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

A set-off defense in an insurance litigation case is a legal action taken by an insurance company in order to reduce the amount of money it has to pay out in a claim. In this scenario, an insurance company is the defendant in a lawsuit. The insurance company is defending itself by claiming that the injured party has an outstanding debt or claim against them. The insurance company can then “set off” the amount of the debt or claim against the amount owed to the injured party. This means that the injured party will only receive the difference between the claim amount and the debt, rather than the full amount. For instance, if the injured party is suing the insurance company for $1,000 in damages, but the injured party also owes the insurance company $500 for an unrelated matter, the insurance company can “set off” the $500 amount from the $1,000, leaving the injured party with only $500. In this case, the set-off defense helps the insurance company limit its liability to the injured party. In Florida, the rules regarding set-off defenses in insurance litigation cases are outlined in Chapters 627 and 631 of the Florida Statutes. This law states that an insurance company can use a set-off defense to reduce the amount of money it has to pay out in a claim, as long as the set-off is related to the accident or incident in question. Overall, a set-off defense in an insurance litigation case is a legal action taken by an insurance company to reduce the amount of money it has to pay out in a claim. The insurance company can do this by claiming that the injured party has an outstanding debt or claim against them, which can then be set off against the claim amount, leaving the injured party with only the difference.

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

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