1997 Regular Session
By: Representative Montgomery
House Bill 1511
(As Passed the House)
AN ACT TO AMEND SECTION 83-24-59, MISSISSIPPI CODE OF 1972, TO REVISE CERTAIN SET OFF REQUIREMENTS UNDER THE INSURERS REHABILITATION AND LIQUIDATION ACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 83-24-59, Mississippi Code of 1972, is amended as follows:
83-24-59. (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, shall be set off and the balance only shall be allowed or paid, except as provided in Section 83-24-65.
(2) No set off shall be allowed in favor of any person where:
(a) 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; or
(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 set off;
(c) 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 * * *.
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SECTION 2. This act shall take effect and be in force from and after July 1, 1997.