Century May Not Set Off $8 Million Against Sums Due Home

CONCORD, N.H. - New Hampshire insurance law prohibits Century Insurance Co. from setting off $8 million against the $13 million in reinsurance proceeds it owes to the liquidator of Home Insurance Co., the state high court ruled May 7, overturning a trial court decision. In the Matter of The Liquidation of The Home Insurance Co., No. 2008-407 (N.H. Sup. Ct.).

The New Hampshire Supreme Court, led by Judge Linda Dalianis, ruled that the setoff is barred by Revised Statute Annotated 402-C:34, which prohibits setoffs "where . . . [t]he obligation of the insurer to the person was purchased by or …