§ 38.2-1515. Mutual debts or credits, how treated
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, the credits and debts shall be set off and the balance only shall be allowed or paid, except as provided in subsection B of this section.
B. No offset shall be allowed in favor of any person where:
1. The obligation of the insurer to the person would not entitle him at the date of the entry of any rehabilitation or liquidation order 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 of its being used as an offset; or
3. The obligation of the person is to pay (i) an assessment levied against the members of a mutual insurer or the subscribers of a reciprocal insurer, or (ii) a balance upon a subscription to the capital stock of a stock insurer.
(1952, c. 317, § 38.1-139; 1986, c. 562.)
Sections: Previous 38.2-1507 38.2-1508 38.2-1509 38.2-1510 38.2-1511 38.2-1512 38.2-1513 38.2-1514 38.2-1515 38.2-1516 38.2-1517 38.2-1518 38.2-1519 38.2-1520 38.2-1521 NextLast modified: April 3, 2009