Child Support Lien Network

The Child Support Lien Network (CSLN) has been hosted by the State of Rhode Island since 1999. There are currently twenty-five states, in addition to Rhode Island, that report their delinquent child support information in the secure database. They are Alabama, Arkansas, Arizona, California, Connecticut, Delaware, Florida, Georgia, Illinois, Iowa, Maine, Missouri, New Hampshire, New Jersey, New Mexico, North Dakota, Oklahoma, Pennsylvania, South Dakota, Tennessee, Texas, Vermont, Virginia, Washington and West Virginia. The State of Rhode Island provides this service to other states for a fee. Each day the claimant information is matched electronically against the claims registered by insurance companies on ISO's ClaimSearch system, the fraud tool managed by Insurance Service Office, Inc. Upon a claim match, the CSLN staff verifies the status of the claim with the insurer and then distributes open claims which have not been settled to the participating state. The individual state then follows up immediately with the insurance company involved to file the appropriate state notice of liens or income withholding to secure the future settlement. After the Office of Child Support Services takes the appropriate action to place a lien on, freeze or seize the settlement, the insurer forwards available proceeds to offset the past due amount to the appropriate child support collection office.

How does it work in Rhode Island?

There are two ways to place a lien in Rhode Island; upon claim or upon settlement. First when Rhode Island receives information that there is a claim of injury filed by a claimant, a Notice of Intent to Lien is sent to the insurance company and a copy to the claimant/non-custodial parent. This "freezes" the settlement which means there can be no disbursement of any proceeds without payment of the past due child support obligation. When the case is settled, the insurance company, after payment of attorneys' fees and medical costs pays the balance of the settlement up to the past due amount to the Rhode Island Family Court. The money is held for forty-five days in the registry of the court to provide the obligor the opportunity to contest the intercept.

Second, there is a unique law in Rhode Island entitled the "Child Support Intercept Act" which is found in Section 27-57-1 of the Rhode Island General Laws. Every insurance company issuing insurance policies in the State of Rhode Island shall, within 30 days prior to the making of any settlement of $3,000.00 to any claimant who is a resident of the State of Rhode Island, look up the case on the CSLN secure website using a private PIN number. If the claimant owes $500 or more, his/her name will appear on the database. Rather than perform an actual look-up, some insurance companies choose to report to the ISO database so that the match can be handled electronically. The insurance company must remit payment to Rhode Island Family Court up to the sum of past due support. The insurance company may deduct the attorney's fee and the medical bills from the settlement prior to making payment. This process is automatically done without any manual involvement. If the claimant disagrees with the intercept, he/she must file a Motion with the Rhode Island Family Court to receive money.

What are the defenses that may be raised?

The non-custodial parent may raise the following defenses to recover some of the money being held in the Family Court registry:

• The past due support is not owed because the child is emancipated

• The past due support is not owed because the non-custodial parent paid the custodial parent directly and not through the court
  
• The past due support is not owed because the order was suspended
  
• The past due support is not owed because the non-custodial parent had custody of his child

Is a court order needed to place a lien on an insurance settlement?

A court order is not needed to place a lien on the settlement. The process pursuant to the Rhode Island General Laws Section 15-22 is an agency administrative process not a court process.

What should I do if I am told by the Insurance Company that a lien is being placed on my settlement?

You should file a Motion for Relief or Motion to Release Settlement Funds with the Rhode Island Family Court immediately or within thirty (30) days of the notice of settlement payout and raise a valid defense as indicated above.

What type of insurance claims are subject to a lien?

The law covers personal injury or worker's compensation settlements. For more information on CSLN, click here.