H. B. 2299
(By Delegates Poore, Moore, Guthrie, Wells and Skaff)
[Introduced February 13, 2013; referred to the
Committee on the Judiciary then Finance.]
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new article, designated §33-4B-1, §33-4B-2,
§33-4B-3 and §33-4B-4, all relating to requiring certain
insurance companies to participate in information data matches
with the Bureau of Child Support Enforcement for the purpose
of establishing, modifying and enforcing child support,
spousal support and medical support; requiring certain
insurance companies to pay the Bureau of Child Support
for past-due child support instead of the
income withholding notice for past-due
support to have priority over all other liens or levies upon
the payment with certain exceptions;
insurance reporting; defining terms; establishing limitation
of liability for those insurance companies; and providing
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new article, designated §33-4B-1, §33-4B-2,
§33-4B-3 and §33-4B-4, all to read as follows:
ARTICLE 4B. CHILD SUPPORT INSURANCE MATCH.
§33-4B-1. Applicability and definitions.
__________(a) This section applies to every insurance company authorized
to issue policies in this state for liability insurance coverage,
life insurance coverage or workers' compensation coverage.
__________(b) As used in this article, "claimant" means a beneficiary
under any one or more of these types of policies who resides in the
State of West Virginia or whose accident or loss occurred in the
State of West Virginia.
__________(c) As used in this article, "Bureau" means the Bureau for
Child Support Enforcement created by article eighteen, chapter
forty-eight of this code.
__________(d) As used in this article, "past-due support" or
"arrearages" have the meaning as ascribed to them in section two
hundred four, article one, chapter forty-eight of this code.
§33-4B-2. General provisions.
__________(a) Every insurance company licensed to do business in the
State of West Virginia that is authorized to issue liability
insurance coverage, life insurance coverage or workers' compensation coverage is required to participate in an information
data match with the Bureau for Child Support Enforcement.
__________(b) Any insurance company that participates in the Federal
Office of Child Support Enforcement Case Registry Insurance Match
Program is deemed to have met the reporting requirements of this
__________(c) Any insurance company which is required by subsection (a)
of this section to participate in the information data match and is
not participating in either option set forth in subsection (b) of
this section shall participate in the following manner: At least
thirty days, or as soon as the payment is authorized, whichever is
sooner, prior to making any nonrecurring payment equal to or in
excess of $500 to a claimant, the insurance company shall notify
the bureau, in a manner prescribed by the bureau, of the claimant's
name, address, social security number and date of birth in a manner
and format specified by the bureau.
__________(d) The bureau shall notify the insurance company if the
payment is subject to withholding pursuant to part IV, article
fourteen, chapter forty-eight of this code for unpaid child support
or spousal support.
__________(e) Upon notice from the bureau, the insurance company shall
remit to the bureau the funds otherwise payable to the claimant, up
to the amount of the past-due support.
__________(f) The income withholding notice for past-due support shall have priority over all other liens or levies upon the payment, with
the exception of: (1) Legal services and medical services
guaranteed pursuant to the representation provided by a third party
in relation to the claim; and (2) security interests in lost or
damaged property covered by the claim, to the extent that the
security interest would otherwise have precedence over the income
__________(g) If no income withholding notice is received from the
bureau within thirty days of the insurance company notification of
intent to disburse funds, the insurance company shall disburse the
payment to the claimant in accordance with the contract of
§33-4B-3. Medical insurance reporting.
________________________________________(a) (1) In order to fulfill the state's obligations imposed by
state and federal legislation in regard to the establishment and
enforcement of medical support, it is necessary that health
insurance policy information be released to the Bureau for Child
________________________________________(2) As a condition of conducting business in the state, health
insurers, defined as any insurance company or other entity who is
authorized to transact and is currently transacting health
insurance business in this state, including self-insured plans,
group health plans as defined in Section 607(1) of the Employee
Retirement Income Security Act of 1974, service benefit plans, managed care organizations, pharmacy benefit managers, third party
administrators and any other parties that are, by statute, contract
or agreement, legally responsible for payment of a claim for a
health care item or service, shall permit and participate in data
matching with the Bureau for Child Support Enforcement to assist in
determining the availability of sources of health care insurance or
coverage for beneficiaries of the child support program. All health
insurers shall provide to the bureau or its designee an electronic
listing of all individuals who may be covered by a health insurer
and the nature of coverage that is provided, their social security
numbers, addresses, dates of birth, policyholder, policy
identification number, group number and effective dates for
purposes of identifying coverage for establishing, modifying and
enforcing medical child support orders administered by the bureau.
The information shall be provided in a format suitable for
electronic data matches, conducted under the direction of the
bureau, no less than monthly or as prescribed by the commissioner
of the bureau. The health insurer must respond within thirty
working days after receipt of a written request for enrollment data
from the bureau or its designee.
________________________________________(3) Subdivisions (1) and (2) of this subsection do not apply
to the following types of insurance: Limited benefit health and
accident, fixed indemnity, long-term care, Medicare supplement and
________________________________________(b) The Bureau for Child Support Enforcement, after obtaining
information from a health insurer, may disclose the health
insurance policy information only for the purpose of, and to the
extent necessary, to establish, modify or enforce a medical support
obligation for a minor child.
________________________________________(a) Notwithstanding any provision of this code to the
contrary, an insurance company is not liable under the laws of this
state to any claimant or other interested party for:
________________________________________(1) Disclosing any insurance record of an individual to the
Bureau for Child Support Enforcement, or the Federal Office of
Child Support Enforcement Case Registry Insurance Match as required
by this article;
________________________________________(2) Disclosing health insurance policy information to the
Bureau for Child Support Enforcement or its designee;
________________________________________(3) Encumbering or surrendering assets held by the insurance
company as required by this article;
________________________________________(4) Any other action taken in good faith to comply with the
requirements of this article.
________________________________________(b) Any insurance company that fails or refuses to provide
information as required by this article may have a civil penalty
assessed of $500 per violation by the Bureau for Child Support
Enforcement. The Bureau for Child Support Enforcement may invoke
the aid of any circuit court in this state to enforce the civil penalty.
________________________________________(c) Any insurance company that, having received notice of an
income withholding from the bureau, fails or refuses to surrender
property subject to the income withholding is liable to the bureau
or the support obligee, or both, in the amount thereby noticed.
________________________________________(d) Information provided by the bureau to an insurance company
under this article may only be used for the purpose of assisting
the bureau in collecting past-due support and in establishing,
modifying or enforcing a medical support order. Any individual or
company who uses the information for any other purpose is subject
to a penalty of up to $1,000 per violation.
NOTE: The purpose of this bill is to
require certain insurance
companies to participate in information data matches with the
Bureau of Child Support Enforcement for the purpose of
establishing, modifying and enforcing child support, spousal
support and medical support. The bill requires certain insurance
companies to pay the Bureau of Child Support Enforcement
past-due child support instead of the insured. The bill grants
income withholding notice for past-due support to have priority
over all other liens or levies upon the payment with certain
. The bill requires medical insurance reporting. The bill
establishes limitation of liability for those insurance companies
The bill also defines terms and provides civil penalties.
This article is new; therefore, it has been completely