2005 Regular Session
To: Public Health and Human Services; Insurance
By: Representative Holland
AN ACT TO CODIFY SECTION 43-19-50, MISSISSIPPI CODE OF 1972, TO REQUIRE INSURANCE COMPANIES TO CHECK FOR THE EXISTENCE OF AN UNPAID CHILD SUPPORT OBLIGATION OR ARREARAGE AGAINST A POTENTIAL PAYEE BEFORE PAYMENT OF SETTLEMENT OR PROCEEDS PROCEEDING FROM ANY CONTRACT OF INSURANCE; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. The following shall be codified as Section 43-19-50, Mississippi Code of 1972:
43-19-50. (1) No payment of any settlement or proceeds shall be paid by any business entity specified under Section 83-5-1 unless the payment has been cleared in writing by the Department of Human Services.
(2) Subsection (1) of this section shall not apply if a documented request for clearance has been made without response by the Department of Human Services for a period of twenty-one (21) calendar days.
(3) If, within twenty-one (21) calendar days of a documented request for clearance, the Department of Human Services responds that an unpaid child support obligation or arrearage exists, the department shall be allowed an additional thirty (30) calendar days to obtain and forward to the requesting entity a legal lien entitling the department to the payment of the proceeds otherwise due the obligor. Failure of the department to comply with this subsection (3) relieves the business entity specified under Section 83-5-1 from any further liability to the department or the obligee.
SECTION 2. This act shall take effect and be in force from and after July 1, 2005.