Virginia Block Co. v. Virginia Mutual Insurance Agency (In Re Virginia Block Co.)

MEMORANDUM OPINION AND ORDER

H. CLYDE PEARSON, Bankruptcy Judge.

The issue in this proceeding is whether the defendant Virginia Mutual Insurance Agency (Virginia Mutual) properly set off refunds of insurance premiums and policy dividends against a claim against the insured debtor, Virginia Block Company (Virginia Block).

Virginia Mutual is an insurance agency doing business with several insurers. For approximately 30 years Virginia Mutual acted as agent for the debtor, Virginia Block. In recent years, Virginia Block had been insured, through Virginia Mutual, by one or more of the mutual…