Common use of RETROSPECTIVE PREMIUM Clause in Contracts

RETROSPECTIVE PREMIUM. The named insureds designated in a certifi- cate shall pay to the companies retrospective premium in the event of excess losses due to bodily injury or property damage caused dur- ing their certificate period by a nuclear inci- dent arising out of or in connection with a nuclear reactor described in Item 3 of the certificate or in Item 3 of any other certificate. The amount of retrospective premium-due under each certificate shall be determined by multiplying such excess losses by the ratio of the maximum retrospective premium pay- able with respect to the nuclear incident under the certificate to the total of the max- imum retrospective premiums payable with respect to the nuclear incident under all such certificates. If any portion of the bodily injury or prop- erty damage to which this Master Policy ap- plies is caused during any portion of a certifi- cate period by a nuclear incident, the retro- spective premium the named insureds des- ignated in such certificate are obligated to pay shall be determined as if all bodily injury or property damage to which this Master Pol- icy applies caused by the nuclear incident had been caused during the certificate period of such certificate. The maximum retrospective premium that the named insureds designated in a certificate shall pay to the companies for all excess losses arising out of any one nuclear incident is the amount stated in Item 7 of their certifi- cate. In the event of two more nuclear incidents, the maximum amount of retrospective pre- mium that shall be due from and payable by the named insureds in one calendar year shall not exceed twice the amount stated in Item 7 of their certificate. Any amount in ex- cess thereof shall be paid in subsequent cal- endar years as billed by the companies. In addition, an allowance for applicable premium taxes shall be determined by the companies and paid to them by the named insureds at the time retrospective premiums are due and payable. After a nuclear incident resulting in excess losses, the companies shall mail to the first named insured designated in Item 1 of a cer- tificate written notice of the retrospective premium and allowance for premium taxes then due under such certificate. Such notice shall also constitute notice to all other named insureds designated in such certificate. The named insureds shall pay directly to the Nuclear Energy Liability Insurance Associa- tion the retrospective premium and allow- ance for premium taxes stated in the notice. The notice shall specify a date no earlier than 60 days after mailing by which time payment is to be received by the Nuclear En- ergy Liability Insurance Association. The companies shall at least annually re- view their estimate of excess losses arising out of the nuclear incident and shall adjust the retrospective premium and allowance for premium taxes accordingly. If the amount due from the named insureds is increased, written notice shall be mailed to the first named insured in accordance with the fore- going paragraph; if deceased the companies shall return the excess to the first named in- sured. The obligation of the named insureds to pay retrospective premium and the allow- ance for premium taxes for excess losses aris- ing out of a nuclear incident shall continue until the named insureds have paid the max- imum retrospective premium stated in Item 7 of their certificate plus allowance for pre- mium taxes. The companies shall send to the Nuclear Regulatory Commission summaries of their estimates of excess losses arising out of the nuclear incident and their computations of retrospective premium and the allowance for premium taxes due. All retrospective premium (but not the xx- xxxxxxx for premium taxes) received by the companies is to be held by the companies separate from the companies’ other assets and is to be used by the companies only for the purpose of paying excess losses. Any in- vestment income received by the companies from such retrospective premium shall ac- crue to the benefit of the named insureds. This paragraph shall not apply to any retro- spective premium received by the companies as reimbursement for any funds expended pursuant to Condition 4. No commission will be paid with respect to retrospective premium and allowance for premium taxes.