Texas Register, Volume 37, Number 35, Pages 6819-7008, August 31, 2012 Page: 6,833
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that arise from those acts other than the liability for failure to comply
with the lien under Texas Family Code 157.324 or a levy under Texas
Family Code 157.330.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal author-
ity to adopt.
Filed with the Office of the Secretary of State on August 20, 2012.
Office of the Attorney General
Earliest possible date of adoption: September 30, 2012
For further information regarding this publication, please contact Diane
Morris, Agency Liaison, at (512) 936-1180.
SUBCHAPTER M. INTERCEPT OF
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, the automated data match process, interactive
lookup options, the protection from liability, and the remittance
Alicia G. Key, Deputy Attorney General for the Child Support
Division, has determined that for the first five-year period the
sections are in effect there will be no fiscal implications for state
or local government as a result of enforcing or administering the
Ms. Key has also determined that for each year of the first five
years the sections are in effect the public benefit anticipated as a
result of enforcing the amended sections will be the clarification
of the process for intercept of insurance claims. There will not be
an effect on small businesses. There is no anticipated economic
cost to persons who are required to comply with the amendments
Comments on this proposed amendments should be submit-
ted to John O'Connell, Deputy Director, Legal Counsel Division,
Child Support Division, Office of the Attorney General, (phys-
ical address) 5500 East Oltorf, Austin, Texas 78741 or (mail-
ing address) P.O. Box 12017, Mail Code 044, Austin, Texas
The proposed amendments are authorized under Texas Family
Code 231.015, which provides the Office of the Attorney Gen-
eral with the authority to prescribe forms and procedures for the
implementation of Texas Family Code Chapter 231.
The proposed amendments implement the Texas Family Code
Chapters 157 and 231.
(a) Under Texas Family Code 231.015, [Seetion 23--015 of
the Family Gode 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 [Ghild Suppori Division] in match-
ing the names of [insurance] claimants with the names of child support
obligors who owe past-due [hid] support. When such an individual
is identified, the insurer [@hild Suppo4 Di-ision] will receive either
[file] a notice of child support lien or an income withholding order [on
the elaim] to secure the payment of the amount of past-due support.
This subchapter explains how the matching process and the lien process
(b) Except as provided by subsection (c) of this section, as [As]
used in this subchapter, a "claim" that must be reported is any which
seeks an economic benefit for the claimant/obligor, including a request:
claimsm" to be reported are claims]
(1) involving personal injury, personal damages,
employment, workers compensation, wrongful or accidental death; [,]
(2) [and claims] by a life insurance beneficiary; or
(3) by a life insurance policy owner seeking to surrender or
terminate a policy to obtain cash value from the policy.
(c) A claim [Claims] involving payment for the actual repair
or replacement of [only] property damaged [damage] or payment of
actual medical expenses paid to a medical provider [costs] need not be
reported. "Actual medical expenses" is limited to the amount actually
paid to the provider and does not include any amounts billed but not
(d) [(-)] All insurers [doing business in Texas, including, ~t
not limited to domestic fofeig and alien eoXpanies s,_sf-insurer and
surplus line insurers,] are subject to the reporting requirements under
this subchapter and must[ Al insurers shall] report any claim, whether
made by a third or a first party [all claims] in which:
(1) the policy was issued in Texas; [or]
(2) [in which] the claimant resides in Texas; or [and]
(3) the claim arises or is filed in Texas.
(e) To determine whether a recipient of funds paid under a
claim owes child support arrearages or is subject to a lien for child sup-
port arrearages, insurers are encouraged to report all claims [regardless
of the State where the eclaimarises or is fled As used in this sub-
haptert the term "inS.-urers " h include alt "agents" and administratorss
emloyedA by or associated with the insurer].
(f) As used in this subchapter, "insurer" means:
(1) a domestic, foreign, or alien company which provides
insurance coverage of any kind, including:
(A) life insurance;
(B) health insurance;
(C) liability insurance for an occurrence;
(D) an annuity; or
(E) any combination of the above.
(2) a Lloyd's plan;
(3) a reciprocal or interinsurance exchange;
(4) a fraternal benefit society;
(5) a mutual aid association, including a mutual insurance
(6) a surplus lines insurer; or
PROPOSED RULES August 31, 2012 37 TexReg 6833
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Texas. Secretary of State. Texas Register, Volume 37, Number 35, Pages 6819-7008, August 31, 2012, periodical, August 31, 2012; Austin, Texas. (texashistory.unt.edu/ark:/67531/metapth253227/m1/15/: accessed March 21, 2018), University of North Texas Libraries, The Portal to Texas History, texashistory.unt.edu; crediting UNT Libraries Government Documents Department.