2000-H 7592 am
Enacted 7/19/2000

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Introduced By:  Representativess Watson and Quick Date Introduced:  February 3, 2000

It is enacted by the General Assembly as follows:

SECTION 1. Sections 27-57-1 and 27-57-3 of the General Laws in Chapter 27-57 entitled "Child Support Intercept Act" are hereby amended to read as follows:

27-57-1. Interception of insurance payments -- (a) Every domestic insurer or insurance company authorized to issue policies of liability insurance pursuant to this title, and also any workers' compensation insurer, shall, within thirty (30) days prior to the making of any payment equal to or in excess of ten thousand dollars ($10,000) three thousand dollars ($3,000) to any claimant who is a resident of the state of Rhode Island or to any claimant who has an accident or loss that occurred in the state of Rhode Island, for third party for personal injury or workers' compensation benefits under a contract of insurance, review information provided by the department of administration, division of taxation, child support enforcement pursuant to section 27-57-4 indicating whether the claimant owes past-due child support.

(b) If the insurer determines from the information provided by the department pursuant to section 27-57-4 that the claimant or payee does not owe past-due support, the insurer may make the payment to the claimant in accordance with the contract of the insurance.

(c) If the insurer determines from the information provided by the department pursuant to section 27-57-4 that the claimant or payee owes past-due child support, the insurer shall, except to the extent payments are subject to liens, written notices or interests described in section 27-57-3, withhold from payment the amount of past-due support and pay that amount to the family court which shall credit the person's child support obligation account for the amount so paid, and the insurer shall pay the balance to the claimant or other person entitled to it; provided, however, that the insurer or insurance company shall provide written notice by first class regular mail to the claimant and his attorney, if any, and notice by e-mail or other electronic means, to the department of the payment to the family court. The payment shall be deposited who shall deposit it in the registry of the family court for a period of forty five (45) days or if an application for review has been filed pursuant to subsection (d) until further order of the court,. The notice shall reflect and the date name, social security number, case number, and amount thereof. Any insurer or insurance company, its directors, agents and employees and central reporting organizations and their respective employees authorized by an insurer to act on its behalf who release information in accordance with the provisions of this chapter, or who withhold amounts from payment based upon the latest information supplied by the department pursuant to section 27-57-4 and makes disbursements in accordance with section 27-57-3 and as otherwise shall be in compliance and shall be immune from any liability to the claimant, payee lienholder, payee who provided written notice or security interest holder for taking such action.

(d) Any claimant aggrieved by any action taken under this section may within thirty (30) days of the making of the notice to the claimant in subsection (c) above, seek judicial review in the family court, which may, in its discretion, issue a temporary order prohibiting the disbursement of funds under this section, pending final adjudication.

[See section 12-1-15 of the General Laws.]

27-57-3. Certain liens not affected -- Nothing herein shall affect the validity or priority of liens or written notices of health care providers, attorney fees, holders of security interests or the assignment of rights under section 40-6-9 which may exist. Funds subject to such liens, written notices or security interests shall be paid to the lien or interest holder.

[See section 12-1-15 of the General Laws.]

SECTION 2. This act shall take effect upon passage.

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