2023 -- S 0730

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LC001576

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO INSURANCE -- CHILD SUPPORT INTERCEPT ACT

     

     Introduced By: Senators F. Lombardi, Euer, McKenney, and Burke

     Date Introduced: March 22, 2023

     Referred To: Senate Judiciary

     (Dept. of Human Services)

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 27-57-1 of the General Laws in Chapter 27-57 entitled "Child

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Support Intercept Act" is hereby amended to read as follows:

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     27-57-1. Interception of insurance payments.

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     (a) Every domestic insurer or insurance company authorized to issue policies of life

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insurance or liability insurance pursuant to this title, and also any workers’ compensation insurer,

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shall, within thirty (30) days prior to the making of any payment equal to or in excess of five

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hundred dollars ($500) to any claimant or beneficiary who is a resident of the state of Rhode Island

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or to any claimant who has an accident or loss that occurred in the state of Rhode Island, for third

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party for personal injury or workers’ compensation benefits under a contract of insurance, or who

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is to receive any economic benefit from a life insurance policy, including, but not limited to, as a

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co-payee, or whether by means of cash surrender under any type policy, or as a loan against the

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cash value or surrender value of any insurance policy, review information provided by the

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department of human service, office of child support services, child support enforcement pursuant

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to § 27-57-4 indicating whether the claimant owes past-due child support.

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     (b) If the insurer determines from the information provided by the department pursuant to

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§ 27-57-4 that the claimant or payee does not owe past-due support, the insurer may make the

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payment to the claimant in accordance with the contract of the insurance.

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     (c) If the insurer determines from the information provided by the department pursuant to

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§ 27-57-4 that the claimant or payee owes past-due child support, the insurer shall, except to the

 

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extent payments are subject to liens, written notices, or interests described in § 27-57-3, withhold

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from payment the amount of past-due support and pay that amount to the family court which shall

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credit the person’s child support obligation account for the amount so paid, and the insurer shall

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pay the balance to the claimant or other person entitled to it. The insurer or insurance company

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shall provide written notice to the claimant and his or her attorney, if any, and notice by e-mail or

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other electronic means, to the department of the payment to the family court. The payment shall be

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deposited in the registry of the family court for a period of forty-five (45) days, or if an application

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for review has been filed pursuant to subsection (d), until further order of the court. The notice shall

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reflect the date, name, social security number, case number, and amount of the payment. Any

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insurer or insurance company, its directors, agents, and employees and central reporting

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organizations and their respective employees, authorized by an insurer to act on its behalf, who

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release information in accordance with the provisions of this chapter, or who withhold amounts

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from payment based upon the latest information supplied by the department pursuant to § 27-57-

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4 and makes disbursements in accordance with § 27-57-3, shall be in compliance and shall be

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immune from any liability to the claimant, payee lienholder, payee who provided written notice, or

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security interest holder for taking that action.

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     (d) Any claimant aggrieved by any action taken under this section may within thirty (30)

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days of the making of the notice to the claimant in subsection (c) of this section, seek judicial review

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in the family court, which may in its discretion, issue a temporary order prohibiting the

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disbursement of funds under this section, pending final adjudication.

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     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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     This act would expand child support interception of insurance payments to include life

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insurance proceeds payable to non-custodial parents who are the beneficiaries of the policy.

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     This act would take effect upon passage.

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LC001576

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