a system and method for remotely determining a liquid level condition within a tank includes a liquid level gauge connectable to the tank , a dial assembly associated with the liquid level gauge and an optical transceiver for determining a reflectivity of the dial assembly . the dial assembly includes a reflective layer , a blocking layer positioned over the reflective layer for blocking at least a portion of the reflective layer , and a disk that is magnetically coupled to the liquid level gauge . one of the reflective and blocking layers is associated with the disk for rotation therewith . the optical transceiver is positioned for projecting radiant energy toward the reflective layer and detecting the presence or absence of reflected radiant energy and for generating a signal indicative of a low liquid level condition within the tank when at least a substantial portion of the reflective layer is covered by the blocking layer or when a failure occurs in the system to thereby provide a fail - safe mode of operation .