In the Matter of the Liquidation of the Home Insurance Company

Summary

The Supreme Court of New Hampshire held that a reinsurer's asserted setoff was barred by RSA 402-C:34, II(b), which prohibits setoff when the insurer's obligation was purchased or transferred for that purpose. The court concluded that the reinsurer's payment to amend a prior settlement agreement and obtain the ability to pursue contribution constituted a purchase or transfer within the statute. The court reversed the superior court's order and remanded the case.

Holdings

1. RSA 402-C:34, II(b) precludes CIC's setoff because CIC purchased or obtained a transfer of Home's obligation to provide contribution, or the right to enforce that obligation, through the 2007 amendment with a view to using it as a setoff against amounts CIC owed Home.
2. The court declined to decide in the first instance whether Home's estate was entitled to interest, without prejudice to the liquidator raising the issue in the trial court.

Questions Presented

1. Whether RSA 402-C:34, II(b) precluded CIC from setting off its claimed contribution right against reinsurance amounts owed to Home when CIC obtained the ability to assert that contribution claim through a 2007 transaction entered into with a view to using the claim as a setoff.
2. Whether the liquidator was entitled to interest on amounts CIC withheld based on the asserted setoff.

Disposition

reversed_and_remanded