Nuclear Power Plants Third Party Nuclear Liability Insurance Richard Jones American Nuclear Insurers

ANI Policyholders (U.S. Business) Power Reactors103 Power Reactors103 Support Facilities125 Support Facilities125 Suppliers & Transporters220 Suppliers & Transporters220

Worldwide Reinsurance Operations JapanGermany KoreaU.K. ChinaFrance TaiwanSpain MexicoSweden South Africa Czech Republic FinlandSlovak Republic

Price-Anderson Enacted In 1957 To: Encourage The Private Development Of Nuclear Power. Encourage The Private Development Of Nuclear Power. Establish A Legal Framework For Potential Liability Claims. Establish A Legal Framework For Potential Liability Claims. Provide A Ready Source Of Funds To Compensate Injured Victims Of A Nuclear Accident. Provide A Ready Source Of Funds To Compensate Injured Victims Of A Nuclear Accident.

Nuclear Insurance Pooling System Established Initial capacity is $60 million. The federal portion of the indemnity was $500 million. The Omnibus Definition of Insured is developed.

Three Fundamental Concepts: Definition of Insured Definition of Insured Policy Period and Limits Policy Period and Limits Defense Costs Within Limits Defense Costs Within Limits

The Price-Anderson Act Is Renewed. The Definition of Extraordinary Nuclear Occurrence “ENO” Is Added To The Act. Insurance Pools waive most tort defenses in the case of an “ENO.”

Court Challenge to Price- Anderson Carolina Environmental Study Group et al v. Duke Power Company U.S. Supreme Court rules in 1978 that the Act, including the limit of liability is constitutional. 1973…

1977… Price-Anderson again renewed. Price-Anderson again renewed. Second layer of protection added. Second layer of protection added. $5 million per operating reactor. $5 million per operating reactor. Federal layer of protection out when The 80th reactor is licensed. Federal layer of protection out when The 80th reactor is licensed.

Price-Anderson renewed For 15 years Price-Anderson renewed For 15 years Definition of public liability expanded to include some costs of evacuation Definition of public liability expanded to include some costs of evacuation ANI Develops Liability Coverage “D”

Liability Coverage “D” Reasonable additional costs for Food Food Shelter Shelter Transportation Transportation Police Services Police Services For Time Evacuation Order Is In Effect + 30 Days

Financial Protection Evolution of Limits...

Secondary Financial Protection

ANI Response To The Three Mile Island Accident

TMI - The first two days... March 28, 1979 March 28, Accident Occurs0400 Accident Occurs 0730 ANI Notified0730 ANI Notified March 29, 1979 March 29, 1979 ANI Personnel Arrive In Pennsylvania Local Claims Office Authorized 51 Claims Adjusters Recruited From Member Companies

TMI - The Evacuation Advisory March 30, 1979 Pennsylvania Governor Richard Thornburgh Issues An Advisory Evacuation Notice

TMI - Opening of the Claim Office ANI’s claim office is open for business within 20 hours of the Advisory Evacuation Notice. ANI’s claim office is open for business within 20 hours of the Advisory Evacuation Notice.

TMI - ANI Response ANI alerts media (television, radio and newspapers) of the location of the claims office. ANI alerts media (television, radio and newspapers) of the location of the claims office. More than $2 million in evacuation claims will be paid. More than $2 million in evacuation claims will be paid. More than $70 million in claims and legal expenses are paid. More than $70 million in claims and legal expenses are paid.

Terrorism Coverage ANI Covers Terrorism Losses Subject To The Terms And Conditions Of Our Policies And Certified By The Terrorism Risk Insurance Act Of 2002 (TRIA). ANI Covers Terrorism Losses Subject To The Terms And Conditions Of Our Policies And Certified By The Terrorism Risk Insurance Act Of 2002 (TRIA). An Industry Aggregate Limit Applies To Losses From Terrorism Not “Certified” By TRIA. An Industry Aggregate Limit Applies To Losses From Terrorism Not “Certified” By TRIA.