Civilian Nuclear Power Regulation Improvement and Safety Incentives Act of 1985

Civilian Nuclear Power Regulation Improvement and Safety Incentives Act of 1985 - Amends the Atomic Energy Act of 1954 to eliminate the ceiling on the aggregate liability for a single nuclear incident of persons indemnified.

Requires the Nuclear Regulatory Commission (NRC), with respect to nuclear incidents, to incorporate provisions in indemnity agreements with licensees and contractors and to require provisions to be incorporated in insurance policies or contracts furnished as proof of financial protection which waive: (1) issues or defenses as to conduct of the claimant or fault of the persons indemnified; (2) issues or defenses as to charitable or governmental immunity; or (3) issues or defenses based upon any statute of limitations if suit is instituted within three years from the date a claimant first knew or could reasonably have known of the injury and its cause. Eliminates the requirement that a suit be filed within 20 years after a nuclear incident in order for a waiver of a defense based upon a statute of limitations to be effective. (Under current law, the NRC may incorporate such waiver provisions and may require the incorporation of such provisions with respect to extraordinary nuclear occurrences.)