The Secondary Financial Protection (SFP) Policy is used by the operators of nuclear power plants to meet financial protection requirements under the Price-Anderson Act. The policy provides “following form” coverage for losses that exceed the primary limit available under the Facility Form Policy.

Under the Price Anderson Act, if the damages from a nuclear incident may exceed the financial protection amounts required under the Act, the Act requires each reactor to pay an additional 5% of its retrospective premium. This effectively results in the maximum retrospective premium of $117.495 million per reactor. This, multiplied by 104 operating plants, amounts to a total of $12.219 billion.

The limit under this policy is equal to the amount of retrospective premium actually collected from participating insureds. In addition to administering this program, ANI has a contingent liability if retrospective premiums are not paid when due. However, under the terms of a bonding agreement, ANI will be reimbursed with interest for any monies we advance.
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