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North Dakota Century Code Title 26.1. Insurance § 26.1-06.1-29. Setoffs

Current as of January 01, 2024 | Updated by Findlaw Staff

1. Mutual debts or mutual credits, whether arising out of one or more contracts 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 2 and section 26.1-06.1-32.

2. No setoff may be allowed in favor of any person when:

a. The obligation of the insurer to the person would not at the date of filing of a petition for receivership entitle the person to share as a claimant in the assets of the insurer;

b. 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;

c. The obligation of the insurer is owed to an affiliate of the person, or any other entity or association other than the person;

d. The obligation of the person is owed to an affiliate of the insurer, or any other entity or association other than the insurer;

e. 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; or

f. The obligations between the person and the insurer arise from business when either the person or the insurer has assumed risks and obligations from the other party and has ceded back to that party substantially the same risks and obligations.

3. These amendments become effective from the date of enactment and apply to all contracts entered into, renewed, extended, or amended on or after that date, and to debts or credits arising from any business written or transactions occurring after the effective date pursuant to any such contract. For purposes of this section, any change in the terms of, or consideration for, any such contract is deemed an amendment.

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Cite this article: FindLaw.com - North Dakota Century Code Title 26.1. Insurance § 26.1-06.1-29. Setoffs - last updated January 01, 2024 | https://codes.findlaw.com/nd/title-26-1-insurance/nd-cent-code-sect-26-1-06-1-29/

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