§ 27-57-1 - Interception of insurance payments. - Rhode Island Statutes

SECTION 27-57-1

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

   (b) If the insurer determines from the information providedby the department pursuant to § 27-57-4 that the claimant or payee doesnot owe past-due support, the insurer may make the payment to the claimant inaccordance with the contract of the insurance.

   (c) If the insurer determines from the information providedby the department pursuant to § 27-57-4 that the claimant or payee owespast-due child support, the insurer shall, except to the extent payments aresubject to liens, written notices, or interests described in § 27-57-3,withhold from payment the amount of past-due support and pay that amount to thefamily court which shall credit the person's child support obligation accountfor the amount so paid, and the insurer shall pay the balance to the claimantor other person entitled to it; provided, that the insurer or insurance companyshall provide written notice by regular mail to the claimant and his or herattorney, if any, and notice by e-mail or other electronic means, to thedepartment of the payment to the family court. The payment shall be depositedin the registry of the family court for a period of forty-five (45) days or ifan application for review has been filed pursuant to subsection (d) untilfurther order of the court. The notice shall reflect the date, name, socialsecurity number, case number, and amount of the payment. Any insurer orinsurance company, its directors, agents, and employees and central reportingorganizations and their respective employees authorized by an insurer to act onits behalf who release information in accordance with the provisions of thischapter, or who withhold amounts from payment based upon the latest informationsupplied by the department pursuant to § 27-57-4 and makes disbursementsin accordance with § 27-57-3, shall be in compliance and shall be immunefrom any liability to the claimant, payee lienholder, payee who providedwritten notice, or security interest holder for taking that action.

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

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