Offset (setoff)

{
  "id": "MLC-T-INS-002404",
  "term": "Offset (setoff)",
  "field": "Insurance and risk management",
  "definition": "A legal right allowing an insurer to reduce the amount payable on a claim by any outstanding debt the policyholder owes to the insurer, such as unpaid premiums. This right is exercised to net out mutual debts between the two parties, resulting in a single payment of the balance. The specific conditions and limitations for applying an offset are governed by contract provisions and state laws, which vary by jurisdiction.",
  "url": "https://mlchart.com/terminology/insurance/offset-setoff/"
}