(a) Mutual debts or mutual credits between the insurer and another person in connection with any action or proceeding under this chapter must be set off and the balance only may be allowed or paid, except as provided in subsection (b) of this section and Section 38-27-520.
(b) No setoff is 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; or
(3) 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.
HISTORY: Former 1976 Code Section 38-5-2190 [1982 Act . 384, Section 30] recodified as Section 38-27-490 by 1987 Act No. 155, Section 1; 1997 Act No. 68, Section 10.
Structure South Carolina Code of Laws
Chapter 27 - Insurers' Rehabilitation And Liquidation Act
Section 38-27-10. Short title.
Section 38-27-20. Construction.
Section 38-27-40. Persons covered.
Section 38-27-50. Definitions.
Section 38-27-60. Jurisdiction and venue.
Section 38-27-70. Injunctions and orders.
Section 38-27-80. Cooperation of officers, owners, and employees.
Section 38-27-110. Disabilities of delinquent insurer pending repayment to guaranty association.
Section 38-27-220. Court's seizure order.
Section 38-27-230. Confidentiality of hearings.
Section 38-27-310. Grounds for rehabilitation.
Section 38-27-320. Rehabilitation orders.
Section 38-27-330. Powers and duties of rehabilitator.
Section 38-27-340. Actions by and against rehabilitator.
Section 38-27-350. Termination of rehabilitation.
Section 38-27-360. Grounds for liquidation.
Section 38-27-370. Liquidation orders.
Section 38-27-380. Continuance of coverage.
Section 38-27-390. Dissolution of insurer.
Section 38-27-400. Powers of liquidator.
Section 38-27-410. Notice to creditors and others.
Section 38-27-420. Duties of agents.
Section 38-27-430. Actions by and against liquidator.
Section 38-27-440. Collection and list of assets.
Section 38-27-450. Fraudulent transfers prior to petition.
Section 38-27-460. Transfers after petition.
Section 38-27-470. Voidable preferences and liens.
Section 38-27-480. Claims of holders of voidable rights.
Section 38-27-500. Assessments.
Section 38-27-510. Reinsurer's liability.
Section 38-27-520. Recovery of premiums owed.
Section 38-27-530. Domiciliary liquidator's proposal to distribute assets.
Section 38-27-540. Filing of claims.
Section 38-27-550. Proof of claim.
Section 38-27-560. Special claims.
Section 38-27-570. Special provisions for third party and insureds' claims.
Section 38-27-580. Disputed claims.
Section 38-27-590. Claims of surety.
Section 38-27-600. Secured creditor's claims.
Section 38-27-610. Priority of distribution.
Section 38-27-620. Liquidator's recommendations to court.
Section 38-27-630. Distribution of assets.
Section 38-27-640. Unclaimed and withheld funds.
Section 38-27-650. Termination of proceedings.
Section 38-27-660. Reopening liquidation.
Section 38-27-670. Disposition of records during and after termination of liquidation.
Section 38-27-680. External audit of receiver's books.
Section 38-27-910. Conservation of property of alien or foreign insurers.
Section 38-27-920. Liquidation of property of alien or foreign insurers.
Section 38-27-930. Domiciliary liquidators in other states.
Section 38-27-940. Ancillary formal proceedings.
Section 38-27-950. Ancillary summary proceedings.
Section 38-27-960. Claims of nonresidents against insurers domiciled in South Carolina.
Section 38-27-970. Claims of residents against insurers domiciled in reciprocal states.
Section 38-27-980. Attachment, garnishment, and levy of execution.
Section 38-27-990. Interstate priorities.
Section 38-27-1000. Subordination of claims for noncooperation.