# 10 C.F.R. § 140.91 (2026): Appendix A—Form of nuclear energy liability policy for facilities

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URL: https://www.frixlaw.com/law-library/statutes/CFR_T10_P140_S140_91

## Section

- **Citation:** 10 C.F.R. § 140.91 (2026)
- **Heading:** Appendix A—Form of nuclear energy liability policy for facilities
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Title 10 CFR: Energy / Chapter I: NUCLEAR REGULATORY COMMISSION / Part 140: FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS / Subpart F: Violations / § 140.91: § 140.91   Appendix A—Form of nuclear energy liability policy for facilities.

## Text

While the text of the policy which follows is exemplary of a contract acceptable to the Commission as evidence of the financial protection required of the licensee by section 170 of the Atomic Energy Act of 1954, as amended, variations on this text submitted by the licensee also will be considered by the Commission in determining whether the licensee meets the financial protection requirements of the Act. The full text of the policy is published solely for the purpose of completeness. Publication of this text should not be construed as a Commission endorsement of any particular provision pertaining solely to the business relationship between the insurers and the insureds or to any other matter not within the Commission's statutory jurisdiction under the Atomic Energy Act.
Nuclear Energy Liability Policy
(Facility Form)
The undersigned members of __________, hereinafter called the “companies,” each for itself, severally and not jointly, and in the respective proportions hereinafter set forth, agree with the insured, named in the declarations made a part hereof, in consideration of the premium and in reliance upon the statements in the declarations and subject to the limit of liability, exclusions, conditions and other terms of this policy;
insuring agreements
I.
Coverage A—Bodily injury and property damage liability.
To pay on behalf of the insured:
(1) All sums which the insured shall become legally obligated to pay as damages because of bodily injury or property damage caused by the nuclear energy hazard, and the companies shall defend any suit against the insured alleging such bodily injury or property damage and seeking damages which are payable under the terms of this policy; but the companies may make such investigation, negotiation and settlement of any claim or suit as they deem expedient;
(2) Costs taxed against the insured in any such suit and interest on any judgment therein;
nergy hazard, and the companies shall defend any suit against the insured alleging such bodily injury or property damage and seeking damages which are payable under the terms of this policy; but the companies may make such investigation, negotiation and settlement of any claim or suit as they deem expedient;
(2) Costs taxed against the insured in any such suit and interest on any judgment therein;
(3) Premiums on appeal bonds and on bonds to release attachments in any such suit, but without obligation to apply for or furnish such bonds;
(4) Reasonable expenses, other than loss of earnings, incurred by the insured at the companies' request.
Coverage B—Damage to property of an insured away from the facility.
With respect to property damage caused by the nuclear energy hazard to property of an insured which is away from the facility, to pay to such insured those sums which such insured would have been legally obligated to pay as damages therefor, had such property belonged to another.
Coverage C—Subrogation—Offsite employees.
With respect to bodily injury sustained by any employee of an insured and caused by the nuclear energy hazard, to pay to the workmen's compensation carrier of such insured all sums which such carrier would have been entitled to recover and retain as damages from another person or organization, had such person or organization alone been legally responsible for such bodily injury, by reason of the rights acquired by subrogation by the payment of the benefits required of such carrier under the applicable workmen's compensation or occupational disease law. An employer who is a duly qualified self-insurer under such law shall be deemed to be a workmen's compensation carrier within the meaning of this coverage. This Coverage C does not apply to bodily injury sustained by any person who is employed at and in connection with the facility. This Coverage C shall not constitute workmen's compensation insurance as required under the laws of any state.
II.
Definition of insured
duly qualified self-insurer under such law shall be deemed to be a workmen's compensation carrier within the meaning of this coverage. This Coverage C does not apply to bodily injury sustained by any person who is employed at and in connection with the facility. This Coverage C shall not constitute workmen's compensation insurance as required under the laws of any state.
II.
Definition of insured.
The unqualified word
insured
includes (a) the named insured and (b) any other person or organization with respect to his legal responsibility for damages because of bodily injury or property damage caused by the nuclear energy hazard.
Subdivision (b) above does not include as an insured the United States of America or any of its agencies.
Subject to Condition 3 and the other provisions of this policy, the insurance applies separately to each insured against whom claim is made or suit is brought.
III.
Definitions.
Wherever used in this policy:
Bodily injury
means bodily injury, sickness or disease, including death resulting therefrom, sustained by any person;
Property damage
means physical injury to or destruction or radioactive contamination of property, and loss of use of property so injured, destroyed or contaminated, and loss of use of property while evacuated or withdrawn from use because possibly so contaminated or because of imminent danger of such contamination;
Nuclear material
means source material, special nuclear material or byproduct material;
Source material, special nuclear material,
and
byproduct material
have the meanings given them in the Atomic Energy Act of 1954, or in any law amendatory thereof;
Spent fuel
means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in any nuclear reactor;
Waste
means any waste material (1) containing byproduct material and (2) resulting from the operation by any person or organization of any nuclear facility included within the definition of nuclear facility under paragraph (1) or (2) thereof;
The facility
means the facilit
means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in any nuclear reactor;
Waste
means any waste material (1) containing byproduct material and (2) resulting from the operation by any person or organization of any nuclear facility included within the definition of nuclear facility under paragraph (1) or (2) thereof;
The facility
means the facility described in the declarations and includes the location designated in Item 3 of the declarations and all property and operations at such location;
Nuclear facility
means
the facility
as defined in any Nuclear Energy Liability Policy (Facility Form) issued by the companies or by __________________________________.
The term
nuclear facility
also means
(1) Any nuclear reactor,
(2) Any equipment or device designed or used for (a) separating the isotopes of uranium or plutonium, (b) processing or utilizing spent fuel, or (c) handling, processing or packaging waste,
(3) Any equipment or device used for the processing, fabricating or alloying of special nuclear material if at any time the total amount of such material in the custody of the insured at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium-233 or any combination thereof, or more than 250 grams of uranium-235,
(4) Any structure, basin, excavation, premises or place prepared or used for the storage or disposal of waste, and includes the site on which any of the foregoing is located, all operations conducted on such site and all premises used for such operations;
Indemnified nuclear facility
means
(1)
The facility
as defined in any Nuclear Energy Liability Policy (Facility Form) issued by the companies or by ______________________________________________,
lace prepared or used for the storage or disposal of waste, and includes the site on which any of the foregoing is located, all operations conducted on such site and all premises used for such operations;
Indemnified nuclear facility
means
(1)
The facility
as defined in any Nuclear Energy Liability Policy (Facility Form) issued by the companies or by ______________________________________________,
(2) Any other nuclear facility,
if financial protection is required pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, with respect to any activities or operations conducted thereat;
Nuclear reactor
means any apparatus designed or used to sustain nuclear fission in a self-supporting chain reaction or to contain a critical mass of fissionable material;
Nuclear energy hazard
means the radioactive, toxic, explosive or other hazardous properties of nuclear material, but only if:
(1) The nuclear material is at the facility or has been discharged or dispersed therefrom without intent to relinquish possession or custody thereof to any person or organization, or
(2) The nuclear material is in an insured shipment which is (a) in the course of transportation, including handling and temporary storage incidental thereto, within the territorial limits of the United States of America, its territories or possessions, Puerto Rico or the Canal Zone and (b) away from any other nuclear facility;
Insured shipment
means a shipment of source material, special nuclear material, spent fuel of waste, herein called
material,
ich is (a) in the course of transportation, including handling and temporary storage incidental thereto, within the territorial limits of the United States of America, its territories or possessions, Puerto Rico or the Canal Zone and (b) away from any other nuclear facility;
Insured shipment
means a shipment of source material, special nuclear material, spent fuel of waste, herein called
material,
(1) to the facility from a nuclear facility owned by the United States of America, but only if the transportation of the material is not by predetermination to be interrupted by the removal of the material from a transporting conveyance for any purpose other than the continuation of its transportation, or (2) from the facility to any other location except an indemnified nuclear facility, but only until the material is removed from a transporting conveyance for any purpose other than the continuation of its transportation.
IV.
Application of policy.
This policy applies only to bodily injury or property damage (1) which is caused during the policy period by the nuclear energy hazard and (2) which is discovered and for which written claim is made against the insured, not later than two years after the end of the policy period.
Exclusions
This policy does not apply:
(a) To any obligation for which the insured or any carrier as his insurer may be held liable under any workmen's compensation, unemployment compensation or disability benefits law, or under any similar law;
(b) Except with respect to liability of another assumed by the insured under contract, to bodily injury to any employee of the insured arising out of and in the course of his employment by the insured; but this exclusion does not apply to bodily injury to any person who is not employed at and in connection with the facility if the insured has complied with the requirements of the applicable workmen's compensation or occupational disease law respecting the securing of compensation benefits thereunder to his employees;
the insured arising out of and in the course of his employment by the insured; but this exclusion does not apply to bodily injury to any person who is not employed at and in connection with the facility if the insured has complied with the requirements of the applicable workmen's compensation or occupational disease law respecting the securing of compensation benefits thereunder to his employees;
(c) To liability assumed by the insured under contract, other than an assumption in a contract with another of the liability of any person or organization which would be imposed by law on such person or organization in the absence of an express assumption of liability;
(d) To bodily injury or property damage due to the manufacturing, handling or use at the location designated in Item 3 of the declarations, in time of peace or war, of any nuclear weapon or other instrument of war utilizing special nuclear material or byproduct material;
(e) To bodily injury or property damage due to war, whether or not declared, civil war, insurrection, rebellion or revolution, or to any act or conditions incident to any of the foregoing;
(f) To property damage to any property at the location designated in Item 3 of the declarations, other than aircraft, watercraft or vehicles licensed for highway use, provided such aircraft, watercraft or vehicles are not used in connection with the operation of the facility;
(g) To property damage to nuclear material in the course of transportation to or from the facility including handling or storage incidental thereto;
any property at the location designated in Item 3 of the declarations, other than aircraft, watercraft or vehicles licensed for highway use, provided such aircraft, watercraft or vehicles are not used in connection with the operation of the facility;
(g) To property damage to nuclear material in the course of transportation to or from the facility including handling or storage incidental thereto;
(h) Under Coverage B, to property damage due to neglect of the insured to use all reasonable means to save and preserve the property after knowledge of the occurrence resulting in such property damage.
Conditions
1.
Premium
—(1)
Definitions.
With reference to the premium for this policy:
advance premium,
for any calendar year, is the estimated 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 Credit Rating Plan), premiums and minimum premiums applicable to this insurance;
Reserve premium
means that portion of the standard premium paid to the companies and specifically allocated under the Industry Credit Rating Plan for incurred losses. The amount of the
reserve premium
for this policy for any calendar year during which this policy is in force is the amount designated as such in the Standard Premium Endorsement for that calendar year;
Industry reserve premium,
for any calendar year, is the sum of the reserve premiums for that calendar year for all Nuclear Energy Liability Policies issued by the Nuclear Energy Liability Insurance Association and Mutual Atomic Energy Liability Underwriters and subject to the Industry Credit Rating Plan;
Policy refund ratio,
for any calendar year, is the ratio of the named insured's reserve premium for that calendar year to the industry reserve premium for that calendar year;
Incurred losses
means the sum of:
Nuclear Energy Liability Policies issued by the Nuclear Energy Liability Insurance Association and Mutual Atomic Energy Liability Underwriters and subject to the Industry Credit Rating Plan;
Policy refund ratio,
for any calendar year, is the ratio of the named insured's reserve premium for that calendar year to the industry reserve premium for that calendar year;
Incurred losses
means the sum of:
(1) All losses and expenses by Nuclear Energy Liability Insurance Association and Mutual Atomic Energy Liability Underwriters, and
(2) All reserves for unpaid losses and expenses as estimated by Nuclear Energy Liability Insurance Association and Mutual Atomic Energy Liability Underwriters because of obligations assumed and the expenses incurred in connection with such obligations by members of Nuclear Energy Liability Insurance Association and Mutual Atomic Energy Liability Underwriters under all Nuclear Energy Liability Policies issued by Nuclear Energy Liability Insurance Association and Mutual Atomic Energy Liability Underwriters and subject to the Industry Credit Rating Plan;
Reserve for refunds,
at the end of any calendar year, is the amount by which (1) the sum of all industry reserve premiums for the period from January 1, 1957 through the end of such calendar year exceeds (2) the total for the same period of (a) all incurred losses, valued as of the next following July 1, and (b) all reserve premium refunds made under the Industry Credit Rating Plan by members of Nuclear Energy Liability Insurance Association and Mutual Atomic Energy Liability Underwriters;
Industry reserve premium refund,
for any calendar year, is determined by multiplying the reserve for refunds at the end of the ninth calendar year thereafter by the ratio of the industry reserve premium for the calendar year for which the premium refund is being determined to the sum of such amount and the total industry reserve premiums for the next nine calendar years thereafter, provided that the industry reserve premium refund for any calendar year shall
rmined by multiplying the reserve for refunds at the end of the ninth calendar year thereafter by the ratio of the industry reserve premium for the calendar year for which the premium refund is being determined to the sum of such amount and the total industry reserve premiums for the next nine calendar years thereafter, provided that the industry reserve premium refund for any calendar year shall in no event be greater than the industry reserve premium for such calendar year.
(2)
Payment of advance and standard premiums.
The named insured shall pay the companies the advance premium stated in the declarations, for the period from the effective date of this policy through December 31 following. Thereafter, at the beginning of each calendar year while this policy is in force, the named insured shall pay the advance premium for such year to the companies. The advance premium for each calendar year shall be stated in the Advance Premium Endorsement for such calendar year issued to the named insured as soon as practicable prior to or after the beginning of such year.
As soon as practicable after each December 31 and after the termination of this policy, the standard premium for the preceding calendar year shall be finally determined and stated in the Standard Premium Endorsement for that calendar year. If the standard premium so determined exceeds the advance premium previously paid for such calendar year, the named insured shall pay the excess to the companies; if less, the companies shall return to the named insured the excess portion paid by such insured.
The named insured shall maintain records of the information 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 policy period and at such other times during the policy period as the companies may direct.
less, the companies shall return to the named insured the excess portion paid by such insured.
The named insured shall maintain records of the information 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 policy period and at such other times during the policy period as the companies may direct.
(3)
Use of reserve premiums.
All reserve premiums paid or payable for this policy may be used by the members of Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters to discharge their obligations with respect to incurred losses whether such losses are incurred under this policy or under any other policy issued by the Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters.
(4)
Reserve premium refunds.
A portion of the reserve premium for this policy for the first calendar year of any group of ten consecutive calendar years shall be returnable to the named insured provided there is a reserve for refunds at the end of the tenth calendar year.
(5)
Computation of reserve premium refunds.
The reserve premium refund due the named insured for any calendar year shall be determined by multiplying any industry reserve premium refund for such calendar year by the policy refund ratio for such calendar year. The reserve premium refund for any calendar year shall be finally determined as soon as practicable after July 1 of the tenth calendar year thereafter.
(6)
Final premium.
The final premium for this policy shall be the sum of the standard premiums for each calendar year, or portion thereof, during which this policy remains in force less the sum of all refunds of reserve premiums due the named insured under the provisions of this Condition 1.
year shall be finally determined as soon as practicable after July 1 of the tenth calendar year thereafter.
(6)
Final premium.
The final premium for this policy shall be the sum of the standard premiums for each calendar year, or portion thereof, during which this policy remains in force less the sum of all refunds of reserve premiums due the named insured under the provisions of this Condition 1.
(7)
Reserve premium refund agreement.
Each member of Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters subscribing this policy for any calendar year, or portion thereof, thereby agrees for itself, severally and not jointly, and in the respective proportion of its liability assumed under this policy for that calendar year, to return to the named insured that portion of any reserve premium refund due the named insured for that calendar year, determined in accordance with the provisions of this Condition 1.
2.
Inspection; suspension.
The companies shall be permitted to inspect the facility and to examine the insured's books and records at any time, as far as they relate to the subject-matter of this insurance.
If a representative of the companies discovers a condition which he believes to be unduly dangerous with respect to the nuclear energy hazard, a representative of the companies may request that such condition be corrected without delay. In the event of noncompliance with such request, a representative of the companies may, by notice to the named insured, to any other person or organization considered by the companies to be responsible for the continuance of such dangerous condition, and to the United States Atomic Energy Commission, suspend the insurance with respect to the named insured and such other person or organization effective 12:00 midnight of the next business day of such Commission following the date that such Commission receives such notice
y other person or organization considered by the companies to be responsible for the continuance of such dangerous condition, and to the United States Atomic Energy Commission, suspend the insurance with respect to the named insured and such other person or organization effective 12:00 midnight of the next business day of such Commission following the date that such Commission receives such notice. The period of such suspension shall terminate as of the time stated in a written notice from the companies to the named insured and to each such person or organization that such condition has been corrected.
3.
Limit of liability; termination of policy upon exhaustion of limit.
Regardless of the number of persons and organizations who are insureds under this policy, and regardless of the number of claims made and suits brought against any or all insureds because of one or more occurrences resulting in bodily injury or property damage caused during the policy period by the nuclear energy hazard, the limit of the companies' liability stated in the declarations is the total liability of the companies for their obligations under this policy and the expenses incurred by the companies in connection with such obligations, including.
(a) Payments in settlement of claims and in satisfaction of judgments against the insureds for damages because of bodily injury or property damage, payments made under parts (2), (3) and (4) of Coverage A and payments made in settlement of claims under Coverages B and C;
(b) Payments for expenses incurred in the investigation, negotiation, settlement and defense of any claim or suit, including, but not limited to, the cost of such services by salaried employees of the companies, fees and expenses of independent adjusters, attorneys' fees and disbursements, expenses for expert testimony, inspection and appraisal of property, examination, X-ray or autopsy or medical expenses of any kind;
ses incurred in the investigation, negotiation, settlement and defense of any claim or suit, including, but not limited to, the cost of such services by salaried employees of the companies, fees and expenses of independent adjusters, attorneys' fees and disbursements, expenses for expert testimony, inspection and appraisal of property, examination, X-ray or autopsy or medical expenses of any kind;
(c) Payments for expenses incurred by the companies in investigating an occurrence resulting in bodily injury or property damage or in minimizing its effects.
Each payment made by the companies in discharge of their obligations under this policy or for expenses incurred in connection with such obligations shall reduce by the amount of such payment the limit of the companies' liability under this policy.
If, during the policy period or subsequent thereto, the total of such payments made by the companies shall exhaust the limit of the companies' liability under this policy, all liability and obligations of the companies under this policy shall thereupon terminate and shall be conclusively presumed to have been discharged. This policy, if not theretofore canceled, shall thereupon automatically terminate.
Regardless of the number of years this policy shall continue in force and the number of premiums which shall be payable or paid, the limit of the companies' liability stated in the declarations shall not be cumulative from year to year.
4.
Limitation of liability; common occurrence.
Any occurrence or series of occurrences resulting in bodily injury or property damage arising out of the radioactive, toxic, explosive or other hazardous properties of
(a) Nuclear material discharged or dispersed from the facility over a period of days, weeks, months or longer and also arising out of such properties of other nuclear material so discharged or dispersed from one or more other nuclear facilities insured by the companies under a Nuclear Energy Liability Policy (Facility Form), or
of the radioactive, toxic, explosive or other hazardous properties of
(a) Nuclear material discharged or dispersed from the facility over a period of days, weeks, months or longer and also arising out of such properties of other nuclear material so discharged or dispersed from one or more other nuclear facilities insured by the companies under a Nuclear Energy Liability Policy (Facility Form), or
(b) Source material, special nuclear material, spent fuel or waste in the course of transportation for which insurance is afforded under this policy and also arising out of such properties of other source material, special nuclear material, spent fuel or waste in the course of transportation for which insurance is afforded under one or more other Nuclear Energy Liability Policies (Facility Form) issued by the companies, shall be deemed to be a common occurrence resulting in bodily injury or property damage caused by the nuclear energy hazard.
With respect to such bodily injury and property damage (1) the total aggregate liability of the companies under all Nuclear Energy Liability Policies (Facility Form), including this policy, applicable to such common occurrence shall be the sum of the limits of liability of all such policies, the limit of liability of each such policy being as determined by Condition 3 thereof, but in no event shall such total aggregate liability of the companies exceed $______________;
1
(2) the total liability of the companies under this policy shall not exceed that proportion of the total aggregate liability of the companies, as stated in clause (1) above, which (a) the limit of liability of this policy, as determined by Condition 3, bears to (b) the sum of the limits of liability of all such policies issued by the companies, the limit of liability of each such policy being as determined by Condition 3, thereof
mpanies under this policy shall not exceed that proportion of the total aggregate liability of the companies, as stated in clause (1) above, which (a) the limit of liability of this policy, as determined by Condition 3, bears to (b) the sum of the limits of liability of all such policies issued by the companies, the limit of liability of each such policy being as determined by Condition 3, thereof.
1
For policies issued by Nuclear Energy Liability-Property Insurance Association the amount will be “$124,000,000,” for policies issued by Mutual Atomic Energy Liability Underwriters, the amount will be “$36,000,000.”
The provisions of this condition shall not operate to increase the limit of the companies' liability under this policy.
5.
Notice of occurrence, claim, or suit.
In the event of bodily injury or property damage to which this policy applies or of an occurrence which may give rise to claims therefor, written notice containing particulars sufficient to identify the insured and also reasonably obtainable information with respect to the time, place and circumstances thereof, and the names and addresses of the injured and of available witnesses, shall be given by or for the insured to ____________or the companies as soon as practicable. If claim is made or suit is brought against the insured, he shall immediately forward to __________ or the companies every demand, notice, summons or other process received by him or his representative.
6.
Assistance and cooperation of the insured.
The insured shall cooperate with the companies and, upon the companies' request, attend hearings and trials and assist in making settlements, securing and giving evidence, obtaining the attendance of witnesses and in the conduct of any legal proceedings in connection with the subject matter of this insurance. The insured shall not, except at his own cost, make any payment, assume any obligation or incur any expense.
7.
Action against companies—Coverages A and C
anies' request, attend hearings and trials and assist in making settlements, securing and giving evidence, obtaining the attendance of witnesses and in the conduct of any legal proceedings in connection with the subject matter of this insurance. The insured shall not, except at his own cost, make any payment, assume any obligation or incur any expense.
7.
Action against companies—Coverages A and C.
No action shall lie against the companies or any of them unless, as a condition precedent thereto, the insured shall have fully complied with all the terms of this policy, nor until the amount of the insured's obligation to pay shall have been finally determined either by judgment against the insured after actual trial or by written agreement of the insured, the claimant and the companies.
Any person or organization or the legal representative thereof who has secured such judgment or written agreement shall thereafter be entitled to recover under this policy to the extent of the insurance afforded by this policy. No person or organization shall have any right under this policy to join the companies or any of them as parties to any action against the insured to determine the insured's liability, nor shall the companies or any of them be impleaded by the insured or his legal representative. Bankruptcy or insolvency of the insured or of the insured's estate shall not relieve the companies of any of their obligations hereunder.
8.
Action against companies—Coverage B.
No suit or action on this policy for the recovery of any claim for property damage to which Coverage B applies shall be sustainable in any court of law or equity unless all the requirements of this policy shall have been complied with and unless commenced within two years after the occurrence resulting in such property damage.
9.
Insured's duties when loss occurs—Coverage B.
In the event of property damage to which Coverage B applies, the insured shall furnish a complete inventory of the property damage claimed, showing in detail the amount thereof
equity unless all the requirements of this policy shall have been complied with and unless commenced within two years after the occurrence resulting in such property damage.
9.
Insured's duties when loss occurs—Coverage B.
In the event of property damage to which Coverage B applies, the insured shall furnish a complete inventory of the property damage claimed, showing in detail the amount thereof. Within ninety-one days after the occurrence resulting in such property damage, unless such time is extended in writing by the companies, the insured shall render to the companies a proof of loss, signed and sworn to by the insured, stating the knowledge and belief of the insured as to the following: identification of such occurrence; the interest of the insured in the property destroyed or damaged, and the amount of each item of property damage claimed; all encumbrances on such property; and all other contracts of insurance, whether valid or not, covering any of such property. The insured shall include in the proof of loss a copy of all descriptions and schedules in all policies. Upon the companies' request, the insured shall furnish verified plans and specifications of any such property. The insured, as often as may be reasonably required, shall exhibit to any person designated by the companies any of such property, and submit to examinations under oath by any person named by the companies and subscribe the same; and, as often as may be reasonably required, shall produce for examination all books of account, records, bills, invoices and other vouchers, or certified copies thereof if originals be lost, at such reasonable time and place as may be designated by the companies or their representatives, and shall permit extracts and copies thereof to be made.
10.
Appraisal—Coverage B
nies and subscribe the same; and, as often as may be reasonably required, shall produce for examination all books of account, records, bills, invoices and other vouchers, or certified copies thereof if originals be lost, at such reasonable time and place as may be designated by the companies or their representatives, and shall permit extracts and copies thereof to be made.
10.
Appraisal—Coverage B.
In case the insured and the companies shall fail to agree as to the amount of property damage, then, on the written demand of either, each shall select a competent and disinterested appraiser and notify the other of the appraiser selected within twenty days of such demand. The appraisers shall first select a competent and disinterested umpire and, failing for fifteen days to agree upon such umpire, then, on request of the insured or the companies, such umpire shall be selected by a judge of a court of record in the state in which the property is located. The appraisers shall then appraise each item of property damage and, failing to agree, shall submit their differences only to the umpire. An award in writing, so itemized, of any two when filed with the companies shall determine the amount of property damage. Each appraiser shall be paid by the party selecting him and the expenses of the appraisal and umpire shall be paid by the parties equally. The companies shall not be held to have waived any of their rights by any act relating to appraisal.
11.
Subrogation.
In the event of any payment under this policy, the companies shall be subrogated to all the insured's rights of recovery therefor against any person or organization, and the insured shall execute and deliver instruments and papers and do whatever else is necessary to secure such rights
companies shall not be held to have waived any of their rights by any act relating to appraisal.
11.
Subrogation.
In the event of any payment under this policy, the companies shall be subrogated to all the insured's rights of recovery therefor against any person or organization, and the insured shall execute and deliver instruments and papers and do whatever else is necessary to secure such rights. Prior to knowledge of bodily injury or property damage caused by the nuclear energy hazard the insured may waive in writing any right or recovery against any person or organization, but after such knowledge the insured shall not waive or otherwise prejudice any such right of recovery.
The companies hereby waive any rights of subrogation acquired against the United States of America or any of its agencies by reason of any payment under this policy.
The companies do not relinquish, by the foregoing provisions, any right to restitution from the insured out of any recoveries made by the insured on account of a loss covered by this policy of any amounts to which the companies would be entitled had such provisions, or any of them, not been included in this policy.
12.
Other insurance.
If the insurance afforded by this policy for loss or expense is concurrent with insurance afforded for such loss or expense by a Nuclear Energy Liability Policy (Facility Form) issued to the named insured by __________ hereinafter called “concurrent insurance,” the companies shall not be liable under this policy for a greater proportion of such loss or expense than the limit of liability stated in the declarations of this policy bears to the sum of such limit and the limit of liability stated in the declarations of such concurrent policy
Liability Policy (Facility Form) issued to the named insured by __________ hereinafter called “concurrent insurance,” the companies shall not be liable under this policy for a greater proportion of such loss or expense than the limit of liability stated in the declarations of this policy bears to the sum of such limit and the limit of liability stated in the declarations of such concurrent policy.
If the insured has other valid and collectible insurance (other than such concurrent insurance or any other nuclear energy liability insurance issued by the companies or __________ to any person or organization) applicable to loss or expense covered by this policy, the insurance afforded by this policy shall be excess insurance over such other insurance; provided, with respect to any person who is not employed at and in connection with the facility, such insurance as is afforded by this policy for bodily injury to an employee of the insured arising out of and in the course of his employment shall be primary insurance under such other insurance.
13.
Changes.
Notice to any agent or knowledge possessed by any agent or by any other person shall not effect a waiver or a change in any part of this policy or stop the companies from asserting any right under the terms of this policy; nor shall the terms of this policy be waived or changed except by endorsement issued to form a part of this policy executed by __________ on behalf of the companies.
14.
Assignment.
Assignment of interest by the named insured shall not bind the companies until their consent is endorsed hereon; if, however, the named insured shall die or be declared bankrupt or insolvent, this policy shall cover such insured's legal representative, receiver or trustee as an insured under this policy, but only with respect to his liability as such, and then only provided written notice of his appointment as legal representative, receiver or trustee is given to the companies within ten days after such appointment.
15.
Cancellation
sured shall die or be declared bankrupt or insolvent, this policy shall cover such insured's legal representative, receiver or trustee as an insured under this policy, but only with respect to his liability as such, and then only provided written notice of his appointment as legal representative, receiver or trustee is given to the companies within ten days after such appointment.
15.
Cancellation.
This policy may be canceled by the named insured by mailing to the companies and the United States Nuclear Regulatory Commission written notice stating when, not less than thirty days thereafter, such cancellation shall be effective. This policy may be canceled by the companies by mailing to the named insured at the address shown in this policy and to the United States Nuclear Regulatory Commission written notice stating when, not less than ninety days thereafter, such cancellation shall be effective; provided in the event of non-payment of premium or if the operator of the facility, as designated in the declarations, is replaced by another person or organization, this policy may be canceled by the companies by mailing to the named insured at the address shown in this policy and to the United States Nuclear Regulatory Commission written notice stating when, not less than thirty days thereafter, such cancellation shall be effective. The mailing of notice as aforesaid shall be sufficient proof of notice. The effective date and hour of cancellation stated in the notice shall become the end of the policy period. Delivery of such written notice either by the named insured or by the companies shall be equivalent to mailing.
Upon termination or cancellation of this policy, other than as of the end of December 31 in any year, the earned premium for the period this policy has been in force since the preceding December 31 shall be computed in accordance with the following provisions:
e end of the policy period. Delivery of such written notice either by the named insured or by the companies shall be equivalent to mailing.
Upon termination or cancellation of this policy, other than as of the end of December 31 in any year, the earned premium for the period this policy has been in force since the preceding December 31 shall be computed in accordance with the following provisions:
(a) If this policy is terminated, pursuant to Condition 3, by reason of the exhaustion of the limit of the companies' liability, all premium theretofore paid or payable shall be fully earned;
(b) If the named insured cancels, the earned premium for such period shall be computed in accordance with the customary annual short rate table and procedure, provided if the named insured cancels after knowledge of bodily injury or property damage caused by the nuclear energy hazard, all premiums theretofore paid or payable shall be fully earned;
(c) If the companies cancel, the earned premium for such period shall be computed pro rata.
Premium adjustment, if any, may be made either at the time cancellation is effected or as soon as practicable after cancellation becomes effective, but payment or tender of unearned premium is not a condition of cancellation.
16.
Company representation.
(a) Any notice, sworn statement or proof of loss which may be required by the provisions of this policy may be given to any one of the companies, and such notice, statement or proof of loss so given shall be valid and binding as to all companies.
(b) In any action or suit against the companies, service of process may be made on any one of them, and such service shall be deemed valid and binding service on all companies.
tatement or proof of loss which may be required by the provisions of this policy may be given to any one of the companies, and such notice, statement or proof of loss so given shall be valid and binding as to all companies.
(b) In any action or suit against the companies, service of process may be made on any one of them, and such service shall be deemed valid and binding service on all companies.
(c) __________ is the agent of the companies with respect to all matters pertaining to this insurance. All notices or other communications required by this policy to be given to the companies may be given to such agent, at its office at __________ with the same force and effect as if given directly to the companies. Any requests, demands or agreements made by such agent shall be deemed to have been made directly by the companies.
17.
Authorization of named insured.
Except with respect to compliance with the obligations imposed on the insured by Conditions 5, 6, 7, 8, 9, 10 and 11 of this policy, the named insured is authorized to act for every other insured in all matters pertaining to this insurance.
18.
Changes in subscribing companies and in their proportionate liability.
By acceptance of this policy the named insured agrees that the members of __________ liable under this policy, and the proportionate liability of each such member, may change from year to year, and further agrees that regardless of such changes:
(1) Each company subscribing this policy upon its issuance shall be liable only for its stated proportion of any obligation assumed or expense incurred under this policy because of bodily injury or property damage caused, during the period from the effective date of this policy to the close of December 31 next following, by the nuclear energy hazard; for each subsequent calendar year, beginning January 1 next following the effective date of this policy, the subscribing companies and the proportionate liability of each such company shall be stated in an endorsement issued to form a part of this policy, duly e
aused, during the period from the effective date of this policy to the close of December 31 next following, by the nuclear energy hazard; for each subsequent calendar year, beginning January 1 next following the effective date of this policy, the subscribing companies and the proportionate liability of each such company shall be stated in an endorsement issued to form a part of this policy, duly executed and attested by the __________ of ________________________ on behalf of each such company, and mailed or delivered to the named insured;
(2) This policy shall remain continuously in effect from the effective date stated in the declarations until terminated in accordance with Condition 3 or Condition 15;
(3) Neither the liability of any company nor the limit of liability stated in the declarations shall be cumulative from year to year.
19.
Declarations.
By acceptance of this policy the named insured agrees that the statements in the declarations are the agreements and representations of the named insured, that this policy is issued in reliance upon the truth of such representations and that this policy embodies all agreements between the named insured and the companies or any of their agents relating to this insurance.
In Witness Whereof, each of the subscribing companies has caused this policy to be executed and attested on its behalf by the ________ of ____________________ and duly countersigned on the declarations page by an authorized representative.
For the subscribing companies.
By __________________________
Subscribing Companies Proportion of 100%
Nuclear Energy Liability Policy No.________ (Facility Form)
Declarations
Item 1. Named Insured ________________.
Address ________________________________.
(No. Street Town or City State)
Item 2. Policy Period: Beginning at 12:01 a.m. on the __________ day of ______________, 19____, and continuing through the effective date of the cancellation or termination of this policy, standard time at the address of the named insured as stated herein.
Item 3
ity Form)
Declarations
Item 1. Named Insured ________________.
Address ________________________________.
(No. Street Town or City State)
Item 2. Policy Period: Beginning at 12:01 a.m. on the __________ day of ______________, 19____, and continuing through the effective date of the cancellation or termination of this policy, standard time at the address of the named insured as stated herein.
Item 3. Description of the Facility:
Location
Type
The Operator of the facility is ________.
Item 4. The limit of the companies' liability is $______ subject to all the terms of this policy having reference thereto.
Item 5. Advance Premium $______.
Item 6. These declarations and the schedules forming a part hereof give a complete description of the facility, insofar as it relates to the nuclear energy hazard, except as noted ____________________________________
Date of Issue ____________, 19____.
Countersigned by __________________________
(Authorized representative)
Nuclear Energy Liability Policy
(Facility Form)
Amendment of Transportation Coverage (Indemnified Nuclear Facility)
It is agreed that the definition of
insured shipment
in Insuring Agreement III is amended to read:
insured shipment
means a shipment of source material, special nuclear material, spent fuel or waste, herein called
material,
(1) to the facility from any location except an indemnified nuclear facility, but only if the transportation of the material is not by predetermination to be interrupted by removal of the material from a transporting conveyance for any purpose other than the continuation of its transportation, or (2) from the facility to any other location, but only until the material is removed from a transporting conveyance for any purpose other than the continuation of its transportation.
Effective date of this endorsement ______ to form a part of Policy No. ______.
Issued to ______________________________
Date of Issue __________________________.
For the subscribing companies
of its transportation, or (2) from the facility to any other location, but only until the material is removed from a transporting conveyance for any purpose other than the continuation of its transportation.
Effective date of this endorsement ______ to form a part of Policy No. ______.
Issued to ______________________________
Date of Issue __________________________.
For the subscribing companies.
By ______________________________
Countersigned by __________________________
Endorsement No. ______________.
Optional Amendatory Endorsement
(Facility Form)
It is agreed that:
I. The first sentence of the definition of nuclear facility is amended to read:
nuclear facility
means
the facility
as defined in any Nuclear Energy Liability Policy (Facility Form) issued by __________ or by ________________.
II. The definition of
indemnified nuclear facility
is replaced by the following:
indemnified nuclear facility
means
(1)
the facility
as defined in any Nuclear Energy Liability Policy (Facility Form) issued by ________ or by ________ or
(2) any other nuclear facility,
if financial protection is required pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof; with respect to any activities or operations conducted thereat:
III. Condition 4 is replaced by the following:
Limitation of liability; common occurrence. Any occurrence or series of occurrences resulting in bodily injury or property damage arising out of the radioactive, toxic, explosive, or other hazardous properties of
(a) nuclear material discharged or dispersed from the facility over a period of days, weeks, months or longer and also arising out of such properties of other nuclear material so discharged or dispersed from one or more other nuclear facilities insured under any Nuclear Energy Liability Policy (Facility Form) issued by ____________ or,
adioactive, toxic, explosive, or other hazardous properties of
(a) nuclear material discharged or dispersed from the facility over a period of days, weeks, months or longer and also arising out of such properties of other nuclear material so discharged or dispersed from one or more other nuclear facilities insured under any Nuclear Energy Liability Policy (Facility Form) issued by ____________ or,
(b) source material, special nuclear material, spent fuel or waste in the course of transportation for which insurance is afforded under this policy and also arising out of such properties of other source material, special nuclear material, spent fuel or waste in the course of transportation for which insurance is afforded under one or more other Nuclear Energy Liability Policies (Facility Form) issued by ________________.
shall be deemed to be a common occurrence resulting in bodily injury or property damage caused by the nuclear energy hazard.
With respect to such bodily injury and property damage (1) the total aggregate liability of the members of ________, under all Nuclear Energy Liability Policies (Facility Form), including this policy, applicable to such common occurrence shall be the sum of the limits of liability of all such policies, the limit of liability of each such policy being as determined by Condition 3 thereof, but in no event shall such total aggregate liability of such members exceed $________;
1
(2) the total liability of the companies under this policy shall not exceed that proportion of the total aggregate liability of the members of ________, as stated in clause (1) above, which (a) the limit of liability of this policy, as determined by Condition 3, bears to (b) the sum of the limits of liability of all such policies issued by such members the limit of liability of each such policy being as determined by Condition 3 thereof
under this policy shall not exceed that proportion of the total aggregate liability of the members of ________, as stated in clause (1) above, which (a) the limit of liability of this policy, as determined by Condition 3, bears to (b) the sum of the limits of liability of all such policies issued by such members the limit of liability of each such policy being as determined by Condition 3 thereof.
1
For policies issued by Nuclear Energy Liability-Property Insurance Association the amount will be “$124,000,000,” for policies issued by Mutual Atomic Energy Liability Underwriters, the amount will be “$36,000,000.”
The provisions of this condition shall not operate to increase the limit of the companies' liability under this policy.
IV. The second paragraph of Condition 12
Other Insurance
is amended to read:
If the insured has other valid and collectible insurance (other than such concurrent insurance or any other nuclear energy liability insurance issued by ________ or to any person or organization) applicable to loss or expense covered by this policy the insurance afforded by this policy shall be excess insurance over such other insurance; provided, with respect to any person who is not employed at and in connection with the facility, such insurance as is afforded by this policy for bodily injury to an employee of the insured arising out of and in the course of his employment shall be primary insurance under such other insurance.
Nuclear Energy Liability Policy
(Facility Form)
Restoration of Limit of Liability Endorsement
It is agreed that:
1. Payments made by the companies under this policy have reduced the limit of the companies' liability, stated in Item 4 of the declarations, to $________.
2. Such reduced limit is restored to the amount stated in Item 4 of the declarations
primary insurance under such other insurance.
Nuclear Energy Liability Policy
(Facility Form)
Restoration of Limit of Liability Endorsement
It is agreed that:
1. Payments made by the companies under this policy have reduced the limit of the companies' liability, stated in Item 4 of the declarations, to $________.
2. Such reduced limit is restored to the amount stated in Item 4 of the declarations. Such restored limit applies to obligations assumed or expenses incurred because of bodily injury or property damage caused during the period from the effective date of this endorsement to the termination of the policy, by the nuclear energy hazard.
Note:
When the reduction of the limit of liability results from a clearly identifiable nuclear event and restoration is offered retroactive to the effective date of the policy for claims other than those resulting from said event, above paragraph 2 will be replaced by the following:
2. Such reduced limit is restored to the amount stated in Item 4 of the declarations, except with respect to bodily injury or property damage resulting from (describe nuclear event).
3. The reduced limit of liability stated in paragraph 1 above, and the limit of liability stated in Item 4 of the declarations, as restored by this endorsement, shall not be cumulative; and each payment made by the companies after the effective date of this endorsement for any loss or expense covered by the policy shall reduce by the amount of such payment both the reduced limit of liability stated in paragraph 1 above and the limit of liability stated in Item 4 of the declarations, as restored by this endorsement, regardless of which limit of liability applies with respect to bodily injury or property damage out of which such loss or expense arises.
Effective date of this endorsement ______to form a part of Policy No. ________
Issued to ____________.
Date of Issue ____________.
For the subscribing companies
By ________________
Countersigned by __________________________
Endorsement No. ______
s endorsement, regardless of which limit of liability applies with respect to bodily injury or property damage out of which such loss or expense arises.
Effective date of this endorsement ______to form a part of Policy No. ________
Issued to ____________.
Date of Issue ____________.
For the subscribing companies
By ________________
Countersigned by __________________________
Endorsement No. ______.
Nuclear Energy Liability Policy
(Facility Form)
Amendatory Endorsement
This policy does not apply to bodily injury or property damage with respect to which the insured is entitled to indemnity from the United States Nuclear Regulatory Commission under the provisions of Indemnity Agreement No. ______ between the United States Nuclear Regulatory Commission and __________, dated __________, as now in effect or as hereafter amended.
Effective date of this endorsement to form a part of Policy No.
Issued to __________.
Date of issue __________.
For the subscribing companies ________
By __________________________
Countersigned by ____________________________
Endorsement No. ______.
Nuclear Energy Liability Policy
(Facility Form)
Waiver of Defenses Endorsement
(Extraordinary Nuclear Occurrence)
The named insured, acting for himself and every other insured under the policy, and the members of ________________________ agree as follows:
1. With respect to any extraordinary nuclear occurrence to which the policy applies as proof of financial protection and which—
(a) Arises out of or results from or occurs in the course of the construction, possession, or operation of the facility, or
(b) Arises out of or results from or occurs in the course of the transportation of nuclear material to or from the facility, the insureds and the companies agree to waive
(1) Any issue or defense as to the conduct of the claimant or the fault of the insureds, including, but not limited to:
of or results from or occurs in the course of the construction, possession, or operation of the facility, or
(b) Arises out of or results from or occurs in the course of the transportation of nuclear material to or from the facility, the insureds and the companies agree to waive
(1) Any issue or defense as to the conduct of the claimant or the fault of the insureds, including, but not limited to:
(i) Negligence,
(ii) Contributory negligence,
(iii) Assumption of risk, and
(iv) Unforeseeable intervening causes whether involving the conduct of a third person or an act of God,
(2) Any issue or defense as to charitable or governmental immunity, and
(3) Any issue or defense based on any statue of limitations if suit is instituted within 3 years from the date on which the claimant first knew, or reasonably could have known, of his bodily injury or property damage and the cause thereof, but in no event more than 10 years after the date of the nuclear incident.
The waiver of any such issue or defense shall be effective regardless of whether such issue or defense may otherwise be deemed jurisdictional or relating to an element in the cause of action.
2. The waivers set forth in paragraph 1 above do not apply to
(a) Bodily injury or property damage which is intentionally sustained by the claimant or which results from a nuclear incident intentionally and wrongfully caused by the claimant;
(b) Bodily injury sustained by any claimant who is employed at the site of and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits therefor are either payable or required to be provided under any workmen's compensation or occupational disease law;
he claimant or which results from a nuclear incident intentionally and wrongfully caused by the claimant;
(b) Bodily injury sustained by any claimant who is employed at the site of and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits therefor are either payable or required to be provided under any workmen's compensation or occupational disease law;
(c) Any claim for punitive or exemplary damages, provided, with respect to any claim for wrongful death under any State law which provides for damages only punitive in nature, this exclusion does not apply to the extent that the claimant has sustained actual damages, measured by the pecuniary injuries resulting from such death but not to exceed the maximum amount otherwise recoverable under such law.
3. The waivers set forth in paragraph 1 above shall be effective only with respect to bodily injury or property damage to which the policy applies under its terms other than this endorsement.
Such waivers shall not apply to, or prejudice the prosecution or defense of any claim or portion of claim which is not within the protection afforded under—
(1) The provisions of the policy applicable to the financial protection required of the named insured,
(2) The agreement of indemnification between the named insured and the Nuclear Regulatory Commission made pursuant to section 170 of the Atomic Energy Act of 1954, as amended, and
judice the prosecution or defense of any claim or portion of claim which is not within the protection afforded under—
(1) The provisions of the policy applicable to the financial protection required of the named insured,
(2) The agreement of indemnification between the named insured and the Nuclear Regulatory Commission made pursuant to section 170 of the Atomic Energy Act of 1954, as amended, and
(3) The limit of liability provisions of subsection 170 e. of the Atomic Energy Act of 1954, as amended.
Such waivers shall not preclude a defense based upon the failure of the claimant to take reasonable steps to mitigate damages.
4. Subject to all of the limitations stated in this endorsement and in the Atomic Energy Act of 1954, as amended, the waivers set forth in paragraph 1 above shall be judicially enforceable in accordance with their terms against any insured in an action to recover damages because of bodily injury or property damage to which the policy applies as proof of financial protection.
5. As used herein:
Extraordinary nuclear occurrence
means an event which the Nuclear Regulatory Commission has determined to be an extraordinary nuclear occurrence as defined in the Atomic Energy Act of 1954, as amended,
financial protection
and
nuclear incident
have the meanings given them in the Atomic Energy Act of 1954, as amended.
Claimant
means the person or organization actually sustaining the bodily injury or property damage and also includes his assignees, legal representatives and other persons or organizations entitled to bring an action for damages on account of such injury or damage.
Nuclear Energy Liability Policy
(Facility Form)
Amendatory Endorsement
(Application of Policy)
It is agreed that insuring agreement IV of the policy, captioned
Application of Policy
is amended to read as follows: Application of Policy
nd also includes his assignees, legal representatives and other persons or organizations entitled to bring an action for damages on account of such injury or damage.
Nuclear Energy Liability Policy
(Facility Form)
Amendatory Endorsement
(Application of Policy)
It is agreed that insuring agreement IV of the policy, captioned
Application of Policy
is amended to read as follows: Application of Policy. This policy applies only to bodily injury or property damage: (1) Which is caused during the policy period by the nuclear energy hazard, and (2) which is discovered and for which written claim is made against the insured, not later than 10 years after the end of the policy period.
Nuclear Energy Liability Policy
(Facility Form)
Waiver of Defense Endorsement
(Extraordinary Nuclear Occurrence)
The named insured, acting for himself and every other insured under the policy, and the members of
agree as follows:
1. With respect to any extraordinary nuclear occurrence to which the policy applies as proof of financial protection and which
(a) Arises out of or results from or occurs in the course the construction, possession, or operation of the facility, or
(b) Arises out of or results from or occurs in the course of the transportation of nuclear material to or from the facility.
the insured and the companies agree to waive.
(1) Any issue or defense as to the conduct of the claimant or the fault of the insureds, including but not limited to:
out of or results from or occurs in the course the construction, possession, or operation of the facility, or
(b) Arises out of or results from or occurs in the course of the transportation of nuclear material to or from the facility.
the insured and the companies agree to waive.
(1) Any issue or defense as to the conduct of the claimant or the fault of the insureds, including but not limited to:
(i) Negligence,
(ii) Contributory negligence,
(iii) Assumption of risk, and
(iv) Unforeseeable intervening causes, whether involving the conduct of a third person, or an act of God,
(2) Any issue or defense as to charitable or governmental immunity, and
(3) Any issue or defense based on any statute of limitations if suit is instituted within three (3) years from the date on which the claimant first knew, or reasonably could have known, of his bodily injury or property damage and the cause thereof, but in no event more than twenty (20) years after the date of the nuclear incident.
The waiver of any such issue or defense shall be effective regardless of whether such issue or defense may otherwise be deemed jurisdictional or relating to an element in the cause of action.
2. The waivers set forth in paragraph 1. above do not apply to
(a) Bodily injury or property damage which is intentionally sustained by the claimant or which results from a nuclear incident intentionally and wrongfully caused by the claimant;
(b) Bodily injury sustained by any claimant who is employed at the site of and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits therefor are either payable or required to be provided under any workmen's compensation or occupational disease law;
he claimant or which results from a nuclear incident intentionally and wrongfully caused by the claimant;
(b) Bodily injury sustained by any claimant who is employed at the site of and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits therefor are either payable or required to be provided under any workmen's compensation or occupational disease law;
(c) Any claim for punitive or exemplary damages, provided, with respect to any claim for wrongful death under any State law which provides for damages only punitive in nature, this exclusion does not apply to the extent that the claimant has sustained actual damages, measured by the pecuniary injuries resulting from such death but not to exceed the maximum amount otherwise recoverable under such law.
3. The waivers set forth in paragraph 1. above shall be effective only with respect to bodily injury or property damage to which the policy applies under its terms other than this endorsement; provided, however, that with respect to bodily injury or property damage resulting from an extraordinary nuclear occurrence. Insuring Agreement IV, “Application of Policy,” shall not operate to bar coverage for bodily injury or property damage (a) which is caused during the policy period by the nuclear energy hazard and (b) which is discovered and for which written claim is made against the insured not later than twenty (20) years after the date of the extraordinary nuclear occurrence.
Such waivers shall not apply to, or prejudice the prosecution or defense of any claim or portion of claim which is not within the protection afforded under
(a) The provisions of the policy applicable to the financial protection required of the named insured;
(b) The agreement of indemnification between the named insured and the Nuclear Regulatory Commission made pursuant to section 170 of the Atomic Energy Act of 1954, as amended; and
ejudice the prosecution or defense of any claim or portion of claim which is not within the protection afforded under
(a) The provisions of the policy applicable to the financial protection required of the named insured;
(b) The agreement of indemnification between the named insured and the Nuclear Regulatory Commission made pursuant to section 170 of the Atomic Energy Act of 1954, as amended; and
(c) The limit of liability provisions of Subsection 170e. of the Atomic Energy Act of 1954, as amended.
Such waivers shall not preclude a defense based upon the failure of the claimant to take reasonable steps to mitigate damages.
4. Subject to all of the limitations stated in this endorsement and in the Atomic Energy Act of 1954, as amended, the waivers set forth in paragraph 1. above shall be judicially enforceable in accordance with their terms against any insured in an action to recover damages because of bodily injury or property damage to which the policy applies as proof of financial protection.
5. As used herein:
Extraordinary nuclear occurrence
means an event which the Nuclear Regulatory Commission has determined to be an extraordinary nuclear occurrence as defined in the Atomic Energy Act of 1954, as amended.
Financial protection
and
nuclear incident
have the meanings given them in the Atomic Energy Act of 1954, as amended.
Claimant
means the person or organization actually sustaining the bodily injury or property damage and also includes his assignees, legal representatives and other persons or organizations entitled to bring an action for damages on account of such injury or damage.
Effective date of this endorsement ________________________ to form a part of Policy No. ______________,
12:01 A.M. Standard Time
Issued to __________________________________.
Date of issue ______________.
Endorsement No. ______________.
For the subscribing companies:
By ______________________,
General Manager
Countersigned by ________________________
r damages on account of such injury or damage.
Effective date of this endorsement ________________________ to form a part of Policy No. ______________,
12:01 A.M. Standard Time
Issued to __________________________________.
Date of issue ______________.
Endorsement No. ______________.
For the subscribing companies:
By ______________________,
General Manager
Countersigned by ________________________.
Supplementary Endorsement Waiver of Defenses
Reactor Construction at the Facility
It is agreed that in construing the application of paragraph 2.(b) of the Waiver of Defenses Endorsement (NE-33a) with respect to an extraordinary nuclear occurrence occurring at the facility, a claimant who is employed at the facility in connection with the construction of a nuclear reactor with respect to which no operating license has been issued by the Nuclear Regulatory Commission shall not be considered as employed in connection with the activity where the extraordinary nuclear occurrence takes place if:
(1) The claimant is employed exclusively in connection with the construction of a nuclear reactor, including all related equipment and installations at the facility and
(2) No operating license has been issued by the Nuclear Regulatory Commission with respect to the nuclear reactor, and
(3) The claimant is not employed in connection with the possession, storage, use or transfer of nuclear material at the facility.
Effective date of this endorsement ________________________ to form a part of Policy No. ______________.
12:01 A.M. Standard Time
Issued to __________________________________.
Date of issue ______________.
Endorsement No ______________.
For the subscribing companies:
By ______________________,
General Manager
Countersigned by ______________________.
Nuclear Energy Liability Policy
(Facility Form)
Amendment of Definition of
Nuclear Energy Hazard
(Indemnified Nuclear Facility)
It is agreed that: 1
___.
12:01 A.M. Standard Time
Issued to __________________________________.
Date of issue ______________.
Endorsement No ______________.
For the subscribing companies:
By ______________________,
General Manager
Countersigned by ______________________.
Nuclear Energy Liability Policy
(Facility Form)
Amendment of Definition of
Nuclear Energy Hazard
(Indemnified Nuclear Facility)
It is agreed that: 1. Solely with respect to an
insured shipment
to which the policy applies as proof of financial protection required by the Nuclear Regulatory Commission, subdivision (2) of the definition of
nuclear energy hazard
is amended to read:
(2) The nuclear material is in an insured shipment which is away from any other nuclear facility and is in the course of transportation, including handling and temporary storage incidental thereto, within
(a) The territorial limits of the United States of America, its territories or possessions, Puerto Rico or the Canal Zone; or
(b) International waters or airspace, provided that the nuclear material is in the course of transportation between two points located within the territorial limits described in (a) above and there are no deviations in the course of the transportation for the purpose of going to any other country, state or nation, except a deviation in the course of said transportation for the purpose of going to or returning from a port or place of refuge as the result of an emergency.
2. As used herein,
financial protection
has the meaning given it in the Atomic Energy Act of 1954, as amended.
Instructions
—This form is to be used to modify all Nuclear Energy Liability Facility Forms in force on January 1, 1977 which were issued to become effective prior to January 1, 1977 and which are offered by the named insured as proof of financial protection being maintained as required by the Atomic Energy Act of 1954, as amended.
Effective date of this Endorsement ________________________ To form a part of Policy No. ______________.
12:01 A.M
all Nuclear Energy Liability Facility Forms in force on January 1, 1977 which were issued to become effective prior to January 1, 1977 and which are offered by the named insured as proof of financial protection being maintained as required by the Atomic Energy Act of 1954, as amended.
Effective date of this Endorsement ________________________ To form a part of Policy No. ______________.
12:01 A.M. Standard Time
Issued to __________________________________
Date of issue ______________.
Endorsement No. ______________.
For the subscribing companies:
By ______________________,
General Manager
Countersigned by ________________________.
Nuclear Energy Liability Policy
(Facility Form)
Amendment of Definitions of
Nuclear Energy Hazard
and
Insured Shipment
(Indemnified Nuclear Facility)
It is agreed that: I. In Insuring Agreement III,
DEFINITIONS
A. Solely with respect to an
insured shipment
to which this policy applies as proof of financial protection required by the Nuclear Regulatory Commission, Subdivision (2) of the definition of
nuclear energy hazard
is amended to read:
(2) The nuclear material is in an insured shipment which is away from any other nuclear facility and is in the course of transportation, including the handling and temporary storage incidental thereto, within
(a) The territorial limits of the United States of America, its territories or possessions, Puerto Rico or the Canal Zone; or
(b) International waters or airspace, provided that the nuclear material is in the course of transportation between two points located within the territorial limits described in (a) above and there are no deviations in the course of the transportation for the purpose of going to any other country, state or nation, except for a deviation in the course of said transportation for the purpose of going to or returning from a port or place of refuge as the result of an emergency.
B
he course of transportation between two points located within the territorial limits described in (a) above and there are no deviations in the course of the transportation for the purpose of going to any other country, state or nation, except for a deviation in the course of said transportation for the purpose of going to or returning from a port or place of refuge as the result of an emergency.
B. The definition of
insured shipment
is replaced with the following:
Insured shipment
means a shipment of source material, special nuclear material, spent fuel or waste, herein called
material,
(1) to the facility from any location except an indemnified nuclear facility, but only if the transportation of the material is not by predetermination to be interrupted by removal of the material from a transporting conveyance for any purpose other than the continuation of its transportation, or (2) from the facility to any other location, but only until the material is removed from a transporting conveyance for any purpose other than the continuation of its transportation.
II. As used herein,
financial protection
has the meaning given it in the Atomic Energy Act of 1954, as amended.
Instructions
—This form is to be used to modify all Nuclear Energy Liability Facility Forms which are issued to become effective on or after January 1, 1977 and which are offered by the named insured as proof of financial protection being maintained as required by the Atomic Energy Act of 1954, as amended.
Effective date of this endorsement ____________________ To form a part of Policy No. ______________.
12:01 A.M. standard time
Issued to ________________________.
Date of issue ______________.
Endorsement No. ______________.
For the subscribing companies:
By ________________________,
General Manager.
Countersigned by ______________________.
NE-50 (1/1/80), Amendatory Endorsement
(Indemnified Nuclear Facility)
It is agreed that:
I. In Insuring Agreement III:
DEFINITIONS
A
Policy No. ______________.
12:01 A.M. standard time
Issued to ________________________.
Date of issue ______________.
Endorsement No. ______________.
For the subscribing companies:
By ________________________,
General Manager.
Countersigned by ______________________.
NE-50 (1/1/80), Amendatory Endorsement
(Indemnified Nuclear Facility)
It is agreed that:
I. In Insuring Agreement III:
DEFINITIONS
A. The first sentence of the definition of
nuclear facility
is amended to read:
nuclear facility
means
the facility
as defined in any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association or by Mutual Atomic Energy Liability Underwriters.
B. The definition of
indemnified nuclear facility
is replaced by the following:
indemnified nuclear facility
means
(1)
the facility
as defined in any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association or by Mutual Atomic Energy Liability Underwriters, or
(2) any other nuclear facility, if financial protection is required pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, with respect to any activities or operations conducted thereat;
C. Solely with respect to an
insured shipment
to which this policy applies as proof of financial protection required by the Nuclear Regulatory Commission. Subdivision (2) of the definition of
nuclear energy hazard
is amended to read:
(2) The nuclear material is in an insured shipment which is away from any other nuclear facility and is in the course of transportation, including the handling and temporary storage incidental thereto, within
(a) The territorial limits of the United States of America, its territories or possessions, or Puerto Rico; or Canal Zone; or
2) of the definition of
nuclear energy hazard
is amended to read:
(2) The nuclear material is in an insured shipment which is away from any other nuclear facility and is in the course of transportation, including the handling and temporary storage incidental thereto, within
(a) The territorial limits of the United States of America, its territories or possessions, or Puerto Rico; or Canal Zone; or
(b) International waters or airspace, provided that the nuclear material is in the course of transportation between two points located within the territorial limits described in (a) above and there are no deviations in the course of the transportation for the purpose of going to any other country, state or nation, except a deviation in the course of said transportation for the purpose of going to or returning from a port or place of refuge as the result of an emergency.
D. The definition of
insured shipment
is replaced with the following:
insured shipment
means shipment of source material, special nuclear material, spent fuel or waste, or tailings or wastes produced by the extraction or concentration of uranium or thorium from any ore processed primarily for its source material content, herein called
material,
(1) to the facility from any location except an indemnified nuclear facility, but only if the transportation of the material is not by predetermination to be interrupted by removal of the material from a transporting conveyance for any purpose other than the continuation of its transportation, or (2) from the facility to any other location, but only until the material is removed from a transporting conveyance for any purpose other than the continuation of its transportation.
E. As used herein,
financial protection
has the meaning given it in the Atomic Energy Act of 1954, as amended.
II. Insuring Agreement IV is replaced by the following:
IV. APPLICATION OF POLICY
of its transportation, or (2) from the facility to any other location, but only until the material is removed from a transporting conveyance for any purpose other than the continuation of its transportation.
E. As used herein,
financial protection
has the meaning given it in the Atomic Energy Act of 1954, as amended.
II. Insuring Agreement IV is replaced by the following:
IV. APPLICATION OF POLICY. This policy applies only to bodily injury or property damage (1) which is caused during the policy period by the nuclear energy hazard and (2) which is discovered and for which written claim is made against the insured, not later than ten years after the end of the policy period.
III. Condition 2 is replaced by the following:
2. INSPECTION: SUSPENSION. The companies shall at any time be permitted but not obligated to inspect the facility and all operations relating thereto and to examine the insured's books and records as far as they relate to the subject of this insurance and any property insurance afforded the insured through American Nuclear Insurers. If a representative of the companies discovers a condition which he believes to be unduly dangerous with respect to the nuclear energy hazard, a representative of the companies may request that such condition be corrected without delay. In the event of noncompliance with such request, a representative of the companies may, by notice to the named insured, to any other person or organization considered by the companies to be responsible for the continuation of such dangerous condition, and to the United States Nuclear Regulatory Commission, suspend this insurance with respect to named insured and such other person or organization effective 12:00 midnight of the next business day of such Commission following the date that such Commission receives such notice. The period of such suspension shall terminate as of the time stated in a written notice from the companies to the named insured and to each such person or organization that such condition has been corrected
respect to named insured and such other person or organization effective 12:00 midnight of the next business day of such Commission following the date that such Commission receives such notice. The period of such suspension shall terminate as of the time stated in a written notice from the companies to the named insured and to each such person or organization that such condition has been corrected.
Neither the right to make such inspections and examinations nor the making thereof nor any advice or report resulting therefrom shall constitute an undertaking, on behalf of or for the benefit of the insured or others, to determine or warrant that such facility or operations are safe or healthful, or are in compliance with any law, rule or regulation. In consideration of the issuance or continuation of this policy, the insured agrees that neither the companies nor any pesons or organizations making such inspections or exminations on their behalf shall be liable with respect to injury to or destruction of property at the facility, or any consequential loss or expense resulting therefrom, or any loss resulting from interruption of business or manufacture, arising out of the making of or a failure to make any such inspection or examination, or any report thereon, or any such suspension of insurance, but this provision does not limit the contractual obligations of the companies under this policy or any policy affording the insured property insurance through American Nuclear Insurers.
IV. Condition 4 is replaced by the following:
4. LIMITATION OF LIABILITY: COMMON OCCURRENCE. Any occurrence or series of occurrences resulting in bodily injury or property damage arising out of the radioactive, toxic, explosive or other hazardous properties of
al obligations of the companies under this policy or any policy affording the insured property insurance through American Nuclear Insurers.
IV. Condition 4 is replaced by the following:
4. LIMITATION OF LIABILITY: COMMON OCCURRENCE. Any occurrence or series of occurrences resulting in bodily injury or property damage arising out of the radioactive, toxic, explosive or other hazardous properties of
(a) nuclear material discharged or dispersed from the facility over a period of days, weeks, months or longer and also arising out of the properties of other nuclear material so discharged or dispersed from one or more other nuclear facilities insured under any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association, or
(b) source material, special nuclear material, spent fuel or waste in the course of transportation for which insurance is afforded under this policy and also arising out of such properties of other source material, special nuclear material, spent fuel or waste in the course of transportation for which insurance is afforded under one or more other Nuclear Energy Liability Policies (Facility Form) issued by Nuclear Energy Liability Insurance Association, shall be deemed to be a common occurrence resulting in bodily injury or property damage caused by the nuclear energy hazard.
With respect to such bodily injury and property damage (1) the total aggregate liability of the members of the Nuclear Energy Liability Insurance Association under all Nuclear Energy Liability Policies (Facility Form), including this policy, applicable to such common occurrence shall be the sum of the limits of liability of all such policies, the limit of liability of each such policy being as determined by Condition 3 thereof, but in no event shall such total aggregate liability of such members exceed $124,000,000; (2) the total liability of the companies under this policy shall not exceed that proportion of the total aggregate liability of the members of Nuclear Energy Liability Insu
m of the limits of liability of all such policies, the limit of liability of each such policy being as determined by Condition 3 thereof, but in no event shall such total aggregate liability of such members exceed $124,000,000; (2) the total liability of the companies under this policy shall not exceed that proportion of the total aggregate liability of the members of Nuclear Energy Liability Insurance Association, as stated in clause (1) above, which (a) the limit of liability of this policy, as determined by Condition 3, bears to (b) the sum of the limits of liability of all such policies issued by such members, the limit of liability of each such policy being as determined by Condition 3 thereof.
The provisions of this condition shall not operate to increase the limit of the companies' liability under this policy.
V. The second paragraph of Condition 12,
Other Insurance,
is amended to read:
If the insured has other valid and collectible insurance (other than such concurrent insurance or any other nuclear energy liability insurance issued by Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters to any person or organization) applicable to loss or expense covered by this policy, the insurance afforded by this policy shall be excess insurance over such other insurance; provided, with respect to any person who is not employed at and in connection with the facility, such insurance as is afforded by this policy for bodily injury to an employee of the insured arising out of and in the course of his employment shall be primary insurance under such other insurance.
VI. Paragraph (c) of Condition 16,
Company Representation,
is amended to read:
ver such other insurance; provided, with respect to any person who is not employed at and in connection with the facility, such insurance as is afforded by this policy for bodily injury to an employee of the insured arising out of and in the course of his employment shall be primary insurance under such other insurance.
VI. Paragraph (c) of Condition 16,
Company Representation,
is amended to read:
(c) Nuclear Energy Liability Insurance Association is the agent of the companies with respect to all matters pertaining to this insurance. All notices or other communications required by this policy to be given to the companies may be given to such agent, at its office at the Exchange, Suite 245, 270 Farmington Avenue, Farmington, Connecticut 06032, with the same force and effect as if given directly to the companies. Any requests, demand or agreements made by such agent shall be deemed to have been made directly by the companies.
Effective Date of this Endorsement ________ 12:01 a.m. Standard Time to form a part of policy No. ______.
Issued to ________ For the subscribing companies.
Date of Issue ________.
By ________ General Manager.
Endorsement No.
NE-50 (1/1/81)
NE-51 (1/1/81)—Amendment of Definition of Condition 2
Inspection; Suspension
and
Insured Shipment
(Indemnified Nuclear Facility)
It is agreed that:
(1) Condition 2
Inspection; Suspension
is replaced by the following:
2. Inspection; Suspension. The companies shall at any time be permitted but not obligated to inspect the facility and all operations relating thereto and to examine the insured's books and records as far as they relate to the subject of this insurance and any property insurance afforded the insured through American Nuclear Insurers. If a representative of the companies discovers a condition which he believes to be unduly dangerous with respect to the nuclear energy hazard, a representative of the companies may request that such conditions be corrected without delay
sured's books and records as far as they relate to the subject of this insurance and any property insurance afforded the insured through American Nuclear Insurers. If a representative of the companies discovers a condition which he believes to be unduly dangerous with respect to the nuclear energy hazard, a representative of the companies may request that such conditions be corrected without delay. In the event of noncompliance with such requests, a representative of the companies may, by notice to the named insured, to any other person or organization considered by the companies to be responsible for the continuation of such dangerous condition, and to the United States Nuclear Regulatory Commission, suspend this insurance with respect to the named insured and such other person or organization effective 12:00 midnight of the next business day of such Commission following the date that such Commission receives such notice. The period of such suspension shall terminate as of the time stated in a written notice from the companies to the named insured and to each such person or organization that such condition has been corrected.
Neither the right to make such inspections and examinations nor the making thereof nor advice or report resulting therefrom shall constitute an undertaking, on behalf of or for the benefit of the insured or others, to determine or warrant that such facility or operations are safe or healthful, or are in compliance with any law, rule or regulation
rganization that such condition has been corrected.
Neither the right to make such inspections and examinations nor the making thereof nor advice or report resulting therefrom shall constitute an undertaking, on behalf of or for the benefit of the insured or others, to determine or warrant that such facility or operations are safe or healthful, or are in compliance with any law, rule or regulation. In consideration of the issuance or continuation of this policy, the insured agrees that neither the companies nor any persons or organizations making such inspections or examinations on their behalf shall be liable with respect to injury to or destruction of property at the facility, or any consequential loss or expense resulting therefrom, or any loss resulting from interruption of business or manufacture, arising out of the making of or a failure to make any such inspection or examination, or any report thereon, or any such suspension of insurance, but this provision does not limit the contractual obligations of the companies under this policy or any policy affording the insured property insurance through American Nuclear Insurers.
(2) The definition of
insured shipment
in Insuring Agreement III,
Definitions,
is replaced by the following:
insured shipment
means a shipment of source material, special nuclear material, spent fuel, waste, or tailings or wastes produced by the extraction or concentration of uranium or thorium from any ore processed primarily for its source material content herein called
material,
clear Insurers.
(2) The definition of
insured shipment
in Insuring Agreement III,
Definitions,
is replaced by the following:
insured shipment
means a shipment of source material, special nuclear material, spent fuel, waste, or tailings or wastes produced by the extraction or concentration of uranium or thorium from any ore processed primarily for its source material content herein called
material,
(1) to the facility from any location except an indemnified nuclear facility, but only if the transportation of the material is not by predetermination to be interrupted by removal from a transporting conveyance for any purpose other than the continuation of its transportation, or (2) from the facility to any other location, but only until the material is removed from a transporting conveyance for any purpose other than the continuation of its transportation.
Effective Date of this Endorsement ________ 12:01 a.m. Standard Time to form a part of Policy No. ______
Issued to ________ For the subscribing companies.
Date of Issue ________.
By ________ General Manager.
Endorsement No.
NE-51 (1/1/81)
Amendment of Coverage Endorsement for Workers Claims
(Facility Form)
NE-64(1/1/88)
Preamble
1. The insurance and rating plan presently used by Nuclear Energy Liability Insurance Association (
NELIA
) and Mutual Atomic Energy Liability Underwriters (
MAELU
) do not make a distinction between workers claims arising from catastrophic events and those arising from lesser events;
2. NELIA and MAELU believe that the lack of such a distinction will adversely affect their ability to continue to attract from world markets very large amounts of nuclear energy liability insurance for the nuclear industry;
3. NELIA and MAELU want to avoid this potential loss of capacity and to continue to provide nuclear energy liability insurance for workers claims. Accordingly NELIA and MAELU desire to restructure their present insurance programs, including this policy, effective January 1, 1988
ontinue to attract from world markets very large amounts of nuclear energy liability insurance for the nuclear industry;
3. NELIA and MAELU want to avoid this potential loss of capacity and to continue to provide nuclear energy liability insurance for workers claims. Accordingly NELIA and MAELU desire to restructure their present insurance programs, including this policy, effective January 1, 1988.
Now, Therefore, the Named Insured and the companies do hereby agree as follows:
1. Definitions
When used in reference to this endorsement:
This policy
means the policy of which this endorsement forms a part;
Nuclear related employment
means all work performed at one or more than one nuclear facility in the United States of America or in connection with the transportation of nuclear material to or from any such facility. All of a worker's nuclear related employment shall be considered as having begun on the first day of such employment, regardless of the number of employers involved or interruptions in such employment;
Worker
refers to a person who is or was engaged in nuclear related employment;
Workers claims
means claims for damages because of bodily injury to a worker caused by the radioactive, toxic, explosive or other hazardous properties of nuclear material and arising out of or in the course of the worker's nuclear related employment;
Extraordinary nuclear occurrence
means an event which the United States Nuclear Regulatory Commission has determined to be an
extraordinary nuclear occurrence
as defined in the Atomic Energy Act of 1954, or in any law amendatory thereof.
2. Application of This Endorsement
This endorsement applies only to such insurance as is afforded by this policy for workers claims which do not arise in whole or in part out of an extraordinary nuclear occurrence.
3. Exclusion of New Workers Claims
This policy does not apply to bodily injury to a worker which arises in whole or in part out of nuclear related employment that begins on or after January 1, 1988.
4
of This Endorsement
This endorsement applies only to such insurance as is afforded by this policy for workers claims which do not arise in whole or in part out of an extraordinary nuclear occurrence.
3. Exclusion of New Workers Claims
This policy does not apply to bodily injury to a worker which arises in whole or in part out of nuclear related employment that begins on or after January 1, 1988.
4. Application of Policy to Workers Claims Not Excluded
With respect to such insurance as is afforded by this policy for workers claims which are not excluded, Insuring Agreement IV does not apply and the following Insuring Agreement IV-A does apply:
IV-A Application of Policy to Workers Claims.
This policy applies only to bodily injury (1) which is caused during the policy period by the nuclear energy hazard and (2) which is discovered and for which written claim is made against the insured not later than the close of December 31, 1997.
5. Availability of Supplemental Insurance
NELIA and MAELU are offering to make insurance under one or more Master Worker Policies available to all holders of Nuclear Energy Liability Policies (Facility Form).
This offer is contingent on sufficient support from policy holders, and may be withdrawn or modified by Nelia or Maelu as they deem necessary or appropriate.
The Master Workers Policies will provide, under their separate terms and conditions, coverage for new workers claims. Premiums will be subject to a separate Industry Retrospective Rating Plan.
Coverage under the new master worker policies is not automatic. A written request must be submitted to Nelia or Maelu through regular market channels.
It is understood and agreed that all of the provisions of this endorsement shall remain in full force and effect without regard to this section 5, and without regard to whether or not the Named Insureds become insureds under the Master Worker Policies, or whether or not NELIA or MAELU terminate such policies or withdraw or modify their offer to underwrite such policies
ugh regular market channels.
It is understood and agreed that all of the provisions of this endorsement shall remain in full force and effect without regard to this section 5, and without regard to whether or not the Named Insureds become insureds under the Master Worker Policies, or whether or not NELIA or MAELU terminate such policies or withdraw or modify their offer to underwrite such policies.
Executed for the companies
Date
By
(Signature or Authorized Officer)
(Print or Type Name and Title of Officer)
Executed for the Named Insured
(Named Insured—Type or Print)
Date
By
(Signature of Authorized Officer)
(Print or Type Name and Title of Officer)
Effective Date of this Endorsement
12:01 a.m. Standard Time
To form a part of Policy No.
Issued to
Date of Issue
For the subscribing companies
By
General Manager
Endorsement No.
Countersigned by
AMENDMENT OF COVERAGE ENDORSEMENT FOR WORKERS CLAIMS (Facility Form) NE-66(1/1/88)
It is agreed that:
1. Definitions
When used in reference to this endorsement:
This policy
means the policy of which this endorsement forms a part;
Nuclear related employment
means all work performed at one or more than one nuclear facility in the United States of America or in connection with the transportation of nuclear material to or from any such facility. All of a worker's nuclear related employment shall be considered as having begun on the first day of such employment, regardless of the number of employers involved or interruptions in such employment;
Worker
refers to a person who is or was engaged in nuclear related employment;
Workers claims
means claims for damages because of bodily injury to a worker caused by the radioactive, toxic, explosive or other hazardous properties of nuclear material and arising out of or in the course of the worker's nuclear related employment;
Extraordinary nuclear occurrence
means an event which the United States Nuclear Regulatory Commission has determined to be an
extraordinary nuclear occurrence
as defined in the Atomic Energy Act of 1954, or in any law
a worker caused by the radioactive, toxic, explosive or other hazardous properties of nuclear material and arising out of or in the course of the worker's nuclear related employment;
Extraordinary nuclear occurrence
means an event which the United States Nuclear Regulatory Commission has determined to be an
extraordinary nuclear occurrence
as defined in the Atomic Energy Act of 1954, or in any law amendatory thereof.
2. Application of This Endorsement
This endorsement applies only to such insurance as is afforded by this policy for workers claims which do not arise in whole or in part out of an extraordinary nuclear occurrence.
3. Exclusion of New Workers Claims
This policy does not apply to bodily injury to a worker which arises in whole or in part out of nuclear related employment that begins on or after January 1, 1988.
4. Application of Policy to Workers Claims Not Excluded
With respect to such insurance as is afforded by this policy for workers claims which are not excluded, Insuring Agreement IV does not apply and the following Insuring Agreement IV-A does apply:
IV-A Application of Policy to Workers Claims
This policy applies only to bodily injury (1) which is caused during the policy period by the nuclear energy hazard and (2) which is discovered and for which written claim is made against the insured not later that the close of December 31, 1997.
5. Availability of Supplemental Insurance
NELIA and MAELU are offering to make insurance under one or more Master Worker Policies available to all holders of Nuclear Energy Liability Policies (Facility Form).
This offer is contingent on sufficient support from policyholders, and may be withdrawn or modified by NELIA or MAELU as they deem necessary or appropriate.
The Master Worker Policies will provide, under their separate terms and conditions, coverage for new workers claims. Premiums will be subject to a separate Industry Retrospective Rating Plan.
Coverage under the new master worker policies is not automatic
is contingent on sufficient support from policyholders, and may be withdrawn or modified by NELIA or MAELU as they deem necessary or appropriate.
The Master Worker Policies will provide, under their separate terms and conditions, coverage for new workers claims. Premiums will be subject to a separate Industry Retrospective Rating Plan.
Coverage under the new master worker policies is not automatic. A written request must be submitted to NELIA or MAELU through regular market channels.
It is understood and agreed that all of the provisions of this endorsement shall remain in full force and effect without regard to this Section 5, and without regard to whether or not the Named Insureds become insureds under the Master Worker Policies, or whether or not NELIA or MAELU terminate such policies or withdraw or modify their offer to underwrite such policies.
Explanation of Use of This Endorsement:
This endorsement is a mandatory endorsement which is to be attached to new Facility Form Policies issued on or after January 1, 1988.
Effective Date of this Endorsement
12:01 a.m. Standard Time
To form a part of Policy No.
Issued to
Date of Issue
For the subscribing companies
By
General Manager
Endorsement No.
Countersigned by
NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION
Nuclear Energy Liability Policy
Facility Worker Form, herein called Master Worker Policy, NMWP-1(1/1/88)
The undersigned members of Nuclear Energy Liability Insurance Association, hereinafter called the
companies,
each itself severally and not jointly, and in the respective proportion hereinafter set forth, agree with the insureds named in Item 1 of the Declarations of each Certificate, hereinafter called the
Named Insureds,
in consideration of the payment of the premium, and subject to all of the provisions of the applicable Certificate and of this policy, as follows:
I—Relation Between the Master Worker Policy and Certificates
No insurance is provided by this policy except through a Certificate issued to form a part hereof
amed in Item 1 of the Declarations of each Certificate, hereinafter called the
Named Insureds,
in consideration of the payment of the premium, and subject to all of the provisions of the applicable Certificate and of this policy, as follows:
I—Relation Between the Master Worker Policy and Certificates
No insurance is provided by this policy except through a Certificate issued to form a part hereof. The insurance then applies separately to the persons and organizations who are defined in Section IV as insureds under each such Certificate, except with respect to the Amount of Insurance Available.
The Amount of Insurance Available through such a Certificate to any person or organization who is an insured thereunder is limited as provided in Section VIII of this policy.
II—Definitions
When used in reference to this policy:
Bodily injury
means bodily injury, sickness or disease, including death resulting therefrom;
Byproduct material
has the meaning given in the Atomic Energy Act of 1954, or in any law amendatory thereof;
Certificate,
unless qualified, refers to a Certificate of Insurance (including Declarations and endorsements forming a part thereof) issued to form a part of this policy or of a MAELU Policy;
Claims costs
means, with reference to claims or suits the companies have the right and duty to defend under this policy;
(1) Cost taxed against the insured in such suits and interest on any judgments therein;
(2) Premiums on appeal bonds and on bonds to release attachments in such suits (but the companies have no obligation to apply for or furnish such bonds;
(3) Reasonable expenses, other than loss of earnings, incurred by the insured at the companies' request;
s have the right and duty to defend under this policy;
(1) Cost taxed against the insured in such suits and interest on any judgments therein;
(2) Premiums on appeal bonds and on bonds to release attachments in such suits (but the companies have no obligation to apply for or furnish such bonds;
(3) Reasonable expenses, other than loss of earnings, incurred by the insured at the companies' request;
(4) Payments for expenses incurred in the investigation, negotiation, settlement and defense of such claims or suits, including, but not limited to, the cost of such allocated claims services by employees of the companies, fees and expenses of independent adjusters, attorneys' fees and disbursements, expenses for expert testimony, examination, x-ray or autopsy or medical expenses of any kind;
(5) Payments for expenses incurred by the companies in investigating an occurrence resulting in bodily injury or in minimizing its effects;
Discovery period
means the period defined in Section VI B hereof;
Extraordinary nuclear occurrence
means an event which the United States Nuclear Regulatory Commission has determined to be an
extraordinary nuclear occurrence
as defined in the Atomic Energy Act of 1954, or in any law amendatory thereof;
Insured contract
means that part of a contract or agreement made prior to bodily injury to a new worker under which the insured assumes the tort liability of a third person to pay damages because of such bodily injury.
Tort liability
means a liability that would be imposed by law on the third person in the absence of an express assumption of liability by the third person;
Insured facility
means a facility with respect to which insurance is provided through a Certificate;
Insured shipment
means a shipment of source material, special nuclear material, spent fuel or waste (herein called
material
):
h bodily injury.
Tort liability
means a liability that would be imposed by law on the third person in the absence of an express assumption of liability by the third person;
Insured facility
means a facility with respect to which insurance is provided through a Certificate;
Insured shipment
means a shipment of source material, special nuclear material, spent fuel or waste (herein called
material
):
(1) To the facility from any location other than an insured facility, but only if the transportation of the material is not by predetermination to be interrupted by removal of the material from a transporting conveyance for any purpose other than the continuation of its transportation; or
(2) From the facility to any other location, but only until the material is removed from a transporting conveyance for any purpose other than the continuation of its transportation;
MAELU
means Mutual Atomic Energy Liability Underwriters;
MAELU Policy
means a Nuclear Energy Liability Policy (Facility Worker Form) written by members of MAELU;
NELIA
means Nuclear Energy Liability Insurance Association;
New worker
refers to a person who is or was engaged in nuclear related employment that begins on or after January 1, 1988;
New worker's claim
means a claim for damages because of bodily injury to a new worker caused by the radioactive, toxic, explosive or other hazardous properties of nuclear material and arising out of or in the course of the new worker's nuclear related employment;
Non-ratable incurred losses
has the meaning given in Attachment 1 to this policy;
Nuclear energy hazard
means the radioactive, toxic, explosive or other hazardous properties of nuclear material which is:
(1) At the facility as described in the applicable Certificate issued to form a part of this policy or has been discharged or dispersed therefrom without intent to relinquish possession of custody thereof to any other person or organization; or
n in Attachment 1 to this policy;
Nuclear energy hazard
means the radioactive, toxic, explosive or other hazardous properties of nuclear material which is:
(1) At the facility as described in the applicable Certificate issued to form a part of this policy or has been discharged or dispersed therefrom without intent to relinquish possession of custody thereof to any other person or organization; or
(2) In an insured shipment that is away from any other insured nuclear facility and is in the course of transportation, including handling and temporary storage incidental thereto within:
(a) The territorial limits of the United States of America, its territories or possessions or Puerto Rico; or
(b) International waters or airspace, provided that:
(i) The nuclear material is in the course of transportation between two points located within the territorial limits described in (a) above; and
(ii) There are no deviations in the course of the transportation for the purpose of going to any other country, state or nation, except to a port or place of refuge in an emergency;
Nuclear facility
means any of the following and includes the site on which any of them is located, all operations conducted on such site and all premises used for such operations:
(1) The facility as described in any Certificate;
(2) Any nuclear reactor;
(3) Any equipment or device designed or used for:
(a) Separating the isotopes of uranium or plutonium;
(b) Processing or utilizing spent fuel; or
Nuclear facility
means any of the following and includes the site on which any of them is located, all operations conducted on such site and all premises used for such operations:
(1) The facility as described in any Certificate;
(2) Any nuclear reactor;
(3) Any equipment or device designed or used for:
(a) Separating the isotopes of uranium or plutonium;
(b) Processing or utilizing spent fuel; or
(c) Handling, processing or packaging waste;
(4) Any equipment or device used for the processing, fabricating or alloying of special nuclear material if at any time the total amount of such material in the custody of the insured at the premises where such equipment of device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams of uranium 235;
(5) Any structure, basin, excavation, premises or place prepared or used for the storage or disposal of waste;
Nuclear material
means source material, special nuclear material or byproduct material;
Nuclear reactor
means any apparatus designed or used to sustain nuclear fission in a self-supporting chain reaction or to contain a critical mass of fissionable material;
Nuclear related employment
means all work performed at one or more than one nuclear facility in the United States of America or in connection with the transportation of nuclear material to or from any such facility.
All of a new worker's nuclear related employment shall be considered as having begun on the first day of such employment, regardless of the number of employers involved or interruptions in such employment;
Policy period
means the period defined in Section VI A hereof;
Ratable incurred losses
has the meaning given in Attachment 1 to this policy;
Source material
has the meaning given in the Atomic Energy Act of 1954, or in any law amendatory thereof, and also includes tailings or wastes produced by the extraction of uranium or thorium from ore processed primarily for its source material content;
Special nuclear material
has the me
defined in Section VI A hereof;
Ratable incurred losses
has the meaning given in Attachment 1 to this policy;
Source material
has the meaning given in the Atomic Energy Act of 1954, or in any law amendatory thereof, and also includes tailings or wastes produced by the extraction of uranium or thorium from ore processed primarily for its source material content;
Special nuclear material
has the meaning given in the Atomic Energy Act of 1954, or in any law amendatory thereof;
Spent fuel
means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in any nuclear reactor;
The facility
refers to the facility described in the Declarations of a Certificate. It includes the location described in Item 3 thereof and all property and operations at such location;
Waste
means any waste material that contains byproduct material and results from the operation by any person or organization of:
(1) Any nuclear reactor; or
(2) Any equipment or device designed or used for:
(a) Separating the isotopes of uranium or plutonium;
(b) Processing or utilizing spent fuel; or
(c) Handling, processing or packaging such waste material.
III—Coverage
In the event that a new worker's claim is made against a person or organization who is an insured under a Certificate issued to form a part of this policy:
(1) The companies shall pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages because of bodily injury to which this policy applies, sustained by a new worker and caused by the nuclear energy hazard.
The companies shall have the right and duty to defend any suit against the insured alleging such injury and seeking damages payable under the terms of this policy. But the companies may make such investigation and settlement of any claim or suit seeking such damages as they deem appropriate.
(2) The companies shall also pay, as part of the Amount of Insurance Available under this policy, the claims costs relating to any such claim or suit.
to defend any suit against the insured alleging such injury and seeking damages payable under the terms of this policy. But the companies may make such investigation and settlement of any claim or suit seeking such damages as they deem appropriate.
(2) The companies shall also pay, as part of the Amount of Insurance Available under this policy, the claims costs relating to any such claim or suit.
(3) The companies' obligation to pay damages and claims costs, and to defend any claim and suit ends when the Policy Aggregrate Limit has been exhausted pursuant to the provisions of Section VIII.
IV—Definition of Insured
When used in reference to a Certificate issued to form a part of this policy, the unqualified word
insured
means:
(1) each insured named in Item 1 of the Declarations of the Certificate; and
(2) any other person or organization with respect to legal responsibility for damages because of bodily injury to a new worker caused by the nuclear energy hazard applicable to the Certificate. This subsection (2) does not include as an insured the United States of America or any of its agencies except the Tennessee Valley Authority.
V—Exclusions
This policy does not apply:
(1) To any obligation for which the insured or any carrier as his insurer may be held liable under any worker's compensation, unemployment compensation or disability benefits law, or under any similar law;
(2) To bodily injury to any employee of the insured arising out of or in the course of employment by the insured; but this exclusion (2) does not apply to liability assumed by the insured under an insured contract;
(3) To liability assumed by the insured under contract, other than an insured contract;
(4) To bodily injury to a new worker due to the manufacturing, handling or use at the location designated in Item 3 of the Declarations of any Certificate, in time of peace or war, of any nuclear weapon or other instrument of war utilizing special nuclear material or byproduct material;
der an insured contract;
(3) To liability assumed by the insured under contract, other than an insured contract;
(4) T

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## Nearby sections

- [10 C.F.R. § 140.87 (2026) § 140.87   Violations.](https://www.frixlaw.com/law-library/statutes/CFR_T10_P140_S140_87.md)
- [10 C.F.R. § 140.89 (2026) § 140.89   Criminal penalties.](https://www.frixlaw.com/law-library/statutes/CFR_T10_P140_S140_89.md)
- [10 C.F.R. § 140.91 (2026) § 140.91   Appendix A—Form of nuclear energy liability policy for facilities.](https://www.frixlaw.com/law-library/statutes/CFR_T10_P140_S140_91.md)
- [10 C.F.R. § 140.92 (2026) § 140.92   Appendix B—Form of indemnity agreement with licensees furnishing insurance policies as proof of financial protection.](https://www.frixlaw.com/law-library/statutes/CFR_T10_P140_S140_92.md)
- [10 C.F.R. § 140.93 (2026) § 140.93   Appendix C—Form of indemnity agreement with licensees furnishing proof of financial protection in the form of licensee's resources.](https://www.frixlaw.com/law-library/statutes/CFR_T10_P140_S140_93.md)
- [10 C.F.R. § 140.94 (2026) § 140.94   Appendix D—Form of indemnity agreement with Federal agencies.](https://www.frixlaw.com/law-library/statutes/CFR_T10_P140_S140_94.md)
- [10 C.F.R. § 140.95 (2026) § 140.95   Appendix E—Form of indemnity agreement with nonprofit educational institutions.](https://www.frixlaw.com/law-library/statutes/CFR_T10_P140_S140_95.md)
- [10 C.F.R. § 140.96 (2026) § 140.96   Appendix F—Indemnity locations.](https://www.frixlaw.com/law-library/statutes/CFR_T10_P140_S140_96.md)
- [10 C.F.R. § 140.107 (2026) § 140.107   Appendix G—Form of indemnity agreement with licensees processing plutonium for use in plutonium processing and fuel fabrication plants and furnishing insurance policies as proof of financial protection.](https://www.frixlaw.com/law-library/statutes/CFR_T10_P140_S140_107.md)
- [10 C.F.R. § 140.108 (2026) § 140.108   Appendix H—Form of indemnity agreement with licensees possessing plutonium for use in plutonium processing and fuel fabrication plants and furnishing proof of financial protection in the form of the licensee's resources.](https://www.frixlaw.com/law-library/statutes/CFR_T10_P140_S140_108.md)
- [10 C.F.R. § 140.109 (2026) § 140.109   Appendix I.](https://www.frixlaw.com/law-library/statutes/CFR_T10_P140_S140_109.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T10_P140_S140_91. Check the current official text before relying on it. Not legal advice.