Effective October 1, 2008, NatLUST has made several important changes to its Illinois claim funding program. The changes are being made to both reduce funding costs and provide participants with more transparency. In general, the main changes were to slash the fixed costs (we actually began doing this in June), plus we are now setting the advance rates based on where a claim falls in IEPA's payment queue as opposed to its queue date.

Carrying costs are a combination of fixed and variable costs, as follows:

Variable Carrying Costs. Variable costs will not exceed one-month Libor, as reported in the Wall Street Journal, plus 2.75% per annum). The rate will adjust monthly as Libor changes and is charged on the amount advanced..

Fixed Carrying Costs. NatLUST assigns a one time cost recovery & reserve charge that is assessed on the amount advanced. When we started the IL program in March 2008, we set the fixed charges based on a projected claim turnover. By late May we realized that claims were turning over faster than projected. This had the effect of pushng up the APR's beyond what we charge in our other state programs. Accordingly, beginning in June 2008, NatLUST slashed the fixed charges by, in most cases, 50%. The fixed charges will be determined by the claim's position on IEPA's Payment Priority List as follows:

• Between $10 million and $20 million - Claims that fall between $10 million and $20 million on IEPA's list will be subject to a fixed charge not to exceed 1/2 of 1% of the amount advanced. (Please note that claims in the first $10 million on IEPA's list are generally ineligible for NatLUST's program as they will be paid within 90 days).
  
  NatLUST will advance 92% on claims in this category.
  
  
• Between $20 Million and $30 Million  - Claims that fall between $20,000,001 and $30 million on IEPA's list at time of funding will be subject to a fixed charge not to exceed 3/4 of 1% of the amount advanced. (10/1/08 - fixed charge is currently 1/2 of 1%)
  
  NatLUST will advance 90% on claims in this categoy.
  
  
• Between $30 Million and $40 Million  - Claims that fall between $30,000,001  and $40 million on IEPA's list will be subject to a fixed charge not to exceed 1% of the amount advanced.
  
  NatLUST will advance 87.5% on claims in this category.
  
  
• $40 Million and Higher - Claims that are positioned $40,000,0001 or million or higher on IEPA's list awill be subject to a fixed charge not to exceed 1.25% of the amount advanced (10/1/08 - fixed charge is currently 1%)
  
  NatLUST will advance 85% on claims in this category.
  

Once a claim is funded, NatLUST will honor the terms through the claims reimbursement. Should NatLUST make changes to this schedule of charges we will post notice on this page.

Return to Forms Page