1 Tex. Admin. Code § 55.605 - Protection from Liability; Remittance of Funds
(a) An insurer that provides information
required by this subchapter or acts in good faith to comply with procedures
established by the Child Support Division (CSD) for the operation of the
insurance intercept program under this subchapter, including the remittance of
funds as specified under this rule, or responds to a notice of child support
lien or levy under Texas Family Code Chapter 157, Subchapter G, is not liable
for those acts under any law to any person. This includes but is not limited to
any claims asserted under Chapter 541, Chapter 542, Chapter 601, or Chapter 602
of the Insurance Code; Chapter 17 of the Business and Commerce Code; Chapter
181 of the Health and Safety Code; or an action for common law bad faith.
However, an insurer who fails to comply with a child support lien, including
the remittance of funds as specified under this rule, may be liable to the CSD
as the child support lien claimant in an amount equal to the amount of funds
payable under an insurance claim, not to exceed the amount of the child support
arrearages for which the lien was issued. See Texas Family
Code §
157.324. An insurer who
has questions or concerns about a child support lien, including the appropriate
remittance of funds under a policy to which the lien attaches, must contact the
Texas Special Collections Unit, P.O. Box 12027, Austin, Texas 78711-2027,
before paying out any funds under the policy.
(b) An insurer should remit funds in
satisfaction of a child support lien in one of the following ways:
(1) On receipt of a signed agreement between
the CSD and a claimant and/or claimant's attorney, the insurer should remit the
funds agreed to be paid to satisfy the child support lien to: Texas State
Disbursement Unit, Insurance Intercept, P.O. Box 245996, San Antonio, Texas
78224-5996. The funds should be made payable to the Office of the Attorney
General, and the remittance should identify the name of the claimant/obligor
and the CSD's case number(s) as shown on the Notice of Lien.
(2) If the claimant is represented by an
attorney but the insurer has not received a copy of any signed agreement
between the attorney and the CSD, the insurer should remit all the funds
directly to the claimant's attorney and must include the Office of the Attorney
General as a co-payee and provide the Office of the Attorney General with
written notice of the data and amount of the payment sent to the
attorney.
(3) If the claimant has
no attorney, and the insurer has not received a copy of any signed agreement
between the claimant and the CSD, the insurer must remit all the funds to the
Texas State Disbursement Unit, Insurance Intercept, P.O. Box 245996, San
Antonio, Texas 78224-5996 with the funds being made payable to the Office of
the Attorney General and the remittance should identify the name of the
claimant/obligor and the CSD's case number(s) as shown on the Notice of
Lien.
Notes
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