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
003
:
FORMAL PROCEEDINGS
(Cite as: 8 V.S.A. § 7069)
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§ 7069. Setoffs
(a) Mutual debts or mutual credits whether arising out of one or more contracts between
the insurer and another person in connection with any action or proceeding under this
chapter shall be set off and the balance only shall be allowed or paid, except as
provided in subsections (b) and (c) of this section and section 7072 of this title.
(b) No setoff or counterclaim shall be allowed in favor of any person where:
(1) the obligation of the insurer to the person would not at the date of the filing of
a petition for liquidation entitle the person to share as a claimant in the assets
of the insurer;
(2) the obligation of the insurer to the person was purchased by 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 of such person, or any other
entity or association other than the person;
(4) the obligation of the person is owed to an affiliate of the insurer, or any other
entity or association other than the insurer;
(5) the obligation of the person is to pay an assessment levied against the members or
subscribers of the insurer, or is to pay a balance upon a subscription to the capital
stock of the insurer, or is in any other way in the nature of a capital contribution;
(6) the obligation of the person is to pay to the insurer sums held in a fiduciary capacity
for the insurer; or
(7) the person alone or together with any other member of its insurance company holding
system owns 50 percent or more of the voting stock of the insurer.
(c) The receiver shall provide persons with accounting statements identifying debts that
are currently due and payable. Where a person owes to the insurer currently due and
payable balances, against which the person asserts setoff of mutual credits which
may become due and payable from the insurer in the future, the person shall promptly
pay to the receiver the currently due and payable amount, provided that, notwithstanding
section 7081 of this title, the receiver shall promptly and fully refund, to the extent of the person’s prior
payments, any mutual credits that become due and payable to the person by the insurer. (Added 1991, No. 45, § 2, eff. date, see note set below.)