Texas Register, Volume 38, Number 27, Pages 4243-4444, July 5, 2013 Page: 4,249
4243-4444 p. ; 28 cm.View a full description of this periodical.
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PROPOSED
Proposed rules include new rules, amendments to existing rules, and repeals of existing rules.
UL ES A state agency shall give at least 30 days' notice of its intention to adopt a rule before it
adopts the rule. A state agency shall give all interested persons a reasonable opportunity to
submit data, views, or arguments, orally or in writing (Government Code, Chapter 2001).
Symbols in proposed rule text. Proposed new language is indicated by underlined text. [Square aeke-ai4 -st 4ka.ndgh
indicate existing rule text that is proposed for deletion. "(No change)" indicates that existing rule text at this level will not be
amended.TITLE 1. ADMINISTRATION
PART 3. OFFICE OF THE ATTORNEY
GENERAL
CHAPTER 55. CHILD SUPPORT
ENFORCEMENT
SUBCHAPTER M. INTERCEPT OF
INSURANCE CLAIMS
1 TAC 55.601 - 55.605
The Office of the Attorney General, Child Support Division,
proposes amendments to 55.601 - 55.605, regarding insur-
ance reporting and intercept pursuant to Texas Family Code
231.015. The proposed amendments are revised to comply
with statutory changes by the 82nd legislative session and to
clarify the scope provisions, the child support lien reporting
data match options, and the automated data match process,
interactive lookup options, the protection from liability, and the
remittance of funds.
Alicia G. Key, Deputy Attorney General for the Child Support Di-
vision, has determined that for the first five-year period the pro-
posed amendments are in effect there will be no fiscal implica-
tions for state or local government as a result of enforcing or
administering the proposed amendments.
Ms. Key has also determined that for each year of the first five
years the proposed amendments are in effect the public benefit
anticipated as a result of enforcing the proposed amendments
will be the clarification of the process for intercept of insurance
claims under Family Code 231.015. The proposed amend-
ments merely implement a statutorily required program and do
not have an effect on small businesses and impose no antici-
pated economic cost to persons who are required to comply with
the proposed amendments.
Comments on the proposed amendments should be submitted to
John O'Connell, Deputy Director, Legal Counsel Division, Child
Support Division, Office of the Attorney General, (physical ad-
dress) 5500 East Oltorf, Austin, Texas, 78741 or (mailing ad-
dress) P.O. Box 12017, Mail Code 044, Austin, Texas 78711-
2017. Comments on the proposed amendments must be sub-
mitted no later than 30 days from the date of this publication.
The proposed amendments are authorized under Texas Family
Code 231.015 (requiring the Title IV-D agency by rule to op-
erate an insurance intercept program) and by 231.003, which
authorizes the Title IV-D agency to by rule promulgate proce-
dures for the implementation of Chapter 231.The proposed amendments implement Texas Family Code
231.015.
55.601. Scope.
(a) Under Texas Family Code 231.015, [Section 23!.015 of
the Family code requires] the Child Support Division (CSD) of the Of-
fice of the Attorney General, in consultation with the Texas Department
of Insurance and representatives of the insurance industry, is required
to operate by rule a program under which insurers must [whereby an in-
surer shall] cooperate with the CSD [hild Support Division] in match-
ing the names of insurancee] claimants with the names of child support
obligors who owe past-due child support. When such an individual is
identified, the insurer [Child Support Division] will receive either a no-
tice of [file a] child support lien or an income withholding order [en the
elaim] to secure the payment of the amount of past-due support. This
subchapter explains how the matching process and the reporting [lien]
process work.
(b) Except as provided by subsection (c) of this section, as
[As] used in this subchapter, a "claim" that must be matched and must
be reported is any which seeks an economic benefit for the claimant.
["eaims " to be reported are claims iinvolvTingpersonal inu personal
damfas f workers' otipensatiot wrongful r aSccidental death and
claims by life insurance beneficiaries. Claims involvig ok property
damage or payment of actual medical costs need not be reported.]
(1) An "economic benefit" under a life, accident, health
policy or annuity is defined as a payment in which an individual is paid
as the payee or co-payee:
(A) for a claim by a beneficiary under a life insurance
policy;
(B) for the cash surrender value by an owner of a life
insurance policy or annuity;
(C) for payments to an annuitant; or
(D) a payment to an individual as the payee or co-payee
on a first party claim as defined herein, unless excluded under subsec-
tion (c)(2) of this section.
(2) An "economic benefit" under a property and casualty
insurance policy is defined as a payment involving:
(A) a payment to an individual as the payee or co-payee
on a first party claim as defined herein, unless excluded under subsec-
tion (c)(1) of this section; payments involving third party claims, as de-
fined herein, where the individual would be entitled to compensations
from an insured covered by a liability insurance policy or self-insurer
including claims covering personal or bodily injury, lost wages, prop-
erty damage, non-economic tort damages, wrongful death damages,
accidental death damages; or
(B) payments involving payments to individuals for
employment or workers' compensation benefits covered by an insur-
ance policy or certified self-insurer.PROPOSED RULES July 5, 2013 38 TexReg 4249
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Texas. Secretary of State. Texas Register, Volume 38, Number 27, Pages 4243-4444, July 5, 2013, periodical, July 5, 2013; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth326801/m1/7/: accessed April 26, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.