---
urn: urn:us-la:rs:22:2026
citation: "R.S. 22:2026"
status: active
breadcrumb: "Title 22 › Chapter 9"
acts_citations:
  - { year: 1958, number: 125, section: None, effective_date: null, role: enactment }
  - { year: 1960, number: 172, section: 1, effective_date: null, role: amendment }
  - { year: 2012, number: 271, section: 1, effective_date: null, role: amendment }
---

# Set-offs

A. In all cases of mutual debts or mutual credits between the insurer and another person, such credits and debts shall be set-off and only the balance shall be allowed or paid; however, no set-off shall be allowed in favor of any person when either of the following apply:

(1) The obligation of the insurer to such person was purchased by or transferred to such person with a view of its being used as a set-off.

(2) The obligation of such person is to pay an assessment levied against the members or subscribers of any insurer which issued assessable policies, or to pay a balance upon a subscription to the shares of a stock insurer.

B. When a producer or other person purchases a policy of insurance for the unexpired term of the policy and takes an assignment of the unearned premium claim from the insured, this action shall not be considered as a purchase of an obligation with a view of its being used as a set-off.