(415 ILCS 135/45)
(a) The insurance account shall offer financial assurance for a qualified
or operator of a drycleaning facility under the terms and conditions provided
for under this Section. Coverage may be provided to either the owner or the
operator of a drycleaning facility. The
Council is not required to resolve whether the owner or operator, or both,
are responsible for a release under the terms of an agreement between
the owner and operator.
(b) The source of funds for the insurance account shall be as follows:
(1) Moneys appropriated to the Council or moneys
allocated to the insurance account by the Council according to the Fund budget approved by the Council.
(2) Moneys collected as an insurance premium,
including service fees, if any.
(3) Investment income attributed to the insurance
(c) An owner or operator may purchase
coverage of up to $500,000 per drycleaning facility subject to the terms and
conditions under this Section and those adopted by the Council. Coverage
shall be limited to remedial action costs associated with soil and
groundwater contamination resulting from a release of drycleaning solvent
at an insured drycleaning facility, including third-party liability for soil
and groundwater contamination. Coverage is not provided for a release
that occurred before the date of coverage.
owner or operator, subject to underwriting requirements and terms
and conditions deemed necessary and convenient by the Council, may
purchase insurance coverage from the insurance account provided that
the drycleaning facility to be insured meets the following conditions:
(1) a site investigation designed to identify soil
and groundwater contamination resulting from the release of a drycleaning solvent has been completed. The Council shall determine if the site investigation is adequate. This investigation must be completed by June 30, 2006. For drycleaning facilities that apply for insurance coverage after June 30, 2006, the site investigation must be completed prior to issuance of insurance coverage; and
(2) the drycleaning facility is participating in and
meets all requirements of a drycleaning compliance program approved by the Council.
(e) The annual premium for insurance coverage shall be:
(1) For the year July 1, 1999 through June 30, 2000,
$250 per drycleaning facility.
(2) For the year July 1, 2000 through June 30, 2001,
$375 per drycleaning facility.
(3) For the year July 1, 2001 through June 30, 2002,
$500 per drycleaning facility.
(4) For the year July 1, 2002 through June 30, 2003,
$625 per drycleaning facility.
(5) For subsequent years, an owner or operator
applying for coverage shall pay an annual actuarially-sound insurance premium for coverage by the insurance account. The Council may approve Fund coverage through the payment of a premium established on an actuarially-sound basis, taking into consideration the risk to the insurance account presented by the insured. Risk factor adjustments utilized to determine actuarially-sound insurance premiums should reflect the range of risk presented by the variety of drycleaning systems, monitoring systems, drycleaning volume, risk management practices, and other factors as determined by the Council. As used in this item, "actuarially sound" is not limited to Fund premium revenue equaling or exceeding Fund expenditures for the general drycleaning facility population. Actuarially-determined premiums shall be published at least 180 days prior to the premiums becoming effective.
(f) If coverage is purchased for any part of a year, the purchaser shall pay
the full annual premium. The insurance premium is fully earned upon issuance
of the insurance policy.
(g) The insurance coverage shall be provided with a
$10,000 deductible policy.
(h) A future repeal of this Section shall not terminate
obligations under this Section or authority necessary to administer the
obligations until the obligations are satisfied, including but not limited to
the payment of claims filed prior
to the effective date of any future repeal against the insurance account until
moneys in the account are exhausted. Upon exhaustion of the
moneys in the account, any remaining claims shall be invalid. If moneys remain
in the account following
satisfaction of the obligations under this Section,
the remaining moneys and moneys due the account shall be
used to assist current insureds to obtain a viable insuring mechanism as
determined by the Council after public notice and opportunity for
(Source: P.A. 93-201, eff. 1-1-04.)