§ 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.

HISTORY: An. Code 1957, art. 48A, § 159; 1996, ch. 11.