ML20153H287
| ML20153H287 | |
| Person / Time | |
|---|---|
| Site: | Perry  |
| Issue date: | 05/05/1988 |
| From: | Ertle R CENTERIOR ENERGY |
| To: | Dinitz I Office of Nuclear Reactor Regulation |
| References | |
| NUDOCS 8805120215 | |
| Download: ML20153H287 (33) | |
Text
_ _ _ _ - _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _. _ _ _.
s.
CENTERCOR ENERGY
. 6200 Ook Tree Boulevard Mael AddrCSS Independence OH PO Box 94661 216-447-310 0 Cleveland, OH 44101-4661 May 5, 1988 Mr. Ira Dinitz Office of Nuclear Reactor Regulation U.S. Nuclear Regulatory Commission Washington, D.C.
20555 RE: The Cleveland Electric Illuminating Company - Perry Plant Facility Form Policies:
NF-291/MF-124 Endorsements:
24/17 Secondary Financial Protection Certificates: N-102/M-102 Endorsements:
4/4 Nuclear Worker Certificates: NW-183/MW-94 Endorsements:
1-3/1-3 Mr. Dinitz:
Enclosed please find two certified copics each of the captioned endorse-ments, as well as the Certiticates under the Nuclear Worker Policy.
Robert F. Ertle Manager Risk & Insurance (216) 447-3128 RFE:dtb Enclosures l
p
'I 8805120215 880505 PDR ADOCK 0500R440
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NUCLEAR ENER'3Y LIABILITY INSURANCE MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS AMENDATORY ENDORSEMENT It is understood and agreed that this policy is hereby amended as indicated below, all to be effective March 19, 1987.
1.
The following are included as Additional Insureds with respect to their interest under this Certificate.
Except with respect to compliance with the obligations imposed on the Insured by provisions of the Master Worker Policy of which this Certificate forms a part, entitled "INSURED'S DUTIES IN CASE OF CLAIMS OR SUITS", "SUBR0GATION" and "SUIT", any obligation imposed upon the Named Insured (including, without limitation, the liability to pay premiums) shall be the sole obligation of such Named Insured and not that of any Additional Insured named hereunder.
a.
Perry One Beta, limited Partnership as its interest may appear.
b.
Security Pacific Capital Leasing Corporation as its interest may
- appear, c.
Perry One Alpha Limited Partnership as its interest may appear.
d.
Perry One Delta Limited Partnership as its interest may appear.
e.
Perry One Garrrna Limited Partnership as its interest may appear, f.
The First National Bank of Boston, as Owner Trustee under the Agreement dated March 19, 1987, and The First National Bank of Boston as its interest may appear.
2.
This Certificate is further amended as follows as respects each of the above Additional Insureds in Perry Unit 1:
a.
It is acknowledged that Ohio Edison has waived, as provided in Section 10 (a)(2)(ii) of the Facility Lease Agreement between the above Additional Insureds and Ohio Edison dated March 19, 1987, their right of recovery against the above Additional Insureds for loss to which this policy applies, b.
This insurance shall be primary without right of contribution of any other insurance carried by or on behalf of any of the above Additional Insureds, but this paragraph 2.b.
does not apply to insurance by Nuclear Energy Liability Insurance Association which is concurrent with insurance afforded by this policy.
T-
..a N c.
Except with respect to the provisions of Section XI, "INSPECTION AND SUSPENSION" of the Nuclear Energy Liability Policy (Facility Worker Form) of which this Certificate forms ~ a part, the companies will provide First National Bank of Boston, 100 Federal Street, Boston, Massachusetts 02110, 30 days written notice prior to the effective date of the companies' cancellation of this Certificate, reduction in the Policy Aggreaate limit other than by payment of damages arid claim cost, or suostantial reduction of the coverage which was in effect at Certificate issuance or anniversary date.
This is to certify that this is a true copy of the original Endorsement having the endorsement number and being made p;rt of the Certificato of Insuranca be: ring 'he number designated horcon for insuranco coverag uncer the Nuc9ar Energy Li lily Po!!cy (Facility Workers Form). 1 )in ce r, f: -
- _1er.
John L. ' attrecchi, Vice President
'ility Underwriting American Nu: lear Insurers Effective Date of this Endorsement January 1, 1988 To form a part of Certificate No.
MW-94 12 : 01 A..'!. Standard Time Issued to The Cleveland Electric Illuminating Company Date of Issue March 29, 1988 For the Subscribing Companies MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS A
. z. W % e_
By Endorsement No.
3 Countersig ed by c%
4
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Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT CALENDAR YEAR 1988 I
1.
ADVANCE PREMIUM:
It is agreed that the Advance Premium aue the companies for the period designated above is:
S 4,837.00 2.
STANDARD PREMIUM AND RESERVE PREMIUM:
In the absence of a change in the Advance Premium indicated above, it is agreed that, subject to the provisions of the Indus-try Retrospective Rating Plan, the Standard Premium is said Advance Premium and the estimated Reserve Premium element of the Standard Premium is:
This is to certify that this is a true COPY of the ortgtna! End W ts having the endorsement number and con for insurance aojr cc?ar ergy WatlUty licy (Facility Workers 3.870.00 of g-t h
derwriting g
American Nucleo.- insurors Effective Date of this Endorsement January 1, 1988 To form a part of Certificate No. Jf-94 12:01 A.M. Standard Time Issuod to The Cleveland Electric Illuminating Connany Date of Issue January 15, 1988 For the Subscribing Companies MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS A
's %M Endorsement No.
2 Countersigned by
.E-W-2 (1/1/88)
T j
- m...
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' 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 insurance and estimated reserve premium. The elements of standard premium, other than for premium taxes and estimated reserve premium, ara 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)
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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; "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 peri ~o'd, 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 ef fective 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.
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3.
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1 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.
I 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-i vance premium paid for that year, the Named Insureds i
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 l
companies may direct.
3.
SPECIAL RESERVE ACCOUNT; USE OF RESERVE PRE:4IUMS 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, sh'll be used for the following purposes only:
(1) to pay ratable incurred los,es 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.
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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
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s Policy, the Named Insureds, by acceptance of the Master Worker Policy, agree:
(1)
That the insurance provided by the Master Worker Policy appljes 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 wit:,.'n 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.
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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.
THE CLEVELAND ELECTRIC ILLUMINATING COMPANY (First Named Insured - Pr'nt or Type)
//f/G/$f By f g&
Data
'/ /
( S'i' re of Kuthorized Of ficer)
Gary M. Hawkinson, Assistant Treasurer (Print or Type Name and Title of Of ficer)
This is to certify that this is a true copy of the origina! Endorsement having the endorsement number and boing mado part of the Certificate of Insuranco bearing the number designatedf erco, for insurance coverago und r the Nuclear Energy I HMtd/ojicy (Facility Workers Form). No int rargffc "
John L. Cuatt:
ih!, Vice President - Liability Underwriting American Nuc! car Insurors Effective Date of To form a part of this Endorsement January 1, 1988 of Certificate No. fM-94 12:01 A.M. Standard Time Issued to The Cleveland Electric illuminatina Company Date of Issue October 19, 1987 For the Subscribing Companies MUTUAL ATOMIC ENERGY LIABILITT ERWRITERS By
's Endorsement No.
I Countersigned by JM Authori
'd Representative ME-W-1 (1/1/88)
MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS NUCLEAR ENERGY LIABILITY POLICY (Facility Worker Form) herein called the MASTER WORKER POLICY CERTIFICATE OF INSURANCE Certificate No.M g f_
Date of Issue Jan. 15.
19 R 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:
The Cleveland Electric Illuminating Company P.O. Box 5000 Cleveland, Ohio 44101 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)
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Item 3.
Description of the Facility:
Location: All of the premises including the land and all buildings and structures known as the Perry Nuclear Power Plant located on a site consisting of approxi-mately 1,100 acres on the southeastern shore of Lake Erie approximately thirty-five (35) miles northeast of Cleveland, Ohio and twenty-one (21) miles south-west of Ashtabula, Ohio, including intake and dis-charge structures and related tunnels and ice protection barriers, and the barge unloading site..
Type: Power Reactor (Operating)
Operator of the Facility: The Cleveland Electric Illuminating 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 thereto.
Item 5. Advance Premium:
5 4,837.00 2
APPLICATlON 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)
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A IN WITIIESS 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 UllDERNRITERS J.
Michae' O'Connell, Manager 3.
By N
(Authorized Agent)
)
?
)k3 (M
s I
Countersigned by:
j (AuthorTzed Re ' esentatibe)
This is to certify that this 13 a true copy of the orig!nal Certificato bearing the number ve:ignated hereon, for i suranco coverago uncer the Nuclear Energy Lu.biEtv Pohey 6:; cili' Workers Form) horcin
-ds af forded by this copy.
called the M. -ter W..ur r:
,cn John L. Ou acc ido resident - Lia eh Underwriting American Nucioar insurers MMWFC-1 (1/1/88)
Page 3
k Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION AMENDATORY ENDORSEMENT It is understood and agreed that this policy is hereby amended as indicated below, all to be effective March 19, 1987.
1.
The following are included as Additional Insureds with r?.pect to their interest under this Certificate.
Except with respect to compliance with the oblications imposed on the Insured by provisions of the Master Worker Policy of which this Certificate forms a part, entitled "INSURED'S DUTIES IN CASE OF CLAIMS OR SUITS", "SUBROGATION" and "SUIT", any obligation imposed upon the Named Insured (including, without limitation, the liability to pay premiums) shall be the sole obligation of such Named Insured and not that of any Additional Insured named hereunder, a.
Perry One Beta, limited Partnership as its interest may appear.
b.
Security Pacific Capital ' easing Corporation as its interest may appear.
c.
Perry One Alpha Limited Partnership as its interest may appear.
d.
Perry One Delta limited Partnership as its interest may appear.
e.
Perry One Gama Limited Partnership as its interest may appear.
f.
The First National Bank of Boston, as Owner Trustee under the Agreement dated March 19, 1987, and The First National Bank of Boston as its interest may appear.
2.
This Certificate is further amended as follows as respects each of the above Additional Insureds in Perry Unit 1:
a.
It is acknowledged that Ohio Edison has waived, as provided in Section 10 (a)(2)(ii) of the Facility Lease Agreement between the above Additional Insureds and Ohio Edison dated March 19, 1987, their right of recovery against the above Additional Insureds for loss to which this policy applies.
b.
This insurance shall be primary without right of contribution of any other insurance carried by or c.1 behalf of any of the above Additional Insureds, but this paragraph 2.b.
does not apply to insurance by Mutual Atomic Energy Liability Underwriters which is concurrent with insurance afforded by this policy.
3
- c.
Except with respect to the provisions of Section XI, "INSPECTION AND SUSPENSION" of the Nuclear Energy Liability Policy (Facility Worker Form) of which this Certificate forms a part, the companies will provide F'"st National Bank of Boston, 100 Federal Street, Boston, Massachusetts 02110, 30 days written notice prior to the effective date of the companies' cancellation of this Certificate, reduction in the Policy Aggregate limit other than by payment of damages and claim cost, or substantial reduction of the coverage which was in effect at Certificate issuance or anniversary date.
This is to certify that this is a true copy of the original Endorsement having the endorsement numberand being made part of the Certificate of incurance bearing the number desigr tod hereon for insurance coverag under the Nuclear Energy Lir.!ity Policy (Facility Workers Form). t in?
-c
, w r, John L.
ttrocchi, Vice President lity Underwriting American Nuclear Insurers a
Effective Date of this Endorsement January 1, 1988
_To form a part of Certificate No.
NW-183 12:01 A.M. Standard Time Issued to The Cleveland Electric illuminating Company Date of Issue March 29, 1988 For the Subxribing Companies
"^
By PRESIDE l
h Endorsement No.
3 Countersigned by
t Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT CALENDAR YEAR 1988 I
1.
ADVANCE PREMIUM:
It is agreed that the Advance, Premium cue the companies for the period designated above is:
5 16,663.00 2.
STANDARD PREMIUM AND RESERVE PREMIUM:
In the absence of a change in the Advance Premium indicated above, it is agreed that, subject to tha 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:
13,330.00 This is to certify that this is a true copy of the original Endorsement having the endorsement number and being made part of the Cortificato of Insuranco bearing the number designate boroon for insuranco coverage under the Nuclear Energy Liabi!
Policy (Facility Workers Form). No isurance is aff od "" ^ m Underwriting John L OL et ice i en - :
American Nuv ar Insurers Effective Date of NW-183 this Endorse =ent January 1,1988 To form a part of Certificate No.
12:01 A.M. Standard Time Issued to The Cleveland Electric illuminatina Company Date of Issue January 15, 1988 For the Su stribing Com anies
/
Y "W
By PRESIDENT Endorsement No.
2 Countersigned by 4,
NE-W-2 (1/1/88)
(__
E fs a.
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 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; 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)
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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 1
(2) the total for the name 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 i
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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 lesses or, in the event ratable incurred loss.es 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.
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E 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 incustry 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 (1/1/38)
Page 4
c.
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 pramium 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 j oir>tly, 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
G PGgo 6 s
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.
THE CLEVELAND ELECTRIC ILLUMINATING COMPANY (First Named Insured - Pri or Type)
Date _)/ f/f) fC } By aY f
/
(Sigh r/ 'of Aut!horized Of ficer)
~
Gary M. Hawkinson Assistant Treasurer (Print or Type Name and Title of Of ficer)
This is to certify that this is a true copy of the original Endo havin0 the endorsement number and being rnado part of of Insurance boar!ng the number designated roon forinsurance coverage under the Nuc!x Mergy Liabi!ity licy (Facility Workers Form). No Ins rance is aftera-h"'
John L. Quatt s ;1,' N Pre n'r dorwriting American Nucle it'surers Effective Date of To form a part of this Endorsement January 1, 1988 of Certificate No, ffW-183 12:01 A.l1. Standard Time Issued to The Cleveland Electric Illuminating Company Date of Issue October 19, 1987 For the scribing companies By General Manager Endorsement No.
1 Countersigned by._
1:E-v-1 (1/1/68)
-t
,e NUCLEhR ENERGY LIABILITY INSURANCE ASSOCIATION NUCLEAR ENERGY LIABILITY POLICY (Facility Worker Form) herein called the MASTER WORKER POLICY CERTIFICATE OF INSURANCE Certificate No. NW-183 Date of 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 Nuclear Enargy Liability Insurance Associa-tion 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:
The Cleveland Electric Illuminatin? Company P.O. Box 5000 Cleveland, Ohio 44101 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
1 Item 3.
Descrip. tion of the Facility:
Location: Ali of the premises including the land and all buildings and structures known as the Perry Nuclear Power Plant located on a site consisting of approxi-5 mately 1,100 acres on the southeastern shore of Lake Erie approximately thirty-five (35) miles northeast of Cleveland, Ohio and twenty-one (21) miles south-west of Ashtabula, Ohio, including intake and dis-charge structures and related tunnels and ice protection barriers, and the barge unloading site.
Type:
Power Reactor (Operating) operator of the Facility: The Cleveland Electric Illuminating Company Atem 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:
$ 16,663.00 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 nating Plan in us2 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-dersement and a copy of the signed endorsement has been fssued by the companies to form a part of this Certificate.
NMWPC-1 (1/1/88)
Page 2
}
III 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 !!uclear Energy Liability Insurance Association and duly counter-signed by an autnorized representative.
For the Subscribing Companies of NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION Burt C.
Pr om, President
'T -
By N
(Authorize 3 Agent) n
(
Countersigned by:
k A
(Authorized Representative) ificato This is to certify that this is a true copy of the orig ge under bearing the number designated hereon, for insura a
affordod bythiscopy, the Nuclear E ergy Ua'dit/
called the Mast < ' WorAar Policy Je '- ' ' - - -
derwriting
- ua.
Pr er John L Quatt x :ii' insurers American Nucle NMWPC-1 (1/1/s3)
Page 3
r c
4 NUCLEAR ENERDY LIABILITY INSURANCE o-o MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS AMENDATORY ENDORSEMENT It is understood and agreed that this certificate is hereby amended as indicated below, all to be effective March 19, 1987.
1.
The following are included as Additional Insureds with respect to their interest under primary financial protection on the effective date indicated below.
Except with respect to compliance with the obligations imposed upon the insured by Conditions 8, 9, 10 and 11 of Master Policy No.
1, any obligation imposed upon the Nared Insureds (including, without limitation, the liability to pay premiums) shall be the sole obligation of the Na.ned Insureds and not that of any Additional Insured nered hereunder, a.
Perry One Beta, limited Partnership as its interest may appear.
b.
Security Pacific Capital Leasing Corporation as its interest may appear.
c.
Perry One Alpha Limited Partnership as its interest may appear, d.
Perry One Delta Limited Partrership as its interest may appear.
e.
Perry One Gamma Limited Partnership as its interest may appear, f.
The First National Bank of Boston,.as Owner Trustee under the Agreement dated March 19, 1987, and The First National Bank of Boston as its interest may appear.
2.
This certificate is further amended as respects each of the above Additional Insureds' interest under primary financial protection as of its respective effective date shown above:
a.
It is acknowledged that Ohio Edison has waived, as provided in Section 10 (a)(2)(ii) of the Facility lease Agreement between the above Additional Insureds and Ohio Edison dated March 19, 1987, their right of recovery for loss to which this policy applies, b.
If the Additional Insureds listed above have other valid and collectible insurance (other than primary financial protection or concurrent insurance) applicable to excess losses covered by this Master Policy, the insurance afforded by this Master Policy shall be primary insurance under such other insurance.
c.
If the companies cancel this policy, such cancellation shall be effective as to the above Additional Insureds by mailing or delivering
I 2
c.
written notice at least 30 days before the effective date of such cancellation to First National Bank of Boston, 100 Federal Street, Boston, Massachusetts 02110.
d.
If the companies reduce the limit of the companies' liability s
indicated in Item 4 of the Declarations by 10% or more for a reason other than payment of losses and expenses, or the companies eliminate any coverage in effect at policy issuance or any anniversary date of this policy, the companies will mail or deliver written notice of such reduction or elimination to First National Bank of Boston, 100 Federal
- Street, Boston, Massachusetts 02110 within 30 days after the effective date of such reduction or elimination.
This is :o certify that thk is a true copy of the original EnJorumont he no the endorurent nurnber and being made part cf the Neckar En:>rm, LbMty Po!o (Far !ity Form) as des-ipate, wn ca. No Insu nce k a!!crde ereunder.
.z.
Jsn L L, "rc;do, G c h eedrrt L&Lt
- rn A:recan Ack ar Instm, i
Effective Date of this Endorsement March 19, 1987 To form a part of certificate No.
H-102 12:01 A.M. Standard Time Issued to The Cleveland Electric illuminatina Comoany Date of Issue March 28, 1988 For the Subscribing Companies MUTUAL ATOMIC ENERGY LIABILITT UNDERWRITERS s.au
,y Endorsement No.
4 Countersig ed by Y
]0HNSON & filGGltis 0F Onl0
e p *.
Nuclear Energy Liability Insurance NUCLEAR ENERGY LIAlllLITY INSURANCE ASSOCIATION AMENDATORY ENDORSEMENT It is understood and agreed that this certificate is hereby amended as indicated below, all to be effective March 19, 1987.
1.
The following are included as Additional Insureds with respect to their interest under primary financial protection on the effective date indicated below.
Except with respect to compliance with the obligations imposed upon the insured by Conditions 8, 9,
10 and 11 of Master Policy No.
1, any obligation imposed upon the Named Insureds (including, without limitation, the liability to pay premiums) shall be the sole obligation of the Named Insureds and not that of any Additional Insured named hereunder, a.
Perry One Beta, limited Partnership as its interest may appear, b.
Security Pacific Capital Leasing Corporation as its interest may appear.
c.
Perry One Alpha limited Partnership as its interest may appear.
d.
Perry One Delta Limited Partnership as its interest may appear, e.
Perry One Gama Limited Partnership as its interest may appear, f.
The First National Bank of Boston, as Owner Trustee under the Agreement dated March 19, 1987, and The First National Bank of Boston as its interest may appear.
2.
This certificate is further amended as respects each of the above Additional Insureds' interest under primary financial protection as of its respective effective date shown above:
a.
It is acknowledged that Ohio Edison has waived, as provided in Section 10 (a)(2)(ii) of the Facility Lease Agreement between the above Additional Insureds and Ohio Edison dated March 19, 1987, their right of recovery for loss to which this policy applies, b.
If the Additional Insureds listed above have other valid and collectible insurance (other than primary financial protection or concurrent insurance) applicable to excess losses covered by this Master Policy, the insurance afforded by this Master Policy shall be primary insurance under such other insurance.
c.
If the companies cancel this policy, such cancellation shall be effective as to the above Additional Insureds by mailing or delivering
2 wr* tten notice at least 30 days before the effective date of such caacellation to First National Bank of Boston, 100 Federal Street, Bcston, Massachusetts 02110.
d.
'. f the companies reduce the limit of the companies' liability indicated in Item 4 of the Declarations by 10% or more for a reason other than payment of losses and expenses, or the companies eliminate any coverage in effect at policy issuance or any anniversary date of this policy, the companies will mail or deliver written notice of such reduction or elimination to First National Bank of Boston,100 Federal
- Street, Boston, Massachusetts 02110 within 30 days after the effective date of such reduction or elimination.
Th.s is to cert fy that this it, a true copy of the originst Enderament havm3 the endcrament nurrpr and beins. made part of the N dcar Enercy Liabisty Poky (Farg(e.y Form) as dce isneted ) reo tInsu n e,
"q reunder.
~ - - - y, Mn L Qm. <cht, We Proe&MOVMGM y, ween Nxkn \\tums Effective Date of March 19, 1987 To form a part of Certificate No. N-102 this Endorsement 12:01 A.M. Scandard Time The Cleveland Electric Illuminating Company Issued to Doce of Issue March 28, 1988 For the Su cribing Companies By V,
-CW -
N#
FHSIDUT Endorsement No.
4 Countersigned by
- a #
JOHNS 06 s HIGGINS OF OHl0
.- e Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS AMENDATORY ENDORSEMENT It is understood and agreed that this policy is hereby amended as indicated below, all to be :.ffective March 19, 1987.
1.
The following are included as Additional Insureds.
Except with respect to compliance with the obligations imposed upon the insured by Conditions 5, 6, 7, 8, 9, 10 and 11 of this policy, any obligation imposed upon the Named Insured (including, without limitation, the liability to pay premiums) shall be the sole obligation of the Named Insured and not that of any Additional Insured named hereunder, a.
Perry One Beta, Limited Partnership as its interest may appear, b.
Security Pacific Capital leasing Corporation as its interest may
- appear, c.
Perry One Alpha Limited Partnership as its interest may appear.
d.
Perry One Delta limited Partnership as its interest may appear.
e.
Perry One Gamma Limited Partnership as its interest may appear, f.
The First National Bank of Boston, as Owner Trustee under the Agreement dated March 19, 1987, and The First National Bank of Boston as its interest may appear.
2.
Solely with respect to liability for bodily injury or property damage which arises out of nuclear material which has been used er is to be used or has been irradiated in the course of the operation of the reactor at Perry Unit 1, this policy is further amended as follows:
a.
It is acknowledged that Ohio Edison has waived, as provided in Section 10 (a)(2)(ii) of the Facility Lease Agreement between the above Additional Insureds and Ohio Edison dated March 19, 1987, their right of recovery against the above Additional Insureds for loss to which this policy applies, b.
This insurance shall be primary without right of contribution of any other insurance carried by or on behalf of any of the above Additional Insureds, but this paragraph 2.b.
does not apply to (1) insurance issued by Nuclear Energy Liability Insurance Association which is concurrent with insurance afforded by this policy, or (2) to other nuclear energy liability policies issued by Nuclear Energy Liability Insurance Association er Mutual Atomic Energy Liability Underwriters which also apply to the loss.
I
- c.
If the companies cancel this policy, such cancellation shall bo effective as to the above Additional Insureds by mailing or delivering written notice at least 30 days before the effective date of such carcellation to First National Bank of Boston, 100 Federal Street, Boston, Massachusetts 02110.
d.
If the companies reduce the limit of the comoanies' liability indicated in Item a of the Declarations by 10", or more for a reason other than payment of losses and expenses, or the companies eliminate any coverage in effect at policy issuance or any anniversary date of this policy, the companies will mail or deliver written notice of such reduction or elimination to First National Bank of Boston, 100 Federal Street, Boston, Massachusetts 02110 within 30 days after the effective date of such reduction or elimination.
Tids i3 to certify that thu is a true wpy of the original Endorc:rrent having the endonement numbcr and being rnade part c! the Nuctm Entrgy U*Dtj Pehcy (Fac: 'ty Form) as des-ignated ereon. No insurance is afforded :rcunder.
'&l ~
kML(
rMchi, Vu e Prtew:M"uality C UYJ MeNan buc'. ct Irmureis Effective Date of To form a part this Endorsement March 19, 1987 of Policy.No MF-124 12:01 A.M. Standard Time Issusd to The Cleveland Electric Illuminating Company Date of Issue March 28, 1988 For the Subscribing companies MUTUAL A IC ENERCY LIABILITY UND RWRITERS
.$. " ~' ~
C By
'h Endorsement No 17 Countersigned by Authorized Representative 10liNSON & HIGGINS OF OHIO
3; Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION AMENDATORY ENDORSEMENT It is understood and agreed that this policy is hereby amended as indicated below, all to be effective March 19, 1987.
1.
The following are included as Additional Insureds.
Except with respect to compliance with the obligations imposed upon the insured by Conditions 5, 6, 7. C, 9, 10 and 11 of this policy, any obligation imposed upon-the Named Insured (including, without limitation, the liability to pay premiums) shall be the sole obligation of the Named Insured and not that of any Additional Insured named hereunder, a.
Perry One Beta, limited Partnership as its interest may appear.
b.
Security Pacific Capital Leasing Corporation as its interest may appear.
c.
Perry One Alpha limited Partnership as its interest may appear, d.
Perry One Delta Limited Partnership as its interest may. appear, e.
Perry One Gama Limited Partnership as its interest may appear, f.
The First National Bank of Boston, as Owner Trustee under the Agreement oated March 19, 1987, and The First National Bank of Boston as its interest may appear.
2.
Solely with respect to liability for bodily injury or property damage which arises out of nuclear material which has been used or is to be used or has been irradiated in the course of the operation of the reacter at Perry Unit 1, this policy is further amended as follows:
a.
It is acknowledged that Ohio Edison has waived, as provided in Section 10 (a)(2)(ii) of the Facility lease Agreement between the above Additional Insureds and Ohio Edison dated March 19, 1987, their right of recovery against the above Additional Insureds for loss to which this policy applies, b.
This insurance shall be primary without right of contribution of any other insurance carried by or on behalf of any of the above Additional Insureds, but this paragraph 2.b.
does not apply to (1) insurance issued by Mutual Atomic Energy Liability Underwriters which is concurrent with insurance aff rded by this policy, or (2) to other nuclear energy liability polic es issued by Nuclear Energy Liability Insuranr.e Association or Mutual Atomic Energy Liability Underwriters which also apply to the loss.
o
,a c.
If the companies cancel this policy, such cancelletion shall be effective as to the above Additional Insureds by mailing or delivering l
written notice at least 30 days before the effective date of such cancellation to First National Bank of Boston, 100 Federal Street, Boston, Massachusetts 02110.
d.
If the companies reduce the limit of the ' companies '
liability indicated in Item 4 of the Declarations by 10", or more for a reason other than payment of losses and expenses, or the companies eliminate dny Coverage in effect at policy issuance or any anniversary date of this policy, the companies will mail or deliver written notice of such reduction or elimination to First National Bank of Bostori,100 Federal Street, Boston, Massachusetts 0?l10 within 30 days after the effective i
date of such reduction or elimination, This is to certify that this is a true copy of the original Endorsement having the cndorsement numb and being rnade partI of the N int Enerey Li&ty Pokv (Facf// Form) as des-ander.
ignated b wrg t-Jch, L Qaund.V" he***
Am,an Na&ar insunrs Effective Date of this Endorsement March 19, 1987 To form a part of Policy No,,
NF-291 12:01 A.M. Standard Time Issusd to The Cleveland Electric Illuminating Company Date of Issue March 28, 1988 For the Sdbscribing Companies By
/
General Manager Endorsement No 24 Countersigned by JOHNSON & HiGGINS OF Otil0
-. - -