# Nuclear Incident Exclusion Endorsement

**Office Treaty No. 1**

**For attachment to Contract No. X-3595 between:**

**INTERNATIONAL BUSINESS MACHINES CORPORATION, ETAL** and **GENERAL REINSURANCE CORPORATION**, Effective date of this Endorsement: July 1, 1964

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From 12:01 o'clock A.M. Standard Time of the above effective date it is understood and agreed that the Contract of which this Endorsement forms a part is hereby amended in the following particulars:

It is agreed that the contract does not apply:

I. Under any Liability Coverage, to injury, sickness, disease, death or destruction:

(a) resulting from the use of nuclear material, if such use is covered under a nuclear energy liability policy issued by Nuclear Energy Liability Insurance Association, Mutual Atomic Energy Liability Underwriters, or Nuclear Insurance Association of Canada, or would be an insured under any such policy but for its termination upon exhaustion of its limits of liability; or

(b) resulting from the hazardous properties of nuclear material and with respect to which (1) any person or organization is required to maintain financial protection pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, or (2) the insured, or in had this policy not been issued, would be entitled to indemnity from the United States of America, or any agency thereof, with any person or organization.

II. Under any Medical Payments Coverage, or under any Supplementary Payments Provision relating to immediate medical payments, to any exposure involved with respect to bodily injury, sickness, disease, or death arising from the hazardous properties of nuclear material and arising out of the operation of a nuclear facility by any person or organization.

III. Under any Liability Coverage, to injury, sickness, disease, death or destruction resulting from the hazardous properties of nuclear material, if:

(a) the nuclear material (1) is at any nuclear facility owned by, or operated by or on behalf of, an insured or (2) has been discharged or superheated;

(b) the nuclear material is contained in fuel or waste at any time possessed, handled, used, processed, stored, transported or disposed of by or on behalf of an insured; or

(c) the injury, sickness, disease, death or destruction arises out of the furnishing by an insured of services, materials, parts or equipment in connection with the planning, construction, maintenance, operation or use of any nuclear facility owned by, or operated by or on behalf of, the United States of America, the United Kingdom or Canada, this exclusion (c) applies only to injury to or destruction of property at such nuclear facility.

IV. As used in this endorsement:

(a) "hazardous properties" means radioactive, toxic or explosive properties; "nuclear material" means source material, special nuclear material or byproduct material; "source material," "special nuclear material," and "byproduct material" have the meanings given them in the Atomic Energy Act of 1954 or in any law amendatory thereof; "fuel" means uranium or plutonium, or fuel element, assembly or liquid, which has been used or exposed to radiation in a nuclear reactor; "waste" means waste material (1) which has been generated as a result of operations from the operation by any person or organization of any nuclear facility included within the definition of nuclear facility under the Atomic Energy Act of 1954; (b) thereof, "nuclear facility" means

(a) any nuclear reactor,

(b) any equipment or device designed, or used for (1) separating the isotopes of uranium or plutonium, (2) processing or utilizing spent fuel, or (3) handling, processing or packaging waste,

(c) any structure, basin, excavation, premises or place prepared or used for the storage or disposal of waste, and includes the site on which any of the foregoing is located, all operations conducted on such site and all premises used for such operations; "nuclear reactor" means an apparatus designed or used to sustain nuclear fission in a self-sustaining chain reaction or to produce a critical mass.

With respect to injury to or destruction of property, the word "injury" or "destruction" includes all forms of radioactive contamination of property.

V. The party to which this Endorsement is attached refers to the party covered as the "reinsured" or "assured", same is understood to mean "insured" as used herein.

Nothing herein contained shall vary, alter or extend any agreement, provision, general condition or declaration of the Contract other than as above stated.

In Witness Whereof, the GENERAL REINSURANCE CORPORATION has caused this Endorsement to be signed by its President and Secretary at New York, New York, but the same shall not be binding upon the Reinsurer unless countersigned by another officer of the Reinsurer.

**Secretary**
**President**

Countersigned at New York, New York this 24th day of August, 1964

GENERAL REINSURANCE CORPORATION

Vice President—Assistant Secretary