North Dakota § 26.1-06.1-29 Setoffs

North Dakota Statutes

§ 26.1-06.1-29 — Setoffs

North Dakota § 26.1-06.1-29

Title 26.1Insurance

Ch. 26.1-06.1Insurance Company Rehabilitation and Liquidation

This text of North Dakota § 26.1-06.1-29 (Setoffs) is published on Counsel Stack Legal Research, covering North Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.D. Cent. Code § 26.1-06.1-29 (2026).

Text

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 th

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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.