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(1) The claimant is employed exclusively in connection with the construction of a nu(lear reactor, including all related equip. ment and installations at the facility and

(2) No operating license has been issued by the Nuclear Regulatory Commission with respect to the muclear reactor, and

(3) The claimant is not employed in connection with the possession, storage. lise or transfer of nuclear material at the facility. Effective date of this endorsement

.. -- -. 10 form a part of Polics No... --

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 10 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 juldicially 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 inci. dent' 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:

BN ----

General Manager Countersigned by:

NUCLEAR ENERGY LIABILITY POLICY

(FACILITY FORM).

12:01 A.M. Standard Time
Issued to -----
Date of issue -------
Endorsement No. ---
For the subscribing companies:

BV ---

General Manager Countersigned by -----------------

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 applics as proof of financial protection re. quired 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 tempo. rary 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, pro. vided that the nuclcar material is in the course of transportation between two points located within the territorial limits de. scribed in (a) above and there are no deri. ations in the course of the transportation for the purpose of going to any other counTrix. 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 lised to modify all Nuclear Energy Liability Facility Forms in force on January 1, 1977 which were issued to become effective prior to Janiary 1. 1977 and which are offered by the named insured as proof of financial protec

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 of curring at the facility, a claimant who is ('mployed at the facility in connection with the construction of a nuclear reactor with res spect to which no operating license has been issued by the Nuclear Regulatory Commis. ion shall not be considered as employed in connection with the activity where the extraordinary nuclear occurrence takes place if:

tion being maintained as required by the II. As used herein. “financial protection" Atomie Energy Act of 1954. as amended. has the meaning given it in the Atomic Effective date of this Endorsement Energy Act of 1954, as amended.

-------- To form a part of INSTRUCTIONS- This form is to be used to Policy No. ------

modify all Nuclear Energy Liability Facility

Forms which are issued to become effective 12:01 A.M. Standard Time

on or after January 1, 1977 and which are Issued to -

offered by the named insured as proof of fiDate of issue ---

nancial protection being maintained as reEndorsement No. -

quired by the Atomic Energy Act of 1954, as For the subscribing companies:

amended. By -

Effective date of this endorsement -General Manager

-------- To form a part of Policy No. Countersigned by -

12:01 A.M. standard time

Issued to -------------. NUCLEAR ENERGY LIABILITY POLICY

Date of issue -------(FACILITY FORM)

Endorsement No. ---AMENDMENT OF DEFINITIONS OF "NUCLEAR For the subscribing companies: ENERGY HAZARD" AND "INSURED SHIPMENT"

By --(INDEWENITIED NUCLEAR FACILITY)

General Manager.

' Countersigned by -It is agreed that: 1. In Insuring Agreement III, DEFINITIONS"

(Sec. 201. Pub. L. 93-438. as amended, 88 A. Solely with respect to an insured ship Stat. 1242, 89 Stat. 415 (42 U.S.C. 5841)) ment" to which this policy applies as proof

(25 FR 2948. Apr. 7. 1960) of financial protection required by the Nuclear Regulatory Commission. Subdivision

NOTE: For amendments to $ 140.91, see the (2) of the definition of nuclear energy

List of CFR Sections Affected in the Findhazard" is amended to read:

ing Aids section in the back of this volume. (2) The nuclear material is in an insured shipment which is away from any other nu

119.92 Appendix B-Form of indemnity clear facility and is in the course of trans

agreement with licensees furnishing inportation, including the handling and tem

surance policies as proof of financial porary storage incidental thereto, within

protection. (a) The territorial limits of the United States of America, its territories or posses

This indemnity agreement ---- is ensions. Puerto Rico or the Canal Zone: or

tered into by and between the ----(b) International waters or airspace, pro

(hereinafter referred to as the "licensee") vided that the nuclear material is in the

and the United States Nuclear Regulatory course of transportation between two points

Commission (hereinafter referred to as the located within the territorial limits de

**Commission") pursuant to subsection 1700 scribed in (a) above and there are no deri

of the Atomic Energy Act of 1954, as amend. ations in the course of the transportation

tioned (hereinafter referred to as the Act"). for the purpose of going to any other coun

ARTICLE I try, state or nation, except for a deviation in the course of said transportation for the As used in this agreement, purpose of going to or returning from a port 1. "Nuclear reactor." "byproduct materior place of refuge as the result of an emer al." "person," "source material," and "spegency.

cial nuclear material" shall have the meanB. The definition of "insured shipment“ is ings given them in the Atomic Energy Act replaced with the following:

of 1954, as amended, and the regulations "Insured shipment" means a shipment of issued by the Commission. source material, special nuclear material, 2. Except where otherwise specifically prospent fuel or waste, herein called “materi vided, "amount of financial protection" al", (1) to the facility from any location means the amount specified in Item 2 a and except an indemnified nuclear facility, but b. of the Attachment annexed hereto, as only if the transportation of the material is modified by paragraph 8. Article II, with renot by predetermination to be interrupted spect to common occurrences. by removal of the material from a trans- 3. (a) "Nuclear imcident" means any occurporting conveyance for any purpose other rence including an extraordinary nuclear octhan the continuation of its transportation, currence or series of occurrences at the locaor (2) from the facility to any other loca tion or in the course of transportation caustion, but only until the material is removed ing bodily injury, sickness, disease, or death, from a transporting conveyance for any pur or loss of or damage to property, or loss of pose other than the continuation of its use of property, arising out of or resulting transportation.

from the radioactive, toxic, explosive, or

other hazardous properties of the radioactive material.

(b) Any occurrence including an extraordinary nuclear occurrence or series of occurrences causing bodily injury, sickness, disease or death, or loss of or damage to prop) erty, or loss of use of property, arising out of or resulting from the radioactive. tosic, explosive or other hazardous properties of

i. The radioactive material discharged or dispersed from the location over a period of days, weeks, months or longer and also arising out of such properties of other material defined as "the radioactive material" in any other agreement or agreements entered into by the Commission under subsection 170 c ork of the Act and so discharged or dispersed from the location" as defined in any such other agreement, or

ii. The radioactive material in the course of transportation and also arising out of such properties of other material defined in any other agreement entered into by the Commission pursuant to subsection 170 c or k of the Act as “the radioactive material" and which is in the course of transportation, shall be deemed to be a common occurrence. A common occurrence shall be deemed to constitute a single nuclear incident.

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

5. "In the course of transportation" means in the course of transportation within the. United States, or in the course of transportation outside the United States and any other nation including handling or temporary storage incidental thereto, of the radioactive material to the location or from the location provided that:

(a) With respect to transportation of the radioactive material to the location, such transportation is not by pre-determination to be interrupted by the removal of the material from the transporting conveyance for any purpose other than the continuation of such transportation to the location or temporary storage incidental thereto;

(b) The transportation of the radioactive material from the location shall be deemed to end when the radioactive material is removed from the transporting conveyance for any purpose other than the continua ation of transportation or temporary storage incidental thereto:

(c) “In the course of transportation" as used in this agreement shall not include transportation of the radioactive material to the location is the material is also “in the course of transportation" from any other "location" as defined in any other agree ment entered into by the Commission pursuant to subsection 170 ( ork of the Art.

6. "Person indemnified" means the licens. ce and any other person who may be liable for public liability.

7. "Public liability." means any legal liabil. ils arising out of or resulting from a nuclear incident, ('Scept (1) claims under state or Federal Workmen's Compensation Acts of employees of persons indemnified who are employed (a) at the location or, if the nuclear incident occurs in the course of transportation of the radioactive material, on the transporting vehicle and (b) in connection with the licensee's possession, lise or transfer of the radioactive material: (2) claims arising out of an act of war; and (3) claims for loss of, or damage to, or loss of use of (a) property which is located at the location and used in connection with the licensee's possession, use, or transfer of the radioactive material, and (b) is the nuclear incident occurs in the course of transportation of the radioactive material, the transporting rehi. cle, containers lised in such transportation. and the radioactive material.

8. "The location" means the location des scribed in Item 4 of the Attachment hereto.

9. "The radioactive material" means source, special muclear, and byproduct material which (1) is used or to be used in, or is irradiated or to be irradiated by the nuclear reactor or reactor's subject to the license or licenses designated in the Attachment ncreto, or (2) which is produced as the result of operation of said reactor(s).

10. “United States" when used in a grographical sense includes Puerto Rico and all territories and possessions of the United States.

ARTICLE II 1. Al all times during the term of the li('ense or licenses designated in Item 3 of the Altachment hereto, the licensee will mainlain financial protection in the amount specified in Item 2 of the Attachment and in the form of the nuclear energy liability insurance policy designated in the Altach: ment. If more than one license is designated in Item 3 of the Altachment, the licensee agrees to maintain such financial protection until the end of the term of that license which will be the last to expire. The licensee shall, notwithstanding the expiration, termination, modification, amendment, suspension or relocation of any license or licenses designated in Item 3 of the Attachment. maintain such financial protection in effect until all the radioactive material has been removed from the location and transporta. tion of the radioactive material from the location has ended as defined in paragraph 516), Article I of this section, or until the Commission authorizes the termination or the modification of such financial protection. The Commission will not unreasonably withhold such authorization.

5. The waivers set forth in paragraph 4 of this article

(a) Shall not preclude a defense based upon a failure to take reasonable steps to mitigate damages;

(b) Shall not apply to injury or damage to a claimant or to a claimant's property which is intentionally sustained by the claimant or which results from a nuclear incident intentionally and wrongfully caused by the claimant:

(c) Shall not apply to injury to a claimant who is employed at the site of and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits therefore are either payable or required to be provided under any workmen's compensation or occupational disease law: Provided, howcrcr, That 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

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2. In the event of any payment by the insurer or insurers under a policy or policies specified in Item 5 of the Attachment hereto which reduces the aggregate limit of such policy or policies below the amount of financial protection, the licensee will promptly apply to his insurers for reinstatement of the amount specified in Item 2a of the Attachment (without reference to paragraph b of Item 2) and will make all reasonable efforts to obtain such reinstatement. In the event that the licensee has not obtained reinstatement of such amount within ninety days after the date of such reduction, and in the absence of good cause shown to the contrary, the Commission may issue an order requiring the licensee to furnish financial protection for such amount in another form.

3. Any obligations of the licensee under subsection 53e(8) of the Act to indemnify the United States and the Commission from public liability, together with any public liability satisfied by the insurers under the policy or policies designated in the Attachment hereto, shall not in the aggregate exceed the amount of financial protection with respect to any nuclear incident, including the reasonable costs of investigating and settling claims and defending suits for damage.

4. With respect to any extraordinary nuclear occurrence to which this agreement applies, the Commission, and the licensee on behalf of itself and other persons indemnified, insofar as their interests appear, each agree to waive

(a) Any issue or defense as to the conduct of the claimant or fault of persons indemnified, including, but not limited to

(1) Negligence;
(2) Contributory negligence;
(3) Assumption of the risk;

(4) Unforeseeable intervening causes, whether involving the conduct of a third person or an act of God. As used herein, "conduct of the claimant" includes conduct of persons through whom the claimant derives his cause of action:

(b) Any issue or defense as to charitable or governmental immunity:

(c) Any issue or defense based on any statute of limitations is suit is instituted within 3 years from the date on which the claimant first knew, or reasonably could have known. of his injury or damage and the cause thereof, but in no event more than 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. The waivers shall be judicially enforceable in accordance with their terms by the claimant against the person indemnified.

(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 NRC 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:

(d) Shall not apply to 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:

(e) Shall be effective only with respect to those obligations set forth in this agreement:

(f) 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 limit of liability provisions under subsection 170e of the Atomic Energy Act of 1954, as amended, and (2) the terms of this agreement and the terms of the nuclear energy liability insurance policy or policies designated in the attachment hereto.

6. The obligations of the licensee under this agreement shall apply only with respect

to nuclear incidents occurring during the $160.000.000 and the amount available as term of this agreement.

secondary financial protection. the obliga7. Upon the expiration or relocation of tions of the licensee shall not exceed a any license designated in Item 3 of the At greater proportion of an amount equal to tachment, the Commission will enter into the sum of $160.000.000 and the amount an appropriate amendment of this agree available as secondary financial protection, ment with the licensee reducing the amount than the amount of financial protection esof financial protection required under this tablished under this agreement bears to the Article: provided, that the licensee is then sum of such amount and the amounts of fientitled to a reduction in the amount of financial protection established inder all nancial protection under applicable Com other applicable agreements. mission regulations and orders.

(d) As used in this paragraph 8. Article II. 8. With respect to any common occur and in Article III, “other applicable agrerrence, (a) If the sum of the limit of liability

ments" means each other agreement enof any Nuclear Energy Liability Insurance

tered into by the Commission pursuant to Association policy designated in Item 5 of

subsection 170c of the Act in which agreethe Attachment and the limits of liability of

ment the nuclear incident is defined as a all other nuclear energy liability insurance

“common occurrence." As used in this parapolicies (facility form) applicable to such

graph 8. Article II, "the obligations of the licommon occurrence and issued by Nuclear

censee" means the obligations of the licensEnergy Liability Insurance Association ex

er under subsection 53e(8) of the Act to inceeds $124,000,000 the amount of financial

demnify the United States and the Commisprotection specified in Item 2 a and b of the

sion from public liability, together with any Attachment shall be deemed to be reduced

public liability satisfied by the insurers by that proportion of the difference be

under the policy or policies designated in tween said sum and $124.000.000 as the limit

the Attachment, and the reasonable costs of of liability of the Nuclear Energy Liability

investigating and settling claims and deInsurance Association policy designated in

fending suits for damage. Item 5 of the Attachment bears to the sum

9. The obligations of the licensee under of the limits of liability of all nuclear

this Article shall not be affected by any fail. energy liability insurance policies (facility

lire or default on the part of the Commisform) applicable to such common occur

sion or the Government of the United rence and issued by Nuclear Energy Liabili.

States to fulfill any or all of its obligations ty Insurance Association; (b) If the sum of the limit of liability of

under this agreement. Bankruptcy or insolany Mutual Atomic Energy Liability Under

vency of any person indemnified other than writers policy designated in Item 5 of the

the licensee, or the estate of any person in

demnified other than the licensee, shall not Attachment and the limits of liability of all other nuclear energy liability insurance

relieve the licensee of any of his obligations policies (facility form) applicable to such

hereunder. common occurrence and issued by Mutual Atomic Energy Liability Underwriters (x

ARTICLE III ceeds $36,000,000, the amount of financial 1. The Commission undertakes and agrees protection specified in Item 2 a and b of the to indemnify and hold harmless the licensee Attachment shall be deemed to be reduced and other persons indemnified, as their inby that proportion of the difference be terest may appear from public liability. tween said sum and $36,000,000 as the limit 2. With respect to damage caused by a nuof liability of the Mutual Atomic Energy Li clear incident to property of any person leability Underwriters policy designated in gally liable for the nuclear incident, the Item 5 of the Attachment bears to the sum Commission agrees to pay to such person of the limits of liability of all nuclear those sums which such person would have energy liability insurance policies (facility been obligated to pay if such property had form) applicable to such common occur. belonged to another: provided, that the obli. rence and issued by Mutual Atomic Energy gation of the Commission linder this para. Liability Underwriters;

graph 2 docs not apply with respect to: (c) If any of the other applicable agree (a) Property which is located at the locaments is with a person who has furnished fi tion described in Item 4 of the Attachment nancial protection in a form other than a or at the location described in Item 3 of the nuclear energy liability insurance policy (fa declarations attached to any nuclear energy cility form) issued by Nuclear Energy Liabil liability insurance policy designated in Item ity Insurance Association or Mutual Atomic 5 of the Attachment; Energy Liability Underwriters, and is also (b) Property damage due to the neglect of the sum of the amount of financial protec the person indemnified to use all reasonable tion established under this agreement and means to save and preserve the property the amounts of financial protection estab- after knowledge of a nuclear incident: lished under all other applicable agreements (c) If the nuclear incident occurs in the exceeds an amount equal to the sum of course of transportation of the radioactive

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