“Insuring Child and Spousal Support Obligations in Marital Settlement Agreements Against Involuntary Unemployment of the Responsible Party”
Contractual Liability Insurance Policy for Marital Settlement Agreements (CLIPMSA)
The ALPGA group master policy that insures the child and spousal support obligations inside a Marital Settlement Agreement — available only to clients of ALPGA members.
Contractual Liability Insurance Policy for Marital Settlement Agreements (CLIPMSA)
What it is
- CLIPMSA is a private association group master insurance policy issued to ALPGA. The Policy guarantees, via a Certificate of Coverage issued under the master policy, the indemnification and performance of child and spousal support obligations in Marital Settlement Agreements (MSA). Coverage is only available to clients of ALPGA Members (your clients). In other words, the policy is not insuring people, it is insuring the MSA.
- At least one of the parties to the MSA must be the client of an ALPGA member to obtain the Certificate of Coverage.
- The claim-triggering event under CLIPMSA is the Responsible Party’s eligibility for and receipt of a state unemployment check.
- CLIPMSA is true insurance; when the insurance company makes a claim payment and pays the contractual support to the Receiving Party, there is no deductible or repayment requirement of the Responsible Party.
- The Master Policy is underwritten by Florida Reinsurance Insurance Co and made available to clients of ALPGA Members through the National Law Purchasing Group.
Qualifying for coverage
- The Responsible Party or the Recipient Party may apply for coverage, however at least one must be a client of an ALPGA member.
- Attorneys and Divorce Services Professionals can become instant members of ALPGA online at www.amlawpg.org.
- Either Party may pay for the required annual premium (monthly, quarterly, or annual payment plans are available).
- A CLIPMSA Addendum to the MSA must be completed by an attorney and signed by both parties to initiate coverage.
- Coverage is annually renewable for the full term of the support obligations set forth in the MSA Agreement.
- Rates for coverage are based upon (1) the amount of monthly support, and (2) the Responsible Party’s state of employment.
- Support payments from $400 to $9,000 per month are eligible for coverage (combined total).
How the insurance works
- If the Responsible Party becomes involuntarily unemployed under their state law, once notified, the insurance company opens a claim.
- When the Responsible Party submits a copy of their first state unemployment check, CLIPMSA claim payments begin.
- CLIPMSA will pay up to 24 weeks of qualifying unemployment, or until state checks stop, whichever occurs first.
- There must be 90 days between claims after reemployment.
How to purchase coverage
- Direct your client to www.insuredsupport.com. Insurance quote, application, payment and issuance of the Certificate of Coverage all take place there.
- Enter the coverage information contained in the Certificate of Coverage into the Marital Settlement Agreement.
- A complete copy of the Master Policy is available in the documents section below.
The rebirth of CLIPMSA
ALPGA has developed a completely new legal and insurance structure for the program with Florida RE, an A.M. Best A- rated company. Our updated model not only protects families relying on support but will also channel tens of thousands of new clients each year to ALPGA member family law attorneys and licensed divorce professionals.
Under our ALPGA Contractual Liability Insurance for Marital Settlement Agreements Group Master Policy (“CLIPMSA”), at least one of the divorced or divorcing parties must be a client of an ALPGA Member. CLIPMSA is not available to the public on a direct basis, as CLIPMSA is an association master insurance policy. They must be engaged with one of our ALPGA Members.
We have completely restructured with lower rates and simplified underwriting so that hundreds of thousands of our members’ clients can financially stabilize their marital settlement agreements with both our unemployment and life insurance programs.
The full history, 1976 to todayThe Bottom Line: The Only Path to CLIPMSA is Through an ALPGA Member
ALPGA offers something no other organization in the country can: access to the ALPGA Master Policy, the first and only insurance product designed to insure a marital settlement agreement for contractual liability obligations such as child support and spousal support. This insurance is not available to the public. It is only available when the applicant is working with a verified ALPGA family law attorney or professional divorce services member.
How the New Client Referral Program turns that into practice growth →
The Addendum to the Marital Settlement Agreement
The one-page addendum an attorney or mediator inserts into the marital agreement documents. Both parties sign it, whoever orders or pays for the coverage.
Requirements: This document is to serve as a template addendum to a marital settlement agreement or similar document. Any attorney or mediator may modify the language, however in no instance can the conditions of coverage be modified or the premium amounts changed. Any such modification will render the coverage null and void. It is mandatory as a condition of coverage that both parties (i) agree to the purchase, (ii) sign the Addendum regardless of who ordered the coverage or pays for it. This Addendum must be prepared and inserted into the marital agreement documents by a licensed attorney or licensed mediator.
Contractual Liability Insurance Policy for Marital Settlement Agreement:
Child and/or Spousal Support Involuntary Unemployment Coverage
Addendum.
Subject to the Responsible Party qualifying for coverage under the insurance company’s underwriting rules, it is agreed that
Responsible Party shall purchase CLIPMSA coverages.
Recipient Party shall purchase CLIPMSA coverage.
From Florida Reinsurance Insurance Company (or the underwriting insurer at the time of application or renewal) to cover the monthly support obligations set forth in this Agreement for the full term of such support obligations as defined in the marital settlement documents.
The amount of CLIPMSA monthly Child Support and/or Spousal Support coverage purchased for this Agreement is $ per month in total. An amount not to exceed the total monthly support obligation set forth in this Agreement. In the event the total support obligation is subsequently increased or decreased during the term of this Agreement, the Parties agree that the coverage shall be adjusted to match the support obligation next due. The coverage selected shall have a 90-day elimination period on policy first-year claims. No waiting period on annual renewals. Coverage on multiple claims must be separated by 90 days of full-time employment of the Responsible Party. Maximum payments per claim is 24 weeks.
The CLIPMSA insurance premium shall be paid monthly, quarterly, semi-annually, annually by
Responsible Party
Recipient Party
Agrees to pay the premium of $ Monthly or $ Quarterly or $ Annually
The Parties agree that coverage must always remain in force for as long as a child/spousal support obligation exists under the Agreement to which this Addendum is attached.
The Parties agree that the Recipient Party is the Loss Payee under the CLIPMSA Certificate of Insurance and all claims’ benefits arising under CLIPMSA shall be paid directly to the Recipient Party or court-assigned payee by the insurance company and/or claims administrator.
The Parties acknowledge that if for any reason the CLIPMSA policy does not cover the support obligation in whole or partially under the terms and conditions of policy, the Recipient Party shall remain responsible for any support payments not covered by the Policy.
Client Waiver of Insurance Recommendation
When a client declines the coverage, have both parties acknowledge that you informed them of the option and they elected to decline — so you have a record showing you provided notice.
CLIENT WAIVER OF INSURANCE RECOMMENDATION
Client Waiver of Option to Include Recommended Contractual Liability Insurance Policy for Marital Settlement Agreements in My Marital Settlement Agreement
I, , am the client of (Attorney at Law):
I understand that I have an option to self-apply for Contractual Liability Insurance for Marital Settlement Agreements (CLIPMSA) to cover child and spousal support payments set forth in my marital settlement agreement in the event of the involuntary unemployment of the Responsible Party.
I am the support payment Responsible Party, Recipient Party under the Agreement.
My attorney has advised that I should research available insurance options and consider the legal and financial benefits that could be afforded to me by purchasing such insurance. I have elected not to apply for coverage at this time.
Additionally, I have instructed my attorney not to put any requirements for CLIPMSA insurance in the Agreement being prepared for me. I realize that I have the right to apply and self-purchase CLIPMSA at any time in the future, however such coverage is only available to clients of members of the American Lawyer Purchasing Group Association. CLIPMSA without inclusion in an attorney-prepared marital settlement agreement is not available.
I have read and understand the foregoing information and hereby waive my option to (i) self-purchase CLIPMSA insurance at this time, (ii) have CLIPMSA provisions included in my agreement and (iii) I hold my attorney harmless from any and all legal and financial consequences which I may incur for not securing CLIPMSA coverage.
Client Signature: Date:
CLIPMSA Policy & Attorney Manual
CLIPMSA Master Policy
A complete copy of the ALPGA Group Master Policy underwritten by Florida Reinsurance Company, for members to review the full terms and conditions of coverage.
CLIPMSA Master Policy (complete copy) — ALPGA / Program Administrator to post the policy document.
CLIPMSA Attorney Manual
The member’s working guide to the program — preparing the Addendum, directing clients to InsuredSupport.com, entering Certificate of Coverage details into the MSA, and handling modifications and claims.
CLIPMSA Attorney Manual — ALPGA to supply the manual.
Give your clients access to CLIPMSA
Only ALPGA members can. Founding membership is $50 per person, per year — enroll in under five minutes.