Setoff

{
  "id": "MLC-T-INS-003065",
  "term": "Setoff",
  "field": "Insurance and risk management",
  "definition": "A legal right allowing one party to reduce or cancel a debt owed to another party by applying a reciprocal debt owed by that other party. In insurance, this can occur when an insurer owes a policyholder a claim payment, but the policyholder also owes the insurer unpaid premiums. The insurer may then reduce the claim payment by the amount of the outstanding premiums.",
  "url": "https://mlchart.com/terminology/insurance/setoff/"
}