respect to bodily injury caused during -the policy- 1 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 suas - 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 benetits 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. s This coverage does not apply to bodily injury te any person who is employed at, and in connection with . the facilityi 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 I insured and ' (b) any other person or organization with 3 respect to his legal responsibility for covered damages or covered environmental cleanup costs because of bodily injury, the nuclear property energy damage hazard. or environmental damage caused by Subdivision (b) above does not i United States of America or any nclude of its as an insured the 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.

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4- INSURING AGREEMENT III-is: replaced by the following III DEFINITIONS Wherever used in this policy: ,

" bodily injury" means bodily injury. - sickness or disease includin person. g death resulting therafrom, sustained by any ,

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" covered damages" means. damages because of bodily in or property damago to which this policy applies but-or on-site cleanup costs, covered damages do~not include environ i

" covered ~ environmental environmental cleanup costs cleanup which costs" are means only those  !

" for monitoring, containing testing for, cleaning up, neutralizing orincurred d environmental damage as the extraordinary incidents but nuclear occurrelce or a transportation result of an

' include on-site cleanup costs. covered environnaital cleanup costs - do not ->

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+ # disposal site" means premises or place prepared any structure, basin, excavation,

a, disposal of waste materials ofas a . dump a general nature or sits for the

, but which l:

" containing small amounts of nuclear material. materials may also be used for the disposal of wasta c " environment" includes land, l; watercourses bodies the atmosphere, and all whether on, a,bove or below the of water and surface naturalof the resources,ground.

" environmental cleanup costs" include - all loss, cost or expense arising =-out of any governmental decree, order or directive action at (other law) than requiring an award or ofrequesting covered damages in an L a person or organization for, cleaning to upundertake or pay for. monitoring, of below or the .environmen,t, the surface of the whether ground. the contamination' is on,!

ment'by nuclear material." environmental damage"ron- means conta

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

" extraordinary nuclear occurrence" the United States determined means an event which Nuclear Regulatory to be an extraordinary Commission has nuclear occurrence as 3

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1 defined- in thereof.-

amendatory the Atomic Energy Act of 1954, or in'any law.

i i.x ~ " governmental" refers to federal',- state and local-governments and _ and ' authorities, political. subdivisions thereof. including courts, agencies

" indemnified nuclear facility" means- t (1) the facility" as defined- in any- Nuclear Energy Liability Policy (Facility Form): issued by Nuclear-Energy Liability Insurance Association or Mutual- i 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, j with respect thereat, to any activities or operations conducted  ;

" insured shipment" means - a ' shipment of source material, special nuclear _ material, spent fuel, waste, or tailings ,

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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."

L (1) to the facility from any location except an L ~ indemnified- nuclear facility, but only if the transportation mination to be interrupted by removal- of of the material is not by predeter-material from a the transporting conveyance - for any purpose-other

.tation, or than the continuation of its transpor- -

(2) from the facility to any. other location, but only i

until the material conveyance is removed from a transporting.

for any purpose other than 1 the continuation of its transportation.

" nuclear energy explosive or other hazardous hazard" means the radioactive, toxic, 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 cnd temporary storage. incidental thereto, within (a)

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the territorial America, limits of the United States of its. territories or posrassions, or Puerto Ricos or (b)

L .the international waters or airspace, provided that nuclear material is in the course of transportation between two points located within 4

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the- territorial.

there is no deviation limits described in (a) _ above and in the course of the .i'

. 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 1

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 i Atomic Energy _ Liability Underwriters. The term " nuclear.

facility" also-means "

(1) any nuclear reactor.-

(2) any equipment or device designed or used for 1 (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.

f abricating or alloyind of special nuclear material if at any time the total amount of such material in the custody of the insured at- the premises where

-J such equi is located consists of - or-contains _pment more than or device 25 grams a of plutonium or uranium i 233 or any combination thereof, or more than 250 1

grams of uranium 235 (4) any structure, basin, excavation. promises or place prepared .or used for the storage or disposal 'of waste.

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and includes theEsite on which any of the foregoing is l l

located, all operations conducted on such site and all premises used for such operations. 1

" nuclear material" :neans source material, special nuclear material or byproduct material.

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" nuclear reactor" means any apparatus designed or used to sustain ,;

i nuclear fission or a self-sustaining chain

• L reaction material. or to contain a critical ~ mass of fissionable ,

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L "on-site cleanup costs" include all loss, cost or expense L

I arising out of on-site cleanup. obligations.

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"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 f acility. whether the material is-on, above or below the surface of the ground. 1 "on-site property damage" includes all property damage to any property at the facility, whether the property is on.

above aircraft, or below the surface of the ground, other than watercraft or vehicles licensed for highway use.

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previd:d cuch - circraft, watercraft or vehicles are - not used'in connection with the operation'of the facility.-

or radioactive contamination of property, and ' '

of property so injured, destroyed or contaminated, and lossbecause

use of use of- property possibly whileso evacuated or withdrawn from

ill imminent danger of contamination. contaminated or because of i

" source

" byproductmaterial " "special nuclear material " and Atomic- Energy material" Act of have the meanings given them in the 1954,

't thereof. or 'in at;y law amendatory

" spentorfuel" solid means any fuel- elecent or fuel component, liquid, which ,

radiation in any nuclear reactor.has - been . used or exposed to "the facility" means the facility. described in the '

declarations and includes the location designated in Item 3

such of it, the declarations and all property and operations at cation.

" transportation incident" of nuclear material from an insuredmeansshipment a discharge or dispersal cau by collision- or upset of the transporting ~ conveyance, sed i accident that- breaks open, or an shipping containers or containment punctures or ruptures- the thereon both the discharge or dispersal and the collision but only if l~ , upset 4 away of from any disposal. site, and both occur in t the transportation, storage incidental thereto. including . handling and -temporary l " waste" means any waste material (1) containing byproduct material and (2) resulting from the operation by any ' person or the definitionorganization of nuclear of any nuclear facility included within ,

(1) or (2) thereof. facility under paragraph

-4.

INSURINGAGREENENT INSURING AGREEMENT IV-AIVadded is replaced by the by the following and Coveraga Endorsement " Amendment of continues to apply: for Workers claims (Facility Form)"

.IV The LIMITED DEFENSE OF PARTIALLY COVERED CL following provisions partially covered claim or suitapply with respect to any duty to defend has been limited by INSURING AGREEMENT  :

Ifor wh (1) The companies will defend the companies and the firstthe claim or suit unless named insured mutually agree on a different defense arrangement. By making 6

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

(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 the defense and sharing the. costs thereof..

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

(4) The companies shall have a right tos 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.companies.

the named insured of all such excess costs paid by~

(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:

L. (a) the words " bodily injury or

. replaced by " bodily injury, property environmental damage": and propertydamage"

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

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

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 (the " Board")IVfor shall be submitted a final to a Board of Arbitration and binding dispute. resolution of the There shall-be two parties to the arbitration: the first named insured, acting on behalf of all insureds as their duly authorized .i representative, and Nuclear Energy Liability Insurance Association, acting on behalf of the. l companies as their duly authorized representative. i l

Except to the extent the otherwise parties. mutually agree the following' principles will apply (a) The arbitration will take place in New York. New York, and. will be governed by the lawa 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 that it has to do so and the name of the arbitrator 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. 'a (d) If a party fails to name its arbitrator within .

thirty (30) days of the 'l other party's written request that it do so, theparty.in requesting party may {

(e) appoint an arbitrator If the two arbitrators fail for the default.  ;

to agree on the' J selection of an umpire within thirty (30)- days after )

they have both been' appointed, each of them shall name two.

choice shallofbe-made whom the.by other shall drawing ?ots. decline one. The (f) The arbitrators and- umpire shall be executive officers or former companies licensedexecutive officers of insurance to do business l- in the United States or of organizations designated as the first named issued insured under a Nuclear Energy Liability Policy 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

• a

• r without the consent of both parties (1) any party or likely party to the underlying  ;

claim or suits (2) American Nuclear Insurers. MAERP Reinsurance Association any or their members: or (3) 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. - '

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

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

examination oral argumentor cross-examination of witnesses and 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 (j) The Board favoring the interest of either party.

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

(k)

If. the Board prescribed by fails to make(j) paragraph anabove.

award within the time extension is agreed to by the parties, then unless an a

arbitration shall be commenceJ and completednew 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 tir.cle r.st subject to appeal and binding on all policyparties, and allincluding insuredsall insurers subscribing ' the thereunder. The award shall be treated as a matter involving interstate commerce, and may competent be filed or confirmed in any court of jurisdiction. state or federal, and judgment thereon entered and enforced. in accordance with the law and practice of the forum.

9

6

. , . -) ,

l (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 i act. a new arbitrator or umpire, as the case may be, i j

shall be appointed to act in his or her place. in i 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.

l This :s ta cers !!at the it, a tw v';1 of tLt u w .al Endw..: 3 ' u inving the endornement numbn zmd bnng rnade pay of tiir N wt Eneng Liabi!.tv Pohcv (F4 5ty form) as dn '

if M n con hwt f'~ n k- creunder.

,,e L Qu mtg We Pr w nt Un&m Awwan !b Lw insurers 10 Effective Date of January 1,1990 s

'this Endorsement __

To form a part of Policy No. MF-121 1ssued to Illinois Power Company, and Soyland Power Cooperative. Inc.

-Date of Issue February 16. 1990 For the Subscribing Companies MUTUAL AT(pl1C ENERCY LIABILITT UND WRITERS By_

Endorsement No. 30 Countersigned by_

ME-71 (1/1/90) Authorised Representative l l

.. j

\

Nuclear Energy Wability insurance i

MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS i SUPPLEMENTARY ENDORSEMENT WAIVER OF DEFENSES i REACTOR CONSTRUCTION AT THE FACILITY l

l It is agreed that in construing the application of paragraph '

2(b) an to of theextraordinary WAIVER OF DEFENSES ENDORSEMENT NE-33c with respect facility, a claimant who is occurrence occurring at the nuclear i employed at the facility in connection with the construction of a respect to which no operating license has been issued by the nuclear reactor with Nuclear Regulatory Commission shall not be considered as employed nuclear in connection occurrence takeswith place theiftactivity where the extraordinary i (1) the claimant is employed exclusively in connection with all the construction related equipment of a nuclear reactor. including '

and installations at the '

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

(3) the claimant storage, is not employed in connection with the possession. use or transfer of material at the facility. nuclear Tlm is to certify th:t this is a trw copy of the orWnal Endorsement haiuq the endort.cinent number and being nude surt of the No:br En:rm I obilty Pony (Fac6ty Form) as des-igruted Sercon, lu insuran e is afbrde hereunder.

John L N trec'c 'e Anwrwan tw dear lasurers (

l I

Effective Date of this Endorsement January le 1990 To fors a part of Policy No. MF-121 12:01 A.M. Standard time 1

Issued to Illinois Power Company, and Soyland Power Cooperative. Inc.

Date'of issue February 16. 1990 1 For the Subscribing companies NtrFDAL ATONIC ENERGY LIABILITY 131 DER By T. i N

l Endorsement No. , 29 Countersigned by ME-39c (1/1/90)

Nuclear Energy Wability insurance MUTUAL ATOMIC ENERGY UABluTY UNDERWRITERS WAIVER OF DEFENSES ENDORSEMENT (Extraordinary Nuclear Occurrence) i The named insured, acting for himself and every other insured i under the policy, and the members of Nuclear Energy Liability Insurance Association agree as follows: i

1. With respect to any extraordinary nuclear occurrence to j 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 l facility, or (b) arises out of or results from or occurs in the course of the transportation of nuclear material to or from 3 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:- ,

(1) negligence.  !

l (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.

I (2) any issue or defense as to charitable I

or governmental immunity and (3) any issue or difense 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 havo known, of his bodily injury or property damage and tho cause thereof.

t 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

., , ~l

,. 1

"- (b) bodily injury sustained by any claimant who is employed at the site of and in connection with the l 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 laws (c) any claim for punitive or exemplary provided. damages, with respect to any claim for. wrongful deathpunitive only under anyinState law which nature, provides for damages 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. i l

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 i under however,its terms other than this endorsementt provided, damage that with respect to bodily injury. property or . environmental damage resulting from an extraordinary nuclear occurrence, the provisions of COVERACES bodily injury, A and C of the policy providing coverage for property damage or environmental damage .

caused during the policy period by the nuclear energy i hazard and which is discovered and for which written claim is made against the insured not later than ten (10) years after the and of the policy period shall not operate bar coverage for bodily to 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 af ter the date of the extraordinary nuclear occurr)ence.

Such waivers shall not apply to, or prejudice the h prosecution or defense of any claim or portion of claim which is not within the protection afforded under

~(a) the provisions of the i 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 1934, as amended: and170 of the Atomic Energy Act of (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 l' reasonable steps to mitigate damages.

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

t

.,, e, -

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

5. As used herein:

" extraordinary nuclear occurrence" means an event which the Nuclear Regulatory Commission has determined to be an extraordinary Energy Act of 1954, nuclear occurrence as defined in the Atomic as amended.

i

" Financial protection" and " nuclear incident" have the meanings given them in the Atomic Energy Act of.1954, as 5 amended. ,

1

" claimant" means the person or sustaining the bodily injury, organization actually ,

environmental damage and also includes property damage or his assignees, legal representatives and other persons or organizations entitled injury or to bring an action for damages on account of such damage. e h is to confy that this is a true copy of the orbnal .

Endon ement hwing the endorserneni nurnber and being made part t

9 ihe Hg k r Foers thhitty Pohey (F< .ty Form) as des-U wted h von ~ .gm.or:. c' " ' conder.

1.nn 1. Qut w hi, b Presdmf Uwierwritna Annun him Innms i

' Effective Date of this Endorsement January 1, 1990 To form a part of Policy No. MF-121 12:01 A.M. Standard tise l

Issued to Illinois Power Company, and Soyland Power Cooperative, Inc.

t Date of issue _ February 16, 1990 For the Subscribing Companies l

MUTUAL ATOMIC EXERGY llABILITY WIDERVRITERS l, By y

S. vr s Endorsement No. 28 Countersigned by ME-33c (1/1/90) Page 3 of 3 l

I-

i . .

l Nuclear Energy LiabilRy Insurance l MUTUAL ATOMIC ENERGY UABILITY UNDERWRITERS i

Restriction of Comoanies Oblication to Defend, Investicate. Neaotiate or Settle Any Claim or Suit '

i (Section 170 0. of the Atomic Energy

• Act of 1954, as amended) '

Effective August 20, 1988, it is agreed that whenever, pursuant to subsection 170 0. 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 i subsection as 170 e. (1) (A), (B) and (C) of the Atomic Energy Act of 1954, amended, the companies obligations under Insuring i Agreement I, to defend, investigate, negotiate or settle any ,

claim or suit under the policy do not include any obligation that would costs, necessitate or result in the companies incurring legal including costs of initiating, prosecuting, investigating, settling, or defending claims or sutts, which are not authorized for payment by a court pursuant to such subsection 170 0.

llk 9 f ? (I Y t:[f {}Ld N!' F, o trtie cop / ti! '.lv DT1gi!13!  ;

Dm w r he. ;m.: 6 nd, o r. m numba mnd bemg made part e , cu Enum LMtv Pacy ( 4 Form) e des l hacundm.

~

rp- d ,wa Ilo inst r:r W

.T . '

.km, L t wuNvuenwwniu* ifram $

Anm an liut km la: wen Effective Date of this Endorsesent August 20, 1988 L To fors a part of Policy No. MF-121 12:01 A.M. Standard time Issued to Illinois Power Company, and Soyland Power Cooperative. Inc.

Date of issue February 16. 1990 For the subscribing Cospanies MUrGE ATOItIC ENERGY LIABILITY IEWEMRITEL5 By *T. ~- -

Endorsesent No. 27 Countersigned by l NE-70

i Nuclear Energy Liability insurance MUTUAL ATOMIC ENERGY UABILITY UNDERWRITERS SUPPLEMENTARY ENDORSEMENT WAIVER OF DEFENSES REACTOR CONSTRUCTION AT THE FACILITY Effective August application 20, 1988, of paragraph it is agreed that in construing the 2(b) of the WAIVER OF DEFENSES ENDORSEMENT occurrence occurring ME-33b with respect to an extraordinary nuclear l at the facility, a claimant who is  ;

employed a at the facility nuclear reactor with respectin connection with the construction of 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 l the extraordinary nuclear occurrence takes place ift (1) the claimant is employed exclusively in connection i with all the construction of a nuclear reactor, including related equipment and facility, and installations at the (2) no operating license has been issued by the Nuclear  !

Regulatory reactor, and Commission with respect to the nuclear (3) the claimant is not employed in connection with the possession, storage, use or transfer of nuclear  :

material at the facility. 1 j

This 6 to cert @ thm the is a true reps d the midnal '

Endorsevnent hwina the endxsement m iber and being made part of the %dca Enaav LiAihty Pohey ( cihty Form) as des, ereunder.

ignated uret in cr.g Jahn L Qw axdu. Va Preedent Undnwntwa >

Anwticin !Jutkar Inuiters

{

\

Effective Date of ,

this Endorsement August 20, 1988 12:01 A.M. Standsed tinue To form a part of Policy No. _MF-121 I Issued to Illinois Power Company, and Soyland Power Cooperative, Inc.

i Date of issue February 16, 1990 For the Subscribing companies MtmlAL ATOMIC ENERGY LIABILITY IEED5tVRI By O A1.% IA~

Endorsement No. 26 Countersigned by ME-39b

o t

Nuclear Energy Uability insurance MUTT ', ATOMIC ENERGY UA8lWTY UNDERWRITERS l 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. i With respect to any extraordinary nuclear occurrence to I which and which the policy applies as proof of financial protection i

(a) arises out of or results from or occurs in the course  :

of the construction, possession, or operation of the l facility, or (b) ari?es out of or results from or occurs in the course of the transportation of nucisar material to or from the tacility, i

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 tot i

t (1) negligence, j (ii) contributory negligence, (iii) assumption of risk, and t

(iv) unforeseeable intervening causes, whether l

involving the conduct of a third person, or an act of God, i

l (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 l

ME-33b Page i of 3

<.* .o (a) bodily injury or property damage intentionally sustained by the claimant which or which is results from a nuclear incident intentionally and wrongfully caused by the claimant; o

(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 laws (c) any claim for punitive or exemplary damages, provided, with respect to any claim for wrongful i

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 i IV, " Application of Policy",

shall not operate to bar l 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 L 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 i

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 tc 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-33b 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. sbove 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 t

" 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 bcdily 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.

Th's W to certify that this is a true copy of the origna!

Endorsernent havina the et>& cement rn rit iy l'orrn) <2 rk s-of the Nucrar f.ncia/ Liabi!,ty Pohry (

' areundet. >

iqnated trean No insu.. w ~..

S ..

rxcN, \'ge Pic4uknit Underwntmg 1 Jahn i ( . i.

Awrm No:Lw 1:nutors i

Effective Date of this Endorsement August 20. 1988 f a MF M 12:01 A.M. Stanaard time Issued to Illinois Power Company, and Soyland Power Cooperative, Inc.

~

Date of issue February 16, 1990 For the Subscribing Companies NtmlAL ATOKIC DERGY LIABILITT IBIDER By y

8. Ubd,~ - . .

Endo rsemen t ' No. .. 25 countersigned by .

ME-33b Page 3 of 3

i .  !

I J

)

, Nuclear Energy Liability Insurance )

1 NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION CNANGts IN sutsttlBihG CopFAkits AND IN TMtit PROPotil0NATE LIABILiff te0R$tMENT ,

, CAtteAn ftAt 295!

l L

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

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.

iJ C.

Aetne Ceausity 4 surety Co.

~@C- $ Attlant truurance Cogeny 12.9173375 1.515634% r h Allstate Insurerge Company 5.5355105 0 'E American Mose Assurance Co. 0.692369E W to g Continental Casualty Company 5.341750%

t g JS e Continental Irsurance Company 10.333870E 3 ,o E 2 Federal Irsurance Company 2.7556995 General Inc. Co. of Amerite 1.7223125 S

3

@c }-f3 P llenover truurance Ccapeny Nertford Fire irsurance Co.

0.595059E 10.333870E y a i Highlande truurance Company 0.344462K 2 d#? y Home Indesrtity Company 1.614667E 3 Irs. Co. of north America 7.750603%

3*& ] .yo ,3y Motore insurance Corporetton 0.4305735

.k Ohio Ceauelty Irsurance Co. 0.1722311 jW k >l Providence Weehington its. Co. 0.1937605 c

0 J ]S

~~

wU a

Reliance Insurance Company Royal Irs. Co. of America 0.516696%

3.616855%

E-

~ go St. Paul Fire & Marine Inc. Co. 5.991922%

N 2,b[ cy,}.-Z State Fare Firm 8 Ceauelty Co.

fokio Marine & Fire Inc. Co.

0.8611565 0.516696%

5v g q[ 3 j Traneamerica insurance Co. 0.861156%

$ gg,,Z g Travelere Indenritty Company U. S. Fire Insurance company 12.856195%

2.3251211

'~ o , U.S. Fidelity & Guaranty Co. 8.611558X

g jS/ Univerest underwritern ine. Co. 0.1722315 m e q Zurich Insurance Company 1,420o075 F %2 .g < Total 100.0000001 ut 90 Effective Date of

• this Endorsement January 1 ' *r90 To form a part of Policy No. _ NF-261 12:01 A. M. St . erd time Issued to Illinois Power Company, and Soyland Power Cooperative. Inc.

Date of Issue April 1. 1990 A For the Subscribing C a^panies, By Y'

l v' d D h President Endorsement No. 50 Countersigned by

p s

4 -

Nuclear Energy UabilRy Insurance  !

NUCLEAR ENERQY LIA8luTY INSURANCE ASSOCIATION i AMENDATORY ENDORSEMENT 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 inaury or property damage, or as covered ,

environmental clea;.up 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 af ter 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 IV, if the claim or suit )

also seeks any of the following, which in no event shall i 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 obligationst 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 3.

i 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 i

to apply for or furnish such bonds: )

i

't

P 1

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

incurred by the insured at the companies' request. )

1 I

COVERAGE THE FACILITY B - DAMAGE TO PROPERTY OF AN INSURED ANAY FRON

• l With respect to property damage caused during the policy period by the nuclear energy hazard to the property of an c

insured which is away from the facility, to pay to such i I

insuredobligated legally those suas to pay which such insured as covered would damages have been therefor, had  !

such property belonged to another. I l

i c0VERACE C - SURR00ATION - 0FFSITE EMPLOYEES '

I 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 af ter the end of the policy period, to pay to the -

workmen's compensation carrier of such insured as follows:

All recover sums which such carrier would have been entitled to 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 4

law shall be deemed to be a workmen's compensation carrier '

within the meaning of this Coverage, l-This coverage does not apply to bodily injury to any person facility who is employed at and in connection with the 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 unqualifled word " insured" includes (a) the named i

insured and (b) any other person or. organization with respect to covered his legal responsibility for covered damages or environmental

! cleanup costs because of bodily L

injury, the property nuclear energy damage hazard. or environmental damage caused by i

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

s ,

i 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 person.

death resulting therefrom, sustained by any j i

(

" covered damages" means damages because of bodily injury or property damage to which this policy appliest but .

covered or on-site damages cleanupdocosts.

not include environmental cleanup costs ,

" covered environmental cleanup costs" means only those environmental cleanup costs which are incurred directly '

for monitoring, containing testing for, cleaning up, neutralizing or environmental damage as the result of an '

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

r i

" disposal site" means any structure, basin, excavation, premises or place prepared as a dump or site for the i 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. i

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

i " environmental cleanup costs" include all loss, cost or expense arising out of any governmental decree, order or ,

action at(other than an award of covered damages in an directive law) requiring or requesting a person or i 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. i

" environmental ment by nucleardamage" material.means contamination of the environ-I

" environmental protection obligations" include obligations of any person or organization all 1

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

1

" extraordinary the United States nuclear occurrence" means an event which \

Nuclear Regulatory Commission has l determined to be an extraordinary J nuclear occurrence as t 3  :

- _ ~ _ _ _ _ .. _ ._-_._ _. - _ . _ _ _ _ _ _ _ _ _ __

i g ,

defined in th3  !

4 amendatory thereof.AtcOic Energy Act of 1954, or in any law

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

" indemnified nuclear facility" means (1) i "the facility" Liability Policyas(Facility definedForm) in any Nuclear Energy issued by Nuclear Energy Liability Insurance Atomic Energy Liability Underwriters, or Association or Mutual  ;

(2) any other nuclear facility, l if financial protection is required pursuant to the Atomic Energy Act of 1954, with respect to any activitiesor any law amendatory thereof, .

thereat. or operations conducted

" insured special shipment" nuclear means a shipment of source material, material, spent fuel, waste or tallings uranium or thorium from any ore processed prim its source material content, herein called " material,"

(1) to the facility indemnified nuclearfrom any location except facility, but only an if the transportation mination to beof interrupted the material is not by predeter-material by removal of the from a transporting conveyance for any '

purposeorother than the continuation of'its transpor-tation, (2) from the facility to until the material is any conveyance removed from a other location, but enly transporting for any purpose continuation of its transportation. other than the '

" nuclear entrgy hazard" means the radioactive, explosive material, but or only otherifhasardous properties toxic, of nuclear '

(1) discharged or dispersedthe nuclear material is at the facility person or organization, therefrom orrelinquish without intent to possession or custody t (2) is away course from any other nuclear facility of transportation, and is temporary including handling and storage incidental thereto, within (a) the territorial America. Its limits of the territories United States of or possessions, or (b)

Puerto Ricos or international the waters or airspace, provided that nuclear material is in the course of transportation between two points located within 4

.__ _ _ . . . _ - . _ _ - _ _ -._..______._..______E__.__.__-____ _ _ .___._ _.-__ _ __ _________._ __ _ _ . . . _ _ _

v s I

the thereterritorial limits described is no deviation in (a) above and ,

in the course of the i 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 detined in any i 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. t (2) any equipment or device designed or used for t (a) separating the isotopes of uranium or plutonium.

(b) processing or utilizing spent fuel, or t (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 l

such equipment or device is located consists of.or contains more than 25 grams of plutonium or uranium l

233 or any combination thereof, or more than 250 grams of uranium 235 (4) any structure, basin, excavation, premises or place prepared waste.

or used for the storage or disposal of and includes the site en which any of the foregoing is  :

l 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 i aircraft, watercraft or vehicles licensed for highway use.

5

~

s .  :

i provided such aircraft, watercratt 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 i

j 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 i imminent danger of contamination. .

l [

" 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 radiation in any nuclear reactor. been used or exposed to  !

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

" transportation incident" means a discharge or dispersal of nuclear material f rom an insured shipment caused by collision or upset of the transporting conveyance, or an accident that breaks open. punctures or ruptures the t shipping containers or containment thereont but only it 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  !

4 (1) or definition of nuclear facility under paragraph (2) thereof. i 1

4.

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

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 It (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 l 6

c' a s f such a defense, the companies shall not be considered as having deny waived their rights under this policy to payment or reiebursement 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.

The companies' share of defense costs (3) 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 companies' share, are incurred in excess of the amount of the '

including reimbursement by the firstcompanies.

the named insured of all such excess costs paid by (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 prece, dent to ' 9y right of recovery on this policy, to arbitra-

, ti ut

' for a final and binding resolution, as provided

.ndition 19. q

5. In EXta,A3sIONS (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 exclusiont (This policy does not apply:)

(f) to on-site property damaget

7. In CONDITION 3 and in all endorsements to this policy modifying the dollar amount of the limit of liability j stated in Item 4 of ' the declarations, the words " bodily injury or property damage" are replaced b property damage or environmental damage."y " bodily injury, l

[ 8. In CONDITION 4 modifying the and in all endorsements to this policy l l liability of dollar amount of the total aggregate occurrences the companies with respect to a common  !

l (a) the words " bodily injury or t replaced by " bodily injury, property damage" are environmental damage" and property damage or l (b) the words " bodily injury and property damage" are replaced by " bodily injury, environmental damage." property damage and 7

] ,. 3 i

9. i In CONDITIONS 5, 11. 15 Cnd 18 property damage" are replaced bthis" policy the words relating bodily injuryand or there in a damage or environmental damage."y " bodily injury, property

10. ,

CONDITION 19. DECLARATIONS i

11. is renumbered CONDITION 20 .

j The following CONDITION is added to the policy .

19 (

{

OF INSURING AGREEMENT IVARBITRATIO I

[

All such disputes subject to paragraph (5) of INSURING AGREENENT (the " Board") for aIV dispute. shall final and be submitt6d binding resolution to ofa the Board on of l I

There insured, named shall.be two parties to the arbitration duly authorized acting on behalf of all insureds the as first their representative. and Nuclear n

Liability Insurance Association, Energy l companies as their duly authorized representative. acting on behalf of  !

i i Except to the extent the parties mutually agree otherwise, the following principles will applyt ,

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

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

arbitrator other party shall then appoint in writing an l

and the arbitrators shall appoint in (d) The If a party umpire fails to shall name act as chairman of the Bo thirty (30) days request that of its arbitrator within the other party's it do so. the written requesting party may (e) appoint If the an arbitrator for the party in default.

two arbitrators fail to agree on the they have bothselection of an umpire within thirty days (30) after been appointed, name two. each of then (f) choice shall be The made by drawing lots.of whon Thethe other s arbitrators officers or formerand umpire shall be 1

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

8 a-. . - ,, , - - . -- , ,.,,,~v,.<.mn..r,- ,,,,,-,v--- , . , , ,.w.n..n_.. ,,

(,i L,'

(1) any party or likely party to the underlying claim or suitt (2) American Nuclear Insurers. MAERP Reinsurance Association any or their members: or (3) other insurer or reinsurer which has

casualty insurance or reinsurance in force on any of the affected by foregoing the Board'swhich may be materially decision. ,

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

t '

(h) The Board shall determine its rules of procedure, and i the nature and extent of any discovery, testimony, examination oral argumentorpermitted. cross-examination of witnesses and The decision of any two members.

all parties. of the Board shall be final and binding on 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.

(1) 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  !

(j) favoring-the interest of either party.

The Board shall make its award in writing within thirty (30) including any days after the close of the -period. i extension granted. described in '

paragraph (h) above.

(k)

If the Boardbyfails prescribed to make(j)an award within the time paragraph i

extension is agreed to by the parties, above. then unless an l

arbitration shall be commenced and completed a new I'

in accordance (a) through (j) with the procedure set out in paragraphs above.

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

all be final,including not subject all to appeal and binding on k.

policy and all insureds thereunder. insurers subscribing the r The award shall

! be treated and as a matter involving interstate commerce.

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

9 w - , - , ,~~-----....,m.n., - . , . ,,-.,......,..,w-~_n w, n ., - , . . - , . _ _ . . - - . a.m.-,..._----,w,.,,._v.,-----,.,,-e e,a

4. s . 3 ;

(m) Unless the Board decides otherwise, each party shall pay for the expenses of the arbitrator appointed by or 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 (o) accordance with the provisions set forth above.

All i

materials relevant to the arbitration shall be submitted to the Board in triplicate and the filing party shall opposing send simultaneously a copy thereof to the 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 af ter the effective date ,

of this endorsement stated below. i End,.. 3,yThh is to e,,,g, th9f th! i.i of the NJ , '?% the enjr,a , , , , g j W of the origrg Ga&dhe,.,nj('{ISty Dog [ nd beins made part ONied h con ' O# OCS-Jale, L q ,

^%n IQ,,, ) Frn.. w n.

10 Effective Date of this Endorsement- January 1. 1990 To form a part of Policy No NF-261 12:01 A.M. Standard Time i.

Issued to Illinois Power Company, and Sovland Power Co0 Der 8tiVe. Inc.

-Date of issue February 16. 1990 For the su ribing c panies l-T i PRESIDENT Endorsement No_ 49 Countersigned by iE-71(1/1/90)

0 .

Nuclear Energy Liability insurance 1 l

NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION

{

SUPPLEMENTARY ENDORSEMENT WAIVER OF DEFENSES REACTOR CONSTRUCTION AT THE FACILITY i It is agreed tha,t in construing the application of paragraph 2(b) an to of theextraordinary WAIVER OF DEFENSES ENDORSEMENT NE-33c with respect facility. a claimant who is occurrence occurring at the nuclear

• employed at the facility -in connection with the construction of a nuclear reactor with respect to which Nuclear Regulatory Commission no operating license has been issued by the i shall not be considered as employed in connection nuclear occurrence takeswith placetheiftactivity where the extraordinary (1) the claimant is employed exclusively in connection with all the related construction of a nuclear reactor. including equipment and installations facility, and at the (2) no operating license has been issued by the Nuclear Regulatory Commission with respect to the reactor, and nuclear (3) the claimant storage, is not employed in connection with the possession, use or transfer of material at the facility. nuclear i

Tin is to cutify that 6 is a in+ a;ri of the nricind Endorsimmt h,w the enim v u ra kr and being rnade part o r tne ~u m r Em meu sapPoig:yF ainy Form) as des in Mreunder, go',cd -ec /

un L q. wh.. we ania: noun &nvmina Anwrten Nahr Inwitis Effective Date of this Endorsement Jawary 1, 1990 To form a part of Policy No. NF-261 12:01 A. M. Standare time Issued to Illinois Power Company, and Soyland Power Cooperative, Inc.

Date of Issue February 16, 1990 For the Sub ibing Co antes, By - /

GrprWe# h Endorsement No. 48 Countersigned by NE-39c (1/1/90)

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

?

i l

Nuclear Energy Uability insurance NUCLEAR ENERGY UABluTY INSURANCE ASSOCIATION l WAIVER OF DEFENSES ENDORSEMENT I (Extraordinary Nuclear occurrence) i The named insured, acting for himself and every other l~nsured under the Association policy. and the members of Nuclear Energy Liability Insurance agree as follows:  ;

1. With respect to any extraordinary nuclear occurrence to which and which the policy applies as proof of financial protection (a) arises of the out of or results construction, from or occurs possession, or in the course operation of the facility, or (b) arises of the out of or resultsoffrom transportation nuclear or occurs materialin theto orcourse from the facility. ,

the insureds and the companies agree to waive (1) any issue or defense as claimant or the fault of the insureds, including but to the conduct of the not limited tot (i) negligence.

(ii) contributory negligence.

(iii) assumption of risk, and (iv) unforeseeable intervening causes, whether involving act of God, the conduct of a third person, or an ,

(2) any issue or defense as to i

governmental immunity, and charitable or .

(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 know, 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 cause deemed of action. jurisdictional or relating to an element in the *

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 intentionally or and which results caused wrongfully from a nuclear incident by the claimant NE-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 takes placewhere the extraordinary nuclear occurrence or required if to benefits be therefor are either payable provided under any workmen's compensation or occupational disease law:

(c) any claim for punitive or I

provided, exemplary damages, with respect to any claim for wrongful )

death only punitive under anyin State nature, law which provides for damages .

this exclusion does not +

apply to the actual damages, measured by extent that the claimant has sustained resulting from such death butthe pecuniary injuries not to exceed the maximum amount otherwise recoverable under law.

3. The waivers set forth in paragraph 1. above shall be effective enly with respect to bodily injury,  ;

damage or environmental damage to which the policy appliesproperty under its however, terms other than this endorsements ,

damage orthat with respect to bodily injury, provided. ,

environmental damage resulting from property  ;

extraordinary nuclear occurrence, the an provisions of i COVERAGES bodily injury, A and C of the policy providing coverage for '

property damage or environmental damage caused during the policy period by the nuclear energy hazard is madeand whichthe against is discovered insured notand for.which later than ten written (10) claim years after bar coverage the end of the policy period shall not operate to for bodily injury, environmental damage property damage or (a) policy period by the nuclear energy hazard and (b) which which is caused during the is discovered and for which written claim is made against "

the insured not later than twenty years after the date of the extraordinary nuclear occ(20) urrence.

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 4

(a) the- provisions of the policy applicable to financial protection required of the named insuredtthe (b) the agreement of indemnification between the named insured and the Nuclear Regulatory Commission made pursuant 1954, as amended: to Section and170 of the Atomic Energy Act of (c) the limit of liability provisions of Subsection 170e.

of the Atomic Energy Act of 1954, as amended.

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

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

. s. .

L 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 against any enforceable in accordance with their terms e 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 Energy Act of 1954, nuclear occurrence as defined in the Atomic as amended.

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

" claimant" means the person or sustaining the bodily injury, organization actually environmental damage and also includes property damage or his assignees.

legal representatives and other persons or organizations entitled injury.or to bring an action for damages on account of such damage, n g 1,ww ti.at thig w .t @ of the orwnal

.3 , r and being made part h-g wM hM33 thf C" jhty Form) 4% b r w t ur Encra U3hM ..

h, g,e wd rt y r g ["' h :755 k.- t,rcunder.

, u khway, vo hoaw unauwmum] l Anwon NWT U""

Effective Date of this Endorsement January 1, 1990 To form a part of Policy No. NF 261 12:01 A. M. Standard time

Issued to Illinois Power Company, and Soyland Power Cooperative. Inc. i Date'of Issue February 16, 1990 For the S ribing C panies, By i

_.o

(

4WJ'ihkif. " ~

Endorsement No. 47 Countersigned by NE-33c (1/1/90) Paan 3 :;f a l

t Nuclear Energy Wability Insurance NUCLEAR ENERGY UABILITY INSURANCE ASSOCIATION Restriction of Comoanies Oblication to Defend. '

Investicate. Neaotiate or Settle Any Claim or Suit (Section 170 0. of the Atomic Energy '

Act of 1954, as amended) ,

i Effective August 20, 1988, it is agreed that whenever, pursuant to subsection 170 0. of the Atomic Energy Act of 19 54 ~, as amended, an approcriate 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 costs, necessitate or result in the companies incurring legal including costs of initiating, :prosecuting, I

investigating, settling, or defending claims or sutts, which are not authorized for payment by a court pursuant to such subsection 170 0.

4 Tl m h to ccMV that thr' i5 ^ 't"# ' PV # th" "'NJ D&namem la m nw onimwnt number and bom op ret of b,f N. bt linetq; ljaMty PohCV (f a IV IUM O d iy..wd b. cor su

{rundet.

w t. q , , a e Prn a nWo* = a-

/m,wan L iur hwtas I 1

I Effective Date of this Endorsesent August 20, 1988 1 To form a part of Policy No. NF-261 12:01 A.E Standard tian Issued to Illinois Power Company. and Soyland Power Cooperative. Inc.

Date of issue February 16, 1990 For the su ibing Co antes i.

)

er _.

l r===i .

Endorsesent No. 46 Countersigned by I

NE 70

e - .  ;

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 ba considered as employed in connection with the activity where the extraordinary nuclear occurrence takes place it:

(1) the claimant is employed exclusively in connection with the construction cf 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.

l

'ns is in cadfy tiet tins is a une cov of the orsmi '

Leh. ax.u hav w the en&m and being made part et t h. .N a Enem i 1.L % ,,mt "t.upOV Fodn) as dts-i3 :w:)b e, h cunda. I 1

kH 1. Q 2 s w hi, N heet-Untlerwntus

/vnen an Lir I:wwas Effective Date of this Endorsement August 20, 1988 To form a part of Policy No. NF-261 12:01 A. M. Standere time I

! Issued to Illinois Power Company, and Soyland Power Cooperative, Inc.

L Date of Issue February 16, 1990 For the s ribing panies, sy Im&

\lFresident Endorsement No. 45 Countersigned by.

NE-39b

q vaA i:

Nuclear Energy Uability insurance l

l NUCLEAR ENERGY UABluTY INSURANCE ASSOCIATION  ;

WAIVER OF DEFENSES ENDORSEMENT (Extraordinary Nuclear Occurrence)

Effective August 20, 1988, the named insured, acting for himself i and every other insured under the policy, and the seabers of Nuclear Energy Liability Insurance Association agree as follows:  !

t

1. With respect to _any extraordinary nuclear occurrence to  !

which the sc1Acy applies as proof of financial protection i and which 1 (a) arises out of or results from or occurs in the course

'. of the construction, possession, or operation of the l '

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, i 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 j i

tos (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 LNE-33b- Page 1 of 3

i

,. -k \

F

-(a)- bodily injury or property' damage which is intentionally sustained by .the claimant or which results from a y nuclear; the claimant; incident intentionally and wrongfully caused ~by -i (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 be therefor are:either payable-or provided .under any workmen's required to compensation or occupational disease law; (c)- any1 claim for punitive or exemplary damages, provided, with respect to any citia for wrongful death under any State law which providee for. damages only punitive in 4

~

nature, this exclusion dc,ss not apply to the extent i

that the claimant has- sustained actual ~ damages,_

measured by_the pecuniary _ injuries resulting from such i

death recoverablebut notunder to exceed law. the maximum amount otherwise

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

' extraordinary nuclear occurrence, Insuring Agreement from an IV,

" Application of Policy", shall not operate to bar coverage for- bodily injury or property damage (a) which is caused L

during the policy - period by the nuclear energy hazard and

(, ~(b). which is discovered and for which written claim is made i

'- against the insured not later than twenty (20 i the date of tho extraordinary nuclear occurrenc)e. years after g

Such wt ~er Jhall not apply to, or prejudice the prosecution or defense of any claim or portion of claim which is lot vithin the protection afforded under (a) the provi.,Na of the policy applicable to the firar W ;u ccion required of the named insured; (b) th gnet of indemnification between the named-

' int a M Pd *ae Nuclear Regulatory Commission made puru ** to Section 170 of the Atomic ::nergy Act of 1954, as amended; and (c) the limit of liability provisions of Subsection 170s, of the Atomic Energy Act of 1954, as amended.

Such waivers shall not preclude a defense based upon the i 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 L 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

. _ _ _ _ _ - _ _ _ _ _ - - _ _ _ _ _ _ _ _ _ _ _ _ . .. = . . .- -

Q i,.

5

(_

of _ bodily injury or property damage to which the policy applies as proof of financial protection. 4 i

. 5. As used herein:

" extraordinary nuclear occurrence" means an event which the Nuclear- Regulatory Commission has determined to be an i

extraordinary nuclear occurrence as defined in ' the Atomic i Energy Act of 1954, as amended.

t

" Financial protection" and " nuclear incident" have the '

meanings given them in tha Atomic Energy Act of 19 5 4 ',' a s amended. .

-l

's "claimast9 nuns the person or- organization actually-sustaininq the bodily injury or property damage and ' also.

includeis .ils assignees, logal representatives and other persons or organizations entitled to bring an action for  !'

damages on account of such injury or damage.

i 'l

.-[

w This is to certify that this % a true copy of the oriatnal Endorsement of hanns the endorsemtni-number 1;m N dear Encray Liab: Liv Poky (Fe and being mad iity Form) as des-ignated b cor@' ns 'e

' C,3 ,

icunder. '

John L. Qumi occhi, Wee hesakut Un ierwrrtuu Anmican Nuckar tasurm 1 4

. i o

l I

-: Effective Date of this Endorsement August 20, 1988 To form a part of Policy No. NF-261 g 12:01 A.M. Standard time f ,

a Issued to Illinois Power Company, and Soyland Power Cooperative, Inc.

r

-Date of issue February 16, 1990 For the cribing panies L

By

\Plesident Endorsement No.- 44 Countersigned by n

LNE-33b Page 3 of 3-

. . . - - - -