§ 27-14.3-34 - Setoffs.
SECTION 27-14.3-34
§ 27-14.3-34 Setoffs. – (a) Mutual debts or mutual credits, whether arising out of one or morecontracts between the insurer and another person in connection with any actionor proceeding under this chapter, shall be set off and the balance only shallbe allowed or paid, except as provided in subsection (b) of this section and§ 27-14.3-37.
(b) No setoff shall be allowed in favor of any person where:
(1) The obligation of the insurer to the person would not atthe date of the filing of a petition for liquidation entitle the person toshare as a claimant in the assets of the insurer;
(2) The obligation of the insurer to the person was purchasedby or transferred to the person with a view to its being used as a setoff;
(3) The obligation of the insurer is owed to an affiliate ofthe person, or any other entity or association other than the person;
(4) The obligation of the person is owed to an affiliate ofthe insurer, or any other entity or association other than the insurer;
(5) The obligation of the person is to pay an assessmentlevied against the members or subscribers of the insurer, or is to pay abalance upon a subscription to the capital stock of the insurer, or is in anyother way in the nature of a capital contribution; or
(6) The obligations between the person and the insurer arisefrom business where either the person or the insurer has assumed risks andobligations from the other party and then has ceded back to that partysubstantially the same risks and obligations.