ML17279A791
| ML17279A791 | |
| Person / Time | |
|---|---|
| Site: | Columbia  |
| Issue date: | 01/25/1988 |
| From: | PICKERL H D MARSH & MCLENNAN, INC. |
| To: | DINITZ I Office of Nuclear Reactor Regulation |
| References | |
| NUDOCS 8802010194 | |
| Download: ML17279A791 (43) | |
Text
ACCESSION NBR: FAG;IL: 50.-397 AUTH.'NAME P ICKERLa H.D.REC'IP.NAME DINITZe I.REGULA Y INFORMATION DISTR IBUTIO YSTEM (RIDS)8802010194 DOC.DATE: 88/01/25 NOTARIZED:
NO DOCKET 0 WPPSS Nuclear ProJecti Unit 2i Washington Publ'ic Poee 05000397 AUTHOR AFFILIATION Marsh h McLennan.Inc.RECIPIENT AFFILIATION Of f ice of Nuclear Reactor RegulationE Director<Post 870411
SUBJECT:
Forwards Endosements iP2>3 to NELIA Certificate NW-163 5 Endorsements ii 2i 3 to MAELU Certificate MM-80.DISTRIBUTION CODE:'OOID COPIES RECEIVED: LTR J, ENCL g SIZE:, TITLE: Insurance:
Indemnity/Endorsement Agreements NOTES: W9 RECIPIENT ID CODE/NAME INTERNAL: NRR/PMAS/PTSB EX'TERNAL
LPDR COPIES LTTR ENCL REC I P I ENT ID CODE/NAME REQ.FILE 01 NRC PDR COPIES LTTR'ENCL 1-1 1 1 TOTAL'NUMBER OF COPIES'EQUIRED'TTR 4 ENCL 4 l F P L.J C(1 SI M&M Nuclear Consultants 222 South Riverside Plaza Chicago, Illinois 60606 Telephone 312 648-6000 January 25, 1988 Hr.Ira Dinitz Director Office of Nuclear Reactor Regulation Hail Stop 128 U.S.Nuclear Regulatory Commission Washington D.C.20555 RE: WASHINGTON PUBLIC POWER SUPPLY SYSTEM ON-SITE WORKER NUCLEAR LIABILITY INSURANCE POLICY
Dear Ira:
On behalf of the captioned client, enclosed are two certified copies of each of the following insurance policy documents:
Certificate No.End No.NW-163 HW-8O 1,2,3 123 American Nuclear Insurers will be the custodian for the Mas-ter Worker Policy and associated Certificates.
Very truly yours, Hanson D.Pickerl Assistant Vice President HGM Nuclear Consultants HDP/rg Enc.cc: Ms.A.Harzette-Washington Public Power Supply System Mr.D.Ashburn-MSM Seattle SEIPgP>pi~+
gPPP397 880 f25 qooce, p pDR)F00 l 4~--<w l M4~a' Nuclear Energy LiabiIity Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS DESCRIPTION OF THE FACILITY ENDORSEMENT It is agreed that Item 3 of the Declarations the Description of the Facility"Location" is as follows: All of the premises including the land and all buildings and structures of Washington Public Power Supply System's Project No.2 including but not limited to the reactors known as WNP-1, WNP-2 and WNP-4, the H.J.Ashe Substation and the Benton Switching Station shown as being within the heavy black lines on the drawing designated as"NELIA/IiAELU SITE DESCRIPTIONS" dated November 1, 1985 a copy of which is attached hereto and made a part hereof.The site consists of approximately 2,061 acres and is located on the U.S.Department of Energy's Hanford site in the southeastern part of the State of Washington.
The site is approximately twelve (12)miles north of Richland, Washington and one hundred sixty (160)miles east-southeast of Seattle, Washington.
This is to certify that this fs a true copy of the original Endorsem t ha i v'ng the endorsement number and being made part of the Certificate men of Insurance bearing the number designated hereon for insurance coverage under the Nuclear Energy Lia,lity Policy (Facility Workers Form)'.o Insurance is ffor der.John L traRi;ilty Underwriting American uclear'Insurers Effective Date of this Fndorsement anuary 1, 1988 12:Ol A.M.Standard Time To form a part of Certificate No.Washington Public Power Supply System Date of Issue January 15, 1988 For the Subscribing Companies MUTOAL TOMIC ENERGY LIABILITY ERWRITERS By Endorsement No., Countersigned by C1~,~If.Pl ll~h))f[lffvlVJ'1:i~if,"r I~>,'i'4",l~, I.r'PM'f'gQ/.J OH~te i 5~ll'all"<$1~'
AMENDMENT NO.34 January 1984 I 5 I I I~I%%5 55 5 e~I%st~.p~t Ik tt~I5 I 0%~KS%re"C 9'Q~0~%%~0 He~~~rt~0 v ci s It~~~0 r 0~00L VHH r~.I~.H 0t~I'~~~~Il I%%~I VVII HC Mc I IL-~0H%%~~+k40~w+'~i~~fr.I~e'~c Q Lee~0%v ev<<V HIW I~Iv I tv I%0~0H~el~~H Wt HCV IV~~00 CIH~I&(y set%0 CIH~let~%0~ttt ietvt C%we Hre 0%HV%0 0~'twr'xtvvlt~twe~00 vive KDXD 00tH tl~0 lt l/H\+I I'S%sl NELIA/MAELU SITE DESCRIPTIONS NOVEMBER 1 1985 A5%%CL%X 5 C a O WASHINGTON PVSUC POWER SUPPLY SYSTEM NUCLEAR PROJECT NO.2 PLANT SITE ARRANGEMENT FIGURE 1.2-1a i I'I 1>~r, Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS ADVANCE PREMIUM ANO STANDARD PREMIUM ENDORSEMENT CALENDAR YEAR 1988 1.ADVANCE PREMIUM: It is agreed that the Advance Premium~p f 1 P idd ig d 4,837.00 2.STANDARD PREMIUM ANO RESERVE PREMIUM: In the absence of a change in t e vance 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 fth orjginaiEndorsement true copy of the orig na This ls to certify that this is a py g ament number an e n on for insurance having the endorse ber designated hereo bll'ty Poll (F llity r the Nuclear Energy Ua i'overage unde Form).insurance is a or bi lty Underwriting John L.ro , V'merican clear Insurers Effective Date of this Endorsement Januar 1 1988 l2:Ol A.H.Standard Time To form a part of Certificate No.MW-80 Washington Public Power Supply System Date of Issue Januar 15 1988 For the Subscribing Companies MUTUAL ATOMIC ENERGY LIABILITY UNDERW1GTERS Endorsement No.2 By Countersigned by ME-8-2 (y/y/88)
I~I s~t, It<Jf"'~~UI s 1>>s l.~" I" Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS 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 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-mated standard premium for that calendar year;"standard premium", for any calendar year, is the premium for that calendar year computed in accordance with the companies'ules, 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 insurance 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 Certif i-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 1 I 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 954 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 54 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: (2)all industry reserve premium for the period from January 1, 1988 through such date, minus 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;"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 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
- l 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 arising 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 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 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 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 alI 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-ficate shall be used to pay any overdue reserve premium charges to such Named Insureds.7.RESERVE PREMIUM REFUND AGREEMENT 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 Page 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.Washin ton Public Power Supply System (First Named Insured-Print or Type)By (Signature of Authorized Officer)I B nahan Cor orate Controller (Print or Type Name and Title of Officer)Bonneville Power Administration (Named Insured-Print: or Type)Date/2 P~l~/By-~~~+i'Signature of Authorized Officer)(Print or Type Name and Title of Officer)This 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 insurance coverage u er the Nuclear Energy Liabilit~Policy (Facility Workers Form).No I surance ls affo ed nd John L Qu dhMce-Underwriting American Nu ar Insurers Effective Date of this Endorsement Januar 1 1988 tandard Time Issued to Washin ton Public Power Su 1 S s To form a part of of Certificate No.MW-8P Date of Issue October 19 1987 For the Subscribing Companies MUTUAL ATOMIC EHERGY LIABILITY ERWRITERS By Endorsement No.ME-W-1 (1/1/88)Countersigned by Authorized epresentative i la l II~II 2 II Ill'Cll'.('I l (P l ly 1 I g I MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS NUCLEAR ENERGY LIABILITY POLICY (Facility Worker Form)herein called the MASTER WORKER POLICY C E R T I F I C A T E 0 F I N S U R A N.C E Certificate No.Ill<-80 Date o f Issue Jan.15 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.'he insurance is subject to all of the provisions of this"Certificate" and the Master Worker Policy.,1 DECLARATIONS Item 1.Named Insureds and Addresses:
Washington Public Power Supply System P.O.Box 968 Richland", Washington 99352 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 Certif icate is cancelled or terminated, whichever first occurs.MMWPC-1 (1/1/88)Page 1 Item 3.Description of the Facility: Location: See Endor semen'o.3 Type: Power Reactor Operator of the Facility: Washington Public Power Supply.System 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 thereto.Item 5.Advance Premium:$4,837.00 2 APPLICATION OF CERTIFICATE This Certificate applies only to bodily injury to a new worker (1)which is caused during the Certificate Coverage Period by the nuclear energy hazard and (2)which is dis-covered and for which written claim is first made against an insured under the Certificate within the discovery period of the Master Worker Policy.3 INDUSTRY RETROSPECTIVE RATING PLAN All insurance under the Master Worker Policy is subject to the Industry Retrospective Rating Plan in use by the companies.
No insurance is provided under this Certificate unless and until the first Named Insured has accepted in writing the Industry Retrospective Rating Plan Premium En-dorsement and a copy of the signed endorsement has been issued by the companies to form a part of this Certificate.
MMWPC-1 (1/1/88)Page 2 IN WITNESS WHEREOF, the companies subscribing the Master Worker Policy have caused this Certificate to be executed and attested on their behalf by the Manager of Mutual Atomic Energy Liablity Underwriters and duly countersigned by an authorized representative.
For the Subscribing Companies of MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS Z.Michael O'onnell, Manager By (Autho i d Agent)Countersigned by: (Authoriz Representative)
This Is to certify that this is a true copy of the original Certificate bearing the number designated hereon, for Insurance coverage under the Nuclear Energy Liability Policy (I=aclllty LVorkers Form)herein calledth Master Worker Policy.No lnsu ncelsaffordedbythlscopy.
John L.trcRil, t-a lity Underwriting American uclear Insurers MMWPC-1 (1/1/88)Page 3 ql 5)f$)pg,'}1 4 P M', k II"~',)'t y"'j~l~ilf'et~~Pg ygj,<y peg~
Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION DESCRIPTION OF THE FACILITY ENDORSEMENT I It is agreed that Item 3 of the Declarations the Description of the Facility"Location" is as follows: All of the premises including the land and all buildings and structures of Washington Public Power Supply System's Project No.2 including but not limited to the reactors known as WNP-1, WNP-2 and WNP-4, the H.J.Ashe Substation and the Benton Switching Station shown as being within the heavy black lines on the drawing designated as"NELIA/HAELU SITE DESCRIPTIONS" dated November 1, 1985 a copy of which is attached hereto and made a part hereof.The site consists of a'pproximately 2,061 acres and is located on the U.S.Department of Energy's Hanford site in the southeastern part of the State of Washington.
The site is approximately twelve (12)miles north of Richland, Washington.and one hundred sixty (160)miles east-southeast of Seattle, Washington.
This ls to certify that this ls a true copy of the original Endorsement h I the endorsement number andbelng made partof the Certificate av ng ee of insurance bearing the number designated hereon fo coverage under the Nuclear Energy Llab lty Policy (Facility Workers Fare).Insurance ls afforded hereu~er.Jalln L tr II, blllty Underwriting Amorlcan clear lnaurers Effective-Date of this Endorsement January 1, 1988 12:01 A.M.Standard Time To form a part of Certificate No.NW-163 Washington Public Power Supply System Date of Issue January 15, 1988 For the Sub cribing Companies By PRESIDENT Endorsement No.Countersigned by
~W$'It'W g fjgjw qI(jt)qq W tt')I I I~'jWjj Ij , I I~t>>I ttW I t I f)'lttjj q~"ilail)VP19bjjt', ll~j,'jpS jI~tj I WW tj j jl II.l tll<s'+",~A 15'0 rr, r'I 8 I I I AMENDMENT NO.34 January 1984 tt J~,000~~C'se;.p~00~fir~tt'J~~e S 1 rett/~LIL%%~I 040~~trit~~It I'0 t~\8 I~~r'0 It~~t 00 ttt'C, 000'I WHI aht Httt<-4~r r~.I I~I IH".HHI000 I C Ltt~~tI%H0~0~tr~I Ht 0\0~00~0H tilt H~Ht H~~H 40%~0W (P Wt W IW~0W ,700 0~IW Htt I H 000W r0 400HHt A, V 0'rt HWH00~~~~0'W0000~04 HH00 V WIIIII 00 00~00 l i/I II 0'I\H 00'04 I 8 O NELIA/MAELU SITE DESCRIPTIONS NOYEMBER 1 1986 AS 8%WASHrrrGTON PV8UC POWER SUPPLY SYSTEM NUCLEAR PRQIECT NO.2 PLANT SITE ARRANGEMENT FIGURE 1.2-1a
Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT CALENDAR YEAR 1988 1.ADVANCE PREMIUM: It is agreed that the Advance Premium f t p idd ig d 16,663.00 2.STANDARD PREMIUM AND RESERVE PREMIUM: In the absence of a change in t e dvance Premium sndicated above, it is agreed that, subject to the provisions of the Indus-try Retrospective Rating Plan, the Standard'remium is said Advance Premium and the estimated Reserve Premium e1ement of the Stayg@rj)tsrdJP5fpthQ)his ls a true copy of the orlglnal Endorsement having the endorsement number and being made part of the Certificate of Insurance be'aring the number designated hereon for insurance covera e under the Nuclear Energy I.'ility Policy (Facility Workers Form).No Insurance i aff ndor.John attSebhi, d'ility Underwriting America Nuclear Insurers Effective Date of this Endorsement Januar 1 1988 12:Ol A.M.Standard Time Issued to Washington Public Power Su 1 S stem Date of Issue Januar 15, 1988 For the Su ribing Com anies By PRESIDENT Endorsement No.2 Countersigned by NE-W-2 (I/I/88) gk f 3 It l J II~..t l 1~I'f I, rl,~'g d~i9 p V~,
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'ules, 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 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;"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 0)l 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 54 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: (2)all industry reserve premium for the period from January 1, 1988 through such date, minus 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 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.
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 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 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 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 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 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.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 after receipt of the endorsement.
When all claims covered by the Master Worker Policy are closed the companies shall make a final review and re-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 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 NELIA under the Master Worker NE-W-1 (1/1/88)Page 4 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)3w 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 1P page 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.Washin ton Public Power Supply System (First Named insured-Print or Type)By (Signature of Authorized Officer)R.A.Bresnahan, Corporate Controller (Print or Type Name and Title of Officer)Bonneville Power Administration (Named Insured-Print or Type)Date/+/Pl~/By m~cCPc (Signature of Authorized Officer)(Print or Type Name and Title of Officer)rue co of the original Endorsernent This is to certify that this ls a true copy r design ed hereon for insurance ntnumberandbeingma epa of Insurance bearing the number design e e coverage nder the Nuclear Energy Ua ity Po cy aci Fore).Insure ce is a r Vi resident-aRIIty Underwriting John I t roc American clear Insurers Effective Date of this Endorsement Januar 1, 1988 12:01 A.H.Standard>me Issued to Mashin ton Public Power Su ly System Date of Issue October 19, 1987 To form a part of of Certificate No.NW-163 For the scribing companies By General Manager Endorsement No.1 Countersigned by NE-V,-1 (1/1/88)
"'""'4<'~'~-3 li">><,>>v>>e:," y>>i>~$",~r R f 6 F II h fl,'".>>'" q ll ll q"at NUCLEAR ENERGY, LIABILITY INSURANCE ASSOCIATION NUCLEAR ENERGY LIABILITY POLICY (Facility Worker Form)herein called the'MASTER WORKER POLICY CERT IF I CATE OF INSURANCE Certificate No.+~3 Date of Issue 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 Nuclear Energy Liability Insurance Associa-tion on behalf of its members.The insurance is'ubject to all of the provisions of this"Certificate" and the Master Worker Policy.1 DECLARATIONS Item 1.Named Insureds and Addresses:
Washington Public Power Supply System P.O.Box 968.Richland, Washington 99352 Item 2.Certif icate 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, vhichever first occurs.NMWPC-1 (1/1/88)Page 1 I ll Item 3.Description of the Facility: Location: See Endorsement No.3 Type: Power Reactor Operator of the Facility: l/ashington Public Power Supply System 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 thereto.Item 5.Advance Premium: 9]6,663.po 2 APPLICATION'OF 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 INDUSTRY RETROSPECTIVE RATING PLAN All insurance under the Master Worker Policy is subject to the Industry Retrospective Rating Plan in use by the companies.
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 issued by the companies to form a part of this Certificate.
NMWPC-1 (1/1/88)Page 2
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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-signed by an authorized representative.
For the Subscribing Companies of NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION Burt C.Pro m, President By O~(Authorize Agent)Countersigned by: (Authorize Representative)
This is to certify that this is a true copy of the original Certificate bearing the number designatedhereon, r Insurancecoverage under the Nuc ar Energy Liabi!ity Policy (F lity Workers Form)herein calledth sark ii.n ceisaffordedbythlscopy.
~~~John L ttrocchl, Vice President-a lity Underwritln9 American Nuclear Insurers NMWPC-1 (l/l/88)Page 3 1/4 I I~g C li MN p,~a/<<<y',~~I~&V>II~g I 4 I II l~'ii z~~4 tl)fQt.""" (,)I 3 Q l)1.,",,itf4$