# Endorsement No. 7

**ABG 661a**

**NUCLEAR ENERGY LIABILITY EXCLUSION ENDORSEMENT (BROAD FORM)**

**This endorsement, effective: 5-21-80**

**HEC 9 M.**

**Issued to:** International Business Machines Corp., Etal  
**By:** City Insurance Company

**It is agreed that the policy does not apply:**

I. 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 insurance policy of the Nuclear Energy Liability Insurance Association, Mutual Atomic Energy Liability Underwriters, or the Atomic Energy Liability Association of Canada, or would be an insured under any such policy that for any reason ceases to have a limit of liability; or
   (b) resulting from the hazardous properties of nuclear material with respect to which an insured 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, and has entered into an agreement with the United States of America, or any agency thereof, under any agreement or treaty with the United States or any agency thereof, with any person or organization.

II. Under any Medical Payments Coverage, or under any Supplemental Payment provision relating to medical or surgical relief, to expenses incurred with respect to bodily injury, sickness, disease or death arising out of the 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:
   (a) if the nuclear material (1) is at any nuclear facility owned by, or operated by or on behalf of, an insured, or discharged or dispersed therefrom;
   (b) the nuclear material is contained in spent fuel or waste at any time possessed, handled, used, processed, imported 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, 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, then 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", "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 in a nuclear reactor.
   "waste" means any waste material (1) containing byproduct material and (2) resulting from the operation or organization of any nuclear facility included within the definition of nuclear facility under paragraph (d).
   "nuclear facility" means:
      (a) any nuclear reactor,
      (b) any equipment or device designed or used for (1) separating the isotopes of uranium or plutonium, or reprocessing 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, or any total amount of such material in the custody of the insured at the premises where such equipment is located, consisting of more than 25 grams of plutonium or uranium 235 or any combination thereof,
      (d) any structure, basin, excavation, premises or place prepared or used for the storage or disposal of nuclear material and includes the site on which any of the foregoing is located, all operations conducted on such site being used for such operations;
   "nuclear reactor" means any apparatus designed or used to sustain nuclear fission in a self-supporting manner 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 physical contamination of property.

**W. J. Davies**  
**Authorized Representative**