(1) This section applies to a person who in relation to an insurer is: (a) an affiliate; (b) a controlled or controlling person; or (c) a present or former officer, manager, director, trustee, or shareholder.

(a) an affiliate;

(b) a controlled or controlling person; or

(c) a present or former officer, manager, director, trustee, or shareholder.

(2) In a proceeding or claim by the receiver, a person described in Subsection (1) may not assert a defense unless evidence of the defense: (a) is recorded in the records of the insurer at or about the time the event giving rise to the defense occurs; and (b) if required by statutory accounting practices and procedures, is timely reported on the insurer's official financial statements filed with the commissioner.

(a) is recorded in the records of the insurer at or about the time the event giving rise to the defense occurs; and

(b) if required by statutory accounting practices and procedures, is timely reported on the insurer's official financial statements filed with the commissioner.

(3) A person described in Subsection (1) may not assert a claim, unless the obligation: (a) is recorded in the records of the insurer at or about the time the obligation is incurred; and (b) if required by statutory accounting practices and procedures, is timely reported on the insurer's official financial statements filed with the commissioner.

(a) is recorded in the records of the insurer at or about the time the obligation is incurred; and

(b) if required by statutory accounting practices and procedures, is timely reported on the insurer's official financial statements filed with the commissioner.

(4) A claim by the receiver against a person described in Subsection (1) that is made on the basis of an unrecorded or unreported transaction is not barred by this section.