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Electrical Simpleton
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There could be more code implications than just the suitability of the lug for more than one conductor (which in this case I seriously doubt that lug is approved for more than one).

The additional conductor becomes a service conductor and is essentially unfused until it reaches an OCPD.

Another consideration would be the grouping of service disconnects.

Pete
 
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A lug rated for more than 1 conductor looks like a snowman from the top..although I dont think this is the case for a 200 amp panel. I d like to hear where that wire is going and if there are other conductors with it.

learning to learn
 

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Any time you tap a main like that it would think it is a violation. Tap rules also come to mind. I see AC contractors doing this to add a two circuit panel for their condensers. The only thing I would think is not a violation is a surge arrestor. Even that you still have the lug rating issue.

I don't know about the olden days, but fire pumps should come In as there own services. To tap that of the main lugs like this would surely be a violation. If it had it's own tap section off of the service entrance conductors then it would be ok.
 

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Most of the old installs , at least on my turf, were daisy chained via this DT method

I'm guessing it may not have been a huge sin for the last generation of sparkies , being they seem so prevalent

~CS~
 
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