Rhode Island 2023 Regular Session

Rhode Island House Bill H6043 Compare Versions

Only one version of the bill is available at this time.

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5	5	2023 -- H 6043
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7	7	LC001314
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9	9	S TATE OF RHODE IS LAND
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2023
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14	14	A N A C T
15	15	RELATING TO INSURANCE -- CHILD SUPPORT INTERCEPT ACT
16	16	Introduced By: Representatives Potter, Giraldo, Stewart, and McNamara
17	17	Date Introduced: March 03, 2023
18	18	Referred To: House Corporations
19	19	(Dept. of Human Services)
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21	21	It is enacted by the General Assembly as follows:
22	22	SECTION 1. Section 27-57-1 of the General Laws in Chapter 27-57 entitled "Child 1
23	23	Support Intercept Act" is hereby amended to read as follows: 2
24	24	27-57-1. Interception of insurance payments. 3
25	25	(a) Every domestic insurer or insurance company authorized to issue policies of life 4
26	26	insurance or liability insurance pursuant to this title, and also any workers’ compensation insurer, 5
27	27	shall, within thirty (30) days prior to the making of any payment equal to or in excess of five 6
28	28	hundred dollars ($500) to any claimant or beneficiary who is a resident of the state of Rhode Island 7
29	29	or to any claimant who has an accident or loss that occurred in the state of Rhode Island, for third 8
30	30	party for personal injury or workers’ compensation benefits under a contract of insurance, or who 9
31	31	is to receive any economic benefit from a life insurance policy, including, but not limited to, as a 10
32	32	co-payee, or whether by means of cash surrender under any type policy, or as a loan against the 11
33	33	cash value or surrender value of any insurance policy, review information provided by the 12
34	34	department of human service, office of child support services, child support enforcement pursuant 13
35	35	to § 27-57-4 indicating whether the claimant owes past-due child support. 14
36	36	(b) If the insurer determines from the information provided by the department pursuant to 15
37	37	§ 27-57-4 that the claimant or payee does not owe past-due support, the insurer may make the 16
38	38	payment to the claimant in accordance with the contract of the insurance. 17
39	39	(c) If the insurer determines from the information provided by the department pursuant to 18
40	40	§ 27-57-4 that the claimant or payee owes past-due child support, the insurer shall, except to the 19
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44	44	extent payments are subject to liens, written notices, or interests described in § 27-57-3, withhold 1
45	45	from payment the amount of past-due support and pay that amount to the family court which shall 2
46	46	credit the person’s child support obligation account for the amount so paid, and the insurer shall 3
47	47	pay the balance to the claimant or other person entitled to it. The insurer or insurance company 4
48	48	shall provide written notice to the claimant and his or her attorney, if any, and notice by e-mail or 5
49	49	other electronic means, to the department of the payment to the family court. The payment shall be 6
50	50	deposited in the registry of the family court for a period of forty-five (45) days, or if an application 7
51	51	for review has been filed pursuant to subsection (d), until further order of the court. The notice shall 8
52	52	reflect the date, name, social security number, case number, and amount of the payment. Any 9
53	53	insurer or insurance company, its directors, agents, and employees and central reporting 10
54	54	organizations and their respective employees, authorized by an insurer to act on its behalf, who 11
55	55	release information in accordance with the provisions of this chapter, or who withhold amounts 12
56	56	from payment based upon the latest information supplied by the department pursuant to § 27-57-13
57	57	4 and makes disbursements in accordance with § 27-57-3, shall be in compliance and shall be 14
58	58	immune from any liability to the claimant, payee lienholder, payee who provided written notice, or 15
59	59	security interest holder for taking that action. 16
60	60	(d) Any claimant aggrieved by any action taken under this section may within thirty (30) 17
61	61	days of the making of the notice to the claimant in subsection (c) of this section, seek judicial review 18
62	62	in the family court, which may in its discretion, issue a temporary order prohibiting the 19
63	63	disbursement of funds under this section, pending final adjudication. 20
64	64	SECTION 2. This act shall take effect upon passage. 21
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71	71	EXPLANATION
72	72	BY THE LEGISLATIVE COUNCIL
73	73	OF
74	74	A N A C T
75	75	RELATING TO INSURANCE -- CHILD SUPPORT INTERCEPT ACT
76	76	***
77	77	This act would expand child support interception of insurance payments to include life 1
78	78	insurance proceeds payable to non-custodial parents who are the beneficiaries of the policy. 2
79	79	This act would take effect upon passage. 3
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