# STANDARD CLAUSES

## 1. NUCLEAR INCIDENT EXCLUSION CLAUSE—LIABILITY—DIRECT (BROAD)
The insurance afforded under any liability coverage of this Policy does not apply:

(a) with respect to which the insured under the Policy is also insured 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 or exhaustion of its limit 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 is, or had this Policy not been issued would be, entitled to indemnity from the United States of America, or any agency thereof, under any agreement entered into by 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 or surgical relief, to expenses incurred with respect to injury, sickness, disease, or death resulting 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 on behalf of, an insured or (2) has been discharged or dispersed therefrom;
(b) the nuclear material is contained in spent 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, but such facility is located within the United States of America, its territories or possessions or Canada, this exclusion (c) applies only to injury to or destruction of property at such nuclear facility.

## IV. As used in this endorsement:
"‘hazardous properties’ include radioactive, toxic or explosive properties: ‘nuclear material’ means source material, special nuclear material or byproduct material; ‘source material’ means ‘special nuclear material’, and ‘byproduct material’ have the meanings given them in the Atomic Energy Act of 1954 or in any law amendatory thereof; ‘spent fuel’ means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in a nuclear reactor; ‘waste’ means any waste material (1) containing byproduct material and (2) resulting from the operation by any person or organization of any nuclear facility included within the definition of nuclear facility under paragraph (a) or (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 equipment or device used for the processing, fabricating or alloying of special nuclear material if at any time the total amount of such material in the custody of the owner or the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams of ur-235,
(d) 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 any apparatus designed or used to sustain nuclear fission in a self-sustaining chain reaction or to contain a critical mass of fissile material.

With respect to injury to or destruction of property, the words “injury” or “destruction” includes all forms of radioactive contamination of property.

## 2. RADIOACTIVE CONTAMINATION EXCLUSION CLAUSE—PHYSICAL DAMAGE—DAMAGE—DIRECT
This Policy does not cover any loss or damage arising directly or indirectly from nuclear reaction, nuclear radiation or radioactive contamination caused by a nuclear reaction, nuclear radiation or radioactive contamination may have been caused “NEVERTHELESS IF fire is an insured peril and a Fire arises directly or indirectly from nuclear reaction, nuclear radiation or radioactive contamination or any loss or damage arising directly from that Fire shall (subject to the provisions of this Policy) be covered EXCLUDING however all loss or damage caused by nuclear reaction, nuclear radiation or radioactive contamination arising directly or indirectly from that Fire.

*NOTE—If Fire is not an insured peril under this Policy the words from “NEVERTHELESS” to the end of the clause do not apply and should be disregarded.

It is expressly understood and agreed by the Assured by accepting this instrument that Sayre & Toso, Inc. is not the Assurer hereunder and neither is nor shall be in any way or to any extent liable to the Assured and the clause hereafter, as an Assurer: The Assurer hereunder is the company shown in the declarations.

This Policy shall not be assigned either in whole or part, without the written consent of Sayre & Toso, Inc. endorsed thereon.

This insurance is made and accepted subject to all the provisions, conditions and warranties set forth herein and in any forms or endorsements attached hereto, all of which are to be considered as incorporated herein, and any provisions or conditions appearing in any forms or endorsements attached hereto which after the Policy provisions stated herein (except Clauses 1 and 2) shall supersede such Policy provisions in so far as they are inconsistent therewith. Standard Clauses 1 and 2 may not be amended.

The Policy may be cancelled on the customary short rate basis by the Assured at any time by written notice or by surrender of this Policy to Sayre & Toso, Inc. This Policy may be cancelled with or without the return or tender of the unearned premium, by Underwriters, or by Sayre & Toso, Inc., in their behalf by delivering to the Assured or by sending to the Assured by mail, registered or unregistered, at the Assured’s address as shown herein, less than 10 days written notice stating when the cancellation shall be effective and in such case the company shall refund the paid premium, less the earned portion thereof on demand, subject always to the retention by the Company hereof of any maximum premium stipulated herein (or proportion thereof previously agreed upon) in the event of cancellation either by the Company or the Assured.

MISREPRESENTATION AND FRAUD: This policy shall be void if the Assured has concealed or misrepresented any material fact or circumstance concerning this insurance or any interest thereof or in case of any fraud, attempted fraud or false swearing by the Assured touching any matters relating to the insurance or the subject thereof, whether before or after a loss.

COOPERATION BY ASSURED: The Assured shall cooperate with the Company and, upon the Company’s request, shall attend hearings and trials and shall assist in effecting settlements, securing and giving evidence, obtaining the attendance of witnesses and in the conduct of suits.

TERMS USED IN ENDORSEMENTS: Wherever the word “Underwriters” appears in any endorsement attached to this Policy, the Company shown in the declarations shall be deemed substituted therefor.

SMALL AMOUNTS: It is a condition of this policy that no additional premium will be charged nor return premium allowed when the amount involved does not exceed $2.00.

CHANGES: Notice to any agent or knowledge possessed by any agent or by any other person shall not effect a waiver or a change in any part of this policy or estop the Company from asserting any right under the terms of this Policy; nor shall the terms of this Policy be waived or changed, except by endorsement issued to form a part of this Policy.

DECLARATIONS: By accepting this Policy the Assured agrees that the statements in all declarations and warranties made in connection with the insurance provided hereunder are his agreements and representations, that this policy is issued in reliance upon the truth of such representations, and that this policy embodies all agreements between the Assured and the Company or any of its agents relating to this insurance.