# INSURING AGREEMENT

In consideration of the payment of premium stated in the Declaration, the Company agrees to indemnify the insured in accordance with the applicable policy commitments of the Primary Insurance, subject first to the limits stated in Item 6, Section I of the Declarations, and then to the limits stated in Item 6, Section II of the Declarations. The Primary Insurance is not available for the limits set forth in Item 6, Section I of the Declarations. This policy shall apply only to coverages for which an amount is indicated in Item 6, Section I and then only in excess of the applicable amount as indicated in Item 6, Section II of the Declarations.

## DEFINITIONS

1. **Loss**: The word "loss" shall be understood to mean the sums paid in settlements of losses for which the insured is liable after making deductions for all other recoveries, salvages and other insurances (other than recoveries under the policy of the Primary Insurer), whether recoverable or not, and shall exclude all expense and costs.
2. **Costs**: The word "costs" shall be understood to mean interest on judgments, investigations, adjustment and legal expenses (excluding, however, expense for retained employees and retained counsel) and all office expense of the insurer.
3. **Primary Insurance**: The term "primary insurance" shall be understood to mean the policy (police) described in Item 4.

## NUCLEAR ENERGY LIABILITY EXCLUSION

It is agreed that the insurance afforded under any liability coverage of this policy or of any endorsement used herewith does not apply:

(a) to injury, sickness, disease, death or destruction with respect to which an insured under the policy is also on insured under a contract of nuclear energy liability insurance issued by the Nuclear Energy Liability Insurance Association or the Mutual Atomic Energy Insurers Underwriters and in effect at the time of the occurrence resulting in such injury, sickness, disease, death or destruction, provided that contract of nuclear energy liability insurance shall be deemed to be in effect at the time of such occurrence notwithstanding such contract has terminated upon exhaustion of its limits;

(b) to the ownership, operation or use of a nuclear facility by or on behalf of an insured, with respect to injury, sickness, disease, death or destruction resulting from the nuclear energy hazard, provided that except for byproduct material, the paragraph shall not apply to goods or products manufactured or handled by a nuclear facility owned, maintained, operated or used by or on behalf of an insured while such goods or products are away from such facility after sale or distribution to others;

(c) to the furnishing of services, materials, parts or equipment by an insured in connection with the planning, construction, maintenance, operation or use of any nuclear facility, (i) with respect to injury or destruction of any nuclear facility, its contents, the fuel handling from the nuclear energy hazard or (ii) if the nuclear facility is located outside the United States of America, its territories, possessions or Canada, with respect to injury, sickness, disease, death or destruction resulting from the nuclear energy hazard;

(d) to the transportation, handling, use, sale, distribution or disposal of byproduct material, with respect to injury, sickness, disease, death or destruction resulting from the nuclear energy hazard.

As used in this exclusion:

1. The term "nuclear energy hazard" means the radioactive, toxic, explosive or other hazardous properties of source material, special nuclear material or byproduct material.
2. The terms "source material," "special nuclear material" and "byproduct material" shall have the meanings given them in the Atomic Energy Act of 1954 or by any law amendatory thereof, provided, except for byproduct material (a) contained in or combined with special nuclear material or (b) held, stored, transported or disposed of as waste by or on behalf of a nuclear facility. "Byproduct material" shall not include any radioactive isotopes away from a nuclear facility.
3. The term "nuclear facility" means:
   - (a) any apparatus designed or used to sustain nuclear fission in a self-supporting chain reaction or to contain a critical mass of fissile material;
   - (b) any equipment or device (i) designed or used for the separation of the isotopes of uranium or plutonium, (ii) designed or used for the processing, fabricating or alloying of special nuclear material or of irradiated materials containing special nuclear material, (iii) incorporating or making use of such irradiated materials, or (iv) designed or used for processing waste byproduct material;
   - (c) any structure, basin, excavation, premises or place prepared or used for the storage or disposal of waste source material or waste consisting of or containing special nuclear material or byproduct material; and (d) the site on which any of the foregoing is located, together with all operations conducted thereon and all premises used for such operations.
4. With respect to injury or destruction of property, the word "injury" or "destruction" includes all forms of radioactive contamination of property.

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