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.
Structure Code of Virginia
Chapter 15 - Rehabilitation and Liquidation of Insurers
§ 38.2-1502. Jurisdiction and procedure
§ 38.2-1503. Grounds for delinquency proceedings commenced by Commission against domestic insurer
§ 38.2-1504. Requirements when proceedings instituted by any person other than Commission
§ 38.2-1505. Commission may apply for receiver and for other relief; what orders court may enter
§ 38.2-1507. Further procedure; injunction may be issued
§ 38.2-1508. Powers of Commission when authorized to rehabilitate or liquidate companies
§ 38.2-1510. Commission may appoint assistants in connection with rehabilitation or liquidation
§ 38.2-1511. Borrowing on pledge of assets
§ 38.2-1512. Rights and liabilities fixed upon liquidation
§ 38.2-1513. Voidable transfers
§ 38.2-1514. Priority of claims for wages
§ 38.2-1515. Mutual debts or credits, how treated
§ 38.2-1516. Receivers to file reports, etc., with Commission
§ 38.2-1517. What included in annual report of Commission
§ 38.2-1518. Rehabilitation or mutualization of companies
§ 38.2-1519. Termination of rehabilitation; when liquidation may be entered
§ 38.2-1520. Liquidation of alien insurers
§ 38.2-1521. Conservation of assets of foreign or alien insurer; when liquidation may be entered