Vermont § 7069 - Setoffs

§ 7069. Setoffs

• (a) 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 shall be set off and the balance only shall be allowed or paid, except as
  provided in subsections (b) and (c) of this section and section 7072 of this title. (b) No setoff or counterclaim shall be 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; (3) the obligation of the insurer is owed to an affiliate of such person, or any other
  entity or association other than the person; (4) the obligation of the person is owed to an affiliate of the insurer, or any other
  entity or association other than the insurer; (5) 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; (6) the obligation of the person is to pay to the insurer sums held in a fiduciary capacity
  for the insurer; or (7) the person alone or together with any other member of its insurance company holding
  system owns 50 percent or more of the voting stock of the insurer. (c) The receiver shall provide persons with accounting statements identifying debts that
  are currently due and payable. Where a person owes to the insurer currently due and
  payable balances, against which the person asserts setoff of mutual credits which
  may become due and payable from the insurer in the future, the person shall promptly
  pay to the receiver the currently due and payable amount, provided that, notwithstanding
  section 7081 of this title, the receiver shall promptly and fully refund, to the extent of the person’s prior
  payments, any mutual credits that become due and payable to the person by the insurer. (Added 1991, No. 45, § 2, eff. date, see note set below.)