New York Court of Appeals
In the Matter of the Liquidation of Midland Insurance Company. Kemper Reinsurance Company v. James P. Corcoran, as…
March 26, 199279 N.Y.2d 253
Summary
The Court affirmed the Appellate Division, holding that under Insurance Law § 7427 the insurer and reinsurer’s pre‑liquidation debts are mutual and may be set off even though they arise from separate transactions, that the insolvency clause does not bar the offset, and that the parties are the same persons in the same capacity.