SB2352 93RD GENERAL ASSEMBLY

LRB093 13495 BDD 40196 b

93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
SB2352

Introduced 1/28/2004, by Patrick Welch

SYNOPSIS AS INTRODUCED:

415 ILCS 5/22.2d new

Amends the Environmental Protection Act. Provides that, if an insurance policyholder may be liable to the State or a unit of local government for costs of removal and remedial action relating to hazardous waste or pesticides under the Act or under any other law or ordinance establishing liability for environmental cleanup costs, the State or unit of local government may bring a cause of action against the policyholder's insurer for those costs if the insurance policy was issued before January 1, 1987, the policyholder has dissolved or is no longer in existence or cannot be found, and if the policyholder was a corporation, the policyholder dissolved more than 5 years before the action is commenced. Adds successors in interest as persons who may be notified of the insurer's intent to bring an action against the policyholder. Effective immediately.

A BILL FOR

AN ACT in relation environmental protection.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Environmental Protection Act is amended by adding Section 22.2d as follows:

(415 ILCS 5/22.2d new)

Sec. 22.2d. If an insurance policyholder may be liable to the State or a unit of local government for costs of removal and remedial action relating to hazardous waste or pesticides under Section 22.2 of this Act or under any other law or ordinance establishing liability for environmental cleanup costs, the State or unit of local government may bring a cause of action against the policyholder's insurer for those costs if: (i) the insurance policy that is the basis for the action was issued prior to January 1, 1987; (ii) the policyholder has dissolved or otherwise is no longer in existence or cannot be found; and (iii) if the policyholder was a corporation, the policyholder dissolved more than 5 years before the action is commenced. The action may be brought regardless of whether the policyholder's rights have been assigned to the State or unit of local government, and regardless of whether a judgment has been obtained against the policyholder. Prior to bringing an action under this Section, the State or unit of local government shall make a reasonable effort to notify the policyholder or its successor in interest of its intent to bring the action. A policyholder or its successor in interest shall have the right to intervene in any such action. All defenses available to a policyholder to any claim of liability for environmental response costs asserted or that could be asserted against it shall be available to the insurer in an action brought under this Section. In any action under this Section, the claim of the State or unit of local government shall be limited by the applicable terms, conditions, and provisions of the relevant insurance policy under which coverage may be provided, and the State or the unit of local government shall have no greater rights than the rights of the policyholder under its insurance policy, subject to the statutory and common law that applies to the determination of those rights. In any action under this Section, the State or unit of local government shall have the same rights as an individual policyholder to recover its reasonable expenses and costs of litigation, including attorney fees.

Section 99. Effective date. This Act takes effect upon becoming law.