ML20151G511

Forwards Endorsements 1 & 2 to Maelu Certificate MW-89 & Endorsements 1 & 2 to Nelia Certificate NW-178

ML20151G511
Person / Time
Site:	River Bend
Issue date:	04/13/1988
From:	Samuels J MARSH & MCLENNAN, INC.
To:	Dinitz I Office of Nuclear Reactor Regulation
References
NUDOCS 8804200020
Download: ML20151G511 (21)

Text

n v arsh& l Vgennan l M & M Nuclear Consultants 2121 San J acinto 5treet i i

1300 San lacinto Tower Dallas, Teus 75201 Telephone 214 979-9900 l

April 13, 1988 Pr. Ira Dinitz l Senior Insurance Indemnity Analyst Office of Nuclear Reactor Regulation Pail Stop 12E4 U.S. Nuclear Regulatory Commission Washington, D. C. 20555 Re: Master Worker Policy Gulf States Utilities Company ANI Certificate NW-178, End.1 & ?

PAELU Certificate MW-89, End.1 -& P

Dear Mr. Dinitz:

Enclosed are two certified copies of the captioned certificates and endorsements submitted in accordance with 10CFR140.15.

Please do not hesitate to call with any ouestions.

Sincerely

/

V John L. Samuels Nuclear Consultant

/pwp 789?X-?

Enclosures cc: B. Peiser - GSil P. Nadel - PAP Dallas

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8804200020 880413 I l

POR ADOCK 05000458 l J DCD

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

1. ADVANCE PREMIUM: It is agreed that the Advance Premium cue the companies for the period designated above is:

$ a.337.00 .

2. STANDARD PREMIUM AND RESERVE PREMIUM: In the absence of a cnange in the Advance Premium indicated above, it is agreed that, subject to the provisions of the Indus-try Retrospective Rating Plan, the Standard Premium is said Advance Premium and the estimated Reserve Premium element of the Standard Premium is:

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$ 3,870.00 This is to cortify that this is a true copy of the original Enh . 'a -  !

hwing the endorcement number and being maec ;:crt oi(N C'.+ fic - i of insurance bearing the number dos;gaated hueca for iro . nce I coverage "nder the Nucicer Enerr,y Llatsi;+y Policy (Facihti '.. >tW4 Form). NC Insurance is e" udcd hereur c. \

John L. ,. nro W  % 'ulity Underwriting Amedcan Nuclear Insurers Effective Date of this Endorsement January 1, 1988 To form a part of Certificate No. MW-89 12:01 A.M. Standard Time Issued to_ Gulf States Utilities Comoany and Caiun Electric Power cnnnarativa Inc.

Date of Issue January 27. 1988 For the Subscribing Companies MUTUAL ATOMIC ENERGT LI18iLITY2

UNDERWRITERS

.'it ,:NI, By ,

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a i ' .e Endorsement No. 2

%:d nt ..oea ! gent ME-W.2 (1/1/88)

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Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS INDUSTRY RETROSPECTIVE RATING PLAN PREMIUM ENDORSEMENT j It is agreed that:

1. DEFINITIONS l

With reference to the premium for the certificate of l which this endorsement forms a part:  !

"Master Worker Policy" means the Master Worker Policy issued by MAELU; "Certificate Holder" means the first Named Insured in a Certificate issued to form a part of the Master Worker  !

Policy; "advance premium", for any calendar year, is the esti- l mated standard premium for that calendar year; I "standard premium", for any calendar year, is the premium for that calendar year computed in accordance with the companies' rules, rates, rating plans (other than the Industry Retrospective Rating Plan), premiums and minimum premiums applicable to this insurance.

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

(1) losses and expenses paid by MAELU, and (2) reserves for losses and expenses as estimated by MAELU, ME-W-1 (1/1/88) Page 1

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

Ratable incurred losses are the portion of incurred losses which are not covered by the guaranteed cost insurance element of standard premiums; "non-ratable incurred losses" means 5% of incurred losses. Non-ratable incurred losses are the portion of incurred losses which are covered by the guaranteed cost insurance element of standard premiums; "reserve for refunds", as of any date, is the algebraic difference between:

(1) all industry reserve premium for the period from January 1, 1988 through such date, minus (2) the total for the same period of (a) all ratable incurred losses and (b) all industry reserve pre-mium refunds made under the Industry Retrospective Rating Plan by members of MAELU; "industry reserve premium charge", for any period, means the amount determined pursuant to the provisions of Section 4 of this endorsement for payment by the Named Insureds under Certificates; i

"reserve premium charge" means the portion of an indus- l try reserve premium charge payable by the Named Insureds under this Certificate; "industry reserve premium refund", for any period, means the amount determined pursuant to the provisions of  !

Section 4 of this endorsement for return to the Named l Insureds under Certificates; "reserve premium refund" means the portion of an indus-try reserve premium refund returnable to the Named insureds under this Certificate.

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

ME-W-1 (1/1/88) Page 2

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

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

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

3. SPECIAL RESERVE ACCOUNT; USE OF RESERVE PREMIUMS MAELU shall maintain on behalf of its members a Special Reserve Account for holding collectively all reserve premiums paid for all Certificates issued to form a part of the Master Worker Policy. Such premiums, together with any undistributed net income realized thereon after taxes and investment expenses, shall be used for the following purposes only:

(1) to pay ratable incurred losses or, in the event ratable incurred losses are paid under the Master

, Worker Policy from funds advanced by the members of MAELU subscribing the policy, to reimburse such members as a matter of first priority for the funds advanced; (2) to refund any amounts so held to the Named Insureds, as provided in Section 4.

No members of MAELU and no Named Insureds shall have any individual interest in or claim upon amounts held in the Special Reserve Account, except to participate propor-tionally in any refund or reimbursement provided for above.

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

ME-W-1 (1/1/88) Page 3

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4. PAYMENT OF RESERVE PREMIUM CHARGES AND REFUNDS As soon as practicable af ter each December 31 the com-panies will review the status of the reserve for refunds and report their findings to all Certificate Holders.

If, at any time, the companies find that there is a negative balance in the reserve for refunds and that such condition is likely to prevail, they shall deter-mine an appropriate industry reserve premium charge.

Similarly, if the companies find that there is a surplus positive balance, they shall deternine an appropriate industry reserve premiun refund.

The portion of an industry reserve prcmium charge or an industry reserve premium refund that is:

(1) payable by the Named Insureds as a reserve premium charge, or (2) due such insureds as a reserve premium refund, shall be determined by multiplying the industry reserve premium charge or the industry reserve premium refund by the retrospective adjustment ratio applicable to this Certificate.

The amount of any reserve premium charge shall be stated in a Retrospective Reserve Premium Charge Endorsement.

The charge shall be paid promptly after receipt of the endorsement.

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

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

6. RESERVE PREMIUM CHARGE AGREEMENT In consideration of (a) the participation of Named Insureds in other Certificates subject to the Industry Retrospective Rating Plan, (b) the undertaking of such Named Insureds to pay their appropriate share of any industry reserve premium charge and (c) the obligations assumed by the members of MAELU under the Master Worker ME-W-1 (1/1/88) Page 4

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

(1) That the insurance provided by the Master Worker Policy applies collectively to all claims covered by the policy through any and all Certificates issued to form a part of the policy.

(2) That the right of each Named Insured under a Cert-ificate to receive reserve premium refunds and the obligation of each such insured to pay reserve premiums charges applies to all claims covered by the Master Worker Policy and continues until all such claims are closed, whether or not such claims were before the inception of the Certificate or after its termination.

(3) To pay all reserve premium charges due promptly after receipt of the Retrospective Reserve Premium Charge Endorsement, whether or not the Certificate is terminated. Any reserve premium charge shall be overdue if not paid within 60 days of the date of the invoice for the charge.

Overdue reserve premium charges shall bear interest from the due date until paid at an annual rate equal to the sum of (a) 3% plus (b) a rate of in-terest equal to Moody's Average Public Utility Bond Yield described in the issue of Moody's Bond survey current on the due date. Any reserve premium refund due to Named Insureds under a Certi- I ficate shall be used to pay any overdue reserve premium charges to such Named Insureds.

7. RESERVE PREMIUM REFUND AGREEMENT l

Each member of MAELU subscribing the Master Worker Policy for any calendar year, or portion thereof, with respect to which an industry reserve premium refund is determined to be payable thereby agrees for itself, severally and not jointly, and in the respective pro-portion of its liability assumed under the Master Worker Policy for that calendar year, to return promptly to the Named Insureds that portion of such refund due such Insureds, as determined in accordance with the provisions of this endorsement.

ME-W-1 (1/1/88) Page 5

Pago 6 Accepted and agreed by the first Named Insured in . behalf of itself and every other Named Insured stated in the Declara-tions of the Certificate of which this endorsement forms a part.

Gulf States Utilities Company (First Named Insured - Print or Type)

Date 12/15/87 By f A7 W (Signapre of Authoriz'ed Of ficer)

J. L. Donnelly, Senior Executive Vice President and Chief Financial Of ficer (Print or Type Name and Title of Officer)

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

having the endorsemeninumber cnd being mado part cf the Cet J!(A of Insurance bearing inF; numbc r dr!cna:cd h>ren for Incow.a coverage under the Nuc!. .;r Ener;;y Ll '

' ty Fo: icy (Faci ity 'e'.'cd irt i

Form). N insurance is a ordud nercu ;r.

John L. w rb ,V 'lity Underwriting American clear Insurers l

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l Effective Date of To form a part of this Endorsement January 1. 1988 of Certificate No. MW-89 12:01 A.M. Standard Time Issued to Gulf States Utilities Comoany and Caiun Electric Power Conoprative. Inc.

Date of Issue October 19, 1987 For the Subscribing Companies MUTUAL ATOMIC ENERGY LIABILITT' ERWRITERS

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Endorsement No. 1 Countersigned by '2- -- *

• Authorized.Represensacive ME-W-1 (1/1/88)

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MUTUAL ATOMIC ENERGY LIABILITY UNDERWNITERS NUCLEAR ENERGY LIABILITY POLICY (Facility Worker Form) herein called the MASTER WORKER FOLICY CERTIFICATE OF INSURANCE Certificate No. MW-89 Date of Issue Jan. 27, 19 88 This is to certify that the insureds named in Item 1 of the Declarations hereof, hereinafter called the "Named Insureds", have obtained insurance under the Master Worker Policy issued by Mutual Atomic Energy Liability Underwriters on behalf of its members. The insurance is subject to all of the provisions of this "Certificate" and the Master Worker Policy.

1 DECLARATIONS Item 1. Named Insureds and Addresses:

Gulf States Utilities Company 350 Pine Street P.O. Box 2591 Beaumont, Texas 77704 Cajun Electric Power Cooperative, Inc. .

10719 Airline Highway '

Baton Rouge, Louisiana 70895 Item 2. Certificate Coverage Period:

Beginning at 12:01 a.m. January 1, 1988 and ending at the close of December 31, 1992, Eastern Standard Time, or at the time and date this Certificate is cancelled or terminated, whichever first occurs.

MMWPC-1 (1/1/88) Page 1

I ,

Item 3. Description of the Facili*y: ,

Location: All real and personal property known as the River Bend Station located in West Feliciana Parish on the east bank of the Mississippi River approximately 24 miles north-northwest of Baton-Rouge, Louisiana as indicated on Figure 2.1-3 of the FSAR amendment

1. 19 dated May 1985 within the Restricted Area Boundary including the intake and discharge structure and associated piping.

Type: Power Reactor (0perating) operator of the Facility: Gulf States Utilities Company Item 4. Amount of Insurance Available:

The amount of insurance afforded by the Master Worker Policy through this Certificate shall be determined by Section VIII of the Master Worker Policy and all of the other previsions of the policy relating thereto.

Item 5. Advance Premium: $ 4,837.00 2

APPLICATION OF CERTIFICATE This Certificate applies only to bodily injury to a new worker (1) which is caused during the Certificate Coverage i Period by the nuclear energy hazard and (2) which is dis- l covered and for which written claim is first made against an '

I insured under the Certificate within the discovery period of the Master Worker Policy.

3 INDUSTRY RETROSPECTIVE RATING PLAN All insurance under the Master Worker Policy is subject to the Industry Retrospective Rating Plan in use by the compsnies. No insurance is provided under this Certificate  ;

unless and until the first Named Insured has accepted in '

writing the Industry Retrospective Rating Plan Premium En-dorsement and a copy of the signed endorsement has been i issued by the companies to form a part of this certificate. I MMWPC-1 (1/1/88) Page 2 i

f.

t IN WITNESS WHEREOF, the companies subscribing the Master Worker Policy have caused this Certificate to be executed and attested on their behalf by the Manager of Mutual Atomic Energy Liablity Underwriters and duly countersigned by an authorized representative.

For the Subscribing Companies of MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS J. Michael O'Connell Manacer ey sh ( Authoriaeci. Agent)

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Countersigned by: -

( Authorit'e'd cReprbeentative) l 1

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This is to certify that mis is a tru9 Copy Of the original Cortificate bearing the nurnty.a dQ;ne P d herec;n, " rinsurance coverage uader '

the Nuc. cr Ercrgy Un my Pgcy (Fe ty Workcrs Form) here in ca: led th*. Ya rFr iL ..

, Jcois af forded by this copy.

John L. t ttrocchi, Vice President - 'a 'llity Underwriting American Nuclear Insurers I

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MMWPC-1 (1/1/88) Page 3

Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION .

ADVANCE PREMIUM AND STANDARD PREMIUM ENDOR$EMENT CALENDAR YEAR 1988

1. ADVANCE PREMIUM: It is agreed that the Advance Premium cue tne companies for the period designated above is:

$ 16,663.00 .

2. STANDARD PREMIUM AND RESERVE PREMIUM: In the absence of a cnange in the Advance Premium indicated above, it is agreed that, subject to the provisions of the Indus-try Retrospective Rating Plan, the Standard Premium is said Advance Premium and the estimated Reserve Premium element of the Standard Premium is:

$ , 0.00 .

,is to certify that this is a true copy of the original Endorsement having the endorsement number and being made part of the Certificate of insurance bearing the number designated hereon for insurtnce coverag > under the Nuclear Energy Lla' tlity Policy (Facility W;rkerc Form). 'o I ce is 'tforM here der.

John L. lattrocchl, o mv ,

inbility Underwriting American Nuclear insurers Effective Date of this Endorsement January 1, 1988 To form a part of Certificate No. NW-178 12:01 A.M. Standard Time Issued to Gulf States Utilities Company and Cajun Electric Power Coooerativo. Inc-Date of Issue January 27, 1988 For the Su ribing Co anies

"' PRESIDENT

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Endorsement No. 2 Countersigned by ~ ~ ~ ' -

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NE-W-2 (1/1/88)

1 Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION INDUSTRY RETROSPECTIVE RATING PLAN PREMIUM ENDORSEMENT It is agreed that:

1. DEFINITIONS With reference to the premium for the certificate of which this endorsement forms a part:

"Master Worker Policy" means the Master Worker Policy issued by NELIA; "Certificate Holder" means the first Named Insured in a certificate issued to form a part of the Master Worker Policy; "advance premium", for any calendar year, is the esti-mated standard premium for that calendar year; "standard premium", for any calendar year, is the pre-mium for that calendar year computed in accordance with the companies' rules, rates, rating plans (other than the Industry Retrospective Rating Plan), premiums end minimum premiums applicable to this insurance. Standard premium includes elements for premium taxes, expenses, profit and contingencies, guaranteed cost insurance and estimated reserve premium. The elements of standard premium, other than for premium taxes and estimated reserve premium, are not subject to retrospective adjustment; "reserve premium" means that portion of the premium for a certificate (including reserve premium charges paid) that is specifically allocated under the Industry Retro-spective Rating Plan for ratable incurred losses; "industry reserve premium", for any period, is the sum of the reserve premiums for that period for all Certifi-cates issued to form a part of the Master Worker Policy; "retrospective adjustment ratio", for any period, is the ratio of the reserve premium for this certificate for that period to the industry reserve premium for the same period; '

l "incurred losses" means the sum of all:

(1) losses and expenses paid by NELIA, and (2) reserves for losses and expenses as estimated by NELIA, NE-W-1 (1/1/88) Page 1

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

Ratable incurred losses are the portion of incurred losses which are not covered by the guaranteed cost insurance element of standard premiums; "non-ratable incurred losses" means 5% of incurred losses. Non-ratable incurred losses are the portion of incurred losses which are covered by the guaranteed cost insurance element of standard premiums; "reserve for refunds", as of any date, is the algebraic difference between:

(1) all industry reserve premium for the period from January 1, 1988 through such date, minus (2) the total for the same period of (a) all ratable incurred losses and (b) all industry reserve pre-mium refunds made under the Industry Retrospective Rating Plan by members of NELIA; "industry reserve premium charge", for any period, means the amount determined pursuant to the provisions of Section 4 of this endorsement for payment by the Named Insureds under Certificates; "reserve premium charge" means the portion of an indus-try reserve premium charge payable by the Named Insureds under this Certificate; "industry reserve premium refund", for any period, means the amount determined pursuant to the provisions of Section 4 of this endorsement for return to the Named Insureds under Certificates; "reserve premium refund" means the portion of an indus-try reserve premium refund returnable to the Named In-sureds under this certificate.

2. PAYMENT OF ADVANCE AND STANDARD PREMIUMS The Named Insureds shall pay the companies the advance ,

premium stated in the declarations, for the period from I the effective date of this certificate through December 1 31 following. Thereafter, at the beginning of each calendar year while this Certificate is in force, the Named Insureds shall pay the advance premium for such year to the companies.

The advance premium for each calendar year shall be stated in the Advance and Standard Premium Endorsement NE-W-1 (1/1/88) Page 2

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

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

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

3. SPECIAL RESERVE ACCOUNT; USE OF RESERVE PREMIUMS NELIA shall maintain on behalf of its memners a Special Reserve Account for holding collectively all reserve premiums paid for all Certificates issued to form a part of the Master Worker Policy. Such premiums, together with any undistributed net income realized thereon after taxes and investment expenses, shall be used for the following purposes only:

(1) to pay ratable incurred losses or, in the event ratable incurred losses are paid under the Master Worker Policy from funds advanced by the members of NELIA subscribing the policy, to reimburse such members as a matter of first priority for the funds advanced; (2) to refund any amounts so held to the Named Insureds, as provided in Section 4.

No members of NELIA and no Named Insureds shall have any individual interest in or clain upon amounts held in the Special Reserve Account, except to participate propor-tionally in any refund or reimbursement provided for above.  !

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

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l NE-W-1 (1/1/88) Page 3

4. PAYMENT OF RESERVE PREMIUM CHARGES AND REFUNDS As soon as practicable after each December 31 the com-panies will review the status of the reserve for refunds and report their findings to all Certificate Holders.

If, at any time, the companies find that there is a negative balance in the reserve for refunds and that such condition is likely to prevail, they shall deter-mine an appropriate industry reserve premium charge.

Similarly, if the companies find that there is a surplus positive balance, they shall determine an appropriate industry reserve premium refund.

The portion of an industry reserve premium charge or an industry reserve premium refund that is:

(1) payable by the Named Insureds as a reserve premium charge, or (2) due such insureds as a reserve premium refund, shall be determined by multiplying the industry reserve premium charge or the industry reserve premium refund by the retrospective adjustment ratio applicable to this Certificate.

The amount of any reserve premium charge shall be stated in a Retrospective Reserve Premium Charge Endorsement.

The charge shall be paid promptly af ter receipt of the endorsement.

When all claims covered by the Master Worker Policy are closed the companies shall make a final review and re- l port, and shall determine a final industry reserve '

premium charge or industry reserve premium refund equal to the amount of the balance.

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

6. RESERVE PREMIUM CHARGE AGREEMENT In consideration of (a) the participation of Named i Insureds in other Certificates subject to the Industry Retrospective Rating plan, (b) the undertaking of such Named Insureds to pay their appropriate share of any industry reserve premium charge and (c) the obligations assumed by the members of NELIA under the Master Worker NE-W-1 (1/1/88) Page 4

p e .

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

(1) That the insurance provided by the Master Worker Policy applies collectively to all claims covered by the policy through any and all Certificates issued to form a part of the policy.

(2) That the right of each Named Insured under a Cert-ificate to receive reserve premium refunds and the obligation of each such insured to pay reserve premiums charges applies to all claims covered by the Master Worker Policy and continues until all such claims are closed, whether or not such claims were before the inception of the certificate or after its termination.

(3) To pay all reserve premium charges due promptly after receipt of the Retrospective Reserve Premium Charge Endorsement, whether or not the Certificate is terminated. Any reserve premium charge shall be overdue if not paid within 60 days of the date of the invoice for the charge.

Overdue reserve premium charges shall bear interest from the due date until paid at an annual rate equal to the sum of (a) 3% plus (b) a rate of in-terest equal to Moody's Average Public Utility Bond Yield described in the issue of Moody's Bond Survey current on the due date. Any reserve pre-mium refund due to Named Insureds under a certificate shall be used to pay any overdue reserve premium charges to such Named Insureds.

7. RESERVE PREMIUM REFUND AGREEMENT Each member of NELIA subscribing the Master Worker Policy for any calendar year, or portion thereof, with respect to which an industry reserve premium refund is determined to be payable thereby agrees for itself, severally and not jointly, and in the respective pro-portion of its liability assumed under the Master Worker Policy for that calendar year, to return promptly to the Named Insureds that portion of such refund due such Insureds, as determined in accordance with the provi-sions of this endorsement.

NE-W-1 (1/1/88) page 5

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

Gulf States Utilities Company (First Named Insured - Print or Type)

Date 12/15/87 By s b4 ,

(Signapre of Authoriz6d Officer)

J. L. Donnelly, Senior Executive Vice President and Chief Financial Officer (Print or Type Name and Title of Officer)

This is to cortily the the is a true copy of the or ginal Endorse

.aenf having tne arricracment nu:ator and tdng madepart .cate of the C of insuranr' cHng the numLcr dsym.md hereon for insuraric covertNo'o er:dar Formt ence t% N :c'en Enco;j tihy Policy (Facility Woiker cF^ r'cd te ;ncer, John L )uattrocchi. . .w i . -

Amancan Nuclear !nsurers Liability Underwriting Effective Date of To form a part of this Endorsement danuary 1, 1988 of Certificate No. IM-178 12:01 A.M. Standard Time Issued to Gulf States Utilities Company and Cajun Electric Power Cooperative. Inc.

Date of Issue October 19, 1987 For the scribing companies r; p r e :.t . n-By ' #*

Ceneral Manager

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Endorsement No. 1 Countersigned by

-: . .u w , e g ,-a NE-W-1 (1/1/88)

l NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION NUCLEAR ENERGY LIABILITY POLICY (Facility Worker For.3) herein called the MASTER WORKER POLICY.

CERTIFICATE' OF INSURANCE Certificate No. NW-178 Date of Issue Jan. 27, 19 88 This is to certify that the insureds named in Item 1 of the Declarations hereof, here i.na f ter called the "Named Insureds", have obtained insurance under the Master Worker Policy issued by Nuclear Energy Liability Insurance Associa-tion on behalf of itr, members. The insurance is subject to all of the provisions of this "Certificate" and the Master Worker Policy.

1 DECLARATIONS Item 1. Named Insureds and Addresses:

Gulf States Utilities Company 350 Pine Street P.O. Box 2591 Beaumont, Texas 77704 Cajun Electric Power Cooperative, Inc.

10719 Airline Highway Baton Rouge, Louisiana 70895 Item 2. Certificate Coverage Period:

Beginning at 12:01 a.m. January 1, 1988 and ending at the close of December 31, 1992, Eastern Standard Time, or at the time and date this Certificate is cancelled or terminated, whichever first occurs.

NMWPC-1 (1/1/88) Page 1

i Item 3. Description of the Facility:

Location: All real and personal oroperty known as the River Bend Station located in West Feliciana Parish on the east bank of the Mississippi River approximately 24 miles north-northwest of Baton-Rouge, Louisiana as indicated on Figure 2.1-3 of the FSAR amendment

1. 19 dated May 1985 within the Restricted Area Boundary including the intake and discharge structure and associated piping.

Type: Power Reactor (Operating)

Operator of the Facility: Gulf States Utilities Company Item 4. Amount of Insurance Available:

The amount of insurance afforded by the Master Worker Policy through this Certificate shall be determined by Section VIII of the Master Worker Policy and all of the other provisions of the policy relating tLetetc.

Item 5. Advance Premium: S 16,663.00 2

APPLICATIOli 0F CERTIFICATE This Certificate applies only to bodily injury to a new worker (1) which is caused during the certificate Coverage Period by the nuclear energy hazard and (2) which is dis-covered and for which written claim is first made against an insured under the certificate within the discovery period of the Master Worker Policy.

3 I!!DUSTRY RETROSPECTIVE RATIliG PLAli All insurance under the Master Worker Policy is subject to the Industry Retrospective Rating Plan in use by the companies, tio insurance is provided under this Certificate unless and until the first flamed Insured has accepted in writing the Industry Retrospective Rating Plan Premium En-dorsement and a copy of the signed endorsement has been  :

issued by the companies to form a part of this Certificate. l l

tiMWPC-1 (1/1/88) Page 2

IN WITNESS WHEREOF, the companies subscribing the Master Worker Policy have caused this certificate to be executed and attested on their behalf by the President of Nuclear Energy Liability Insurance Association and duly counter-signeo by an authorized representative.

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

.% , >NEA' By '

' ~ ~ mh (Authorized Agent)

Countersignea:

t/W.* AC AGENCY, INC.

Countersigned by: __ By [C db'f '# -

(Au@g4#AnEmpatesentative)

This is to certify that this is a truo copy of the original Certificato bearing the nurntx r dc3!0nated herecn, fo 'insuranco coverage urder the Nuc: at Energy L:abuity Palicy (Fa ty Workers Form) herein 1:

called 'hc 'Acs'R"rkc , ,K V,anceis af forded by this copy, John L ittrocchi, Vwe PrEido ility Underwriting American Nuclear insurers i

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NMWPC-1 (1/1/88) Page 3 )

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