Nuclear Incident Liability Reform Act of 1978

Nuclear Incident Liability Reform Act of 1978 - Amends the Atomic Energy Act of 1954 to require that licensees for nuclear facilities obtain the maximum amount of liability insurance available from private sources. Requires that such licensees participate in an industry retrospective rating plan in addition to maintaining such insurance. Directs the Nuclear Regulatory Commission to establish rules specifying the rates for deferred premiums charged to licensees under such plan in the event of any nuclear incident resulting in public liability which exceeds or appears likely to exceed the level of a licensee's primary financial protection and the amount otherwise available from such licensee for the satisfaction of such liability.

Authorizes the Commission to loan to a licensee, at prescribed interest rates, the amount by which an assessment of deferred premiums exceeds the amount which the licensee is able to pay within a reasonable time following any nuclear incident without impairing its ability to provide electric utility service.

Repeals the provisions of the Atomic Energy Act of 1954 relating to indemnification of licensees from liability which is in excess of the level of financial protection required of the licensee. Eliminates the $500,000,000 ceiling on indemnification of contractors of the Commission against claims for liability, arising out of contractual activities, which are above the amount of financial protection required of contractors.

Repeals provisions of such Act relating to: (1) the $560,000,000 maximum aggregate liability for a single nuclear incident; (2) the collection of fees for indemnification agreements, and (3) compensation to private insurance organizations for services connected with handling indemnifications. Eliminates the exemption from the requirements of financial protection of nonprofit, educational institution licensees. Repeals the Commission's authority to indemnify persons engaged in activities relating to the Nuclear Ship Savannah from liability for nuclear incidents. Terminates the Commission's authority to enter agreements with other indemnitors with respect to emergency assistance payments.

Makes technical and conforming amendments to carry out the purposes of this Act.