What is the Price-Anderson Act designed to address?

The Price-Anderson Act is designed to address the liability and costs associated with nuclear accidents. Enacted in 1957, this legislation serves to provide a framework for compensating victims of nuclear incidents while simultaneously encouraging the growth of the nuclear power industry by limiting potential liability for nuclear facility operators. The act establishes a system of financial protection, requiring nuclear power companies to maintain a certain amount of liability insurance and also providing a federal backup fund to ensure that sufficient funds are available for compensation in the event of a nuclear accident. This dual approach helps to cover claims arising from nuclear incidents and reassures the public and companies involved in the nuclear energy sector about financial risks.

In contrast, the other options relate to different aspects of insurance and liability management, but do not address the unique context and needs arising from the nuclear energy sector as effectively as the Price-Anderson Act does.