# Nuclear Energy Liability Exclusion Endorsement (Broad Form)

**Endorsement No.:** 1

**Named Insured:** International Business Machines Corp., et al.

**Effective Date:** May 21, 1973

**Policy No.:** XCFP35929

**Issued by:** Insurance Company of North America

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**This endorsement modifies such insurance as is afforded by the provisions of the policy relating to the following:**

- **All automobile liability, general liability and medical payments insurance other than family automobile, special package automobile, comprehensive personal and farmer's comprehensive personal insurance.**

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**It is agreed that:**

I. The policy does not apply:

A. Under any Liability Coverage, to bodily injury or property damage:
   - (1) with respect to which an insured under the policy is also an insured under a nuclear energy liability policy issued by the Nuclear Energy Liability Insurance Association, Mutual Atomic Energy Liability Underwriters or Nuclear Insurance Association of Canada, or would have been insured under any such policy but for its termination upon exhaustion of its limit of liability; or
   - (2) resulting from the hazardous properties of nuclear material and with respect to which (a) any person or organization is required to maintain financial protection pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, or (b) the insured is, or had been, a party to a policy not now issued would be, entitled to indemnity under 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.

B. Under any Medical Payments Coverage, or under any Supplementary Payments provision relating to first aid, to all expenses incurred with respect to bodily injury resulting from the hazardous properties of nuclear material and arising out of the operation of a nuclear facility by any person or organization.

C. Under any Liability Coverage, to bodily injury or property damage resulting from the hazardous properties of nuclear material:
   - (1) at any nuclear facility owned by, or operated by or on behalf of, an insured if (a) it has been discharged or dispersed therefrom;
   - (2) 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
   - (3) the bodily injury or property damage 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 if such facility is located within the United States of America, its territories or possessions or Canada, this exclusion (3) applies only to property damage to such nuclear facility and any property thereof.

II. 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," "special nuclear material," and "byproduct material" have the meanings given them in the Atomic Energy Act of 1954 or any law amendatory thereof.
   - "Spent fuel" means any fuel element or fuel component, solid or liquid, which has been used or exposed to fissionable material in a nuclear reactor.
   - "Waste" means any waste material containing byproduct material and 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 alloying of special nuclear material, or (3) handling, processing or packaging waste,
     - (c) any equipment or device used for the processing, fabrication or alloying of special nuclear material if at any time the total amount of such material in the custody of the insured at the premises where such equipment or device is located consists of at least 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams of uranium 235.
     - (d) any structure, basin, excavation, premises or place prepared or used for the storage or disposal of waste.
   - "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.
   - "Property damage" includes all forms of radioactive contamination of property.

**V.F. Liguzza**
**Author and Agent**