N.Y. Insurance Law Section 7427
Offsets


(a)

In all cases of mutual debts or mutual credits between the insurer and another person in connection with any action or proceeding under this article, such credits and debts shall be set off and the balance only shall be allowed or paid, except as provided in subsection (b) hereof.

(b)

No offset shall be allowed in favor of any such person, however, where:

(1)

the obligation of the insurer to such person would not at the date of the entry of any liquidation order, or otherwise, as provided in § 7405 (Order of liquidation)section seven thousand four hundred five of this article, entitle him to share as a claimant in the assets of such insurer, or

(2)

the obligation of the insurer to such person was purchased by or transferred to such person with a view of its being used as an offset, or

(3)

the obligation of such person is to pay an assessment levied against the members of a mutual insurer or to pay a balance upon a subscription to the shares of a stock insurance corporation.

Source: Section 7427 — Offsets, https://www.­nysenate.­gov/legislation/laws/ISC/7427 (updated Sep. 22, 2014; accessed Jun. 8, 2024).

7401
Application of article
7402
Grounds for rehabilitation of domestic insurer
7403
Order of rehabilitation
7404
Grounds for liquidation
7405
Order of liquidation
7406
Grounds for conservation of assets of foreign or alien insurer
7407
Order of conservation or ancillary liquidation of a foreign or alien insurer
7408
Uniform insurers liquidation act
7409
Conduct of delinquency proceedings against insurers domiciled in this state
7410
Conduct of delinquency proceedings against insurers not domiciled in this state
7411
Filing and proving of claims of non-residents against delinquent insurers domiciled in this state
7412
Filing and proving of claims of residents against delinquent insurers domiciled in reciprocal states
7413
Priority of preferred claims, special deposit claims and secured claims
7414
Attachment and garnishment of assets
7415
Uniformity of interpretation
7416
Grounds for dissolution of domestic insurer
7417
Commencement of a proceeding
7418
Service of order to show cause
7419
Injunctions
7420
Annual report
7421
Removal of proceedings
7422
Appointment of deputies
7423
Exemption from filing fees
7424
Deposit of monies collected
7425
Voidable transfers
7427
Offsets
7428
Disposition of assets and compromise of claims
7429
Borrowing on the pledge of assets
7430
Levy of assessments
7431
Determination of liability of members for other indebtedness
7432
Adjudication of insolvency of insurer
7433
Proof and allowance of claims
7433‑A
Loan to workers’ compensation security fund
7434
Distribution of assets
7435
Distribution for life insurers
7436
Claims-made policies
7437
Qualified financial contracts

Accessed:
Jun. 8, 2024

Last modified:
Sep. 22, 2014

§ 7427’s source at nysenate​.gov

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