Delinquent child support; require insurers to exchange claims information with DHS for enforcement purposes.
Summary
SB 2408 creates a new Mississippi Code section requiring insurers regulated by the Mississippi Department of Insurance to share claim information with the Mississippi Department of Human Services (MDHS) to determine whether a claimant owes past-due child support. The bill applies to certain claims seeking an economic benefit of $500 or more, including negligence, personal injury, wrongful death, workers’ compensation, and life insurance claims. It directs MDHS to facilitate a secure electronic information exchange, authorizes MDHS to identify and encumber assets payable to an obligor, and requires insurers to notify claimants, withhold specified amounts, and remit those amounts to the enforcing authority.
Impact
The bill would add Section 43-19-50 to the Mississippi Code and expand child support enforcement tools by involving insurers in the collection process. It imposes duties on insurers to check for child support arrearages, withhold funds from covered claim payments, and transmit withheld amounts to MDHS or another enforcing authority, while also setting notice requirements, payment priorities, confidentiality rules, and a minimum fine of $1,000 per claim for noncompliance or false reporting. The statute also limits the types of claims and payments subject to withholding, excludes certain categories of benefits, and specifies that the law takes effect July 1, 2025.
Sentiment
Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the overall sentiment appears procedural and enforcement-oriented rather than contested in the available record. The bill’s stated purpose is to strengthen child support collection by using insurance claim proceeds, suggesting support for child support enforcement and administrative coordination. No contrary positions, amendments, or recorded roll-call votes are provided to indicate broader opposition or support levels.
Contention
The main policy tension in the bill is between child support enforcement and the handling of insurance claim proceeds owed to injured claimants or beneficiaries. Potential points of contention include the requirement that insurers search for child support debt within 10 days of a qualifying claim, the obligation to withhold and remit funds, and the use of claimant personal and financial information in the process. The bill addresses some concerns by limiting its scope to certain claim types, protecting confidentiality, exempting some payments and property-related claims, preserving priority for attorney’s fees and certain medical liens, and stating that insurers are not liable for good-faith compliance.