CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 2802Introduced by Assembly Member FriedmanFebruary 16, 2018 An act to add Article 8 (commencing with Section 13550) to Chapter 2 of Division 3 of the Insurance Code, relating to insurance. LEGISLATIVE COUNSEL'S DIGESTAB 2802, as introduced, Friedman. Insurance payments: interception.Existing law creates the Department of Child Support Services and provides for the interception of funds from state tax refunds, lottery winnings, unemployment compensation benefits, and benefits under the Public Employees Retirement System that otherwise would be paid to a person owing past due child support. Existing law creates the Department of Insurance, headed by the Insurance Commissioner, and prescribes the departments powers and duties.This bill would create the Insurance Payment Intercept Program within the Department of Insurance and would require the department, in consultation with the Department of Child Support Services and representatives of the insurance industry in the state, to establish the program to improve the enforcement of child support, as specified. The bill would provide that an insurer who participates in the program may not incur an obligation or liability in specified circumstances. The bill would also require that the data obtained pursuant to the program only be used for the purpose of identifying child support obligors, as defined, and would specify that various laws protecting the privacy and security of data apply. The bill would require the Department of Insurance, on or before January 1, 2020, to measure admitted insurer participation in the Insurance Payment Intercept Program, and, if participation is less than 90% of the marketplace, as defined, would require all admitted insurers to participate in the program no later than January 1, 2021. The bill would authorize the commissioner to adopt rules and regulations if the program becomes mandatory. The bill would also require the Department of Insurance to prepare a report on insurer participation in the program and provide the report on its Internet Web site. The bill would make related findings and declarations. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.This bill would make legislative findings to that effect.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares the following:(a) In 1996, the United States Congress passed the federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996, which allowed state child support agencies to obtain access, subject to privacy safeguards, to government and private records, including information about assets held by financial institutions, including insurance companies, and records held by private entities with respect to individuals who owe child support.(b) In 2005, Congress passed the federal Deficit Reduction Act of 2005, which authorized the United States Secretary of Health and Human Services to conduct matches of child support cases with insurers concerning insurance claims, settlements, awards, and payments and to furnish information resulting from the matches to child support enforcement agencies.(c) In 2000, Section 138.5 of the Labor Code and Section 17510 of the Family Code created the Workers Compensation Notification Project, which required the Division of Workers Compensation to cooperate with enforcement of child support obligations. (d) In 2002, the Department of Child Support Services created a voluntary program in which insurers could participate to match persons receiving insurance claim payments with child support obligors. (e) In 2015, approximately $17.6 million was intercepted annually through the voluntary program from insurance claim payments to satisfy child support arrearages.(f) Legislation is needed to increase insurer participation in the program because uniformity within the state will increase participation and interception. SEC. 2. Article 8 (commencing with Section 13550) is added to Chapter 2 of Division 3 of the Insurance Code, to read: Article 8. Insurance Payment Intercept Program13550. The Insurance Payment Intercept Program is hereby established in furtherance of the enforcement of child support obligations in the state, and to enhance efforts to notify the Department of Child Support Services when an obligor is owed an insurance claim payment. 13551. For the purposes of this article:(a) Child support means a support obligation owing on behalf of a child pursuant to Section 4001 or 17400 of the Family Code, and includes child support delinquency, as defined in subdivision (c) of Section 17500 of the Family Code.(b) Obligor means a person owing a duty of support.(c) Arrearage or arrearages means the amount necessary to satisfy a child support judgment or order.13552. In consultation with the Department of Child Support Services and representatives of the insurance industry in this state, the Department of Insurance shall establish a program to improve the enforcement of child support. The program shall provide for the procedures, including data matches, under which insurers may voluntarily cooperate with the Department of Child Support Services, which will identify obligors who owe child support arrearages or who are subject to liens for child support arrearages in order to intercept insurance claim payments in satisfaction of the arrearage amounts. This article shall not delay payment of a claim.13553. (a) An insurer who participates in the provisions of this article shall not incur any obligation or liability to any person arising from any of the following:(1) Reporting information pursuant to Section 13552.(2) Withholding or transmitting payments pursuant to a notice from the Department of Child Support Services as a result of the data matching pursuant to Section 13552.(3) Any other action taken in good faith to comply with the requirements of this article.(b) Data obtained pursuant to this article shall only be used for the purpose of identifying child support obligors. If the Department of Child Support Services does not find a match in the data obtained pursuant to this article with a child support obligor, the Department of Child Support Services shall not maintain that data and shall immediately destroy that data.(c) An insurer that provides, attempts to provide, or in any way accesses data pursuant to this article shall comply with all applicable state and federal laws for the protection of the privacy and the security of that data, including, but not limited to, the Insurance Information and Privacy Protection Act (Article 6.6 (commencing with Section 791) of Chapter 1 of Part 2 of Division 1), the Information Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code), and the federal Health Insurance Portability and Accountability Act of 1996 (Public Law 104-191).13554. If insurer participation becomes mandatory pursuant to subdivision (a) of Section 13556, the commissioner may adopt reasonable rules and regulations as are necessary to administer this article in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).13555. On or before January 1, 2020, the department shall prepare a report on insurer participation in the Insurance Payment Intercept Program. The department shall provide the report on its Internet Web site.13556. (a) On or before January 1, 2020, the department shall measure admitted insurer participation in the Insurance Payment Intercept Program. If admitted insurer participation is less than 90 percent of the marketplace, then all admitted insurers shall be required to participate in the program described in this article by no later than January 1, 2021. The commissioner shall notify all admitted insurers of the requirement to participate in the program.(b) For the purposes of this section, marketplace means the total direct written premium by admitted insurers in California.SEC. 3. The Legislature finds and declares that Section 2 of this act, which adds Section 13553 to the Insurance Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:In order to protect the privacy of insurance claimants and persons owed past-due support, it is necessary that the data obtained by the Department of Child Support Services from insurers pursuant to this act be kept confidential.
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 2802Introduced by Assembly Member FriedmanFebruary 16, 2018 An act to add Article 8 (commencing with Section 13550) to Chapter 2 of Division 3 of the Insurance Code, relating to insurance. LEGISLATIVE COUNSEL'S DIGESTAB 2802, as introduced, Friedman. Insurance payments: interception.Existing law creates the Department of Child Support Services and provides for the interception of funds from state tax refunds, lottery winnings, unemployment compensation benefits, and benefits under the Public Employees Retirement System that otherwise would be paid to a person owing past due child support. Existing law creates the Department of Insurance, headed by the Insurance Commissioner, and prescribes the departments powers and duties.This bill would create the Insurance Payment Intercept Program within the Department of Insurance and would require the department, in consultation with the Department of Child Support Services and representatives of the insurance industry in the state, to establish the program to improve the enforcement of child support, as specified. The bill would provide that an insurer who participates in the program may not incur an obligation or liability in specified circumstances. The bill would also require that the data obtained pursuant to the program only be used for the purpose of identifying child support obligors, as defined, and would specify that various laws protecting the privacy and security of data apply. The bill would require the Department of Insurance, on or before January 1, 2020, to measure admitted insurer participation in the Insurance Payment Intercept Program, and, if participation is less than 90% of the marketplace, as defined, would require all admitted insurers to participate in the program no later than January 1, 2021. The bill would authorize the commissioner to adopt rules and regulations if the program becomes mandatory. The bill would also require the Department of Insurance to prepare a report on insurer participation in the program and provide the report on its Internet Web site. The bill would make related findings and declarations. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.This bill would make legislative findings to that effect.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION
Assembly Bill No. 2802
Introduced by Assembly Member FriedmanFebruary 16, 2018
Introduced by Assembly Member Friedman
February 16, 2018
An act to add Article 8 (commencing with Section 13550) to Chapter 2 of Division 3 of the Insurance Code, relating to insurance.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 2802, as introduced, Friedman. Insurance payments: interception.
Existing law creates the Department of Child Support Services and provides for the interception of funds from state tax refunds, lottery winnings, unemployment compensation benefits, and benefits under the Public Employees Retirement System that otherwise would be paid to a person owing past due child support. Existing law creates the Department of Insurance, headed by the Insurance Commissioner, and prescribes the departments powers and duties.This bill would create the Insurance Payment Intercept Program within the Department of Insurance and would require the department, in consultation with the Department of Child Support Services and representatives of the insurance industry in the state, to establish the program to improve the enforcement of child support, as specified. The bill would provide that an insurer who participates in the program may not incur an obligation or liability in specified circumstances. The bill would also require that the data obtained pursuant to the program only be used for the purpose of identifying child support obligors, as defined, and would specify that various laws protecting the privacy and security of data apply. The bill would require the Department of Insurance, on or before January 1, 2020, to measure admitted insurer participation in the Insurance Payment Intercept Program, and, if participation is less than 90% of the marketplace, as defined, would require all admitted insurers to participate in the program no later than January 1, 2021. The bill would authorize the commissioner to adopt rules and regulations if the program becomes mandatory. The bill would also require the Department of Insurance to prepare a report on insurer participation in the program and provide the report on its Internet Web site. The bill would make related findings and declarations. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.This bill would make legislative findings to that effect.
Existing law creates the Department of Child Support Services and provides for the interception of funds from state tax refunds, lottery winnings, unemployment compensation benefits, and benefits under the Public Employees Retirement System that otherwise would be paid to a person owing past due child support. Existing law creates the Department of Insurance, headed by the Insurance Commissioner, and prescribes the departments powers and duties.
This bill would create the Insurance Payment Intercept Program within the Department of Insurance and would require the department, in consultation with the Department of Child Support Services and representatives of the insurance industry in the state, to establish the program to improve the enforcement of child support, as specified. The bill would provide that an insurer who participates in the program may not incur an obligation or liability in specified circumstances. The bill would also require that the data obtained pursuant to the program only be used for the purpose of identifying child support obligors, as defined, and would specify that various laws protecting the privacy and security of data apply. The bill would require the Department of Insurance, on or before January 1, 2020, to measure admitted insurer participation in the Insurance Payment Intercept Program, and, if participation is less than 90% of the marketplace, as defined, would require all admitted insurers to participate in the program no later than January 1, 2021. The bill would authorize the commissioner to adopt rules and regulations if the program becomes mandatory. The bill would also require the Department of Insurance to prepare a report on insurer participation in the program and provide the report on its Internet Web site. The bill would make related findings and declarations.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares the following:(a) In 1996, the United States Congress passed the federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996, which allowed state child support agencies to obtain access, subject to privacy safeguards, to government and private records, including information about assets held by financial institutions, including insurance companies, and records held by private entities with respect to individuals who owe child support.(b) In 2005, Congress passed the federal Deficit Reduction Act of 2005, which authorized the United States Secretary of Health and Human Services to conduct matches of child support cases with insurers concerning insurance claims, settlements, awards, and payments and to furnish information resulting from the matches to child support enforcement agencies.(c) In 2000, Section 138.5 of the Labor Code and Section 17510 of the Family Code created the Workers Compensation Notification Project, which required the Division of Workers Compensation to cooperate with enforcement of child support obligations. (d) In 2002, the Department of Child Support Services created a voluntary program in which insurers could participate to match persons receiving insurance claim payments with child support obligors. (e) In 2015, approximately $17.6 million was intercepted annually through the voluntary program from insurance claim payments to satisfy child support arrearages.(f) Legislation is needed to increase insurer participation in the program because uniformity within the state will increase participation and interception. SEC. 2. Article 8 (commencing with Section 13550) is added to Chapter 2 of Division 3 of the Insurance Code, to read: Article 8. Insurance Payment Intercept Program13550. The Insurance Payment Intercept Program is hereby established in furtherance of the enforcement of child support obligations in the state, and to enhance efforts to notify the Department of Child Support Services when an obligor is owed an insurance claim payment. 13551. For the purposes of this article:(a) Child support means a support obligation owing on behalf of a child pursuant to Section 4001 or 17400 of the Family Code, and includes child support delinquency, as defined in subdivision (c) of Section 17500 of the Family Code.(b) Obligor means a person owing a duty of support.(c) Arrearage or arrearages means the amount necessary to satisfy a child support judgment or order.13552. In consultation with the Department of Child Support Services and representatives of the insurance industry in this state, the Department of Insurance shall establish a program to improve the enforcement of child support. The program shall provide for the procedures, including data matches, under which insurers may voluntarily cooperate with the Department of Child Support Services, which will identify obligors who owe child support arrearages or who are subject to liens for child support arrearages in order to intercept insurance claim payments in satisfaction of the arrearage amounts. This article shall not delay payment of a claim.13553. (a) An insurer who participates in the provisions of this article shall not incur any obligation or liability to any person arising from any of the following:(1) Reporting information pursuant to Section 13552.(2) Withholding or transmitting payments pursuant to a notice from the Department of Child Support Services as a result of the data matching pursuant to Section 13552.(3) Any other action taken in good faith to comply with the requirements of this article.(b) Data obtained pursuant to this article shall only be used for the purpose of identifying child support obligors. If the Department of Child Support Services does not find a match in the data obtained pursuant to this article with a child support obligor, the Department of Child Support Services shall not maintain that data and shall immediately destroy that data.(c) An insurer that provides, attempts to provide, or in any way accesses data pursuant to this article shall comply with all applicable state and federal laws for the protection of the privacy and the security of that data, including, but not limited to, the Insurance Information and Privacy Protection Act (Article 6.6 (commencing with Section 791) of Chapter 1 of Part 2 of Division 1), the Information Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code), and the federal Health Insurance Portability and Accountability Act of 1996 (Public Law 104-191).13554. If insurer participation becomes mandatory pursuant to subdivision (a) of Section 13556, the commissioner may adopt reasonable rules and regulations as are necessary to administer this article in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).13555. On or before January 1, 2020, the department shall prepare a report on insurer participation in the Insurance Payment Intercept Program. The department shall provide the report on its Internet Web site.13556. (a) On or before January 1, 2020, the department shall measure admitted insurer participation in the Insurance Payment Intercept Program. If admitted insurer participation is less than 90 percent of the marketplace, then all admitted insurers shall be required to participate in the program described in this article by no later than January 1, 2021. The commissioner shall notify all admitted insurers of the requirement to participate in the program.(b) For the purposes of this section, marketplace means the total direct written premium by admitted insurers in California.SEC. 3. The Legislature finds and declares that Section 2 of this act, which adds Section 13553 to the Insurance Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:In order to protect the privacy of insurance claimants and persons owed past-due support, it is necessary that the data obtained by the Department of Child Support Services from insurers pursuant to this act be kept confidential.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. The Legislature finds and declares the following:(a) In 1996, the United States Congress passed the federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996, which allowed state child support agencies to obtain access, subject to privacy safeguards, to government and private records, including information about assets held by financial institutions, including insurance companies, and records held by private entities with respect to individuals who owe child support.(b) In 2005, Congress passed the federal Deficit Reduction Act of 2005, which authorized the United States Secretary of Health and Human Services to conduct matches of child support cases with insurers concerning insurance claims, settlements, awards, and payments and to furnish information resulting from the matches to child support enforcement agencies.(c) In 2000, Section 138.5 of the Labor Code and Section 17510 of the Family Code created the Workers Compensation Notification Project, which required the Division of Workers Compensation to cooperate with enforcement of child support obligations. (d) In 2002, the Department of Child Support Services created a voluntary program in which insurers could participate to match persons receiving insurance claim payments with child support obligors. (e) In 2015, approximately $17.6 million was intercepted annually through the voluntary program from insurance claim payments to satisfy child support arrearages.(f) Legislation is needed to increase insurer participation in the program because uniformity within the state will increase participation and interception.
SECTION 1. The Legislature finds and declares the following:(a) In 1996, the United States Congress passed the federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996, which allowed state child support agencies to obtain access, subject to privacy safeguards, to government and private records, including information about assets held by financial institutions, including insurance companies, and records held by private entities with respect to individuals who owe child support.(b) In 2005, Congress passed the federal Deficit Reduction Act of 2005, which authorized the United States Secretary of Health and Human Services to conduct matches of child support cases with insurers concerning insurance claims, settlements, awards, and payments and to furnish information resulting from the matches to child support enforcement agencies.(c) In 2000, Section 138.5 of the Labor Code and Section 17510 of the Family Code created the Workers Compensation Notification Project, which required the Division of Workers Compensation to cooperate with enforcement of child support obligations. (d) In 2002, the Department of Child Support Services created a voluntary program in which insurers could participate to match persons receiving insurance claim payments with child support obligors. (e) In 2015, approximately $17.6 million was intercepted annually through the voluntary program from insurance claim payments to satisfy child support arrearages.(f) Legislation is needed to increase insurer participation in the program because uniformity within the state will increase participation and interception.
SECTION 1. The Legislature finds and declares the following:
### SECTION 1.
(a) In 1996, the United States Congress passed the federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996, which allowed state child support agencies to obtain access, subject to privacy safeguards, to government and private records, including information about assets held by financial institutions, including insurance companies, and records held by private entities with respect to individuals who owe child support.
(b) In 2005, Congress passed the federal Deficit Reduction Act of 2005, which authorized the United States Secretary of Health and Human Services to conduct matches of child support cases with insurers concerning insurance claims, settlements, awards, and payments and to furnish information resulting from the matches to child support enforcement agencies.
(c) In 2000, Section 138.5 of the Labor Code and Section 17510 of the Family Code created the Workers Compensation Notification Project, which required the Division of Workers Compensation to cooperate with enforcement of child support obligations.
(d) In 2002, the Department of Child Support Services created a voluntary program in which insurers could participate to match persons receiving insurance claim payments with child support obligors.
(e) In 2015, approximately $17.6 million was intercepted annually through the voluntary program from insurance claim payments to satisfy child support arrearages.
(f) Legislation is needed to increase insurer participation in the program because uniformity within the state will increase participation and interception.
SEC. 2. Article 8 (commencing with Section 13550) is added to Chapter 2 of Division 3 of the Insurance Code, to read: Article 8. Insurance Payment Intercept Program13550. The Insurance Payment Intercept Program is hereby established in furtherance of the enforcement of child support obligations in the state, and to enhance efforts to notify the Department of Child Support Services when an obligor is owed an insurance claim payment. 13551. For the purposes of this article:(a) Child support means a support obligation owing on behalf of a child pursuant to Section 4001 or 17400 of the Family Code, and includes child support delinquency, as defined in subdivision (c) of Section 17500 of the Family Code.(b) Obligor means a person owing a duty of support.(c) Arrearage or arrearages means the amount necessary to satisfy a child support judgment or order.13552. In consultation with the Department of Child Support Services and representatives of the insurance industry in this state, the Department of Insurance shall establish a program to improve the enforcement of child support. The program shall provide for the procedures, including data matches, under which insurers may voluntarily cooperate with the Department of Child Support Services, which will identify obligors who owe child support arrearages or who are subject to liens for child support arrearages in order to intercept insurance claim payments in satisfaction of the arrearage amounts. This article shall not delay payment of a claim.13553. (a) An insurer who participates in the provisions of this article shall not incur any obligation or liability to any person arising from any of the following:(1) Reporting information pursuant to Section 13552.(2) Withholding or transmitting payments pursuant to a notice from the Department of Child Support Services as a result of the data matching pursuant to Section 13552.(3) Any other action taken in good faith to comply with the requirements of this article.(b) Data obtained pursuant to this article shall only be used for the purpose of identifying child support obligors. If the Department of Child Support Services does not find a match in the data obtained pursuant to this article with a child support obligor, the Department of Child Support Services shall not maintain that data and shall immediately destroy that data.(c) An insurer that provides, attempts to provide, or in any way accesses data pursuant to this article shall comply with all applicable state and federal laws for the protection of the privacy and the security of that data, including, but not limited to, the Insurance Information and Privacy Protection Act (Article 6.6 (commencing with Section 791) of Chapter 1 of Part 2 of Division 1), the Information Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code), and the federal Health Insurance Portability and Accountability Act of 1996 (Public Law 104-191).13554. If insurer participation becomes mandatory pursuant to subdivision (a) of Section 13556, the commissioner may adopt reasonable rules and regulations as are necessary to administer this article in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).13555. On or before January 1, 2020, the department shall prepare a report on insurer participation in the Insurance Payment Intercept Program. The department shall provide the report on its Internet Web site.13556. (a) On or before January 1, 2020, the department shall measure admitted insurer participation in the Insurance Payment Intercept Program. If admitted insurer participation is less than 90 percent of the marketplace, then all admitted insurers shall be required to participate in the program described in this article by no later than January 1, 2021. The commissioner shall notify all admitted insurers of the requirement to participate in the program.(b) For the purposes of this section, marketplace means the total direct written premium by admitted insurers in California.
SEC. 2. Article 8 (commencing with Section 13550) is added to Chapter 2 of Division 3 of the Insurance Code, to read:
### SEC. 2.
Article 8. Insurance Payment Intercept Program13550. The Insurance Payment Intercept Program is hereby established in furtherance of the enforcement of child support obligations in the state, and to enhance efforts to notify the Department of Child Support Services when an obligor is owed an insurance claim payment. 13551. For the purposes of this article:(a) Child support means a support obligation owing on behalf of a child pursuant to Section 4001 or 17400 of the Family Code, and includes child support delinquency, as defined in subdivision (c) of Section 17500 of the Family Code.(b) Obligor means a person owing a duty of support.(c) Arrearage or arrearages means the amount necessary to satisfy a child support judgment or order.13552. In consultation with the Department of Child Support Services and representatives of the insurance industry in this state, the Department of Insurance shall establish a program to improve the enforcement of child support. The program shall provide for the procedures, including data matches, under which insurers may voluntarily cooperate with the Department of Child Support Services, which will identify obligors who owe child support arrearages or who are subject to liens for child support arrearages in order to intercept insurance claim payments in satisfaction of the arrearage amounts. This article shall not delay payment of a claim.13553. (a) An insurer who participates in the provisions of this article shall not incur any obligation or liability to any person arising from any of the following:(1) Reporting information pursuant to Section 13552.(2) Withholding or transmitting payments pursuant to a notice from the Department of Child Support Services as a result of the data matching pursuant to Section 13552.(3) Any other action taken in good faith to comply with the requirements of this article.(b) Data obtained pursuant to this article shall only be used for the purpose of identifying child support obligors. If the Department of Child Support Services does not find a match in the data obtained pursuant to this article with a child support obligor, the Department of Child Support Services shall not maintain that data and shall immediately destroy that data.(c) An insurer that provides, attempts to provide, or in any way accesses data pursuant to this article shall comply with all applicable state and federal laws for the protection of the privacy and the security of that data, including, but not limited to, the Insurance Information and Privacy Protection Act (Article 6.6 (commencing with Section 791) of Chapter 1 of Part 2 of Division 1), the Information Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code), and the federal Health Insurance Portability and Accountability Act of 1996 (Public Law 104-191).13554. If insurer participation becomes mandatory pursuant to subdivision (a) of Section 13556, the commissioner may adopt reasonable rules and regulations as are necessary to administer this article in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).13555. On or before January 1, 2020, the department shall prepare a report on insurer participation in the Insurance Payment Intercept Program. The department shall provide the report on its Internet Web site.13556. (a) On or before January 1, 2020, the department shall measure admitted insurer participation in the Insurance Payment Intercept Program. If admitted insurer participation is less than 90 percent of the marketplace, then all admitted insurers shall be required to participate in the program described in this article by no later than January 1, 2021. The commissioner shall notify all admitted insurers of the requirement to participate in the program.(b) For the purposes of this section, marketplace means the total direct written premium by admitted insurers in California.
Article 8. Insurance Payment Intercept Program13550. The Insurance Payment Intercept Program is hereby established in furtherance of the enforcement of child support obligations in the state, and to enhance efforts to notify the Department of Child Support Services when an obligor is owed an insurance claim payment. 13551. For the purposes of this article:(a) Child support means a support obligation owing on behalf of a child pursuant to Section 4001 or 17400 of the Family Code, and includes child support delinquency, as defined in subdivision (c) of Section 17500 of the Family Code.(b) Obligor means a person owing a duty of support.(c) Arrearage or arrearages means the amount necessary to satisfy a child support judgment or order.13552. In consultation with the Department of Child Support Services and representatives of the insurance industry in this state, the Department of Insurance shall establish a program to improve the enforcement of child support. The program shall provide for the procedures, including data matches, under which insurers may voluntarily cooperate with the Department of Child Support Services, which will identify obligors who owe child support arrearages or who are subject to liens for child support arrearages in order to intercept insurance claim payments in satisfaction of the arrearage amounts. This article shall not delay payment of a claim.13553. (a) An insurer who participates in the provisions of this article shall not incur any obligation or liability to any person arising from any of the following:(1) Reporting information pursuant to Section 13552.(2) Withholding or transmitting payments pursuant to a notice from the Department of Child Support Services as a result of the data matching pursuant to Section 13552.(3) Any other action taken in good faith to comply with the requirements of this article.(b) Data obtained pursuant to this article shall only be used for the purpose of identifying child support obligors. If the Department of Child Support Services does not find a match in the data obtained pursuant to this article with a child support obligor, the Department of Child Support Services shall not maintain that data and shall immediately destroy that data.(c) An insurer that provides, attempts to provide, or in any way accesses data pursuant to this article shall comply with all applicable state and federal laws for the protection of the privacy and the security of that data, including, but not limited to, the Insurance Information and Privacy Protection Act (Article 6.6 (commencing with Section 791) of Chapter 1 of Part 2 of Division 1), the Information Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code), and the federal Health Insurance Portability and Accountability Act of 1996 (Public Law 104-191).13554. If insurer participation becomes mandatory pursuant to subdivision (a) of Section 13556, the commissioner may adopt reasonable rules and regulations as are necessary to administer this article in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).13555. On or before January 1, 2020, the department shall prepare a report on insurer participation in the Insurance Payment Intercept Program. The department shall provide the report on its Internet Web site.13556. (a) On or before January 1, 2020, the department shall measure admitted insurer participation in the Insurance Payment Intercept Program. If admitted insurer participation is less than 90 percent of the marketplace, then all admitted insurers shall be required to participate in the program described in this article by no later than January 1, 2021. The commissioner shall notify all admitted insurers of the requirement to participate in the program.(b) For the purposes of this section, marketplace means the total direct written premium by admitted insurers in California.
Article 8. Insurance Payment Intercept Program
Article 8. Insurance Payment Intercept Program
13550. The Insurance Payment Intercept Program is hereby established in furtherance of the enforcement of child support obligations in the state, and to enhance efforts to notify the Department of Child Support Services when an obligor is owed an insurance claim payment.
13550. The Insurance Payment Intercept Program is hereby established in furtherance of the enforcement of child support obligations in the state, and to enhance efforts to notify the Department of Child Support Services when an obligor is owed an insurance claim payment.
13551. For the purposes of this article:(a) Child support means a support obligation owing on behalf of a child pursuant to Section 4001 or 17400 of the Family Code, and includes child support delinquency, as defined in subdivision (c) of Section 17500 of the Family Code.(b) Obligor means a person owing a duty of support.(c) Arrearage or arrearages means the amount necessary to satisfy a child support judgment or order.
13551. For the purposes of this article:
(a) Child support means a support obligation owing on behalf of a child pursuant to Section 4001 or 17400 of the Family Code, and includes child support delinquency, as defined in subdivision (c) of Section 17500 of the Family Code.
(b) Obligor means a person owing a duty of support.
(c) Arrearage or arrearages means the amount necessary to satisfy a child support judgment or order.
13552. In consultation with the Department of Child Support Services and representatives of the insurance industry in this state, the Department of Insurance shall establish a program to improve the enforcement of child support. The program shall provide for the procedures, including data matches, under which insurers may voluntarily cooperate with the Department of Child Support Services, which will identify obligors who owe child support arrearages or who are subject to liens for child support arrearages in order to intercept insurance claim payments in satisfaction of the arrearage amounts. This article shall not delay payment of a claim.
13552. In consultation with the Department of Child Support Services and representatives of the insurance industry in this state, the Department of Insurance shall establish a program to improve the enforcement of child support. The program shall provide for the procedures, including data matches, under which insurers may voluntarily cooperate with the Department of Child Support Services, which will identify obligors who owe child support arrearages or who are subject to liens for child support arrearages in order to intercept insurance claim payments in satisfaction of the arrearage amounts. This article shall not delay payment of a claim.
13553. (a) An insurer who participates in the provisions of this article shall not incur any obligation or liability to any person arising from any of the following:(1) Reporting information pursuant to Section 13552.(2) Withholding or transmitting payments pursuant to a notice from the Department of Child Support Services as a result of the data matching pursuant to Section 13552.(3) Any other action taken in good faith to comply with the requirements of this article.(b) Data obtained pursuant to this article shall only be used for the purpose of identifying child support obligors. If the Department of Child Support Services does not find a match in the data obtained pursuant to this article with a child support obligor, the Department of Child Support Services shall not maintain that data and shall immediately destroy that data.(c) An insurer that provides, attempts to provide, or in any way accesses data pursuant to this article shall comply with all applicable state and federal laws for the protection of the privacy and the security of that data, including, but not limited to, the Insurance Information and Privacy Protection Act (Article 6.6 (commencing with Section 791) of Chapter 1 of Part 2 of Division 1), the Information Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code), and the federal Health Insurance Portability and Accountability Act of 1996 (Public Law 104-191).
13553. (a) An insurer who participates in the provisions of this article shall not incur any obligation or liability to any person arising from any of the following:
(1) Reporting information pursuant to Section 13552.
(2) Withholding or transmitting payments pursuant to a notice from the Department of Child Support Services as a result of the data matching pursuant to Section 13552.
(3) Any other action taken in good faith to comply with the requirements of this article.
(b) Data obtained pursuant to this article shall only be used for the purpose of identifying child support obligors. If the Department of Child Support Services does not find a match in the data obtained pursuant to this article with a child support obligor, the Department of Child Support Services shall not maintain that data and shall immediately destroy that data.
(c) An insurer that provides, attempts to provide, or in any way accesses data pursuant to this article shall comply with all applicable state and federal laws for the protection of the privacy and the security of that data, including, but not limited to, the Insurance Information and Privacy Protection Act (Article 6.6 (commencing with Section 791) of Chapter 1 of Part 2 of Division 1), the Information Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code), and the federal Health Insurance Portability and Accountability Act of 1996 (Public Law 104-191).
13554. If insurer participation becomes mandatory pursuant to subdivision (a) of Section 13556, the commissioner may adopt reasonable rules and regulations as are necessary to administer this article in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
13554. If insurer participation becomes mandatory pursuant to subdivision (a) of Section 13556, the commissioner may adopt reasonable rules and regulations as are necessary to administer this article in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
13555. On or before January 1, 2020, the department shall prepare a report on insurer participation in the Insurance Payment Intercept Program. The department shall provide the report on its Internet Web site.
13555. On or before January 1, 2020, the department shall prepare a report on insurer participation in the Insurance Payment Intercept Program. The department shall provide the report on its Internet Web site.
13556. (a) On or before January 1, 2020, the department shall measure admitted insurer participation in the Insurance Payment Intercept Program. If admitted insurer participation is less than 90 percent of the marketplace, then all admitted insurers shall be required to participate in the program described in this article by no later than January 1, 2021. The commissioner shall notify all admitted insurers of the requirement to participate in the program.(b) For the purposes of this section, marketplace means the total direct written premium by admitted insurers in California.
13556. (a) On or before January 1, 2020, the department shall measure admitted insurer participation in the Insurance Payment Intercept Program. If admitted insurer participation is less than 90 percent of the marketplace, then all admitted insurers shall be required to participate in the program described in this article by no later than January 1, 2021. The commissioner shall notify all admitted insurers of the requirement to participate in the program.
(b) For the purposes of this section, marketplace means the total direct written premium by admitted insurers in California.
SEC. 3. The Legislature finds and declares that Section 2 of this act, which adds Section 13553 to the Insurance Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:In order to protect the privacy of insurance claimants and persons owed past-due support, it is necessary that the data obtained by the Department of Child Support Services from insurers pursuant to this act be kept confidential.
SEC. 3. The Legislature finds and declares that Section 2 of this act, which adds Section 13553 to the Insurance Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:In order to protect the privacy of insurance claimants and persons owed past-due support, it is necessary that the data obtained by the Department of Child Support Services from insurers pursuant to this act be kept confidential.
SEC. 3. The Legislature finds and declares that Section 2 of this act, which adds Section 13553 to the Insurance Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
### SEC. 3.
In order to protect the privacy of insurance claimants and persons owed past-due support, it is necessary that the data obtained by the Department of Child Support Services from insurers pursuant to this act be kept confidential.