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Rhode Island Laws

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 five hundred dollars ($500) 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 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 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 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 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.]

27-57-2. Notice Provided To Obligors Of Interception Of Insurance Settlements. - In any case were the department of administration, division of taxation, child support enforcement unit has intercepted an insurance payment, the department shall notify the obligor parent of such action upon crediting the obligors account. [See 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 call for-1-15 of the General Laws]

27-57-4. Select Information to be provided by the department of administration division of taxation, child support enforcement. - the department shall periodically within each year furnish the insurance companies and insurers subject to this section with a list or compilation of names of individuals with last known addresses who as of the date of the list or compilation owe past due child support in excess of five hundred ($500) dollars as shown on the Rhode Island family court/department of administration, division of taxation, child support enforcement, computer system ("CSE system"). For purposes of this section, the terms used herein shall be given the meaning in definitions specified in 15-16-2.

It order to facilitate the efficient and prompt reporting of said arrearages in one (1) centralized location, it shall be the duty and responsibility of the insurance companies doing business in the State of Rhode Island to utilize one (1) centralized database to which the department shall report and administer.

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

 

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