California Bill Would Intercept Insurance Claims to Fund Child Support

California lawmakers are advancing a bill that would intercept more insurance payments and use them to pay beneficiaries’ overdue child support.

About a quarter of insurance companies now voluntarily participate in the program. It collects about $17 million annually from insurance claims, settlements and awards that would otherwise go to individuals who owe child support.

The measure approved by the state Senate on Thursday would make insurance companies’ participation mandatory. Sen. Connie Leyva, a Democrat from Chino, says that will greatly increase payments.

SB585 was sought by Insurance Commissioner Dave Jones. The bill lets the departments of Insurance and Child Support Services cooperate to match those who owe child support with those set to receive insurance payouts.

The measure passed on a 29-4 vote and now goes to the Assembly.

Topics California Claims