2020 -- H 7428 | |
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LC004013 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2020 | |
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A N A C T | |
RELATING TO INSURANCE - CHILD SUPPORT INTERCEPT ACT | |
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Introduced By: Representatives Williams, Ajello, Kislak, Blazejewski, and Vella- | |
Date Introduced: February 05, 2020 | |
Referred To: House Judiciary | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Section 27-57-1 of the General Laws in Chapter 27-57 entitled "Child |
2 | Support Intercept Act" is hereby amended to read as follows: |
3 | 27-57-1. Interception of insurance payments. |
4 | (a) Every domestic insurer or insurance company authorized to issue policies of life |
5 | insurance, liability insurance pursuant to this title, and also any workers' compensation insurer, |
6 | shall, within thirty (30) days prior to the making of any payment equal to or in excess of five |
7 | hundred dollars ($500) to any claimant or beneficiary who is a resident of the state of Rhode |
8 | Island or to any claimant who has an accident or loss that occurred in the state of Rhode Island, |
9 | for third party for personal injury or workers' compensation benefits under a contract of |
10 | insurance, review information provided by the department of human service, office of child |
11 | support services, child support enforcement pursuant to § 27-57-4 indicating whether the claimant |
12 | owes past-due child support. |
13 | (b) If the insurer determines from the information provided by the department pursuant to |
14 | § 27-57-4 that the claimant or payee does not owe past-due support, the insurer may make the |
15 | payment to the claimant in accordance with the contract of the insurance. |
16 | (c) If the insurer determines from the information provided by the department pursuant to |
17 | § 27-57-4 that the claimant or payee owes past-due child support, the insurer shall, except to the |
18 | extent payments are subject to liens, written notices, or interests described in § 27-57-3, withhold |
19 | from payment the amount of past-due support and pay that amount to the family court which shall |
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1 | credit the person's child support obligation account for the amount so paid, and the insurer shall |
2 | pay the balance to the claimant or other person entitled to it. The insurer or insurance company |
3 | shall provide written notice to the claimant and his or her attorney, if any, and notice by e-mail or |
4 | other electronic means, to the department of the payment to the family court. The payment shall |
5 | be deposited in the registry of the family court for a period of forty-five (45) days, or if an |
6 | application for review has been filed pursuant to subsection (d), until further order of the court. |
7 | The notice shall reflect the date, name, social security number, case number, and amount of the |
8 | payment. Any insurer or insurance company, its directors, agents, and employees and central |
9 | reporting organizations and their respective employees, authorized by an insurer to act on its |
10 | behalf, who release information in accordance with the provisions of this chapter, or who |
11 | withhold amounts from payment based upon the latest information supplied by the department |
12 | pursuant to § 27-57-4 and makes disbursements in accordance with § 27-57-3, shall be in |
13 | compliance and shall be immune from any liability to the claimant, payee lienholder, payee who |
14 | provided written notice, or security interest holder for taking that action. |
15 | (d) Any claimant aggrieved by any action taken under this section may within thirty (30) |
16 | days of the making of the notice to the claimant in subsection (c) of this section, seek judicial |
17 | review in the family court, which may in its discretion, issue a temporary order prohibiting the |
18 | disbursement of funds under this section, pending final adjudication. |
19 | [See § 12-1-15 of the General Laws.] |
20 | SECTION 2. This act shall take effect upon passage. |
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EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO INSURANCE - CHILD SUPPORT INTERCEPT ACT | |
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1 | This act would expand child support interception of insurance payments to include life |
2 | insurance proceeds payable to non-custodial parents who are the beneficiaries of the policy. |
3 | This act would take effect upon passage. |
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