The bill amends the "Child Support Intercept Act" by expanding the types of insurance payments that can be intercepted to include life insurance proceeds. Specifically, it requires domestic insurers and workers’ compensation insurers to review information provided by the Department of Human Services, Office of Child Support Services, to determine if a claimant or beneficiary owes past-due child support before making any payment equal to or in excess of $500. This applies to residents of Rhode Island or those who have had an accident or loss in the state, and it now includes beneficiaries of life insurance policies, co-payees, or individuals receiving economic benefits from life insurance through cash surrender or loans against the policy.

If the insurer determines that the claimant or payee does not owe past-due support, the payment can be made as per the insurance contract. However, if past-due support is owed, the insurer must withhold the owed amount from the payment and send it to the family court to credit the individual's child support obligation account. The insurer is required to provide written notice of the payment to the claimant and the Department of Human Services. The bill also provides immunity to insurers and their agents from liability for actions taken in compliance with this chapter. Additionally, claimants have the right to seek judicial review in family court if they are aggrieved by actions taken under this section. The act is set to take effect upon passage.

Statutes affected:
6043: 27-57-1