Nuclear Disasters and Insurance
http://www.iinc.org/articles/390/1/Nuclear-Disasters-and-Insurance/Page1.html
Published on 03/16/2011
Seven nuclear power facilities have been built in California over the last 50 years. While most have been deactivated, two of these plants are still in operation: The Diablo Canyon facility located near San Luis Obispo, and the San Onofre facility located between Los Angeles and San Diego. Though these plants are owned and operated privately, the United States Nuclear Regulatory Commission regulates them.
California Nuclear Power Plants
Seven nuclear power facilities have been built in California over the last 50 years. While most have been deactivated, two of these plants are still in operation: The Diablo Canyon facility located near San Luis Obispo, and the San Onofre facility located between Los Angeles and San Diego. Though these plants are owned and operated privately, the United States Nuclear Regulatory Commission regulates them.
The Price-Anderson Act and Insurance
Nuclear accidents are extremely rare, however, the consequences of a nuclear power accident would likely be far reaching.
Anticipating the potential impacts of a nuclear accident, the United States Congress passed the Price-Anderson Act of 1957. This act put in place a funding system to cover liability claims following an accident. Currently, this fund has a claim capacity in excess of $12.5 billion.
Claims covered by the Act include accidents in the operation of a nuclear facility, storage or transporting nuclear fuel and waste and any incident including theft or sabotage. Insurance under Price-Anderson includes personal injury, sickness, property damage and additional living expenses for individuals under mandatory evacuation orders.
Because the Price-Anderson Act covers claims for nuclear accidents, all liability and property insurance policies in the U.S. – such as homeowner insurance policies – by law exclude coverage for nuclear accidents.
1979 Three Mile Island
In 1979, the Price-Anderson Act proved valuable following the accident at Three Mile Island. In response to the accident, insurance adjusters arrived on the scene and advanced money to evacuees to cover living expenses. After handling all claims, the Act had reimbursed more than 600 individuals and families and ultimately provided approximately $71 million to cover claims.
American Nuclear Insurers
American Nuclear Insurers is the only insurer directly writing nuclear liability insurance for nuclear facilities across the country. Additionally, ANI assumes reinsurance shares on nuclear business from other insurance pools around the world.
Specifically, it insures risks such as nuclear power plants; test and research reactors used by industry, medicine and academia; nuclear fuel fabricators; nuclear waste management and disposal facilities; and shippers and transporters.
ADDITIONAL RESOURCES
Price-Anderson Act of 1957
American Nuclear Insurers
The California Energy Commission
Seven nuclear power facilities have been built in California over the last 50 years. While most have been deactivated, two of these plants are still in operation: The Diablo Canyon facility located near San Luis Obispo, and the San Onofre facility located between Los Angeles and San Diego. Though these plants are owned and operated privately, the United States Nuclear Regulatory Commission regulates them.Nuclear Disasters and Insurance
California Nuclear Power Plants
Seven nuclear power facilities have been built in California over the last 50 years. While most have been deactivated, two of these plants are still in operation: The Diablo Canyon facility located near San Luis Obispo, and the San Onofre facility located between Los Angeles and San Diego. Though these plants are owned and operated privately, the United States Nuclear Regulatory Commission regulates them.
The Price-Anderson Act and Insurance
Nuclear accidents are extremely rare, however, the consequences of a nuclear power accident would likely be far reaching.
Anticipating the potential impacts of a nuclear accident, the United States Congress passed the Price-Anderson Act of 1957. This act put in place a funding system to cover liability claims following an accident. Currently, this fund has a claim capacity in excess of $12.5 billion.
Claims covered by the Act include accidents in the operation of a nuclear facility, storage or transporting nuclear fuel and waste and any incident including theft or sabotage. Insurance under Price-Anderson includes personal injury, sickness, property damage and additional living expenses for individuals under mandatory evacuation orders.
Because the Price-Anderson Act covers claims for nuclear accidents, all liability and property insurance policies in the U.S. – such as homeowner insurance policies – by law exclude coverage for nuclear accidents.
1979 Three Mile Island
In 1979, the Price-Anderson Act proved valuable following the accident at Three Mile Island. In response to the accident, insurance adjusters arrived on the scene and advanced money to evacuees to cover living expenses. After handling all claims, the Act had reimbursed more than 600 individuals and families and ultimately provided approximately $71 million to cover claims.
American Nuclear Insurers
American Nuclear Insurers is the only insurer directly writing nuclear liability insurance for nuclear facilities across the country. Additionally, ANI assumes reinsurance shares on nuclear business from other insurance pools around the world.
Specifically, it insures risks such as nuclear power plants; test and research reactors used by industry, medicine and academia; nuclear fuel fabricators; nuclear waste management and disposal facilities; and shippers and transporters.
ADDITIONAL RESOURCES
Price-Anderson Act of 1957
American Nuclear Insurers
The California Energy Commission