Create a national web-enabled network seamless to state child support agencies and other users of the system to perform data matching to increase support collections through the interception of insurance claim settlements before they are sent to a claimant who owes past-due child support.

The State of Rhode Island and Providence Plantations (RI) established the Child Support Lien Network (CSLN) in 1999 under a 1998 Federal OCSE Special Improvement Project (SIP) grant to extract data from each delinquent child support obligor file into one accessible, easy-to-use database for the purpose of asset matching, specifically intercepting insurance settlements owed to delinquent child support obligors. A supplemental 1999 Federal OCSE SIP grant extended CSLN membership to four other New England states. States outside of New England may now join CSLN through the execution of an Interagency Agreement with the State of Rhode Island, the host of the CSLN.

CSLN members' case data produce a single child support obligor database to match against individual or grouped insurance claim data. The Internet look-up method via the web allows insurance adjusters to quickly determine if a claimant owes past due support by entering claimant information on the web site. Alternatively, an insurance company can elect to review their claimants via an electronic interface (data match) of CSLN to their databases. If there is a match between a claimant and an obligor the CSLN automatically notifies the Participating Child Support Agency/Agent electronically. After the child support agency takes the appropriate action to place a lien on, freeze or seize the settlement, the insurer forwards the past-due amount to the appropriate child support collection office. The network also provides Participating Child Support Agencies with new locate information on the NCP's from the insurance carrier's more recent contact with the obligator/claimant.

CSLN administrators have worked diligently with representatives from the insurance trade associations and national insurance companies to outline, design and develop the new automated data match program to streamline the process for intercepting proceeds from insurance settlements from workers compensation and personal injury claims. In late January, 2001 CSLN began the new automated data match process with the insurance industry. The new automated data match program, along with the current web-enabled "Interactive Lookup" procedure, provides insurers with two easy-to-use options for participating with CSLN and helping children get the support they deserve. The CSLN design, operational and technical maintenance services are under contract with Rhode Island.

CSLN administrators met with several hundred insurance representatives and their industry trade organization representatives (NAII, AAI, AIA) at their national conference in February, 2001 to discuss the new CSLN data match. During the next several months, CSLN projects that most insurance companies will agree to participate in the automated data match process in order to avoid having to react to CSE administrative subpoenas and to eliminate the need to individually research 100% of their claims for child support purposes.

State child support agencies do not need specific insurance intercept laws to join CSLN and take advantage of its access to millions of claims records. The insurance industry hopes that through their voluntary cooperation with CSLN, they can avoid varying mandates in the many states in which they do business in order to avoid costly training and procedural differences for their numerous claims offices around the country. CSLN works whether there are specific laws in states which require insurance companies to offset child support arrears from insurance payments, or laws that already provide the child support agency with the authority to place administrative liens, levies or income withholding orders against the assets of delinquent obligors.

The State of Rhode Island's experience in the first 1.5 years of requiring insurers in their state to use the interactive Look-up process via the web has resulted in 498 claim matches to 14,000 delinquent obligor cases (4%) and new collections of $1.8 million. However, the new CLSN electronic interface to insurance claims has resulted in 1,200 open insurance claims matched to 135,000 delinquent cases in CSLN in the first 6 weeks of operation. CSLN projects that 5% of a state's delinquent caseload will match annually to open insurance claims once the majority of insurers elect to use the interface option.

In addition to these SIP results, CSLN conducted sample matches of 8 states (ME, CT, RI, SC, VA, MD, and PA) to test the validity and accuracy of the new automated interface. Using a 6.5-year history file of insurance claims provided by the insurance industry, CSLN processed over 800,000 active delinquent cases through the interface. The results were extremely impressive - 32% of the delinquent cases submitted (256,000 obligor files) were matched to actual insurance claims. Based on a conservative projected arrearage collection of $3,500 from each of these claims, $896 million could have been collected from insurance liens on these cases over this past 6.5 year period. Please Note: the figures cited in this paragraph are based on projections and NOT actual numbers.

The State of Rhode Island, Department of Administration, Division of Taxation - Child Support Enforcement is the host of CSLN. States interested in joining CSLN can do so by signing an interstate Agreement with the State of Rhode Island. Under this agreement, extracts from a state's delinquent caseload will be added to the CSLN database.

Currently, there are 8 States that have joined the CSLN network. Additionally, 4 other States are currently processing the Interagency Agreement through their state purchasing departments, while 7 other states are very close to making a commitment to CSLN. CSLN anticipates that 25 states will be in the network by the end of 2001 and by 2002 it will be truly the national network for insurance intercept.

The CSLN project was initially supported by a SIP grant awarded to Rhode Island. Federal financial participation for CSLN expenditures is available at the current rate of 66%. Participating Child Support Agencies or their Agents pay a monthly fee to the State of Rhode Island for the management and operation of the CSLN.

To obtain additional information on how to become a member of CSLN, please contact Jack Murphy, IV-D Director, Rhode Island at 401-222-2966 or e-mail murphyjf@tax.state.ri.us.