# STANDARD CLAUSES

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

### Under any Liability Coverage, to injury, sickness, disease, death or destruction:
(a) with respect to which an insured under the Policy is also an insured under a nuclear energy liability policy issued by Nuclear Energy Liability Insurance Association, 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 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 under the Atomic Energy Act of 1954, or any law amendatory thereof, or (2) the insured is, or would have been insured under, this Policy if not issued 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 Supplements > Payments Provision relating to immediate medical or surgical relief, to expense incurred with respect to injury, sickness, disease or death resulting from the hazardous properties of nuclear material, and arising out of the operation, maintenance, use or storage of any 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 assured 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 the assured; or
(c) the injury, sickness, disease, death or destruction arises out of the furnishing by or rendered of services, materials, tools or equipment in connection with the planning, maintenance, operation or use of any nuclear facility, but if such facility is located within the United States of America, its territories or possessions, exclusion (c) applies only to injury to or destruction of property at such nuclear facility.

## IV. As used in this endorsement:
“hazardous properties” means radioactive, toxic or explosive properties; “nuclear material” means source material, special nuclear material or byproduct materials; “source material,” “special nuclear material,” and “byproduct materials” have the meanings given them in the Atomic Energy Act of 1954 or in any law amendatory thereof; “spent fuel,” “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 storing 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 or at 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 250 grams of uranium 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 such facility is located, all operations conducted on such site and all premises used for such operations; “nuclear reactor” means any reactor designed or used in support of nuclear fission or to contain a critical mass of fissile material.

With respect to injury to or destruction of property, the word “injury” or “destruction” includes 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 is considered an important part of this Policy, and any provisions or conditions appearing in any forms or endorsements attached hereto which alter the Policy provisions stated herein, Clause 1 may not be amended.

This 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 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 the Company or its duly authorized representative in writing 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 of cancellation shall be effective and in such case the Company shall refund the unearned premium less the earned portion thereof on demand, subject always to the retention by the Company of any minimum premium stipulated herein (or upon the 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 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 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, 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 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 $10.

## 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 true and correct, that this policy is issued in reliance upon the truth of such representations, and that this policy embodies all agreements between the Company and any of its agents 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.

## OREGON EXCEPTION: The following clause is added: BANKRUPTCY OR INSOLVENCY: The bankruptcy or insolvency of the Assured shall not relieve the Insurer of its obligations 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 or operated by any motive power, and execution of such judgment is returned unsatisfied because of the bankruptcy, insolvency of other cause, or if such judgment is rendered 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 amount applicable to the coverage involved.

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

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

## MICHIGAN EXCEPTION: The third line of Clause 4, is amended to read “at the last address of the Assured known to the Company” in lieu of “at the Assured’s address herein.”

## 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 Bodily Injury and Automobile Property Damage Liability coverage afforded by this policy.

## GEORGIA EXCEPTION: Clause 4, is amended to read as follows: “The terms of this policy shall not be changed, except by endorsement issued to form this Policy. Knowledge of the terms of the Company shall be knowledge of the Company, and any fact which breaches a condition of the policy and is known to the agent since the policy was issued is a breach thereof in the event of loss.”

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

## CAROLINA & WISCONSIN EXCEPTION: Clause 4, is amended to read as follows: “The terms of this policy shall not be changed, except by endorsement issued to form this Policy. Knowledge of the terms of the Company shall be knowledge of the Company, and any fact which breaches a condition of the policy and is known to the agent since the policy was issued is a breach thereof in the event of loss.”