38.2-1515 - Mutual debts or credits, how treated. - Virginia Statutes

§ 38.2-1515. Mutual debts or credits, how treated.

A. In all cases of mutual debts or mutual credits between the insurer andanother person in connection with any action or proceeding under thischapter, the credits and debts shall be set off and the balance only shall beallowed 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 thedate of the entry of any rehabilitation or liquidation order to share as aclaimant in the assets of the insurer;

2. The obligation of the insurer to the person was purchased by ortransferred 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 againstthe 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.)