ML20043C830

Forwards Endorsements98-105 to Nelia Policy NF-226, Endorsements 93-96 to Maelu Policy MF-90,Endorsements 14-15 to Nelia Policy N-58 & Maelu Policy M-58 & Endorsements 8-9 to Nelia Policy N-110 & Maelu Policy M-110

ML20043C830
Person / Time
Site:	Beaver Valley, Nine Mile Point
Issue date:	05/29/1990
From:	Oconnor D MARSH & MCLENNAN, INC.
To:	Dinitz I Office of Nuclear Reactor Regulation
References
NUDOCS 9006060230
Download: ML20043C830 (112)

Text

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Marsh O McLennan Nuclear 1166 Avenue of the Americas c New Wrk, NY 10036-2774 lblephone 212 345 6000 May 29, 1990 MARSH &

McLENNAN Mr. Ira Dinitz Insurance Liability Specialist Office of Nuclear Reactor Regulation Mail Stop 12E8 U.S. Nuclear Regulatory Commission Washington, D.C. 20555  :

Nuclear Energy Liability Insurance Policy / Certificate Endorsements

Dear Ira:

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

+- Duquesne Light Company, et al Endorsements 98 - 105 to NF-226; Endorsements 96 - 93 to MF-90; Endorsements 14 - 15 to N-58/M-58; Endorsements 8 - 9 to N-110/M-110.

Niagara Itohawk Power Corporation, et al Endorsements 114 - 121 to NF-161; Endorsements 97 - 104 to MF-46; Endorsements 14 - 15 to N-12/M-12; Endorsements 9 - 10 to N-105/M-105.

Please contact me with any questions or comments.

Regards, David J. O'C n , Jr.

Assistant Vice President Enc.

9006060230 900529 0 DR -ADOCK 0500 /

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Nuclear Energy Uability insurance NUCLEAR ENERGY UABluTY INSURANCE ASSOCIATION WAIVER OF DEFENSES ENDORSEMENT (Extraordinary Nuclear Occurrence)

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

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

the insureds and the companies agree to waive I; (1) any issue or defense as to the conduct of the claimant l or the fault of the insureds, including but not limited i to:

(i) negligence, (ii) contributory negligence, (iii) assumption of risk, and (iv) unforeseeable intervening causes, whether involving the conduct of a third person, or an i act of God, (2) any issue or defense as to charitable or governmental immunity, and t

(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 2. above do not apply to NE-33b Page 1 of 3

. n gi (a) bodily injury or property damage which is intentionally sustained by the claimant or which results from a

nuclear incident intentionally and wrongfully caused by the-claimant; (b) bodily injury sustained by any claimant who is employed at the site of and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits be provided therefor are either payable or required to under any workmen's compensation or occupational disease law; (c) any claim for punitive or exemplary damages, provided, with Staterespect to any claim for wrongful death under any law which providea for damages only punitive in nature, that the this exclusion does not apply to the extent claimant has sustained actual damages, measured by the pecuniary injuries resulting from such death but recoverablenot to exceed under 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 s than to bodily this endorsement; provided, however, that with respect injury or property damage resulting I

extraordinary nuclear occurrence, Insuring' Agreement from an IV, s

" Application of Policy", shall not operate to bar coverage for bodily injury or property damage (a) which is caused during.the policy period by the nuclear energy hazard and (b) which is discovered and for which written claim is made against the. insured not later than twenty 20

the date of the extraordinary nuclear occurr(enc)e. years after Such waivers shall not apply to, or prejudice the prosecution or defense of any claim or portion of claim i which is not within the protection afforded under (a) the provisions of the policy applicable to the financial protection required of the named insured; (b) the agreement of indemnification between the named insured and the Nuclear Regulatory Commission made pursuant to section 170 of the Atomic Energy Act of 1954, as amended; and (c) the limit of liability provisions of Subsection 170e.

of the Atomic Energy Act of 1954, as amended.

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

4. Subject to all of the limitations stated in endorsement and in the Atomic Energy Act of 1954, this as Timended, the waivers set forth in paragraph 1. above shall be judicially enforceable in accordance with their terms against any insured in an action to recover damages because NE-33b Page 2 of 3

of bodilyas-proof applies injury or of property damage to which tha policy financial protection.

5. As used herein:

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

" Financial protection" and " nuclear incident" have the-meanings amended.

given them in the Atomic Energy Act of 1954, as

" claimant" means the person or organization actually--

sustaining the bodily in or property damage and also includes his assignees, jury legal representatives and other persons or organizations entitled to bring an action for damages on account of such injury or damage.

.d This ir, to certify that this is a true copy of the original Endorsenwnt having the endorsement number and being made part of the Nxicar Dwrcy 1 Eur.tv Policy (Fgility Form) as des-innated ercan M,, msu nce is afford // hereunder.

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• nt una ,wn, Aawi.ain b dear ImuNrs Effective Date of this Endorsement August 20, 1988 To form a part of Policy No. NF-226 12:01 A.M. stenaara time Duquesne Light Company, Ohio Edison Company, Pennsylvania Power Company, Issued to Cleveland Electric Illuminating Company and Toledo Edison Company

.Date of issue February 16, 1990 For the cribing panies By )

\Plesident Endorsement No. 98 Countersigned by NE-33b Page 3 of 3

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Nuclect En:rgy Liability insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION SUPPLEMENTARY ENDORSEMENT WAIVER OF DEFENSES REACTOR CONSTRUCTION AT THE FACILITY Effective August 20, 1988, it is agreed that in construing the application of paragraph 2(b) of the WAIVER OF DEFENSES ENDORSEMENT NE-33b with respect to an extraordinary nuclear occurrence occurring at the facility, a claimant who is employed at the facility in connection with the construction of a nuclear reactor with respect to which no operating license has been issued by the Nuclear Regulatory Commission shall not be considered as employed in connection with the activity where the extraordinary nuclear occurrence takes place if:

(1) the claimant is employed exclusively in connection with all the. construction of a nuclear reactor, including related equipment and installations at the facility, and (2) no operating license has been issued by the Nuclear L

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.

s Thh is to certify that this in a true copy of the original Endorsement havins inn endorsement number and being made part of the Nuclear Encrnv Liability Po5ey (Facihty Form) as des-is ed beon Na insurance is arforde hereunder.

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Aurun. Aw Inmm i-Effective Date of this Endorsesent August 20, 1988 To form a part of Policy No. NF-226 12:01 A. M. Standsed time Duquesne Light Company, Ohio Edison Company, Pennsylvania Power Company, Issued to Cleveland Electric Illuminating Company and Toledo Edison Company Date of Issue February 16, 1990 For the s ribing panies, dy I MAS--

N) president Endorsement No. 99 Countersigned by

, NE-39b

Nuclear Energy Liability insurance ,

NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION Restriction of' Companies Oblication to Defend.

Investicate, Necotiate or Settle Any Claim or Suit (Section 170 0. of the Atomic Enorgy 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 liability from a single nuclear incident may exceed the limit of under the applicable limit of liability under subsection 1954, as amended, 170 e. (1) (A), (B) and (C) of the Atomic Energy Act of 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, investigating, settling, or defending claims or suits, which are not authorized for payment by a court pursuant to such subsection 170 0.

Tis is to < crtify that this is a true copy of the original Endotr ement having !he endorsement numbor and being made part ei 6 Nudear Enmy Liability Pdicy icility Fonn) as des-im u.< bereon. No Ir.m mc^ F '"* 1 hereunder.

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John L

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uchi. Va e Pne.kneUndenmq Alwii;An INucle hwire;s K

Effective Date of this Endorsement August 20, 1988 To fors a part of Policy No. NF- 226 12:01 A.M. standard time Duquesne Light Company, Ohio Edison Company, Pennsylvania Power Company, Issued to Cleveland Electric Illuminating Company and Toledo Edison Company l Date of issue February 16, 1990 For the Su ibing Co anies By msinner Endorsement No. 100 countersigned by NE-70

Nuclear Energy Uability Insurance NUCLEAR ENERGY UA8luTY INSURANCE ASSOCIATION WAIVER OF DEFENSES ENDORSEMENT (Extraordinary Nuclear Occurrence)

The named insured, acting for himself and every other l'nsured under Insurancethe Association policy. and the members agree of Nuclear Energy Liability as follows:

1.

With respect to any extraordinary nuclear occurrence to 1 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 or occurs nuclear in the material to course or from the facility, the insureds and the companies agree to waive (1) any issue or defense as to the conduct of the l

claimant not limited to or tha fault of the insureds. including but (1) negligence. .

(11) 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 governmental immunity. and charitable or (3) any issue or defense based on any statute of limitations if suit is instituted within thres years from the date on which the claimant first bcw or reasonably could have known, of his bodily injury or.

i property damage and the cause thereof.

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

2. The waivers set forth in paragraph 1. above do not apply to (a) bodily injury, property damage or environmental damage which is intentionally sustained by the claimant or which results from a nuclear incident intentionally and wrongfully caused by the claimant:

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

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

.- t (b) bodily injury sustained by any claimant who is employed at activity where the the site of and in connection with the extraordinary nuclear occurrence takes place or required to be if benefits therefor are either payable provided under any workman's compensation or occupational disease lawi (c) any claim for punitive provided, or exemplary damages.

with respect to any claim for wrongful death under only punitive anyin State nature, law which provides for damages apply to the extent that thethis exclusion claimant does not 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. l above shall be L effective only with respect to bodily injury, property damage or environmental damage to which the policy applies under its terms other than this endorsementi however, i

damage orthat with respect to bodily injury, provided.

environmental damage resulting from property extraordinary nuclear occurrence, the an '

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 1 i

hazard and which is discovered and for which written claim l L is made against the insured not later than ten (10) years

after bar coverage the end of for the policy period shall not operate to I

environmental damagebodily- injury.- property damage or (a) which is caused during the policy period by the nuclear energy hazard and (b) which is discovered and for which written claim is made against the ' insured not later than twenty years after the date of the extraordinary nuclear occu(20) rrence.

Such waivers shall not apply to, or prejudice the prosecution or defense of any claim or portion of claim which is not within the protection afforded under (a) the provisions of the policy applicable to financial protection required of the named insuredtthe

' (b) the agreement of indemnification between the named

' insured and the Nuclear Regulatory Commission made i pursuant to Section 1954, as amended: and170 of the Atomic Energy Act of i

(c) the limit of liability provisions of Subsection 170e.

of the Atomic Energy Act of 1954, as amended, l such waivers failure of shall the not preclude a defense based upon the claimant mitigate damages. to take reasonable steps to

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

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F 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 insured in an action to recover damages because of bodily injury, property damage or environmental damage protection.

to 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, as amended.

nuclear occurrence as defined in the Atomic

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

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

This is to certify that this is a true copy of the original Endorsement having the endorsement number and being made part of the Nuclear Encrw Liabihty Policy I scility Form) as des-ignate, hereon. No lasurance is affor J hereunder.

2. Q' John L ' sitrecen, Vue :esi&nt-Underm Antwrican nadear traums Effective Date of this Endorsement January 1, 1990 To form a part of Policy No. NF-226 12:01 A. M. Standard time Duquesne Light Company, Ohio Edison Company, Pennsylvania Power Company.

Issued to Cleveland. Electric Illuminating Company and Toledo Edison Company Date of Issue February 16, 1990 For the S ribing C panies, By (1 ..e -:A-yPirkslil%Ilff '* ~

Endorsement No. 101 Countersigned by NE-33c (1/1/90) Page 3 of 3 l I

Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION SUPPLEMENTARY ENDORSEMENT WAIVER OF DEFENSES REACTOR CONSTRUCTION AT THE FACILITY, It is agreed that in construing the application of paragraph 2(b) an to of the WAIVER OF DEFENSES ENDORSEMENT NE-33c with respect extraordinary nuclear occurrence occurring at the facility, a claimant who is employed at the facility in connection with the const ruction of a nuclear reactor with i respect to Nuclear which no operating Regulatory license has been issued by the Commission shall not be considered as l employed in ccracction nuclear occurrence takeswith placetheif:activity where the extraordinary (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 Commission with respect to the nuclear reactor..and-(3) the claimant is not employed in - connection with the possession, storage, use or transfer of material at the facility. nuclear l

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l This is to cert:fy that this is a true copy of the original Endorsement having the endorsement number and being made part of tha Nxtear Enemy Liability Pobey C .cility Form) as des-ign,ted hereon. No Ins nc" E n'W i hereunder.

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Je L ' mmm Vu P sent Umierwutuu Anwncan b lear Insurers Effective Date of i- this Endorsement January 1, 1990 To form a part of Policy No. NF-226 12:01 A. M. Standerc! time Duquesne Light Company, Ohio Edison Company, Pennsylvania Power Company, Issued to Cleveland Electric Illuminating Company and Toledo Edison Company Date of Issue February 16, 1990 For the Sub ibing C antes, i

l By 1 n j_

G r/Mti W h Endorsement No. 102 countersigned by

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

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Nuclear Energy Liabl!Ity Insuranco L

l NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ANENDATORY ENDORSEMENT (Facility Form)

It is agreed that:

1. INSURING AGREENENT I is replaced by the following:

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

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

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

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

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

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

Subject to INSURING AGREEMENT IV.

with respect to any claim or suit they defend,the companiestheshall costspay, 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, incurred by the insured at the companies' request.

C0VERACE THE B - DAMAGE To PROPERTY OF AN INSURED AWAY FROM FACILITY With respect to property damage caused during the policy period by the nuclear ' energy hazard to the property of an insured which is away from the facility, to pay to such insuredobligated legally those suas which to pay such insured as covered would damages have been therefor, had such property belonged to another.

C0VERACE C - SUBROGATION - OFF8ITE EMPLOYEES With respect to bodily injury caused during the policy period by the nuclear energy hazard to any employee of an insured, and which is discovered and for which written clain-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 recoversuas 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 benafits required of such carrier under the applicable workmen's compensation or occupational disease law. An employer who is a duly qualified self-insurer under such law shall be deemed to be a workmen's compensation carrier within the meaning of this coverage.

This coverage does not apply to bodily injury to any person 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 unqualified word " insured" includes (a) the named insured and (b) any other person or organization with respect to his legal responsibility for covered damages or covered environmental cleanup costs because of bodily injury, the property nuclear damage energy or environmental damage caused by hazard.

Subdivision (b) above does not include as an insured the United States of the Tennessee America Valley 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.

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3. INSURING AGREEMENT III is replaced by the following: ,

III DEFINITIONS Wherever used in this policy:  ;

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

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

s

" covered environmental cleanup costs" means only those i

environmental cleanup costs which are incurred directly

> for monitoring, testing for. cleaning up, neutralizing or containing environmental damage as the result of an extraordinary nuclear occurrence or a transportation incident s but covered environmental cleanup costs do not include on-site cleanup costs.

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

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

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

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

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

" environmental protection obligations" include obligations of any person or organization all (1) relating to the protection of the environment from '

contamination and or imminent danger of contamination, 3

(2) imposed by any governmental laws, regulations or

a. ordinances.

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

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

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

"indemnifled nuclear facility" means (1) "the facility" as defined in any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters, or (2) any other nuclear facility, if financial protection is required pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof.

with respect to any activities or operations conducted thereat.

" insured shipment" means a shipment of source material, special nucioar material, spent fuel, waste, or tailings or wastes produced by the extraction or concentration of uranium or thorium from any ora processed primarily for its source material content, herein called " material."

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(1) to the facility from any location except an indemnified nuclear facility, but only if the transportation of the material mination to be interrupted by removal of the is not by predeter-material from a transporting conveyance for any purpose tation, orother than the continuation of its transpor-(2) from the facility to any other location, but only until conveyancethe material is removed from a transporting for any purpose other than the continuation of its transportation.

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

' (2) the nuclear material is in an insured shipment which is away from any other nuclear facility and is in the course of transportation. including handling and temporary storage incidental thereto, within (a) the territorial limits of the United States of America. its territories or possessions, or Puerto Ricos or (b) international waters or airspace, provided that the nuclear material is in the course of transportation between two points located within 4

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

i " nuclear facility" means "the facility ak 4 fined in' any Nuclear Energy Liability Policy (Facility 3 m ) issued by '

L l Nuclear Energy Liability Insurance Associa.i~a or Mutual Atomic Energy Liability Underwriters. Ne tw % ' nuclear facility" also means (1) any nuclear reactor.

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(2) any equipment or device designed or wmt for b

(a) separating the isotopes of uraniwa or plutonium, (b) processing or utilizing spent fuel, or (c). handling, processing or packaging waste.

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

fabricating or alloying of special nuclear material if ' at any time the total amount of such material in the custody of the insured at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof. or more than 250 grams of uranium 235 (4) any structure, basin, excavation, premises or place prepared or used for the storage or disposal of waste, and includes the site on which any of the foregoing is located. all operations conducted on such site and all '

premises used for such operations.

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" 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 l

material.

l-i L "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 1 aircraft, watercraft or vehicles licensed for highway use.

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provid:d cuch aircraft, watercraft or vehicles . are not used in' connection with the operation of the facility. '

" property damage" means physical injury to or destruction or.

'of radioactive contamination of property, and loss of use property so injured, destroyed or contaminated, and loss of use.of_ property while evacuated or withdrawn from use because possibly so contaminated or because of imminent danger of contamir.ation.

" source material." "special nuclear material."

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

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

solid or liquid, radiation in any nuclear whichreactor.

has been used or exposed to  ?

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

" transportation incident" means a discharge or dispersal of nuclear material from an insured shipment caused by ';

collision or upset of the transporting conveyance, or an l

accident that breaks open, punctures or ruptures the

' shipping containers or containment thereont but only if both the discharge or dispersal and the collision, upset or accident take place away from any nuclear. facility and away from any disposal site, and both occur in the course of the transportation.

storage including handling and temporary incidental thereto.

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

! 4.

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

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

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

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cu::h o defcnee. the companies shall not be considered '

as having waived their rights under this policy to deny payment or reimbursement of the items not

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

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

(4) The companies shall have a right to contribution from the first named insured for all defense costs as they are incurred in excens of the amount of the l

companies' share. including reimbursement by the I

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 precedent to any right of recovery on this policy, to arbitra-tion for a final and bitsding 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 l modifying the and in all endorsements to this policy dollar amount of the total aggregate liability of the companies with respect to a common occurrence: 1 (a) the words " bodily injury or replaced by " bodily injury, property property damage" damage are or environmental damage": and (b) the words " bodily injury and property damage" are replaced by " bodily injury. property damage and l environmental damage."

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9.

thio policy relating thereto, the wordso " bod property damage" are replaced b or damage or environmental damage. "y " bodily injury, property 10.

CONDITION 19. DgCLARATIONS

11. is renumbered CONDITION 20 .

i The following CONDITION is added to the policy:

19 -

OF INSURING AGREEMENT IVAkBIT1LATIO

All such disputes subject to paragraph (5) of INSURING AGREEMENT (the " Boa rd")

dispute. for a IVfinal shall and bebindingsubmitted resolution to of a the Board n of ,

There insured, named shall be two parties to the arbitration:

duly authorizedacting on behalf of all insureds as theirthe first representative.

Liability Insurance Association, and Nuclear Energy l

l l companies as their duly authorized representative. acting on behalf of Except to the extent the parties mutually agree otherwise, the following principles will apply:

(.

(a)

The arbitration will take place in New York. New York, of NewandYork.will be governed by the laws 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 other party shall then appoint in writing an arbitrator and the arbitrators shall appoint in (d) The umpire If a party fails toshall name act as chairman of the Bo .

thirty (30) days its arbitrator within request that it do of so,thetheother party's written (e) appoint If the an arbitrator for the party in default.

requesting party way two arbitrators fail to agree on they have bothselection of an umpire within thirty (30) the days after been appointed, each of them shall (f) choice shall be made by drawing lots.name The The two, of w officers arbitrators and umpire shall be executive companies States oror former executive oflicensed to do business officers of insurance organizations designatedin the United issued as the first named insuredby Nuclear underEnergy a Nuclear Energy Liability Policy Association or Mutual Atomic Liability ' Insurance Underwriters the following provided that the Energy current employees Liability of shall not be without the consent of both parties: eligible for service 1

8

..n. , , .., . . - . . -,,-_,,,,-_,n, ,, ,, , - . , , . , _ . . ,-.-,.,....,.-n---.,-,__,-,,,,,-+ _ - . .

,  ?.

i (1) any party or likely party to the underlying claim or sult l

' (2) American Nuclear Insurers. MAERP Reinsurance Association or their members or (3) any other insurer or reinsurer which has 3 casualty insurance or reinsurance in force on '

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

4 t (g) Within thirty (30) days after the appointment of the 1

{

umpire, each party shall submit its case in writing to the Board. j (h) The Board shall determine its rules of procedure. and l the nature and extent of any discovery. testimony.

I examination oral argumentorpermitted.

cross-examination of witnesses and l 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 1 thirty (30) days.

(1) The arbitrators and the umpire are not to be bound by I i

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 anall be entitled to decide, l

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. ,

extension granted. described in paragraph (h) above.

(k)

If the Boardbyfails prescribed to make(j)an award within the time paragraph extension is agreed above. then unless an to by the parties, a new arbitration shall be commenced and completed in 1 accordance with the procedure set out in paragraphs (a) through (j) above.

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

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

9

r.

(m) Unless the Board decides otherwise, each party shall pay for thS 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 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 i of this endorsement stated below.

Tids is to certify that this is a true copy of the originn!

t Endorsement haung the endorsement n mber and being made part

<d the Nx: w Ewrtw l.bbGty Pohcy acility } orm) as des.

it ' , , < thereunder.

hamNui6nu.%%..

2. ,

hLw wau, N nmara Ur kwmnu Ar.n neari Nw k at insuwin

..c 10 Effective Date of this Endorsement January 1. 1990 To fons a part of Policy No NF-226 12:01 A.M. Standard Time Duquesne Light Company. Ohio Edison Company Pennsylvania Power Company.

Issued to Cleveland Electric illuminatina Comoany and Toledo Edison Company Date of Issue February 16. 1990 For the su ribing c panies By

' ~

T i PRESIDENT Endorsement No 103 countersigned by iti-71 (1/1/90)

l 1

o l Nuclear Energy Liability insurance

{

l NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION i

CNANCES IN SUBSCRil!NG COMP.*Witt AND IN THi!R PROP 0Rfl0NAff LIA81Llff ENDOR9tMENT CALINDAR YEAR M

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 hasardi

a. The word " companies" vherever 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.

.pg >

Aetna Casualty & Surety Co. 12.917337%

Attienz Insurance Company 1.51 % 34%

3 Attstate Insurance Conpany 5.535510%

$g American Home Assurance Co.

Continental Casuotty company 0.692369%

g ,a 5.341750%

6 p. Continental Insurance Company 10.333870%

7 r:J N FoderaL Insurance Company 2.75 % 99%

j 8~ General Ins. Co. of America 1.722312%

i g, g 6 } p Hanover insurance company 0.595059%

g .

p Hartford Fire Insurance Co. 10.333870%

5:

_ Mightneds insurance Company 0.344462%

-[ g .e

~

$ Hane Indonnity Company Ins. Co. of North America 1.614667%

7.75 0403%

e #w Motors Insurance Corporation 0.430578%

3 f3 8 ohlo Casualty Insurance Co. 0.172231%

g Providence Washington Ins. Co. 0.193760%

fyqf3 Retlance insurance Company 0.516696%

- ij 5 e Royal Ins. Co. of Anerica 3.616855%

W 27 y g ,7.o St. Peut fire & Marine Ins. Co. 5.991922%

,f State Farm Fire & Casualty Co. 0.861156%

4}3g  ; af Tokto Marine & Fire Ins. Co. 0.516696%

$ ,g .E t$$Vj

/t B fransamerica insurance Co. 0.861156%

Travelers Indennity Company 12.856195%

sE z U. S. Fire Insurance Company 2.325121%

o [j Z Q U.S. Floetity & Guaranty Co. 8.611558%

2s 4 h a Universat Underwriters Ins. Co. 0.172231%

l Y1 O ': Zurich Insurance Coppany 1.420004

1. $Tp .A; <{ Totat 100.000000%

Nt 90 Effective Date of this Endorsement January 1. 1990 To form a part of Policy No. NF-226 12:01 A. M. Standard time Duquesne Light Company, Ohio Edison Company, Pennsylvania Power Company, Issued to , Cleveland Electric 111uminatino Company and Toledo Edison Company Date of Issue Aoril 1. 1990 FortheSubNribingCom^panies, By (l /%'M 7 hM V

I W

President Endorsement No. 104 countersigned by

Nuclear Energy Liability Insurance NUCLEAR ENERGY LIACLITY INSURANCE ASSOCIATION I

i i

4 ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT CALENDAR YEAR _1989 I

)

i It is agreed that Items 1 and 2 of Endorsement No. 3 _ l are amended to read:

1. ADVANCE PREMlUM: It is agreed that the Advance '

Premium due the companies for the period designated above is: $ 878,208.00 .

1

2. STANDARD PREMIUM AND RESERVE PREMlUM: In the absence of ,

a change in the Advance Premium indicated above, it is agreed that, subject to the provisions of the Industry Credit Rating 1

Plan, the Standard Premium is said Advance Premium and the Reserve Premium is: $ 665,113.00 .

Return Premium: $25,394.00 TV t , mc4 N.t thb b a true ca; y of :ne oda.nal li brmocnt hav.n3 the endorsement number and being made part nt t ' . r Ma.r Enagy labihty Po' icy W,ahty Formi as des-i p ,ue hercan. Ib ins rance is affm/ i hereunder.

3. "

ai, L . um chi, N icwient u,& reg NL.1

/vnerwan Nx; car leniuters

- Effective Date of this Endorsement January 1, 1989 To form a part of Policy No NF-226 12:01 A.M. Standard Time l

Duquesne Light Company Ohio Edison Company, Pennsylvania Power Company, Cleveland Issusd to Electric illuminating Company and Toledo Edison Company.

Date of Issue May 3, 1990 For the subsfribing companies By h PRESIDENT Endorsement No 105 countersigned by i NE-36

• e . l 1

Nuclear Energy Usbilty insurance I MUTUAL ATOMIC ENERGY UA8luTY UNDERWRITERS WAIVER OF DEFENSES ENDORSEMENT t (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 aa followst

1. With respect to any extraordinary nuclear occurrence to which the policy applies as proof of financial protection and which

) '

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

' of the construction, possession, or operation of the  ;

facility, or

• g (b) arises out of or results from or occurs in the course of the transportation of nuclear material to or from

~

the facility,

the insureds and the companies agree to waive

' (1) any issue or defense as to the conduct of the claimant or the fault of the insureds, including but not limited tot i

(1) negligence, (ii) contributory negligence, (iii) assumption of risk, and n (iv) unforeseeable intervening causes, whether involving the conduct of a third person, or an act of God, b

(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 scause of action.

2. The waivers set forth in paragraph 1. above do not apply to l

L ME-33b Page 1 of 3

o o . ,

t (a) bodily injury or property damage which is intentionally sustained by the claimant or which results from a nuclear wrongfully caused by the claimants incident intentionally and (b) bodily injury sustained by any claimant who is empicyed at the site of and in connection with the activity where the extraordinary nuclear occurrence takes or required place ittobenefits therefor are either payable be provided under ,any workmen's compensation or occupational disease lawi (c) any _ claim for punitive or exemplary damages, provided, with respect to any claim for wrongful death under any State law which provides for damages only punitive in nature, apply to the extent that the claimant has sustained this exclusion does not i 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 than to which the policy applies under its terms other this endorsement; provided, however, that with respect to bodily injury or property an extraordinary nuclear occurrence, Insuring Agreement damage resulting from IV, " Application of policy" shall not operate to bar coverage for bodily injury or, property damage (a) which is ,

' caused during the policy period by the nuclear energy hazard and (b) which is discovered and for which written claim is made against the insured not later than twenty '

i (20) years after the date of the extraordinary nuclear occurrence.

I. t Such waivers shall not apply to, or prejudice the l

prosecution or defense of any claim or portion of claim which is not within the protection afforded under (a) the provisions of the policy applicable to the financial protection required of the named insuredt (b) the agreement of indemnification between the named insured and the Nuclear Regulatory Commission made pursuant 1954, as amended; and to Section 170 of the At ,-nic Energy Act of .

l (c) the limit of liability provisions et Subsection 170a.

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

e ..

)

J

4. Subject to all of the limitations stated in this er'dorsement and in the Atomic Energy Act of 1954, as i

amended, the waivers set forth in paragraph 1. above shall be judicially enforceable in accordance with their terms i 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. '

S. l As used herein:

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

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

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

l This is to mtify that thh is a true copy of the original Endorwrnent having the endorserneut nigbor and being made part er ' dar Enctw Lubibty Po!.ev r//ahty Form) as des-iy w aa Ins greunder.

. uni ou cht w nesent underwriting Aawnc.m Neicar Insurers

. cr u Effective Date of this Endorsement August 20, 1988 To form a part of Policy No. MF-87 12:01 A.M. Stannard time Duquesne Light Company, Ohio Edison Company, Pennsylvania Power Company, Iss ed a Cleveland Electric Illuminating Company and Toledo Edison Company Date of issue February 16, 1990 For the Subscribing Companies NtfrtlA1 ATONIC ENERGY 1.IABILITT (BIDER

\

By

,'

• C Endorsement No. 86 Countersigned by ME-33b Page 3 of 3

2

)

Nuclear Energy Liability insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS l

Restriction of Comoanies Oblication to Dafend.

Investicate. Neactiate or Settle Any Claim or Suit (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-amended, an appropriate U.S. , as District court determines that ,

liability from a single nuclear incident may exceed the limit of liability under j

the applicable limit of i liability under subsection 170 e. (1) (A), (B) and (C) of the Atomic Energy Act of 1954, as amended, i

the companies obligations under i Agreement I, to defend, investigate, Insuring '

negotiate or settle any claim or suit under the policy do not include any obligation that '

woold costs, necessitate i n c .L u d in g or costs result in the companies incurring legal of initiating investigating, settling, or defending claims or, su: prosecuting,

.ts , which are not 170 authorized

0. for payment by a court pursuant to such subsection l

l l Thk is to certify that this is a true copy of the original Enirsemmt hsna the endorsement number and being made part {

of the Nermr Eneav Lhb My I'ol,cy acihty Form) as des-i,,% - hereon No Ins arv '

• thereunder.

John L.

.T . Op - (

ttinhi. VKe heriadent Underwntay Anwncan bxlcar Insurers

4ui;h '

Effective Date of this Endorsement August 20, 1988 To fors a part of Policy No. MF-87 12:01 A.M. Standard ties Duquesne Light Company. Ohio Edison Company, Pennsylvania Power Company, Issued to Cleveland Electric Illuminating Company and Toledo Edison Company Date of issue February 16, 1990

_ For the subscribing Companies i IRFHi&L ATONIC ENERGY LIABILITY WEEEURITERI 4 By 'T . .-- __ .

Endorsement No. 87 Countersigned by i

HE-70 '

Nuclear Energy Uability insurance MUTUAL ATOMIC ENERGY UABluTY UNDERWRITERS WAIVER OF DEFENEEE ENDOREEMENT (Extraordinary Nuclear occurrence)

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

1. With respect to any extraordinary nuclear occurrence to which the policy applies as proof of financial protection and which (a) arises out of or results from or occurs in the course of the construction, possession, or operation of the facility, or (b) arises out of or results from or occurs in the course of the transportation of nuclear material to or from the facility, the insureds and the companies agree to waive (1) any issue or defense as to the conduct of the claimant or the fault of the insureds, including but not limited tot (1) 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 er defense based on any statute of limitations if suit is instituted within three years from the date on which the claimant first knew, or reasonably could have known. of his bodily injury or property damage and the cause thereof.

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

2. The waivers set forth in paragraph 1. above do not apply to (a) bodily injury, property damage or environmental damage which is intentionally sustained by the claimant or which results from a nuclear incident intentionally and wrongfully caused by the claimant: l ME-33c(1/1/90) Page 1 of 3

r ,.

i ,

t i

(b) bodily injury sustained by any claimant who is l

' 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 death under only punitive in nature, any State law which provides for dam & des this exclusion does not apply to the extent that the claimant has sustained i actual damages, measured by the pecuniary injuries '

resulting from such death but not to exceed the maximum amount otherwise recoverable under law.

3. The waivers set forth in paragraph 1. above shall be effective only with respect to bodily injury. property -

l i

damage or environmental damage to which the policy applies under its terms other than this endorsements provided.

however, that with respect to bodily injury, damage or environmental damage resulting property i

extraordinary nuclear occurrence, the provisions from an -

of

! COVERACES A and C bodily injury, property damage or environmental damage of the policy providing coverage for l

caused during the policy period by the nuclear energy l hazard and which is discovered and for which written claim 1s made against the insured not later than ten (10) years '

i after the and of the policy period shall not operate to bar coverage for

' bodily injury, property damage or environmental damage (a) which is caused during the l

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 occurrence.

such waivers shall not apply to, or prejudice the '

prosecution or defense of any claim er portion of claim which is not within the protection afforded under (a) the provisions of the policy applicable to the financial protection required of the named insured (b) the agreement of indemnification between the named i

insured and the Nuclear Regulatory Commission made pursuant 1954, as amended

and to Section 170 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 reasonable steps to mitigate damages.

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

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 which the policy applies as proof of financial protection.

5. As used hereint

" 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, as amended.

" claimant" means the person i

sustaining the bodily injury, or organization actually environmental damage and also includes property damage or ,

his assignees.

legal representatives and other persons or organizations j entitled injury or to bring an action for damages on account of such 1

damage.

This is to certify that this k a inm copy of the oridnn!

Endorsement hwing the endorsement number and being made part of the !&L e Engv LiabWty Pohcy ~ icility Form) as des-t, a he.mn. N's ins ance is affor i hescunder.

John L ' miehi. Vu wdant Unde l Anwncan Nada loswas , .g r Effective Date of 4 this Endorsement January 1,1990  !

To fors a part of Policy No. MF-97 12:01 A.M. Standard time Duquesne Light Company, Ohio Edison Company, Pennsylva'ia n Power Company.

Issued to Cleveland Electric Illuminating Company and Toledo Edison Company Date of issue February 16, 1990 For the Subscribing Companies MtmlAL ATONIC EMERCT LIABILITY LEEDERRITERS l

l l

By y

.S . Svr s 1

l Endorsement No. 88 Countersigned by ME-33c (1/1/90) Page 3 of 3 l

^

Nucl:ar Energy Liability Insurance I MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS SUPP!.EMENTARY ENDORSEMENT i WAIVER OF DEFENSES '

REACTOR CONSTRUCTION AT THE FACILITY It is agreed that in construing the application of paragraph 2(b) an of the WAIVER OF DEFENSES ENDORSEMENT NE-33c with respect ,

to extraordinary nuclear facility, a claimant who is occurrence occurring at the connection with employed at the facility the construction of a nuclear reactor with in respect to which Nuclear Regulatory no operating Commission license has been issued by the shall not be considered as nuclear occurrence takes place iftemployed in connection with the activi (1) the claimant is employed exclusively in connection with all the construction related equipment of aandnuclear reactor including ,

facility, and installations at the i

(2) no operating license has been issued by the Nuclear Regulatory reactor, and Commission with respect to the nuclear (3) the claimant storage, possession, is not employed in connection with the yse or transfer material at the facility. of nuclear Thk is to certify that this is a true copy of the original F nnent having the endorsement number and being made parf Nach at Er.ergy Liabihty Pohey acility Forrn) as des-hercon. No Ins 6 mt- ' '""- theteunder.

..a S..

,m. m r, ,wu,wo Ar.wrn an micar Insumrs Effective Date of

' this Endorsement January 1.1990 To form a part of Policy No. MF-87 12:01 A.M. Standard tt=

Duquesne Light Company. Ohio Edison Company. Pennsylvania Power Company.

Issued to Cleveland Electric Illuminating Company and Toledo Edison Company Date of issue February 16. 1990 For the Subscribing companies MtFrGAL ATONIC BIERGY LIABILIYY IBIDER By T. -

Endorsement No. 89 N

Countersigned by ME-39c (1/1/90)

s l

i Nuclear Energy Liability insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS AMENDATORY END0RSDtENT

. It is agreed thatt (Facility Form) i

, 1.

INSURING AGREEMENT I is replaced by the following I COVERAGE A - LIABILITY To pay on behalf of the insured all suas 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 damage. of environmental '

This Coverage applies only to bodily injury, property d& mage 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, the policy not later than ten (10) years after the and of 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, claim or suit as they doen expedient.

negotiation and settlement of the The companies' duty to defend shall .

be limited, as described in INSURING AGREEMENT IV, if the claim or suit also seeks any of the' fo11owing, which in no event shall l

be construed as covered by this policy:

l (1) damages for on-site property damage (2) recovery of on-site cleanup costs er any other l

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

The companies' duty to defend claims or suits ends when the limit of their liability has been exhausted pursuant to CONDITION 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 thereins (2) premiums on appeal bonds and bonds to release attachments in any such suit, but without obligation to apply for or furnish such bonds:

i

--_.-m_.______ _ _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . _ _ ______._._._..._g.-__,_,,.m.,.,,..,.-,.,.r, y_,._.m.7..,_.y.,_m .m __,,,,._m,,__,..y,,_ ,p,_m.,.

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

incurred by the insured at the companies' request.

COVERAGE THE FACILITYB - DAMAGE TO PROPERTY OF AN INSURED AWAY FROM With respect to property damage caused during the policy period by the nuclear energy hazard to the property of an ,

insured which is away from the facility, to pay to such insured those suas which such insured would have been legally obligated to pay as covered damages therefor, had such property belonged to another.

C0VERACE C - SURR00ATION - 0FFSITE EMPLOYEES With respect to bodily injury caused during the policy i 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 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 benefits rights acquired by subrogation by the payment of the required of such carrier under the applicable workmen's compensation or occupational disease law. An 1

employer who is a duly qualified self-insurer under such I law shall be deemed to be a workmen's compensation carrier within the meaning of this coverage. .

This Coverage does not apply to bodily injury to any person who is employed at and in connection with the 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 insured and (b) any other person or organization with .

respect to his legal responsibility for cov ced damages or covered environmental cleanup costs because of bodily injury, the property nuclear damage energy or environmental damage caused by hazard.

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

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

i i

- -. - - . - . - - - . - - . - - - - - - - . - - - . - - ~ . - - . . - . - . - - . - . .

• \

3.

INSURING AGREEMENT III is replaced by the followingt I

. III DEFINITIONS \

Wherever used in this policy j

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

including  :

person. death resulting therefrom. sustained by any }

" covered damages" means damages because of bodily inju or property damage to which this policy appliest but or on-site cleanup costs. covered damages do not include environ

" covered environmental cleanup costs" means only those environmental cleanup costs which are incurred directly i for monitoring, containing environmental testing for,damage cleaningas up, neutralizing or extraordinary nuclear occurrence or a result of an the transportation '

include on-site cleanup costs. incidents but covered enviro

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

" environment" includes land.

watercourses bodies the atmosphere, and all whether on, a,bove or below the surface of the ground. of water and ratural resources,

" environmental cleanup costs" include all loss, cost or expense arising out of any governmental decree, order or directive i action at (other law) than an award of covered damages in an requiring or requesting organization to undertake a person or >

for, cleaning up, neutralizing or pay for monitoring, or containing testing contaminati of below the environment, whether the contamination is on, above on or the surface of the ground.

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

" environmental protection obligations" obligations of any person or organization include all (1) relating to the protection of the environment from contamination and or imminent danger of contamination.

(2) imposed by any governmental laws, ,

ordinances. regulations or

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

l

. .* i defined in thereof.

amendatory the Atomic Er. orgy Act of 1954, or in any law ,

" governmental" refers to federal, governments and authorities. including courts, andagencies state local '

and political subdivisions thereof. i "indemnitled nuclear facility" means

' (1) "the facility" as defined in any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association or Mutual

! Atomic Energy Liability Underwriters. or (2) any other nuclear facility, if financial protection is required pursuant to the Atomic Energy Act of 1954 or any law amendatory thereof.

with respect to any activities or operations conducted thereat.

" insured shipment" means a shipment of source material.

special nuclear material, spent fuel. waste, or tailings

! or wastes produced by the extraction or concentration of uranium or thorium from any ore processed primarily for its source material content, herein called " material."

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

continuation of its transportation. the

" nuclear energy hazard" means the radioactive, explosive or other hazardous properties of toxic.

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

O

! the thereterritorial is no limits described in (a) above and 1 deviation in the course of the '

transportation for the pur country, state or nation, pose of going except for the to any other purpose of going to or returning from a .

as the result of an emergency. port or place of refuge

" nuclear facility" means "the facility

• as defined in any Nuclear Energy Liability Policy (Facility Form) issued by Nucisar Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters. The term " nuclear

, facility" also means (1) any nuclear reactor, ,

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

(a) separating the isotopes of uranium or plutonium.

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

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

f abricating or alloying of special nuclear material if at any time the total amount of such material in the custody of the insured at the premises where such equipment or device is located consists of or >

contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams of uranium 235 j (4) any structure, basin, excavation, premises or place I

prepared waste.

or used for the storage or disposal of and includes the site on which any of the foregoing is located, all operations conducted on such site and all promises used for such operations.

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

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

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

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

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

5

l

'I prcvided Ccch circroft. watercratt or vehicles are not I used in connection with the operation of the facility.

(

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

imminent danger of contamination. of '

" source material." "special nuclear

material." and

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

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

solid or liquid, whichreactor.

has been used or exposed to radiation in any nuclear "the facility" means the facility described in the i

declarations and includes the location designated in Item 3

of the declarations such location.

and all property and operations at

" transportation incident" means a disvaarge or dispersal I of nuclear material from an insured 1 shipment caused by collision or upset of the transporting conveyance, or an accident that breaks open, punctures or ruptures the shipping containers or containment thereont but only if both the discharge or dispersal and the collision, upset or accident take place away from any nuclear facility and away from any disposal site, and both occur in the course of the transportation, storage incidental thereto. including handling and temporary

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

4

, INSURING AGREEMENT IV is replaced by the following and l

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

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' l duty to defend has been limited by INSURING AGREEMENT I ,

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

cuch o defense. the companies shall not be considered as having deny payment waived their rights under this policy to covered.

or reimbursement of the items not (2) As soon as practicable. the first named insured, i acting on behalf of all insureds, and the companies I shall endeavor to reach an equitable arrangement for handling the defense and sharing the costs thereof.

The companie1' (3) share of defense costs shall not exceed the portion of the total defense costs that represents the costs which would be reasonably and necessarily incurred in the defense of the claim or suit in the absence of any claim or demand for the items not covered.

" (4) The companies shall have a right to contribution )

from the first named insured for all defense costs as they are incurred companies' share, in excess of the amount of the including reimbursement by the first named the companies. 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 ]

l (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 b property damage or environmental damage."y " bodily injury,

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

environmental damage." property damage and 7

i s .

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." .

4

10. CONDITION 19 DECLARATIONS.

• and CONDITION 20 NUTUAL POLICY CONDITION are renumbered CONDITIONS 20 and 21.

11. The following CONDITION is added to the policy:

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

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

Except to the extent the parties otherwise mutually agree the following principles will apply (a) The arbitration will take place in New York. New York, and will be governed by the laws of the State of New York.

I (b) Either party may begin the process of arbitration by giving notice to the other party in writing of its intentior.

that to do so and the name of the arbitrator it has appointed.

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

The umpire shall act as chairman of the Board.

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

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

choice shallofbewhom madethe by other drawing shall decline one.

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

without the consent of both parties:

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

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

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

examination oral argumentor cross-examination of witnesses and permitted. 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.

(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 agreement, of this policy as an honorable business 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 paint of view. without (j) favoring Tne the interest of either party.

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

including any extension paragraph (h) above.

granted, described in (k)

If the Boardbyfails prescribed to make(j)an award within the time paragraph above, then unless an extension is agreed to by the parties, a new arbitistion shall be commenced and completed in accordance (a) through (j) withabove. the procedure set out in paragraphs (1) The award of the Board signed by any two members shallparties, all be final.including not subject all to appeal and binding on policy and all insureds thereunder. insurers subscribing the The award shall be treated as a matter involving interstate commerce, and may be filed or confirmed in any court of competent jurisdiction, state or federal, and judgment thereon entered and enforced, in accordance with the law and practice of the forum.

9

T

..s-o .

I (m) Unless the Board decides otherwise, each party shall -

pay for the expenses of the arbitrator appointed by or it and one 2

half of the other costs of arbitration.

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

(o)

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

12.

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

'of this endorsement stated below.

e ts Thi is to certNy that this is a true copy of the ordnal Er6rse:ner.t haea the endorsement numbor and being made part d N e ' er Eneroy IFnny Po!:cy (//cihty Form) as des-r,: c.a d wo in .

rcunder. -

An L o a. N iwant Underwrmno An.4 us. Na.cor Ins rein l

10 l >

Ef fective Date of this Endorsement _ January 1,1990 To form a part of Policy No._ MF-87 12 01 A.M. Standar 1: sued to Duquesn:e Light Company.d TimeOhio Edison Company, Pennsylvania Po Date of IssueCleveland Februa ryElectric Illuminating Company and toteco toison company

16. 1990 For the Subscribing Companies l

MUTUAL ATOMIC ENERCT LIABILITT UND WRITERS By_ '

~ -

Endorsement No. 90 countersigned by__

Authorized Representative

Nuclear Energy Liabidty Insurance ,

MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS CHANGit IN SUBSCRillho c0MPAkill AND lh THilt PROP 0Ril0 haft LIAllLiff t@0RBtMCWT CAlt@AR YEAL 1990

1. It is agreed that with respect to bodily injury, property damage or environmental  ;

damage caused, during the effective period of this endorsement, by the nuclear energy hazards

a. The vord " companies" vherever used in the policy means the subscribing i companies listed below. '

t-

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

c. Each such company shall be liable for its proportion, as designated below, of any obligation assumed or expense incurred under the policy because of such bodily injury, property damage or environmental damage.

l k2. It is agreed that the effective period of this endorsement is from the beginning of the effective date of this endorsement stated below to the effective date that h another " Changes In Subscribing Companies And In Their Proportionate Liability l

Endorsement" changes the Companies and/or their proportions as listed in this 3 h, .g endorsement, or to the time of the termination or cancellation of the policy, if (f# sooner.

-h M s Arkwrlpht Mutuel Insurarre Comany 21%

"2 t eloyers Insurance of Wausau, A Mutual Cce any 21%

0 Liberty Mutunt Insurance Cogeny 28%

vhD$

} Lutermona Ntual Casualty Cogeny 30%

g% upri m or Anast errTimes m The annust seetings of Arkwright Ti e enruel meetinge of Egloyers l ,y) - g insurance Mutual Comany art held Insurance cf Wausau A Ntual t , g at its home office in Waltham, to geny, are held at its home 2o L . Massachwetts, on the secund WemeeJoy of fice in Wausau, Wisconsin, on of March in each year, at ten

• thirty the fourth Friday of May if6 each j", f3 g]$ >, h o' clock in the morning, year, at nine o' clock in the morning.

.g g g- E The arriust seetings of Liberty Mutual The annual meetings of Lutermons gG ey $ Insurance Cmpany are held at its home Mutual Casualty Cogany are held jp office in Boston, Massachusetts, on at its home office in Long Grove

[3 " Je 8y { pj f}, the third Wemoscay of April in s.ach Ittinois, on the third Tuesday of 4 "* j,' g year, at ten o'clc(k in the morning. May in tech year, at eleven o'clork

.Y

.J q in the morning.

4 'g g;y }?

l Lu o . . .

Effective Date of this Endorsement January 1. 1990 To form a part of Policy No. MF-87 12:01 A.M. Standard time Duquesne Light Company, Ohio Edison Company, Pennsylvania Power Ccmpany, Issued to Cleveland Electric illuminating Company and Toledo Edison Company Date of issue April 1. 1990 For the Subscribing Companies MUTUAL ATOMIC GYLIABILITYUNDERVRIThS By  %. ~- m {, _

Endorsement No. 91 Countersigned by

- . . . _w, - _. x ..-. . . ~ . . - . .

. a - .- . - . . . . , . . _ - . . - . . . . ,

NUCLEAR ENEROY IJABILITY IN8URANCE MUTUAL ATOMIC EN11ROY LIABILITY UNDERWRITERS

• ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT CALENDAR YEAR 1989 ktisagreedthatItems1and2ofEndorsementNo. 84 are amended to read:

1. ADVANCE PREMIUM: It is agreed that the Advance Premium due the companies for the period designated above is: $_254.963.00 .

2. STANDARD PREMIUM AND RESERVE PREMIUM: In the absence of a change in the Advance Premium indicated above, it is agreed that, subject to the provisions of the Industry Credit Rating Plan, the Standard Premium is said Advance Premium and the Reserve Fremium is: $193,037.00 _ .

Return Premium: $25,394.00 i

Tip n / 'toleinig that tius m a true copy of the miginab ' Mi I i domment having the endorsement nw sbm aiyd being made paif Enew Liabihty Polm R h F"rm) m dew

"""d" ' -

$f im.t athe ikudeatogingcggg'/ :i tv u,n t odnatu. 6 Im*notindew'*9

.-amem+n Nadst inutnis Effective Date of this Endorsement January 1, 1989 To form a part of Policy No. MF-87 12:01 A.ti. Standard Time Duquesne Light Company, Ohio Edison Company.

Issued to Pennsylvania Power Company, Cleveland Electric illuminatina Comoany and Toledo Edison Company.

Date of Issue May 3.1990 For the Subscribing Companies MUTUAL AftMIC IGtERCY LIABILITY UND [RWRITERS By m .W . N 4 N

Endorsement No. 92 Countersigned by Authorized Representative

Nuclear Energy Liability insurance MUTUAL ATOMIC ENERGY LIABILITY 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 ENDORSEMENT occurrence occurring ME-33b with respect to an extraordinaryDEFENSES at the facility, nuclear a claimant who is aemployed nuclear reactorat the facilitywith respect in connection with the construction ~of to which no operating license be considered as employed in connection with the ac the extraordinary nuclear occurrence takes place it:

(1) the claimant is employed exclusively in connection with all the construction related equipment of aand nuclear reactor, including 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 nuclear material et the facility. of w r, n, anh that thiu is a true copy of the orsinal Utate t hh :: the endorsement numte and being made part o; the Noh Encry lkbhy poWy @acWty Fortn) as des mysd ' una n Nn bwmnce is afforded hereunder.

,lahn c Qa 01:Ord% WT h05KlCHiMfdfWMIlfl9 f unctm h im hw cu Effective Date of this Endorsement _A ugust 20,1988 l

1h 01 A.M. Stenene t w To form a part of Policy No. _MF-87 -

Duquesne Light Company, Ohio Edison Company, Pennsylvania Power Company, Issued to Cleveland Electric Illuminating Company and Toledo Edison Company Date of issue May 7, 1990 For the Subscribing Companies MirrUAL ATOKIC ENERGY LIABILITT INEDER Endorsement No. 93 By @

- Al _M_ w, m~

Countersigned by

.. ME-39b

i 1

l 1

Nuclear Energy Liability insurance 1

NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ENDORSEMENT TO CERTIFICATE NO. N-58 Forming Part of Master Policy No. 1 Nuclear Energy Liability Insurance (Secondary Financial Protection)

It is agreed thtt effective August 20, 1988:

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

(c) to bodily iniurv or orocerty damaae (1) with respect to which the crimarv financial grotection described in Item 4 of the Declarations would apply but for (i) exhaustion of its limit of liability as described in Condition 6 of the Master Policy, or

! the application of Insuring Agreement IV, (ii)

" Application of Policy" of the crimary U nancial orotection, as amended by paragraph 3 of the Waiver of Defences Endorsement attached thereto, and l

l (2) which is caused during the certificate period stated.

in Item 6 of the Declarations by a nuclear incident arising out of, or in connection with the nuclear reactor described in Item 3 of the Declarations, and (3) which is discovered and for which written claim is i made against the insured not later than ten (10) years after the end of the certificate period stated in Item 6 of the Declarations. However, this subparagraph (3) shall not operate to bar coverage for bodily iniury or property damaae caused by an

) extraordinary nyplear occurrence.

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

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

III.)

'NE-S-14 Page 1 of 2

p {'

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 t $51,266,250.

l

{

l.

l l  !

E THIS IS 9 CERTrY TH AT THIS 19 t< TRUE COPY OF THE CRlGINAL ,

CERTIF E BEA?NG 7 : iMns. DESiG%iFD HEREON, FOR i INSUMA . COVE!:AM UtdA TriE MASTE9 POLICY NUCLEAR ENERGY

~

LIABILn , IN!"JfMNN !!: ;0NDARY FIN ANCIAL PROTEOTIONJ, NO INSURANCEI AFF0HDED DY T' IS COPY,  !

JOHN L 00r' 90L

• O ' SI%d /

VICE PRESIDEt, ' UNDERWRITING r L

i AMERICAN NUCLEAR INSURERS a i

. .,e s 1 l .

Effective Date of N-58 this Endorsement Auaust 20. 1988 To form a part of Certificate No.

12:01 A. M. Standard time

. Issued to Duquesne Light Company, Ohio Edison Company and Pennsylvania Power Company A

Date of Issue March 23, 1990 For the Subscribing Cet)anies, By 1M' h-

' President Endorsement No. 14 ,

Countersigned by .

'NE-S-14 Page 2 of 2

f Nuclear Energy Liability insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ENDORSEMENT TO CERTIFICATE NO. N-58 FORMING PART OF MASTER POLICY NO. 1 NUCLEAR ENERGY LIABILITY INSURANCE (Secondary Financial Protection)  ;

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

" bodily i n iury , oronerty dame.gA or environmental damace". ,

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.

E Ti /r );} A TRUE COPY OF THE ORIGINAL iMU%;;I rl.$I@r,j W'NATED HEREON. FOR UABwy .r,, ,[$N INfUi,/ ' Ct py.k..i

.S f '

' jpCU 'f PROTECTION).

L [f "MAIER NO PO!'CY NUC J3'!w:.Q,n'hh< "A a u %

VICE PnE% a., gymyg AMERICAN NUQ cap pg39agg3 Effective.Date of this Endorsement January 1, 1990 To form a part of Certificate No. N-58 12:01 A. M. Stanciero rima Issue to Du p s{e Light Company, Ohio Edison Company and Pennsylvania Power-Company Date of Issue March 23, 1990

. For the gutis ribing cos'panies, By k! %b bh i'PRESIDIDrr Endorsement No. 16 Countersigned by ~_

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

, Nuclear Energy Liability insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS ENDORSEMENT TO CERTIFICATE No. M-58 Forming Part of Master Policy No. 1 Nuclear Energy Liability Insurance (Secondary Financial Protection)

It is agreed that effective August 20, 1988:

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

(c) to bodily iniury or procerty damaae (1) with _ respect to which the crimarv financial protection described in Item 4 of the Declarations would apply but for (i) exhaustion of its limit of liability as described in Condition 6 of the Master Policy, or 2

(ii) the application of Insuring Agreement IV,

" Application of Policy" of the primary financial protec_ tion, as amended by paragraph 3 of the Waiver of Defenses Endorsement attached theretc, and (2) which is caused during the certifi_ cote period stated

in Item 6 of the . Declarations by a nuclear incident

? arising out of, or in connection- with the nuclear reactor described in Item 3 of the Declarations, and i

(3) which is discovered and for which written claim is 4 made against the insured not later than ten (10) years af ter the end of the _ certificate period stated

in Item 6 of the Declarations. However, this 2

subparagraph (3) shall not operate to bar coverage

- f or ),.pd ily iniury or property damage caused by an

, extraordinary nuclear occurrence.

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

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

li 2

4 "3"

==i!

T -

1

= ME-S-14 Page 1 of 2 2 . . . . . . . . . . _ . . . _ . _ _ _ -

h Item 7. Maximum retrospective premium (exclusive of allowance for premium taxes) payable pursuant to Condition 2 of the Master Policy with respect to each nuclear incident:$14,883.750,

-s J

E ORIGeNAL ON, f-OR THIS IS TO CERTITY THAT Til$ iS A

' ENERGY

'O INSURANCE C06;A2C JNDER THE MASTER POUC s . l3OON%4Y FlNANCIAL PRO' j UABILITY INCURsINSURANCh is / FF.ym W nds COPY.

~

l' ICE

$0th? W ,

PRESIDENT UNDERWhiT!NG

-4 AMERICAN NUC1. EAR INSURERS A

=

4 B -

a

-5 Effective Date of

-; .this Endorsement Auaust 20, 1988 To form a part of Certificate No. M-58 4 12:01 A.M. Standard time 4

5

Issued to Duquesne Light Company, Ohio Edison Company and Pennsylvania Power Company Date of issue March 23, 1990 For the Subscribing Companies MUrDAL ATONIC IDEBCT LIABILITY ERVRITERS By N --

/ N A b kN

v. n.

4 Endorsement No. 14 Countersigned by

ME-S-14 Page 2 of 2

Nuclear Energy Liability insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS ENDORSEMEliT TO CERTIFICATE No. M-58 FORMING PART OF MASTER POLICY NO. 1-NUCLEAR ENERGY LIABILITY INSURANCE (Secondary Financial Protection)

1. In poragraph (c) on Pagas 1 and 2 of the certificate, and in all andersements to the certificate relating thereto, the wordo " bodily injury or property damage" are amended to read "hosilly in iury, pyonerty damace or enviromnental damane".

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.

I l

p il

- O ggsuamCE (7,v c O ;0, e'p -

l , 'i\ A J0W L hdN"RW v hgr.RligunERd Effective Date of L this Endorsement- January 1, 1990 ___ To form a part of Certificate No. M-58 12:01 A.M. Standard tire i

Issued to Duquesne Light Company, Ohio Edison Company and Pennsylvania Power Company Date of issue ,,, March 23, 1990 For the Subscribing Companies

)

Ntrf0&L ATOKIC ENERGY LIABILITY VRITIDtS l By N

Endorsement.No. 15 Countersigned by l ME-S-18-(1/1/90)

=____-____ ,

7, ra  %'

't Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS ENDORSEMENT TO CERTIFICATE NO. M-58 Forming Part of Master Policy No. 1 Nuclear Energy Liability Insurance (Secondary Financial Protection)

It is agreed that effective August 20, 1988:

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

(c) to bodily iniury or property damaae (1) with respect to which the crimarv financial protection described in Item 4 of the Declarations would apply but for (1) exhaustion of its limit of liability as described in Condition 6 of the Master Policy, or (ii) the application of Insuring Agreement IV,

" Application of Policy" of the primary financial orotection,.as amended by paragraph 3 of the Waiver of Defenses Endorsement attached thereto, and (2) which is caused during the certificate period stated in Item 6 of the Declarations by a nuclear incident arising out of, or in connection with the nuclear reactor described in Item 3 of the Declarations, and (3) which is discovered and for which written claim is made against the insured not later than ten (10) years after the end of the certificate period stated in Item 6 of the Declarations. However, this subparagraph (3) shall not operate to bar coverage for bodily iniurv or p,Icoerty damaae caused by an extraordinary nuclear occurrence.

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

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

l l

ME-S Page 1 of a

_= _ _ _ . _ _ . _ . . . . . . . . . . . . .

+ +

a 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 incidentit14,883,750.

THIS IS TO4,!N'., CERT lFY THAT THIS 3 A TRUE COPY OF THE OR TE UUVEER 0:.SiGNATED HEREON, FOR CERTiflCATE C: CiJCY-NUCLEAR ENERGY INSURANCE COLAGE UNOda 1HE MASTER UAfflLil Y 6URANCE (Sf. CONN RY fin ANCf PROTECTION). N

! U 1R I VICE PRESIDENT UNDERV!RITING AMERICAN NUCLEAR INSURERS s Effective Date of this Endorsement August 20, 1988 To form a part of Certificate No, M-58 12:01 A.M. Standard tire Issued to Duquesne Light Company, Ohio Edison Company and Pennsylvania Power Company Date of issue March 23, 1990 For the Subscribing Companies-MUTUAL ATOMIC IDERGY LIABILITY ERVRITERS By N. - -

N Ne:IN va 2.

Endorsement No. 14 Countersigned by ME-S-14 Page 2 of 2

3 .

Nuclear Energy Liability insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS ENDORSEMENT TO CERTIFICATE NO. M-58 FORMING PART OF MASTER POLICY NO. 1 NUCLEAP ENERGY LIABILITY INSURANCE (Secondary Financial Protection)

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

" bodily in iurv, orocerty di,;ugg or environmental damane".

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.

THY 313 TO CE9MY THAT TW9 IS A TDUE COFY OF THE ORIGINAL CERT!DOATE, E' " ' ' V ' Y.V 1:9 DE3' .NAT ED HEREON, FOR INSURANCE C5. E' 7 % M/,ST a POUCY NUCLEAR ENERGY LIADlu'Y W ' _ i L,c W FiNA 4AL PAOTECTION), NO INSURA 2d si A ,31Tm ?y "^'W JOHNL r ." $H ,

VICE FiiE. DENT-UNDEilWRritNG s AMERJCAN NUCLEAR INSUfiU1S Effective Date of this Endorsement January 1, 1990 _ To form a part of Certificate No, M-58 12:01 A.M. Standard tine Issued to Duquesne Light Company, Ohio Edison Company and Pennsylvania Power Company Date of issue March 23, 1990 For the Subscribing Companies MUTUAL ATOKIC ENERGY LIABILITY VRITERS By Endorsement No. 15 countersigned by ME-S-18 (1/1/90)

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Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION  ;

ENDORSEMENT TO CERTIFICATE NO.N-110 Forming Part of Master Policy No. 1 Nuclear Energy Liability Insurance  ;

(Secondary Financial Protection) '!

It is agreed that effective August 20', 1988:

I.) Subparagraph (c) on Page 1 of the certificgig is amended to l

I read as follows:

L (c) to bodily iniury or orocerty damaae l

(1) with respect to which the crimarv financial orotection described in -Item 4 of the - Declarations would apply but for (i) exhaustion of its limit of liability as described in Condition 6 of the Master.

Policy, or (ii) the application of Insuring Agreement IV,

" Application of Policy"- of the crimarv -

financial protection, as amended by paragraph 3 of the Waiver of Defenses Endorsement

' attached thereto, and (2) which'is caused during the certificate period stated in Item 6 of the Declarations by a nuclear incident arising out of, or in connection with the nuclear reactor described in Item 3 of the' Declarations, and (3) which is discovered and for which written claim is made against the insured not later than ten (10) years after the end of the certificate period stated in Item 6 of the Declarations. However, this subparagraph (3) shall not operate to bar coverage for bodily iniury- or crocerty damaae caused by an extraordinary nuclear occurrence.

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

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

NE-S-14 Page 1 of 2

.y *

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. 4' l

Maximum retrospective premium (exclusive of

' Item 7.. l 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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Q{4A[HE NUMDER DESIGNATED HEREO irt%4AN .. '-

i LIAGM r'p;;VM;d$,[M'E f3 f,t AST-

'lA POLICY NUCLEAR ENERGY INSun,? r g @ AL PROTECTION). NO -

WN L 9 Edirix$y "V VICE PREN ENf-UNDERWRITING AMERICAN NUCLEAR INSURERS ml Effective Date of this Endorsement Auaust 20. 1988 To form a part of Certificate No. N-110 12:01 A. M. Standard time Duquesne Light Company, Ohio Edison Company. The Cleveland Electric-Issued to. Illuminating Company and The Toledo Edison Company A

Date of Issue March 23, 1990 For the Subscribing Co6)anies, By 1 1M' A W esident Endorsement No. 8 Countersigned by NE-S-14 Page 2 of 2

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Nuclear Energy Liability insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION

~

ENDORSEMENT TO CERTIFICATE NO. N-110 FORMINO PART OF MASTER POLICY NO. 1 NUCLEAR ENEROY LIABILITY INSURANCE (Secondary Financial Protection)

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

" bodily iniury, oronerty danane or environmental damace".

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.

3 W'3 El N7 f 1 J' , cls EM 9,7 c?d E 73 { % [nl. [ 1 t1 PiOTECIl0MI N0 fj[ Og&{M&W

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-c h yg ykk'c::n MDEiUNI .T hhg;,H !NDUM O 2ffective Date of this' Endorsement January 1, 1990 To form a part of Certificate No. N-110 12:01 A. M. stwusard time Duquesne Light Company, Ohio Edison Company, The Cleveland Electric Issued to Illuminating Company and The Toledo Edison Company Date of Issue March 23, 1990 For the Subs ribing coiiiipanies, By  ! 4MC h LTRESIDDIT Endorsement No. 9 Countersigned by NE-S-18 (1/1/90)

n.

E Nuclear Energy Liability insurance l

MUTUAL ATOMIC ENERGY LIABILIT( UNDERWRITERS

\

ENDORSEMENT TO CERTIFICATE NO.fi-lLO Forming Part of Master Policy No. 1 Nuclear Energy Liability Insurance (Secondary Financial Protection) i-It is agreed that effective August 20, 1988: ,

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

(c) to bodily iniury or m oerty damaae  !

l

-(1) with respect to which the crimarv financial h protection described in Item 4 of the Declarations would apply but for '

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

u i

(ii) the application of Insuring Agreement IV,

" Application of Policy" of the crimary D

financial orotection, as amended by paragraph 3 of the Waiver . of Defenses Endorsement attached thereto, and (2) - which is caused during the certificate period stated in Item 6 of the Declarations by.a nuclear incident arising out 'of, or in connection with .the nuclear reactor described in Item 3 of the Declarations, and (3) which is discovered and for which written claim is made against the insured not later than ten (10) years after the end of the certificAtg period stated in Item 6 of the Declarations. However, this L subparagraph (3) shall not operate to bar coverage for bodily iniury or oronerty damaae caused by an extraordinary nuclear occurrencg.

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

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

ME-S-14 Page 1 of 2

l' ' .

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

THIS 15 TO CERTITY t

f t WII?p(I[jj'.Ih f M g F of CERT!TiCATE ENN} T INSURA9CE CO@~h? l,y y'$p,y ,7,ycpMUCt.

nc . PROTECTION). NO EAR ENERGY uAniuw u n  !

INSURANC' 15 r,pf _hdf-JOHN L OL PROCCHI u VICE pqE3 CENT-UNDERV!R0.lN- .

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AMERICAN NUCLEAR INSURERS Effective Date of this Endorsement Auaust 20, 1988 To form a part of Certificate No.M-110 12:0) A.M. Standard time Duquesne Light Company, Ohio Edison Company, The Cleveland Electric

. Issued to illuminating Company and The Toledo Edison Company Date of issue March 23, 1990 For the Subscribing Companies MIFFUAL ATOKIC BERGY LIABILITY ERVRITERS By  ? -

55bWv <.

Endorsement No. 8 Countersigned by ME-S-14 Page 2 of 2

7, .

Ii Nuclear Energy-Liability insurance t-MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS ENDORSEMENT TO CERTIFICATE NO. M-110 FORMING PART OF MASTER POLICY No. 1 NUCLEAR ENERGY LIABILITY INSURANCE (Secondary Financial Protection) l

1. In paragraph (c) on Pages 1 and 2 of the certificate, and in -

all endorsements to the certificate relating thereto, the words " bodily injury or property damage" are amended to read "bedily i n iury , erecerty damana or environmental damane".

2. This endorsement applies to all claims for damages, costs, expenses or other relief or recovery for which coverage is i sought under the policy, and which are first made in writing against any insured on or after the effective date of this ll 1

endorsement stated below.

i Q i !3 NERGY TW@ %}h ,

iayAstuTV lEUWgg:.ggMiy . ":.. L , roov v==">

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JOHN L k '?,l{fih0DNimTitlG a !kUlbl AR

• i Effective Date of this Endorsement January 1, 1990 ,

To torm a part of Certificate No, M-110 12:01 A.M. staterd time Duquesne Light Company, Ohio Edison Company, The Cleveland Electric Issued'to Illuminating Company and The Toledo Edison Company Date of issue March 23, 1990 For the Subscribing Companies NUTUAL ATONIC MERGY LIABILITY URITERS By Endorsement No. 9 Countersigned by t

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

'_1 -

Nuclear Energy Liability insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION i

CHANGES IN SUBSCRillNG CotANIES AND IN THEIR PROPORTIONATE LIABILITT E20RSE8ENT CALEWAR TEAR S

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 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 y$. 31, 1990, or to the time of the termination or cancellation of the policy, if

• sooner.

7a G8 Aetna Casualty & Surety Co. 12,917337%

,4

, ^ ALLlanz Insurance Conpany 1.51 % 34%

ALLstate insurance Company 5.535510%

Anwrican Home Assurance Co. 0.692369%

Continental Casualty Cospany 5.341750%

Continental Insurance Cenpany 10.333870%

@o j g> j- Federal Insurance Company 2.75 % 99%

g General Ins. Co. of America 1.722312%

n. ~9 Hanover Insurance ccupany 0.595059%

~

'" -6 [ Hartford Fire insurance Co. 10.333670%

f Ei Highlands insurance tcmpany 0.344462%

-y. Home Indesnity Company 1.614667%

~ 3 Ins. Co. of North America 7.750403%

e >  ? Motora insurance Corporation 0.430578%

,e

=qv Ohio Casualty insurance Co. 0.172231%

],f h Providence Washin0 ton Ins. Co. 0.193760%

2, g . Reliance Insurance Cospany 0.516694%

[ 6 g r, '. Royal Ins. Co. of America 3.616855%

J~ .p '"g~ C St. Paul Fire & Marine Ins. Co. 5.991922%

3 $ State Farm Firm & Casualty Co. 0.8611 % %

bg }/ Lyd 4 E Tokio Marine & Fire Ins. Co. 0.516604%

t 15 Transamerica insurance Co. 0.8611 % %

hE.E8 j g

Travelers Indemnity Company 12.8 % 195%

eX85

~CZ~ r U. E. Fire Insurance Company U.S. Fidelity & Guaranty Co.

2.325121%

8.611558%

M $ e., "8 N Universat Underwriters Ins. Co. 0.172231%

y OEH Zurich Insurance Ccapany 1.420007%

f. y ,[ 2 Totat 100.000000%

Effective Date of this Endorsement January 1. 1990 To form a part of Policy No. NF-161 12:01 A. M. Standard time Issued to Niaaara Mohawk Power Corporation, et al Date of Issue April 1. 1990 For the Sub ribin ey

( l 6 dg C m^anies,:~

President g Endorsement No. 114 Countersigned by

>~-

Nucl:ar Energy Li-bility Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT CALENDAR YEAR 1989 It is agreed that Items 1 and 2 of Endorsement No. 112-are amended to read:

1. ADVANCE PREMIUM: It is agreed that the Advance i Premium due the companies for the period designated above is: $ 837.072.00 .

2. STANDARD PREMIUM AND RESERVE PREMIUM: In the absence of a change in the Advance Premium indicated above, it is agreed that, subject to the provisions of the Industry Credit Rating Plan, the Standard Premium is said Advance Premium and the Reserve Premium is: $ 633.850.00 .

Additional Premium: $ 42,339.00 .

This is to certify that this is a true copy of the original l

I Endorsement having the endorsement number and being rnade part of the Nuclear Energy 1.iabihty Pohe - (Facility Form) as des-ign ted hereon. No insurance is af ded hereunder.

l- Je , N H!.

l- Ame. , Nuckor Irssurera

Effsetive Date of this Endorsement January 1.1989 To form a part of Policy No NF-161 12:01 A.M. Standard Time 1 Issu3d to Niacara Mohawk Power Corporation, et al Dtte of Issue April 24.1990 For the Subscribing Companies i

By We -

PRESIDENT

[

Endorsement No 115 countersigned by

• NE-36

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Nuclear Energy Uability insurance i I

NUCLEAR ENEROY UABILITY INSURANCE ASSOCIATION WAIVER OF DEFENSES ENDORSEMENT '

(Extraordinary Nuclear Occurrence)

Effective August 20, 1988, the named insured, acting for himself (

and every other insured under the policy, and the members; of Nuclear Energy Liability Insurance Association agree as follows:

1. With respect to any extraordinary nuclear occurrence - to  !

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

of the construction, possession, or operation _ of the l facility, or ,

i (b) arises out of or results from or occurs in the course of the transportation of nuclear material to or from the facility, the insureds and the companies agree to waive (1) any issue or defense as to the conduct of the claimant or the fault of the insureds, including but not-limited

.to:

(1) 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 y property damage and the cause thereof.

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

2. The waivers set forth in paragraph 1. above do not apply to

'NE-33b Page 1 of 3

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

4

)

l (a) bodily injury or property damage which is intentionally

-c sustained by1 the claimant 'or which results from a nuclear incident intentionally and wrongfully caused by the claimant;  !

/

, (b)' bodily. injury sustained by any claimant who is employed at the site of and in connection with the activity.

where the extraordinary nuclear occurrence takes place t if-benefits be provided therefor are either payable or required to under any occupational disease law; workmen's compensation or (c) any claim for punitive or exemplary damages, provided, t with respect to any claim for wrongful death under any State law which provides for damages only punitive in nature, that the this exclusion does not apply to the extent i claimant has sustained actual damages, o measured by the pecuniary injuries resulting from such death but recoverablenot to exceed under law. the maximum amount otherwise

3. The waivers set forth e

in paragraph 1. above shall be 5 ffective only with respect to bodily injury or property damage to which - the policy applies under its terms other 1 than to bodilythis endorsement; injury or property ' damage provided, however, that with respect i resulting from an l'

I extraordinary nuclear occurrence, Insuring Agreement IV, l " 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 against is discovered the-insured notand laterforthan which written claim is made.

twenty .

years after the date of the extraordinary nuclear occurr(20) ence. 1

)

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 ,

l p~ (a) the provisions of the policy

' applicable vi the financial protection required of the named insured;

~(b) the agreement of insured and the - Nuclear indemnification between the named '

Regulatory Commission made pursuant to section 1954, as amended; and 170 of the Atomic Energy Act of (c) the limit of liability provisions of subsection 170s.

1 of the Atomic Energy Act of 1954, as amended.

Such waivers sha11 not preclude a defense based upon the failure of the claimant to take reasonable steps to mitigate damages. i I

4. Subject to all of the limitations stated in this endorsement and in the Atomic Energy Act of 1954, as amended, the waivers set forth in paragraph 1. above shall be judicially enforceable in accordance with their terms against any insured in an action to recover damages because NE-33b Page 2 of 3

~' -

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

5. As used herein:

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

" Financial ~ protection" and " nuclear incident" have the meanings amended.

given them in the Atomic Energy Act of 1954, as

" claimant" means the person or organization actually sustaining the bodily in or property damage and also includes his assignees, jury legal representatives and other persons or organizations entitled to brin an action for damagels 'on account of such injury or damage.g Thi is to wrtify that thh i a trua copy of the orig im!

Endumemt isnc the eternenent numbor and being made part ,

m the W _ i.w .

• LM Y Po! icy fac!IM Form) as dc&

ian a hcw ,n N In ran& is ahaypd'hewunder.

.k.hu i unnws m mwhat.unan Anutti:an N.ideor htuiNTS Effective Date of this Endorsement August 20, 1988 To form a part of Policy No. NF-161 12:01 A.M. Standard time Issued to Niagara 14ohawk Power Corporation, et al Date of issue February 16, 1990 For the ' cribing panies By .W

\Pfenident 116

//

Endorsement No. Countersigned by .N . b N - -

NE-33b Page 3 of 3 1

l

_ _ _ _ _ _ _ - - _ - _ - --i---------~---- - - - - - - - - - - - - - - ~~

1 Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION SUPPLEMENTARY ENDORSEMENT WAIVER OF DEFENSES REACTOR CONSTRUCTION AT THE FACILITY l l

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 ths 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 i be considered as employed in connection with the~ activity where the extraordinary nuclear occurrence takes place.if:

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

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

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

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$ n ,m , [to[,NY UcidW MG'he endmrewnt

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l'- Jo'n L .mH"CN' yee twomt.Underwritino l hut:can %dw h"M*

I

s Effective Date of this Endorsement August 20, 1988 To form a part of Policy No. NF-161 12

01 A. M. Standard time Issued to Niagara Mohawk Power Corporation, et al Date of Issue February 16, 1990 For the s ribing panies, sy I nA - ~

\lPresident g Endorsement No. 117 Countersigned by \ e_ M M .. _ _

l NE-39b

Nuclear Energy Liability-insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION Restriction of Companies Oblication to Defend, Investicate. Neaotiate or Settle Any Claim or Suit I

'Section 170 0, of the Atomic Energy

, I Act of 1954, as amended)

Ef fective 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 subsection 170 a. (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 !.nitiating, prosecuting, investigating, settling, or defending claims or suits, which are not authorized for payment by a court pursuant to such subsection 170.O.

l l

Ibh is la ceriff M3 4, En h, , p . ,e

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t hk' ctv/ of the original j.

ff[a[rx0 o m on 4,?;;&; 3' {, ym

• d beina made part o

• 9 No py,3 , g 6 W Form) a3 des.

hem."uder'

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Effective Date of this Endorseaant August 20, 1988 To form a part of Policy No. NF-161 12:01 A.E standard tlpe

. Issued to Niagara Mohawk Power Corporation, et al l

Dste of issue February 16, 1990 h. the su ibing Co anies l

l By PRISIDENT

-Endorsement No. 118 Countersigned by @

th> M A ~

NE-70

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Nuclear Energy Uability insurance NUCLEAR ENERGY UABluTY INSURANCE ASSOCIATION ,

WAIVER OF DEFENSES ENDORSEMENT (Extraordinary Nuclear. Occurrence)

The- named under the policy, insured, andacting for himself and every other insured the members of i Insurance Association agree as follows: Nuclear Energy Liability  :

1.

With respect to any extraordinary nuclear occurrence to (

which and which the policy applies as proof of financial protection i i

(a) arises of the out of or results construction, possession, from or occurs or in the course operation of the facility, or (b) arises of the out of or resultsoffrom transportation or occurs nuclear material in the to course or from the facility.

the insureds and the companies agree to waive (1) any issue or defense as to the . conduct of the-claimant not limited to:

or the fault of the insureds. including but (1) negligence.

(ii) contributory negligence.

(iii)- assumption of risk, and l

(iv) unforeseeable intervening causes, L whether involving act of God.

the conduct of a third person, or an (2) any issue or defense as to governmental immunity, and charitable or  ;

L (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 cause deemed of action. jurisdictional or relating to an elemanc in the 2.

The to waivers set forth in paragraph 1. above do not apply (a) bodily injury, property damage or environmental damage which is intentionally sustained by the claimant intentionally or and which results from wrongfully caused a nuclear by the claimant incident rNE,-33c(1/1/90)- Page 1 of 3 l

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

e et 1

(b) bodily injury sustained by any claimant who is employed activity where theat the site of and in connection with the takes place if benefits extraordinary nuclear occurrence or required to be therefor are either payable provided under any workmen's compensation or occupational disease laws (c) any claim for punitive or provided, exemplary damages, with respect to any claim for wrongful death-under only punitive anyin State law which provides for damages nature, apply to the extent that thethis claimant exclusion does not has sustained i actual resulting damages, measured by the pecuniary injuries i from such death but not to exceed the maximum amount ~otherwise recoverable under law.

3.

The waivers set forth in paragraph 1. above shall be effective only with respect to bodily injury, property i damage or environmental damage to which the policy applies under its however, terms other than this endorsements damage orthat with respect to bodily injury. provided, environmental damage resulting from property extraordinary -nuclear occurrence. an -

the provisions of.

L 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 1 r

hazard and which is discovered and for which written claim is made against the insured not later than ten (10)-years l

after bar coveragethe and of the policy period shall not operate to for bodily injury. property damage

. environmental damage -(a) which is caused or ,

L the

policy period by the nuclear energy hazard andduring '

L is discovered and.for which written claim is made(b) which against the insured not later than twenty date of the extraordinary nuclear occu(20) rrence. years after the Such waivers shall .not apply to, or prejudice  :

prosecution or defense of the H which is not within the protection afforded underany claim or portion of clai -

(a) the provisions of the policy applicable to financial protection required of the named insured the (b)

I the agreement of indemnification between the named insured and the Nuclear Regulatory Commission made pursuant l

1954, as amended: to Section and 170 of the Atomic Energy Act of  !

L (c) l the limit of liability provisions of subsection 170s.

of the Atomic Energy Act of 1954, as amended. '

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

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

.,.i" 4  ; subject to all of the limitations stated in this endorsement and in the Atomic Energy Act .of 1954, as amended, the waivers set forth in paragraph 1. above shall

' be judicially enforceable in accordance with their terms against any insured in an action to recover damages because of bodily injury, property damage or environmental damage protection.

to which the policy applies as proof of financial' S. 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 Energy Act of 1954, as amended. ,

t

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

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

legal representatives and other persons or organizations entitled to bring an action for-damages on account of such injury or damag~e. ,

li h a i ord y tb i! th is a Pue ce;g of the origmal Tw!

• m nr./mq the endardenwn! nurnbor and being made part

-f &c n Ew:tw 1.iabihty Pol,ey (F Mty Form) as des-I' t wed puan. No imurance is afford hereunder.

I

\ w> j4 fr k hn L. r$d hu e Prat Urvie Anwncan Nuclut Ir.surers 1

Effective Date of this Endorsesent January 1, 1990 To fors a part of Policy No. NF-161 12:01 A. M. Standard time Issued to Niagara Mohawk Power Corporation, et al Date of Issue February 16, 1990 For the S ribing C panies, By 1 _o -M_ A

\)Pr(di '* %

//

Endorsement No. 119 Countersigned by * '

N

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

Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION SUPPLEMENTARY ENDORSEMENT WAIVER OF DEFENSES REACTOR CONSTRUCTION AT THE FACILITY l

t It is agreed that in construing the application of paragraph 2(b) of to an theextraordinary WAIVER OF DEFENSES ENDORSEMENT - NE-33c with respect facility, nuclear occurrence occurring at the a claimant- who is employed at the facility' in connection with the construction of a nuclearissued reactor Nuclear Regulatory Commission shall not been respect. to which no operating license has bywith the be considered as employed in connection nuclear occurrence takeswith placetheif:activity where the extraordinary (1) the claimant is employed exclusively in connection with all related . equipmentof a nuclear oactor, including the construction ,

and inatt;l'stions 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' nuclear material at-the facility.

This is to mtup that th is a troa cow of the oriciral l'ndl.rrs.' ment h3vire the endcrnemmt number and being made part of the Nurbr Entrm; Uebsty Poi:cj g .cilny Form) as des.

ip , wuon. No hu ann , *nri. I hereunder.

.s .

mLt wo, vu neuknt u,*rwn.a Ame:rwan & dear baumt,

.i Effective Date of this Endorsement January 1,1990 To form a part of Policy No. NF-161 12:01 A. M. Standard time 1

Niagara Mohawk Power Corporation, et al Date of Issue February 16, 1990 For the Sub ibing Co antes, By '

n fJ A h

(r): //

Endorsement No. 120 '

countersigned by ,

NE-39c (1/1/90)

\-

,?. ,

1 I

Nuclear Energy Wability insurance

-NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION

(: AMENDh' TORY ENDORSBSNT L (Facility Form)

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 suas 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.

L r

This coverage applies only to bodily injury, property damage L

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

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

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

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

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

Subject to INSURING AGREEMENT IV, the companies shall pay, ,

with respect to any claim or suit they defend, the costs >

incurred in the defense, including ,

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

(2) premiums on appeal bonds and bonds to release

. attachments _in any such suit, bet without obligation to apply for or furnish such bonds; (3) reasonable expenses, other than loss of earnings, incurred by the insured at the cospanies' request.

COVERAGE B - OhMAGE 'IC PROPERTY OF AN INSURED AM&Y FRON THE FACILITY With respect to property damage caused during the policy period by the nuclear energy hazard to the property of an insured which is away from the facility, to pay to such insured those suas which such insured would have been legally obligated to pay as covered damages- therefor, had such property belonged to another.

COVERAGE C - SUBROGATION - OFFSITE EMPLDYEES 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 s clain' 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 benefits required of such carrier _ under the applicable workmen's compensation or occupational disease law. An employer who is a duly qualified self-insurer under - such law shall be deemed to be a: workmen's compensation . carrier within the meaning of this coverage.

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

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

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

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

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

~..

-e:

Subject to . CONDITION 3 and the other provisions of this '

policy, the insurance applies separately to each insured  ;

against whom claim is made or suit is brought.

3.- INSURING AGREEMENT III is replaced by the following:

III DEFINITIONS Wherever used in this policy:

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

. person.

" covered damages" means damages because of bodily injury or <

property damage to which this policy applies; but covered damages do not include environmental cleanup costs or on-site cleanup costs.

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

" disposal site" means any structure, basin, excavation, premises or place prepared as a dump or site for the disposal of waste materials of a general nature, but which' L'

may also be- used for the disposal of waste materials containing small amounts of nuclear material.

" environment" includes land, the atmosphare, and all watercourses, bodies of water and natural resources, ,'

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

s

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

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

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

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

Oe ,

" extraordinary nuclear occurrence" means an event which the 4 United States Nuclear Regulatory Commission has determined to be an extra rdinary nuclear occurrence as defined in thu Atomic Energy Act of 1954, or in any law l amendatory thereof.

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

l

" indemnified nuclear facility" means j (1) "the. , facility" as defined in any Nuclear Energy i Liability Policy (Facility Form) issued by Nuclear '

Energy Liability Insurance . Association or Mutual Atomic Energy Liability Underwriters, or (2) any other nuclear facility, if financial protection is required pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, with respect to any activities or operations conducted thereat.

" insured shipment" means a shipment of source material, special nuclear material, spent fuel, waste, or tailings or wastes produced by the extraction or concentration of uranium or thorium from any ore processed primarily for its  !

source material content, herein called " material,"

(1) to the facility from any location except an indemnified nuclear facility, but only if the transportation of the material is not by predeter-mination to be interrupted by removal of the material i from a transporting conveyance for any purpose other than the continuation of its transpor-tation, or (2) from the tw ility to any other location, but only until the v.eterial is removed from a transporting conveyance for any pur of its transportation. pose other than the continuation i

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

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

(. '

I

.e (b) international waters or airspace, provided that the nuclear material is in the course of

' transportation between two points located within the territorial there is limits dsscribed in (a) above and no deviation in the course of the transportation for the purpose of going to any 1 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. '

s

" nuclear facility" means "the facility" as defined in any Nuclear Energy Liability Policy (Facility Form) issued by 1 Nuclear Energy Liability Insurance A6,sociation or Mutual Atomic Energy Liability Underwriters. The - term " nuclear facility" also means (1) any nuclear reactor, any equipment or device designed or used for (2)

(a) separating the isotopes of uranium or plutonium,

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

i (3) any equipment or device used for the processing, ,

fabricating er alloying of special nuclear material if at any time the total amount of such material in the custody of the insured at the premises where such equipment or device is located consists of or 1 l contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams l of uranium 235, (4) any structure, basin, excavation, premises or place prepared or used for the storage or disposal of waste, and includes the site on which any of the foregoing is located, all operations conducted on such site and all premises used for such operations. 1

" 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 *

, arieing 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 j on, above or below the surface of the ground.

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

.y "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, provided such aircraft, watercraft or vehicles are not used t

in connection with the operation of the facility. l j " property damage" means physical injury to or destruction or radioactive contamination of property, and loss of use of property so injured, destroyed or contaminated, and loss of use of property while evacuated or withdrawn from use because possibly so contaminated or because of imminent danger of contamination.

" source material," "special nuclear material," and

" byproduct material" have the meanings given then in the Atomic Energy Act of 1954, or in any law amendatory thereof.

" spent fuel" means any fuel slement or fuel component, I solid or liquid, which has been used or exposed to '

i radiation in any nuclear reactor.

"the facility" means the facility described in the declarations and includes the location designated in Ites 3

, of the declarations and all property and operations at such l

[ location. i

" transportation incident" means a discharge or dispersal of nuclear material from an insured shipment caused by collision or upset of the transporting conveyance, or an accident that breaks open, punctures or ruptures the i shipping containers or containment thereont but only if ,

both the discharge or dispersal and the collisjon, upset or accident take place away from any nuclear facility and away from any disposal site, and botn 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 organisation of any nuclear facility included within the definition of nuclear f acility under paragraph (1)

I or (2) thereof.

4. INSURING AGREEMENT IV is replaced by the following and INSURING AGREEMENT IV-A added by the " Amendment of Coverage g

Endorsement for Workers claims (Facility Form)" continues to apply:

IV LIMITED DEFENSE OF PARTIALLY COVERED CIADIG OR IXTITS .

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

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

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

, _ (2) As soon as practicable, the first named insured,  ;

I acting on behalf of all insureds, and the companies shall endeavor to reach an equitable arrangement for  :

handling the defense and sharing the costs thereof.  !

(3) The companies' share of defense costs shall not exceed  ;

the portion of ?.he 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 c. hall have a right to contribution from  ;

j- the first namw insured for all defense costs as they

, are incurred in excess of the amount of the companies' l share, including reimbursement by the first named l insured of all such excess costs paid by the companies.

l (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 EXCWSIONS (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. EXCWSION (f) is replaced by the following exclusion:

[This policy does not applys)

(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."

L 8. In CONDITION 4, and in all endorsements to this policy I

modifying the dollar amount of the total aggregate liability of the companies with respect to a common occurrences (a) the words " bodily injury or property damage" are replaced by " bodily injury, property damage or environmental damagn"; and NE 71.(1/1/90) Page 7 of 10

__ _ _____1___ _ _ _ _ _ . _ _ _ _ _ _ _._._ _ _ ____ ___. _.._._. _.-

j

0 1 (b) the words " bodily injury and property damage" are I replaced by " bodily injury, property damage and ,

environmental damage." '

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

, damage or environmental damage."

i

10. CONDITION 19, DSCIARATIONS, is renumbered CONDITIONS 20.

11. ,The following CONDITION is added to the policy * =

i 19 ARBITRATION OF DISPUTES REIATING TO TWE APPLICATION OF INSURING M N MT IV All such disputes subject to paragraph (5) of INSURING ,

AGREEMENT IV shall be submitted to a Board of Arbitration (the " Board") for a final and binding resolution of the dispute.

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

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

(a) The arbitration will take place in New York, New York, ,

and will be governed by the laws of the State of- New York.

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

(c) The other party shall then appoint in writing  :

anarbitrator, and the arbitrators shall appoint in writing an umpire before they begin the arbitration.

The umpire shall act as chairman of the Board.

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

(e) If the two arbitrators fail to agree on the selection of an umpire within thirty (30) days after they have both been appointed, each of them shall name two, of '

whom the other shall decline one. The choice shall be '

made by drawing lots.

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

i 4

, l V

1 under a Nuclear Energy Liability Policy issued by Nuclear Energy Liability Insurance Association or l

Mutual Atomic Energy Liability Underwriterst provided that the current employees of the following shall not

, be eligible for service without the consent of both l parties:

l

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

Board's decision. '

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

(h) The Board shall determine its rules of procedure, and ,

the nature and extent of any discovery, testimony, examination or cross-examination of witnesses and oral argument permitted. The decision of any two members of

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

All discovery, submissions of evidence, hearing of witnesses and argument shall be completed within sixty l (60) days of the appointment of the umpire, provided l 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 l between the parties from a business point of view, I without favoring the interest of either party.

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

! paragraph (h) above.

(k) If the Board fails to make an award within the time l

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

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

NE-71 (1/1/90) Page 9 of 10 u

___ _ , _ _ . _ _ _ _ _ . _ , _ . _ . , . _ . . . . , _ ~ - _ , . . . - . - . _ ,

., i I

court of competent jurisdiction, state or federal, and  !

judgment thereon entered and enforced, in '

accordance with the law and practice of the forum.

l (a) 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, shall be ap pointed to act in his or her place, in I

accordance w:th 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.

l

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

of this endorsement stated below. i Thk n to oatfv that this is a hue copy of the on7nal EniNiement havig t% enhement number and being rnade part of the hcku E e ;p Lif av l'u!n j (F Wp Form) as des-ign e d e con. Ik he.t w n aitord . hereunder.

.T ,

Jan t. w A V,t e I wkni Undeno Anwn:.m t.wtw lwrca Effective Date of this Endorsement January 1,1990 To form a part of Policy No. NF-161 M101 A. M. Stenenfd ttee Issued to Niacara Mohawk Power Corporation, et al Date of Issue Ma v 10. 1990 For the Subsc 1 4 Companf, By Y a hul t

//

Endorsement No. 121 Countersi p d by N

k .

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

Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS CHANGES IN SutSCRillhG COMPAN!!$ AND IW TH(It PROP 0til0 haft LIABILITY [NDOR$tM[hi CAttNDAR TEAR 1o90

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

a. The vord " companies" wherever used in the policy means the subscribing l companies listed belov. I

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

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 such bodily injury, property damage or environmental damage.

2. It is agreed that the effective period of this endorsement is from the beginning

' .$ r.f the effective date of this endorsement stated below to the effective date that g another " Changes In Subscribing Companies And In Their Proportionate Liability Endorsement" changes the Companies and/or their proportions as listed in this

)j'

{J. endorsement, or to the time of the termination or cancellation of the policy, if '

ta, sooner.

Arkwright Mutust Insurance Conpany 21% l O) incloyers insurance of Wouseu, A Mutual Capany 21%

b r Liberty Mutual Insurance Company 28%

v .

Lutermons Mutual Casustty Company 30%

(

j 2,3 NOTIE OF AWBEL leITINGB l .0 The annual meetings of Arkwright The anrust meetings of Enployers l ,y]E Insurance MutusL Conpany are held at its home office in Waltham, Massachusetts, on the second Wedwsday Insurance of Wausau A Mutual Company, are held at its home of fice in Wausau, Wisconsin, on j

)- { j 2*;

n fh .j of March in each year, et ten thirty o' clock in the morning.

the fourth f ridey of May in each year, at nirt o' clock in the morning.

j El N The amuel meetings of Liberty Mutual the anruel meetings of Lueermons i

y .k a j insurance Ccapany are held at its home Mutual Casualty Conpany are held

' e d 4* z office in Boston, Massachusetts, on at its home of fice in Long Grove the third Wednesday of April in each Illinois, on the third Tuesday of 9 Z.1 7 E 1 year, at ten o' clock in the morning. May in each year, at eleven o' clock j t s g i in the morning.

F d 'U b IJ Effective Date of this Endorsement , , , ,

January 1. 1990 To form a part of Policy No. MF-46 12:01 A.M. Standard time Issued to Niacara Mohawk Power Corporation, et al Date of issue April 1. 1990 Por the Subscribing Companies MUTUAL ATOMIC GYLIABILITYUNDERVRIThS By

,.s .ca. w g -r, Endorsement No. 97 Countersigned by N Y

NUCLEAR ENERGY LIABILITY INSURANCE MUTUAL ATOMIC ENER0r LIABILITY UNDERWRITERS ADVANCE PREM10M AND STANDARD PREMIUM ENDORSEMENT cal.ENDAR YEAR 1989 It is agreed that items 1 and 2 of Endorsement No. 95 are amended to read:

1. ADVANCE PREMlUM: It is agreed that the Advance Premium due the companies for the period designated above is: $ 243.021.00 .

2. STANDARD PREMlUM AND RESERVE PREMlUM: In the absence of a change in the Advance Premium indicated above, it is agreed that, subject to the provisions of the Industry Credit Rating Plan, the Standard Premium is said Advance Premium and the Reserve Premium is: $ 184.021.00 .

Additional Premium: $ 12,292.00 .

This is to certify that this is a true copy of the original Endorsement having the endorsement nurnbor and being made part of the Nuclear Energy Liability Polic (Facility Fortn) as des.

ign *ed hereon. No insutance is af ded hereunder.

Joh I Q d, b Amm..n Nudm insurm Effective Date of this Endorsement January 1. 1989 To form a part of Policy No. MF-46 12:01 A.fi. Standard Time Issued to Niacara Mohawk Power Corooration, et al Date_of Issue April 24,1990 For the Subscribing Companies MUTUAL ATOMIC ENERCY LIABILITY UND RWRITERS By .9 , 'N VA ~ n e Endorsement No. ~

98 Countersi ed by ~

h '

e thorized Representative

t 6

Nuclear Energy Uability insurance MUTUAL ATOMIC ENERGY UABluTY UNDERWRITERS WAIVER OF DEFENSES ENDORSEMENT (Extraordinary Nuclear Occurrence)

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

\

1. With respect to any extraordinary nuclear ocet trence to l which the policy applies as proof of financial t'rotection

and which l (a) arises out of or results from or occurs in the course of the construction, possession, or operation of the facility, or

' (b) arises out of or results from or occurs in the course of the transportation of nuclear material to or from '

the facility, the insureds and the companies agree to waive i

(1) any issue or defense as to the conduct of the l claimant or the fault of the insureds, including but  !

l not limited tor (i) negligence, '

(ii) contributory negligence, (iii) assumption of risk, and (iv) unforeseeable intervening causes, whether involving the conduct of a third person, or an i act of God, (2) any issue or defense as to charitable or governmental immunity, and (3) any issue or defense based on any statute of limitations if suit is instituted within three years from the date on which the claimant first knew, or reasonably could have known, of his bodily-injury or property damage and the cause thereof.

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

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

i o

(a) bodily injury or property damage which is intentionally sustained- by the claimant or which results from a nuclear incident intentionally and l wrongfully caused by the claimant; I (b) bodily injury sustained by any claimant who is employed at the rite of and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits therefor are either payable or required .to be provided under any workmen's compensation or occupational disease law; (c) any claim for punitive or exemplary damages, provided, with respect to any claim for wrongful death under any State law which provides for damages only punitive in nature, this exclusion does not '

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

3. The waivers set forth in paragraph 1. above shall be offective only with respect to bodily injury or property damage to which the policy applies under its terms other than this endorsement; provided, however, that with respect to bodily injury or property damage resulting from an extraordinary nuclear occurrence, Insuring Agreement IV, " Application of Policy", shall not operate to bar coverage for bodily injury or property damage (a) which is caused during the policy period - by the nucisar energy hazard and (b) which is discovered and for which written claim is made against the insured not later than twenty (20) years after the date of the extraordinary nuclear  ;

occurrence.

Such waivers shall not apply to, or prejudice the prosecution or defense of any claim or portion of claim which is not within the protection afforded under (a) the provisions of the policy applicable to the financial protection required of the named insured (b) the agreement of indemnification between the named insured and the Nuclear Regulatory Commission made pursuant to section 170 of the Atomic Energy Act ;

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 preclud's a defense based upon the failure of the claimant to take reasonable steps to mitigate damages.

.ME-33b Page 2 of 3

e -

I

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 j be judicially enforceable in accordance with their terms against any insured in an action to i recover damages l because of bodily injury or property damage to which the '

policy applies as proof of financial protection. ]

5. As used herein: i

" 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 perstn or organization actually sustaining the bodily injury or property damage and also includes his assignees, lega1 representatives and other .

persons or organizations ent:.tled to bring an action for i damages on account of such injury or damage.

This is to certify that this is a true copy of the original Endorsement havina the endorsement nurnbor and being made part of the Nud:mr Ewrv 1 i.6;ay Po!;cy "%i!ity Form) ac des. i isna 1 bcren & 19 cc.na is affe ed hereunder.

John L t attrot chi. We t went Ur Americors litmicar licsarers

. . .stii i

Effective Date of this Endorsement August 20, 1988 HF-46 To form a part of Policy No.

12:01 A.M. Standard time Issued to _

Niagara Mohawk Power Corporation, et al t

Date of issue February 16, 1990 For the Subscribing Companies MITfDAL ATOKIC DERGY LIABILITY IBDERVILI By L'

• Endorsement No. 99 Countersigned by ) q ME-33b Page 3 of 3

Nuclear Energy LiabilRy Insurance i

MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS  :

SUPPLEMENTARY ENDORSEMENT  !

WAIVER OF DEFENSES REACTOR CONSTRUCTION AT THE FACILITY Effective August application of 20, 1988, it is agreed that in construing the paragraph 2(b) of the WAIVER OF DEFENSES l ENDORSEMENT ME-33b with respect to an extraordinary nuclear occurrence occurring at the facility, a claimant who is i employed.at the facility in connection with the construction of  !

a nuclear reactor with respect to which no operating license  !

has been issued by the Nuclear Regulatory Commission shall not '

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

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 tr.e facility.

Thi . is to 'Mfv ths this i3 a true cnny of the onsnal L

[f urn a ws the endotsemce e mn5n: and bema made rmrt

~

wr .> ^50v Liability PoMy ph4 f*'m) as des.

g ute hi o """

oI g I' aann L q anonhi, M iw&noUnderwnung l Amenc.m Nodm hwtT= ,,,,,,,b l

Effective Date of this Endorsement August 20, 1988 To form a part of Policy No. MF-46 1h01 A.M. Standere time l-Issued to Niagara Mohawk Power Corporation, et al Date of issue February 16, 1990 For the Subscribing companies MUTUAL ATOMIC EMDtGT LIABILITY IIIDERVRI S oy 1 ~ mm Endorsement No. 100 countersigned by i ME-39b

. +

F e  ;

Nuclear Energy Liability insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS Restriction of Companies Oblication to Defend.

Iny.psticate. Neootiate or Settle Any Claim or Suit i (Section 170 0. of the Atomic Energy Act of 1954, as amended)

Ef fective 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 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 l claim or suit under the policy do not include any obligation that

would necessitate or result in the companies incurring legal

! costs, including costs of initiating, prosecuting, investigating, settling, or defending claims or suits, which are not authorized for payment by a court pursuant to such subsection 170 0.

l This, is to certify thM this is a true copy of the original Endorsernent having the endorsement r unbor and being made part of the Nadat Ennav 1.iebMtv Policy ecuty Fonn) as des- _.

ianate, hereon. No Ins ar , thereunder.

.T . ' ~ . -

John L dttmk VKc Prm&nt Unimntat g Ann:rwi Nabr bsurcie

. u.ucatali>lUil51 Effective Date of this Endorsement August 20, 1988 To fors a part of Policy No. MF-46 12:01 A.M. Standard time l Issued to Niagara Mohawk Power Corporation, et al Date of issue February 16, 1990 For the Subscribing Cospanies NEPFD&L ATOIEC BIERGY TTAaTLITY WWERURITER;i By y

'Y . t --

vr s 101 (

Endorsement No. countersigned by W > > n_

ME-70

t

I i

Nuclear Energy Webility insurance MUTUAL ATOMIC ENERGY UAtluTY UNDERWRITEMS WAIVER OF DEFENSES ENDORSENENT (Extraordinary Nuclear Occurrence)

The named insured, acting for himself and every other insured t 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 which the policy applies as proof of financial protection and which i (a) arises out of or results from or occurs in the course of the construction possession, or operation of the l

facility, or l

(b) arises out of or results from or occurs in the course of the transportation of nuclear material to or from the facility, the insureds and the companies agree to waive (1) any issue or defense as to the conduct of the claimant or the fault of the insureds. including but not limited to (i) negligence. *

(ii) contributory negligence.

(iii) assumption of risk, and 3 (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 l

I limitations if suit is instituted within three years

' from the date on which the claimant first knew, or reasonably could have known, of his bodily injury or property damage and the cause thereof.

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

2. The waivers set forth in paragraph 1. above do not apply to (a) bodily injury, property damage or environmental damage which is intentionally sustained by the claimant or which results from a nuclear incident intentionally and wrongfully caused by the claimant ME-33c(1/1/90) Page 1 of 3

k i

l (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 1 takes place if benefits therefor are either payable or required to  ;

be provided under any workman's  !

compensation or occupational disease law:  :

(c) any claim for punitive or exemplary damages.

provided. with  !

3-respect to any claim for wrongful i death under any State law which provides for damages i 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 te exceed the '

maximum amount otherwise recoverable under law.

3. The waivers set forth in paragraph 1. above shall be effective only with respect to bodily injury. property damage or environmental damage to which the policy applies under its that termswithother than this endorsement:

however, damage respect to bodily injury, provided. property i

or environmental damage resulcing from extraordinary nuclear occurrence, the provisions an of COVERAGES A and C of the policy bodily injury. property damage or environmental damage providing coverage for 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 shall not operate to bar coverage for bodily injury, property damage or environmental damage (a) which is caused during the policy period by the nuclear energy hazard and (b) which is discovered and for which written claim is made against the insured not later than twenty (20 years after the date of the extraordinary nuclear occurr)ence.

Such waivers shall not apply to, or prejudice the prosecution or defense of any claim or portion of claim which is not within the protection afforded under (a) the provisions of the policy applicable to financial protection required of the named insured the i

(b) the agreement of indemnification between the named I

insured and the Nuclear Regulatory Commission made pursuant 1954 to Section 170 of the Atomic Energy Act of as amended: and (c) the limit of liability provisions of Subsection 170s.

of the Atomic Energy Act of 1954, as amended.

Such failure waivers shall not preclude a defense based upon the of the claimant to take mitigate damages. reasonable steps to ME-33c(1/1/90) Page 2 of 3

i

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

"Fi.7ancial protection" and " nuclear incident" have the meanings given them in the Atomic Energy Act of 1954, amended. as

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

Tha b to cc'nty tha, ta a ou

. f fnih.1 et the and original being made part n I rnais ] 'h aciay form) as des-g em nwnt gdurhyEn{..' , -m.y d heieundet-I via hm a,, t ,,nrauu.Va Fre * 'U*

Aneru N*r 1*""' ,

Effective Date of this Endorsement January 1. 1990 To form a part of Policy No. MF-46 12:01 A.M. 5tandard tino Issued to Niagara Mohawk Power Corporation, et al Date of issue February 16. 1990 For the subscribing Companies Ntrfu&L ATOKIC BERCY LIABILITY WWERURITERS By ~ .'S .

t

^

~

vr s Endorsement No.102 countersigned by b d ME-33c (1/1/90) Page 3 of 3

Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS SUPPLEMENTARY ENDORSEMENT WAIVER OF DEFENSES REACTOR CONSTRUCTION AT THE FACILITY It is agreed that in construing the application of paragraph 2(b) an to of theextraordinary WAIVER OF DEFENSES ENDORSEMENT HE-33c with respect nuclear occurrence occurring at

. facility, a claimant who is employed the at the facility in connection with the construction of a respect to which no operating license nuclear reactor with has been issued by the Nuclear Regulatory Commission shall not be considered as employed in connection nuclear occurrence takes place ift with the activity where the extraordinary t (1) the claimant is employed exclusively in connection with all the relatedconstruction 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 nucisar f

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

] }j g i., t ri . i'iN'thb s i trua cow of th? 6thpn?l f , ,v : mer! b Ui9 (ne enciotset w' ra mimr a".d lin,] Inade Duff r sa bmi?/ LiihihtV peht y a wihty [ enr.) as det.-

i , ,, n. Na ha ance ir s afior j hereunder.

hhn L a m bs N ewlent Undem  %

Amernan Na&ai haumn Effective Date of this Endorsement January 1. 1990 MF-46 To form a part of Policy No.

12:01 A.st. $twussed tine P

Issued to Niagara Mohawk Power Corporation, et al Date of issue February 16. 1990 For the subscribing Companies MtFrtl&L ATONIC DORGY LIABILITY IMDER By nS.

Endorsement No.

03 countersigned by , j, .

ME-39c (1/1/90)

?

Nuclear Energy Uability insurance MUTUAL ATOMIC ENERGY UABluTY UNDERWRITERS AMENDATORY ENDORSENENT (Facility Form)

It is agreed that:

1. INSURING AGREEMENT I is replaced by the following:

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

l l

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 does expedient.

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

(1) damages for on-site property damages (2) recovery of on-site cleanup costs or any other cleanup costs except covered environmental cleanup costst (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 soapanies' duty to defend claims or suits ends when 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 thereint (2) prealues on appeal bonds and bonds to release attachments in any such suit, but without obligation to apply for or furnish such bonds:

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

1 e 1

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

incurred by the insured at the companies' request.

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

C0VERACE C - SUBR00ATION - 0FFSITE EMPLOYEE 8 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 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 benefits required of such carrier under the applicable workmen's compensation or occupational disease law. An employer who is a duly qualified self-insurer under such law shall be deemed to be a workmen's compensation carrier within the meaning of this coverage.

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

2. INSURING AGREEMENT II is replaced by the following:

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

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

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

i ll l ll' E ' I '

l

[*

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

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

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

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

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

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

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

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

whether on above or below the surface of the ground.

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

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

" environmental protection obligations" include all obligations of any person or organization (li relating to the protection of the environment from contamination or imminent danger of contaminati M. and (2) imposed by any governmental laws, regulations or l

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

=

. j ordinances.

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

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

" indemnified nuclear facility" means (1) "the facility" as defined in any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters. or (2) any other nuclear facility. ,

' if financial protection is required pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, with respect to any activities or operations conducted thereat.

" insured shipment" means a shipment of source material, special wastes nuclear material, spent fuel, waste. or tailings or produced by the extracticn or concentration of l uranium or thorium from any ore processed primarily for its

, source material content herein called " material."

(1) to the facility from any location except an t

indemnified nuclear facility, but only if the transportation of the material is not by predeter-mination to be interrupted by removal of the material i

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

" nuclear energy hazard" means the radioactive, toxic.

explosive or other hazardous properties of nuclear material, but only if (1) the nuclear material is at the facility or has been discharged or dispersed therefrom without intent to relinquish possession or custody thereof to any other person or organization, or (2) the nuclear material is in an insured shipment which is away from any other nuclear facility and is in the course of transportation. including handling and temporary storage incidental thereto, within ME-71(1/1/90) Page 4 of 10

-e -. --w.- wwe--.o m,w,- --we,, , _ . - - . , ,. -_ _ , , _ , _ , , _ _ _ _ _ _ _ , _ _ _ _ , _ , _ , _ , , _ , , , _ , , , _ _ _ , _ _ _ , _ , , _ _ _ _ , , _ , _ , , , _ _ , , _ , , _ _ _ _ _ _ , , _ , _ , _ , _

.' l l

(a) the territorial limits of the United St.ates of America, its territories or possessions er Puerto i

Ricos or i

(b) international waters or airspace, provided that the nuclear material is in the course of transportation between two points located within the territorial limits described in (a) above and there is no deviation in the course of the transportation for the purpose of going to any other country, state or nation, except for the purpose of going to or returning from a port or

place of refuge as the result of an emergency.

l

" nuclear f acility" means "the facility" as defined in any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters. The term " nuclear facility" also means ,

l (1) any nuclear reactor, i

(2) any equipmenu or device designed or used for '

(a) separating the isotopes of uranium or plutonium.

(b) processing or utilizing spent fuel, or .

(c) handling, processing or packaging waste.  !

(3) any equipment or device used for the processing, fabricating or alloying of special nuclear material if at any time the total amount of such material in the i

custody of the insured at the premises where such equipment or device is located consists of or contains nore than 25 grams of plutonium or uranium 233 or any combination thereof. or more than 250 grams of uranium 235 .

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

operations conducted on such site and all premises used for such operations.

?

" nuclear material" mesna source material, special nuclear '

material or byproduct material.

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

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

"on-site cleanup obligations" include all obligations of any ,

person or organization, imposed by common law or otherwise, to undertake or pay for monitoring, testing for.

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

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

"on-site property damage" includes all property damage to any property at the facility, whether the property is on, above or below the surface of the ground. other than aircraft, watercraft or vehicles licensed for highway use, provided such aircraft, watercraft or vehicles are not used 4

in connection with the operation of the facility.

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

t i " source material." "special nuclear material." and 4

" byproduct material" have the meanings given them in the l Atomic Energy Act of 1954, or in any law amendatory i thereof.

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

solid or 11guld, which has been used or exposed to radiation in any nuclear reactor.

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

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

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

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

apply IV LIMITED DEFENSE OF PARTIALLY COVERED CLAINS 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 such a -

defense, the companies shall not be considered i

as deny payment

. having waived their rights under this policy to or reimbursement of the items not covered.

(2) As soon as practicable, the first named insured.

acting on behalf of all insureds. and the companies shall endeavor to reach an equitable arrangement for handling the defense and sharing the costs thereof.

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

, covered.

i (4) The companies shall have a right to contribution from i

the first named insured for all defense costs as they are incurred in excess of the amount of the companies' share. including reimbursement by the first named l

insured of all such excess costs paid by the companies.

If the companies and the first named insured cannot (5) agree on the companies' share of defense costs. the l

dispute shall be submitted. as a condition precedent i

' to any right of recovery on this policy, to arbitra-tion in Condition 19.

for a final and binding resolution, as provided

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 damaget

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

ME-71 (1/1/90) Page 7 of 10

. l e

4. In CONDITION 4 and in all endorsements to this policy  ;

modifying the dollar amount of the total aggregate  !

liability of the companies with respect to a common

occurrence

[

(a) the words " bodily injury or are  !

i replaced by " bodily injury, property damage" property damage or l

' environmental damage": and (b) the words " bodily injury and property damage" are replaced by abodily injury, property damage and  !

environmental damage."

{

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

10.

CONDITION 19. DECLARATIONS. is renumbered CONDITIONS 20.

11. The following CONDITION is added to the policy:

19 ARSITRATION OF DISPUTES RELATING To THE APPLICATION OF i

INSURING ACREEMENT IV  !

i All such disputes subject to paragraph (5) of INSURING '

AGREEMENT (the " Board") IV shall be submitted to a Board of Arbitration for a final and binding resolution of the dispute. '

There shall be two parties to the arbitration named insured, acting on behalf of all insuredsthe as first their duly authorized representative, and Nuclear Energy Liability 4

Insurance Association, acting on behalf of the companies as their duly authorized representative. ,

Except to the extent the parties mutually agree otherwise, the following principles will apply (a) The arbitration will take place in New York. New York.

and will be governed by the laws of the State of New York.

(b) Either party may begin the process of arbitration by giving notice to the other party in writing of its intention it has appointed. to do so and the name of the arbitrator that I (c) The other party shall then appoint in writing anarbitrator, and the arbitrators shall appoint in writing an umpire before they begin the arbitration.

The umpire shall act as chairman of the Board.

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

for the party in default.

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

r 1

=

1 L .

j l

(e) If the two arbitrators fail to agree on the selection

of an umpire within thirty (30) days after they have both been appointed, each of them shall name two, of i

whom the other shall decline one. The choice shall be made by drawing lots.

! (f) The arbitrators and umpire shall be executive officers

- or forner executive officers of insurance companies licensed to do business in the United States or of organizations designated as the first named insured under a Nuclear Energy Liability Policy issued by Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underviiters: provided that the current employees of the following shall not be partiest eligible for service without the consent of both

,~ (1) any party or likely party to the underlying clain or suitt (2) American Nuclear Insurers. MAERP Reinsurance Association or their members or (3) any other insurer or reinsurer which has casualty insurance or reinsurance in force on any of the foregoing which may be materially affected by the l Board's decision. l (g) Within thirty (30) days af ter the appointment of the umpire, the Board.

each party shall submit its case in writing to 1

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

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

(i) The arbitrators and the umpire are not to be bound by i

any. strict rules of legal procedure, evidence or legal precedents. They shall. however, be governed by the L

L 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, (j) without favoring the interest of either party. -

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

(k) If the Board fails to make an award within the time L

ME-71 (1/1/90) Page 9 of 10

9 c -

l i

prescribed by paragraph (j) extension is agreed to by above. then unless an the parties, a new t

arbitration shall be commenced and i completed in  !

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

,(1)  ;

The award of the Board signed by any two members shall be final, not subject to appeal and binding the all on policy parties, including and all insuredsallthereunder.

insurers subscribing The award i

shall be treated as a matter invciving interstate commerce, and may be filed or confirmed in any

• court of competent jurisdiction, state or federal.

and judQpent thereon entered and enforced, in l accordance with the law and practice of the forum.

(m)

Unless the Board decides otherwise, each party shall -

pay the expenses of the arbitrator appointed by or for (n) it and one half of the other costs of arbitration.

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 materials relevant to the arbitration shall be submitted to the Board in triplicate and the filing l

party opposing shall party. send simultaneously a copy thereof to the 12.

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

. of this endorsementnstated. belowshis is a true copy of ;he uristnal i i Entrsernent hmna the endouw m nuh and beinst made part of the Nudw En mv IW ?v Poky ( Gy Form) as de imo

ed ewn No Insurge; t +d hereunder, an t. t M.D m &. b hmknt-Undemnt Anieman Nudear Insurer.

Effective Date of i

this Endorsement January 1,1990 To form a part of Policy No. MF-46 l n:01 A.n. stenaere im

• Issued to Niagara Mohawk Power Corporation, et al l

-Date of issue May 10, 1990 For the Subscribing Companies MFFDAL ATONIC EIERGY LIABILITT IMIER D ~

By . F.%. '

r~' ' A' Endorsement No. 104 countersigned by  %

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

_g - _ _ , _ _ . .

4 4 t'

Nuclear Energy Liability insurance NUCLEAR DIERGY LIABILITY INSURANCE ASSOCIATION-ENDORSEMENT TO CERTIFICATE NO. N-12 Terming Part of Master Policy No. 1 Nuclear E..ergy Liability Insurance (Secondary Financial Protection)

It is agreed that effective August 20, 1988:

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

';c) to bodily iniurv or oroperty damaae (1) with respect to which the crimarv financial protection described in Item 4 of the Declarations would apply but for (i) exhaustion of its limit of liability as described in Condition 6 of the Master Policy, or (ii) the application of Insuring Agreement IV,

" Application of Policy" of the crimary financial orotection, as amended by paragraph 3 of the Waiver of Defenses Endorsement attached thereto, and (2) which is caused during the certificate period stated in Item 6 of the Declarations by a nuclear incident-arising out of, or in connection with the nuclear reactor described in Item 3 of the Declarations, and (3) which is discovered and for which written claim is made against the insured not later than ten (10) years after the end of the certificate period stated in' Item 6 of the Declarations. However, this subparagraph (3) shall not operate to bar coverage for bodily iniurv or property damaae caused by an extraordinary nuclear occurrence.

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

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

4 NE-S-14 Page 1 of 2

~ - __. . . _ .

3 .o-, 3 1

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Item 7. Maximum retrospective premium ( t. v . 1.u s i v e o f allowance for premium taxes) payatue pursuaat ,

to Condition 2 of the Master N.12CV kMh  !

respect to each nuclear incidert -'I.M6J50.  :  !

l 1

i TH!S IS TO CE'} icy THAT DDS T A TEUE COPY OF THE ORIGINAL CElri % t.et- Au -

irJ - re < n.,tt,72D HEREON, FOR IN3URANCE COJi V T U.N LIAD! i,a g_ ,;}mn) PCuCf-NUCLEAR ENERGY ING'Jw}C, )'E IN5an A' cd is . , gra;l entr_. .t

v (m# y yg ; gg,ECTIONb NO J0MNe .uA c'cs, VICE PREdlDENT UNDERWRITING AMERICAN NUCLEAR INSURERS Effective Date of this Er.dorsement Auaust 20. 1988 To form a part of Certificate No. N-12 12:01 A. M. stenaard time Issued to Niagara Mohawk Power Corporation - - - _

A Date of Issue March 23, 1990 For the Subscribing co6)anies, By '1M A Tresid t

[

Endorsement No. 14 Countersigned by .P . - C y ws

/NE-S-14' Page 2 of 2

E Nuclear Energy Liability-Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ,

ENDORSEMENT TO CERTIFICATE NO. N-12 TORMINO PART OF MASTER POLICY NO. 1 NUCLEAR ENERGY LIABILITY INSURANCE (Secondary Financial Protection)

. 1.

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

" bodily iniurl, erocerty damane or environmental damano".

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 endorsement. stated below. on or af ter the effective date of this L

ii >

TH!S 19 TO CFRTifY THAT CEF TMCid C, f:fi 9'::0 TvF t.u:#3 T

, AJDTPS IS A HEREON, FOR Ti!UE COPY O i CcCYAJCLEAR ENERGY INSUH ANCE COViPAGE UNDER THE te 1AL FHOTLCTIO UATU: ' INf L'F f2 (O ONDARYY FliM

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IN L B " x 1. g {d i

JOHN L vJATTROCCHI VICE PRESIDENT-UNDERWRITING ,, ,

AMERICAN NUCLEAR INSURERS Effective Date of this Endorsement January 1, 1990 To form a part of Certificate No. N-12 i

12:01 A. M. Standard time Issued to Niagara Mohawk Power Coronration t

Date of Issue March 23, 1990 Pur the Subs ribing com anies, By l LW- W +

vrass //

Endorsement No. 15 Countersigned by

.T . et

'h I4 '

NE-5-18 (1/1/90)

2 x e

Nuclear Energy Liability insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS ENDORSEMENT TO CERTIFICATE NO. M-12 Forming Part of Master Policy No. 1 Nuclear Energy Liability Insurance (Secondary Financial Protection)

It is agreed that effective August 20, 1988:

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

read as follows

(c) to bodily iniury or property damace (1) with respect to which the crimary financial protection described in Item 4 of the Declarations would apply but for (i) exhaustion of its limit of liability as described in condition d of the Master Policy, or (ii) the application of Insuring Agreement IV,

" Application of- Policy" of the crimary financial orotection, as amended by paragraph 3 of the Waiver of Defenses Endorsement attached thereto, and (2) which is caused during the certificate period stated in Item 6 of the Declarations by a nuclear incident arising out of, or in connection with the nuclear reactor described in Item 3 of the Declarations, and (3) vbich is discovered and for which written claim is utde against the insured not later than ten (10) years after the end-of the certificate period stated in Item 6 of the Declarations. However, this subparagraph (3) shall not operate to bar coverage for bodily iniury or oronerty damaae caused by an extraordinary nuclear occurrence.

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

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

ME-S-14 Page 1 of 2

E.

,1

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M'.

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n. < Item-7. Maximum retrospective premium (exclusive of allowance for premium taxes) payable pursuant to Condition 2 of the Master Policy with respect to each nuclear incident:$14,883.750. l l

l

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THIS 13 TO CERT FY THAT THIS !S A TRUE COPY OF THE ORIGINAL CERTIFICATE. 03 APING THE fMMBER DES!GNATED HEREON, FOR lL' INSURANCE COVERAGE UICEG THE MASTr1 POLICY-NUCLEAR ENERGY UABilli ' lNSURANCE t?ECONDARY FINA ,lAL PROTECTION). NO INSURAt 1E !?@RD9 'Y M  % .-

c3 . Ac4+

JOHN L < JATTROCCH!

l VICE PRESIDENT-UNDERWRITING '

AMERICAN NUCLEAR INSURERS ,

L Effective Date of this Endorsement Auaust 20. 1988 To form a part of Certificate No. M-12 12:01 A.M. Standard ttne

-Issued to Niagara Mohawk Power Corporation 1

Date of issue March 23, 1990 For the Subscribing Companies  !

NUTUAL ATOKIC BOERGY LIABILITY ERURITERS By W MbkN2 g --

v, u

' Endorsement No. 14 Countersigned by . _

[

ME-S-14 Page 2 of 2 .

7.

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c.; Nuclear Energy Liability insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS ENDORSEMENT TO CERTIFICATE NO. M-12 FORMING PART OF MASTER POLICY NO. 1 NUCLEAR ENERGY LIABILITY INSURANCE (Secondary Financial Protection) 1.

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

" bodily iniury, erecerty damane or environmental damane".

2. This endorsement applies to all claims for damages. costs, expenses or other relief or recovery for which coverage is 4 sought under the policy, and which are first made in writing '

against any insur.e4 on or after the effective date of this endorsement stated below.

I (

T THis 13 U;5gy 'f CM 6,f' ,2 lUun ,?NUE C00y o Iq;u;l,vfyvi;33llLL,O-r,,,Iff,?Ci!hy79lgHE w

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De:.; g  %. KED b- {^ 9Y fi.vq dr[ 'a,f L'W hygg,p %. ,, fha Q o ~ ;'CWC 4*17.1 ~ lC Y'4UCLky WC7&Clic NO WR3y

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g s Effective Date of this Endorsement January 1, 1990 To form a part of Certificate No. M-12 12:01 A.M. Standard time Issued to Niagara Mohawk Power Corporation Date of issue March 23, 1990 For the Subscribing Companie:.

MirrDAL ATOKIC BEERGT LIABILITY VRITERS

/

By t

Endorsement No. 15 Countersigned by '

CN ME-s 18 (1/1/90)

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,1 i

Nuclear Energy Liability insurance I NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ENDORSEMENT TO CERTIFICATE No. N-105

. Forming Part of Master Policy No. 1 Nuclear Energy Liability Insurance

( (Secondary Financial Protection)

It is agreed that effective August 20, 1988:

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

(c) -to bodily iniurv or procerty damaae

_ , (1) with respect to which the crimarv- financial

-protection described in Item 4 of the Declarations would apply but for (i) exhaustion of its limit of liability as described in Condition 6 of the Master

- Policy, or (ii) the application of Insuring Agreement IV,

" Application of Policy" of the crimary financial protecli2n, as amended by paragraph 3 of the Waiver of Defenses Endorsement attached thereto, and (2) which is caused during the certificate period stated in Item 6 of the Declarations by a nuclear incident arising out of, or in connection with the nuclear

_ reactor described in Item 3 of the Declarations, and

(3) which is discovered and for which written claim is E made against the insured not later than ten (10) years after the end of the certificate period stated in Item 6 of the Declarations.- However, this

" subparagraph (3) shall not operate to bar coverage for bodily iniurv or oronerty damaae caused by an

} extraordinary nuclear occurrence.

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

II.)

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

i

+

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

THIS IS TO CERTIFY THAT THIS 13 A TRUE COPY OF THE ORIGINAL CERTIFICATE, BEARING THE NUMBER DEstGNATED HEREON, FOR INSURANCE COVERAGE UNDER THE MASTER POLICY NUCLEAR ENERGY PROTECTION) NO LIABILITY INSURANCE (SECONDARY FINANCI INSURANC 16 AFFORDED BY Tills COPY, JOHN L < L +7 Fbi 6 VICE PRESi NT-UNDERWRITING AMERICAN NUCLEAR INSURERS , ,

Effective Date of this Endorsement Auaust 20. 1988 To form a part of Certificate No. N-105 12:01 A. M. Standard time Issued to Niagara Mohawk Power Corporation, et al A

Date of Issue March 23, 1990 For the Subscribing co6)anies, By 1M h

'Presideq t Endorsement No. 9 Countersigned by f' N .-'mtD M N N

NE-S-14 Page 2 of 2

n.o}i c

. Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ,

ENDORSEMENT TO CERTIFICATE NO. N-105 FORMING PART OF MASTER POLICY NO. 1 m NUCLEAR ENERGY LIADILITY INSURANCE (Secondary Financial Protection)

1. In paragraph (c) on Pages 1 and 2 of the certificate, and in all endorsements to the certificate relating thereto, the words " bodily injury or property damage" are amended to read "bodi1 v i n iurv , - pg.ooerty damacte or environmental damace".

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, i r $'[. TpT THIS (3 A TRUE COPY OF TPE ogggt IN3UNN3 LIAD:Un yS.[ $ [lk[f[('}STEUEO J UEE!GNAIED POLICNdl CLEAR ENERGY H2nEOK INSuaAN; ;3 i AL PROTECTION). NO JOHN L QUATTc:Oc;qi VICE PREstaa;r.UNDGn'RITING AMERICAN NUCLEAR INSURERS Effective Date of this Ender went January 1. 1990 To form a part of Certificate No. N-105 12:01 A. M. stenaard tme Issued to Niagara Mohawk Power Corporation, et al Date of Issue March 23, 1990 For the Sutis ribing Cospanies, By l hPE a

\.' PRES //

Endorsement No. 10 Countersigned by ,

.'%. M g,s

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

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Nuclear Energy Liability insurance L

MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS ENDORSEMENT TO CERTIFICATE No M-105 Forming Part of Master Policy No. 1 Nuclear Energy Liability Insurance (Seconde,ry Financial Protection)

It is agreed that effective August-20, 1988:

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

read as follows: '

(c) to bodily iniury or oronerty damaae L

(1) with respect to which the crimary financial-L orotection described in Item 4 of the Declarations would apply but for i

(i) exhaustion of its limit of -liability as described in Condition 6 of the Master '

Policy, or i

(ii) the application- of Insuring Agreement IV,

! " Application of Policy" of- the crimary financial orotection, as amended.by paragraph 3 of the Waiver of Defenses Endorrament p ached thereto, and (2) which is caused during the certificate period stated in Item 6 of the Declarations - by a nuclear incident '

, arising out of, or in connection with the nuclear reactor described in Item 3 of the Declarations, and (3) which is discovered and for which written claim is made against the insured not later than ten - (10) years after the end of the cartificate period stated in Item 6 of the Declarations. However, this subparagraph (3) . shall not operate to bar coverage for bodily iniury or _ property damaae caused by an extraordinary nuclear occurrence.

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

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

ME-S-14 Page 1 of 2

+

Item 7. Maximum retrospective premium (exclusive of-allowance for premium taxes). payable pursuant to Condition 2 of the Master Policy with respect to each nuclear incident:$14,883.750.

(

l THIS CERTIFIC IS TO ATE.CERTFY CLA~nf;G THE THAT TH!SDESIGNATED NUV3E9 IS A TRUEHEC INSURANCENSURANCE CCVEEAGE (EECONDARY UNDER THEu PROTE FINANC' MAST UA9!UTV IfGURA:E IS A 0  %

JOHN L L@TTROCCHI VICE PRESIDLNT-UNDERWRITING

' AMERICAN NUCLEAR INSURERS Effective Date of this Endorsement Auaust 20, 1988 To form a part of Certificate No. M-105 12:01 A.M. Standard time Issued to _ Niagara Mohawk Power Corporation, et al Date of issue March 23,1990 For the Subscribing Companies MUTUAL ATOMIC DERGY LIABILITY ERURITERS By ,,

W DM:bedI Endorsement No. 9 Countersi ed by - - ,2 ,--_

ME-S-14 Page 2 of 2

r Nuclear Energy Liability insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS ENDORSEMENT To CERTIFICATE No, M-105 ,

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

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

" bodily i n iurv . erocerty damane or environmental damane".

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.

C Ti ,

, MTR'E COPY OF THE ORIGI,sig lNSURAp'nr m , fO# O M M OH FOA LtActu [,I b';$ I/I , . . ' l' ' 9[? ' '"OUCY^ NUCLEAR CNERGY INSURE i 7sl PROTECTION). NO JOHNLMc-; i np vic : em m' C > M.V.9T LNG AMER:CAN idCLEAR INsuaEa3 Effective Date of this Endorsement January 1, 1990 To form a part of Certificate No. M-105-12:01 A.M. Stancard tlse Issued to Niaaera Mohawk Power Corporation, et al Date of issue March 23, 1990 For the Subscribing Companies MUrDAL ATONIC ENERGY LIABILITY URITERS By Endorsement No. 10 Countersigned by k

,\.

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

. . _ . . . . . . . . - . _