Section 9-229 - Offsets. - Maryland Statutes

§ 9-229. Offsets.
 

(a)  Required.- Except as provided in subsection (b) of this section, in all cases of mutual debts and credits between an insurer and another person in connection with a delinquency proceeding, the debts and credits shall be offset and the balance only shall be allowed or paid. 

(b)  Exception.- An offset may not be allowed in favor of another person if: 

(1) on the date of issuance of a liquidation order or otherwise, as specified in § 9-228(e) of this subtitle, the obligation of the insurer to the person would not 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 for use as an offset; or 

(3) the obligation of the person is to pay: 

(i) an assessment imposed on the members of a mutual insurer or the subscribers of a reciprocal insurer; or 

(ii) a balance on the subscription to the capital stock of a stock insurer. 
 

[An. Code 1957, art. 48A, § 159; 1996, ch. 11.]