The Vermont Statutes Online

Title 8 : Banking and Insurance

Chapter 101 : Insurance Companies Generally

Subchapter 008 : REORGANIZATION; RECEIVERSHIP; INJUNCTIONS

• [Section 3604 repealed by 1991, No. 45, § 3; but see note set out below.]

  § 3604. Offset

  (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.)