270.6-2

IL 00 21–NUCLEAR ENERGY LIABILITY EXCLUSION ENDORSEMENT (BROAD FORM) ANALYSIS

(April 2019)

INTRODUCTION

The Insurance Services Office (ISO) IL 00 21–Nuclear Energy Liability Exclusion Endorsement (Broad Form) is a mandatory endorsement. It must be attached to the following ISO Coverage Forms:

• Commercial Automobile Coverage Form
• Commercial General Liability Coverage Form
• Farm Coverage Form
• Liquor Liability Coverage Form
• Medical Professional Liability Coverage Form
• Owners and Contractors Protective Liability Coverage Form
• Pollution Liability Coverage Form
• Products/Completed Operations Liability Coverage Form
• Railroad Protective Liability Coverage Form
• Underground Storage Tank Policy

ISO does not offer any buy-back provisions for this exclusion. It is designed to exclude coverage for bodily injury or property damage claims caused by, that result from, or that arise out of any aspect of any nuclear operations and nuclear hazards.

Note: This analysis is of the 09 08 edition.

IL 00 21–NUCLEAR ENERGY LIABILITY EXCLUSION ENDORSEMENT ANALYSIS

A. Liability Coverage

Bodily injury and property damage that is part of any liability coverage is not covered for any insured that is also an insured under a policy issued by any of the following:

· Nuclear Energy Liability Insurance Association

· Mutual Atomic Energy Liability Underwriters

· Nuclear Insurance of Canada

· A successor carrier to any of the above

This insured continues to not be covered even after the limits available under these carriers have been exhausted to the point that the coverage has been terminated.

Bodily injury and property damage that is part of any liability coverage and is a result of nuclear materials’ hazardous properties is not covered under either of the following circumstances:

• There is a requirement that a person or organization must adhere to the Atomic Energy Act of 1954 in the maintenance of financial protection.
• The insured is entitled to be indemnified by the United States of America because of an agreement with any person or organization and the USA or any agency of the USA. This applies if this indemnification would have been available had this policy not been available.

B. Medical Payments

Medical Payments coverage is not available for expenses from any bodily injury that is a result of nuclear materials’ hazardous properties but only when the injury arises from a nuclear facility operation.

C. Liability Coverage

Bodily injury and property damage that is part of any liability coverage is not covered that is a result of nuclear materials’ hazardous property under the following circumstances:

• The material is at an insured owned or operated nuclear facility or the material is not at the facility but has been discharged or dispersed from that facility. This applies even if the insured does not own or operate the facility but has another party doing so on its behalf.
• The material is contained in spent fuel or waste that the insured, or others working on its behalf, handled in any way at any time.
• The injury or damage is due to an insured furnishing anything connected to any aspect of any nuclear facility. There is an exception. When the nuclear facility is located in the United States of America, its territories and possessions, or Canada, this exclusion applies only to property damage to that nuclear facility and to property at that facility.

Definitions

The following definitions apply only to this endorsement.

Hazardous properties

This term is expanded to include radioactive, toxic, or explosive properties.

Nuclear material

This is source material, special nuclear material, or by-product material. The Atomic Energy Act of 1954 or any of its amendments defines each of these properties. As a result, this exclusion does not repeat those definitions.

Spent fuel

This is fuel elements or components that are used in or were exposed to radiation in a nuclear reactor. It can be solid or liquid.

Waste

This is any waste material that meets either of the following criteria:

• That contains any by-product material. However, it does not include waste that results from extracting or concentrating uranium or thorium from any ore that is processed primarily for the content of its source material.
• That results from operations of any nuclear facility by any person or organization included below in the first two paragraphs of the definition of nuclear facility

Nuclear facility

This includes the site, operations, and premises of any of the following:

• A nuclear reactor
• Equipment or devices that are used for any of the following:

o The separation of uranium or plutonium isotopes

o Spent fuel utilization or processing

o Waste

• Equipment or devices that are used in any way with special nuclear material. This definition has an exception because it applies only when such materials contain more than 25 grams of plutonium or uranium 233 or any combination of the two or 250 grams of uranium 235.
• Any structure or place prepared or used to store or dispose of waste

Nuclear reactor

This is any apparatus designed for or used to sustain nuclear fission in a self-supporting chain reaction or to contain a critical mass of fissionable material. It does not define the size of the reactor and the amount or type of material that must be present.

Property damage

The inclusion of this definition is a concern. There is no statement that it replaces the coverage form definition of property damage or that this definition is in addition to the coverage form definition. This definition states only that radioactive contamination of property is included within property damage.