The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
Subchapter
008
:
REORGANIZATION; RECEIVERSHIP; INJUNCTIONS
(Cite as: 8 V.S.A. § 3604)
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§ 3604. Offset [Section 3604 repealed by 1991, No. 45, § 3; but see note set out below.]
(a) In all cases of mutual debts or mutual credits between the insurer and another person
in connection with any action or proceeding under this chapter, such credits and debits
shall be set off and the balance only shall be allowed or paid, except as provided
in subsection (b) of this section. Any remaining debit of the insolvent insurer after
offset under this section shall be treated as provided by section 3595 of this title.
(b) No offset shall be allowed in favor of any such person where:
(1) the obligation of the insurer to such person would not at the date of the entry of
any liquidation order or otherwise entitle him or her to share as a claimant in the
assets of the insurer;
(2) the obligation of the insurer to such person was purchased by or transferred to such
person with a view of its being used as an offset;
(3) the obligation of such person is to pay an assessment levied against the members of
a mutual insurer, or against the subscribers of a reciprocal insurer, or is to pay
a balance upon the subscription to the capital stock of a stock insurer; or
(4) the obligation of the person is to pay premiums whether earned or unearned, to the
insurer, unless provided for otherwise in a final order for liquidation issued by
the Commissioner or approved by a court of competent jurisdiction. (Added 1985, No. 145 (Adj. Sess.), § 6.)