# STANDARD CLAUSES

## 1. NUCLEAR INCIDENT EXCLUSION CLAUSE—LIABILITY DIRECT (BROAD)

The insurance afforded under this liability clause of the Policy does not apply:

(a) Under any liability coverage to any person, firm or organization, for any loss, damage or injury arising out of or resulting from an event or condition described in the following paragraphs:

(i) Any nuclear incident which occurs under the Policy and which results in the release of radioactive material into the atmosphere.

(ii) Any nuclear incident which occurs under the Policy and which results in the release of radioactive material into the atmosphere as a result of the hazardous properties of such material, and which is not caused by an accident or event covered by the Atomic Energy Liability Underwriters or Nuclear Insurance Association of America, or both.

(b) Resulting from the hazardous properties of nuclear materials and which are not otherwise excluded, except that the exclusion shall not apply to any loss, damage or injury arising out of or resulting from the United States of America, or any agency thereof, under an agreement entered into with the United States of America, or any agency thereof, with any person or organization.

## 2. UNDER ANY MEDICAL PAYMENTS COVERAGE UNDER AND/OR SUPPLEMENTARY INSURANCE POLICY ISSUED BY THE COMPANY, THE COMPANY WILL NOT BE LIABLE FOR ANY MEDICAL EXPENSES RELATING TO INJURY, SICKNESS, DEATH OR DISEASE RESULTING FROM THE NUCLEAR INCIDENT EXCLUSION APPLICABLE TO THIS POLICY.

## 3. UNDER ANY LIABILITY COVERAGE FOR DAMAGE TO PROPERTY, THE INSURANCE DOES NOT APPLY TO ANY LOSS, DAMAGE OR INJURY RESULTING FROM THE HAZARDOUS PROPERTIES OF NUCLEAR MATERIAL.

### (a) "Nuclear material" means any material listed in any nuclear material list issued by the Department of Energy, or any successor department or organization.

### (b) The nuclear material is contained in spent fuel, waste, or any processed, hardened, used, processed, or irradiated fuel or disposed of by or on behalf of the Company.

### (c) The injury, sickness, disease, death or destruction arises out of the handling, use, or disposal of nuclear material in a manner inconsistent with the proper operation, maintenance, operation or use of any nuclear facility. If such injury, sickness, disease, death or destruction results 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, the exclusion (c) applies only to injury or destruction of property at such nuclear facility.

## IV. As used in this endorsement:

### (a) "Hazardous properties" include radioactive, toxic or explosive properties.

### (b) "Nuclear material" means source material, special nuclear material, or byproduct material.

#### (i) "Source material" has the meaning given it in the Atomic Energy Act of 1954 or any law amendatory thereof.

#### (ii) "Special nuclear material" means any nuclear material other than uranium-238, plutonium, or any combination thereof.

#### (iii) "Byproduct material" means any material produced by a nuclear reactor and which is incidental to the production of fissile material.

### (c) "Spent fuel" means spent fuel as defined in the Atomic Energy Act of 1954 or any law amendatory thereof.

### (d) "Waste" means any waste material (1) containing byproduct material, or (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.

### (e) "Nuclear facility" means:

#### (i) Any nuclear reactor.

#### (ii) 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 packing waste.

#### (iii) 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 insurer at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 235 or any combination thereof, or more than 250 grams of uranium 235.

#### (iv) 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.

#### (v) "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 "destroyed" include all forms of radioactive contamination of property.

## 2. This Policy shall not be assigned either in whole or part, without the written consent of the Company or its duly authorized representative endorsed hereon.

## 3. 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 considered as incorporated herein and any amendments or conditions appearing in any form or endorsements attached hereto which alter the Policy provisions stated herein (hereinafter referred to as "Standard Clauses") may not be amended.

## 4. This Policy can be cancelled on the customary short rate basis by the Assured at any time by written notice or by surrender of this Policy to the Company or its duly authorized representative. This Policy may also be cancelled with or without the return or tender of the unearned premium, by written notice or by surrender of this Policy to the Company or its duly authorized representative by sending to the Assured by mail, registered or certified mail, the Assured's last known address, not less than 10 days' written notice stating when the cancellation will be effective and in such case the Company shall pay the Assured the earned portion thereof on demand subject always to the retention by the Company hereof on any minimum premium stipulated herein (or proportion thereof provided in a schedule) in the event of cancellation either by the Company or the Assured.

## 5. MISREPRESENTATION AND FRAUD: This policy shall be void if the Assured has concealed or misrepresented any material fact or circumstance concerning this insurance or subject 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.

## 6. 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.

## 7. 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.

## 8. 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 $2,000.

## 9. 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 varied or changed, except by endorsement issued to form a part of this Policy.

## 10. 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 true and correct 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 with regard to its obligations relating to this insurance.

This policy is made and accepted subject to the foregoing provisions and stipulations and those hereinafter stated, which are hereby made a part of this policy, together with other provisions, stipulations and agreements as may be added hereto, as provided in this policy.

## GEORGIA EXCEPTION: The third line of Clause 4., is amended to read "30 days" in lieu of "10 days", except in the case of a policy issued to a commercial concern, in which case "line shall read "15 days" in lieu of "10 days".

## MISSOURI EXCEPTION: The third line of Clause 4., is amended to read "30 days" in lieu of "10 days".

## NEW YORK EXCEPTION: It is agreed that the provisions of Clause 1., "Nuclear Incident Exclusion Clause—Liability-Direct (Broad)" do not apply in New York with respect to Automobile Bodily Injury and Automobile Property Damage Liability coverage afforded by this policy.

## NO CAROLINA & WISCONSIN EXCEPTION: Clause 5. is amended to read as follows: "The terms of this policy shall not be changed, except by endorsement issued to form a part of this policy. Knowledge of the agent of the Company shall be non-exculpatory of the Company, and any fact which breaches the terms of the policy and to know of the agent shall not relieve the policy or defect a recovery thereon in the event of loss."

## MARYLAND EXCEPTION: The third line of Clause 4., is amended to read "45 days" in lieu of "10 days".

## OREGON EXCEPTION: The following clause is added, BANKRUPTCY OR INSOLVENCY: The bankruptcy or insolvency of the Assured shall not relieve the Insured of its obligation under this Policy. If any person or his legal representative shall obtain final judgment against the Assured because of bodily injury or property damage caused by any vehicle drawn, propelled, operated or having motive power, and execution of such judgment is returned unsatisfied because of the bankruptcy, insolvency, or other cause, or if such judgment is not satisfied within 30 days after it is rendered, such person or his legal representatives may recover from the Company the amount of such judgment, but not exceeding the limit of the policy applicable to the coverage involved.

## WASHINGTON EXCEPTION: The following words are added to Clause 5., "if such concealment, misrepresentation or fraud either: a) was made with intent to deceive; or b) led to an increase in risk or contributed to a loss hereunder." The third line of Clause 4., is amended to read "30 days" in lieu of "10 days".