What is a set-off defense in an insurance litigation case?

A set-off defense is a legal argument used in insurance litigation cases in Delaware. It is a response to a claim from an insured, or someone who holds an insurance policy, that an insurer is legally obligated to pay for certain damages or losses. The set-off defense allows an insurer to reduce the amount that it owes to the insured by the amount of money that the insured owes to the insurer. In an insurance litigation case, the insurer may argue that the insured is not entitled to the full amount of the claim because of a set-off. For example, the insurer may claim that the insured owes money for a previous claim or policy, so the insurer should only have to pay the difference. The insured may dispute the set-off defense using legal arguments. To prove that the set-off was not valid, the insured may show that the insurer did not correctly calculate the amount of the debt. The insured may also prove that the debt has been repaid or is not legally due. If the judge sides with the insured, then the insurer will have to pay the full amount of the claim. If the judge sides with the insurer, then the insurer will only have to pay the amount owed after the set-off is applied. It is important to understand the various defenses that can be used in an insurance litigation case. A set-off defense is one way that an insurer can reduce its exposure to a claim. It is important to seek legal advice from an experienced insurance lawyer if you are dealing with insurance litigation in Delaware.

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What is a set-off defense in an insurance litigation case?

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