As more states join the Child Support Lien Network (CSLN), insurers must be aware of specific insurance claim intercept laws and their impact on claim processes. Recent regulatory activities — whether mandatory or optional in nature — send a clear signal that efforts will continue to ensure that child support obligations are met through various means, including interception of, and liens on, certain insurance proceeds.

Claim departments are required to recognize, interpret, and apply state regulatory requirements applicable to issues such as acceptance, denial, investigative periods, disclosures, and payments in their claim-handling processes. In addition to these standard and expected issues that need to be accounted for, some states impose proactive requirements on insurers to notify the applicable state’s child support enforcement agency when a claim is filed or in advance of settlement payment — or both.

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