California Bill Would Intercept Insurance Claims to Fund Child Support

June 1, 2015

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.

Budget BattleSB585 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.

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Latest Comments

  • June 3, 2015 at 9:39 am
    BoB says:
    Children don't receive child support, mothers/parents/government do. To that degree, Child Support should be abolished. If you say otherwise or favor child-support, you don't ... read more
  • June 2, 2015 at 6:29 pm
    Scott Shipley says:
    I have no problem with children receiving their support. Does this law only apply to injury claims? If the claimants car is damaged does it just stay damaged and the person po... read more
  • June 1, 2015 at 4:43 pm
    integrity matters says:
    Personally, I think this is a great idea. Deadbeat Dads (and Moms) should have any insurance award reduced by the outstanding support payment due. Logistically, I think it wil... read more

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