(215 ILCS 5/206) (from Ch. 73, par. 818)
Sec. 206.
Set-offs
or counterclaims.
In all cases of mutual debts or mutual credits between the company and
another person, such credits and debts shall be set off or counterclaimed
and the balance only shall be allowed or paid, provided, however, that no
set-off or counterclaim shall be allowed in favor of any person where
(a) the obligation of the company to such person was purchased by or
transferred to such person with a view of its being used as a set-off or
counterclaim, or
(b) the obligation of such person is to pay an assessment levied against
the members or subscribers of any company which issued assessable policies,
or to pay a balance upon a subscription to the shares of a stock company.
No set-off shall be allowed in favor of an insurance agent or broker
against his account with the company, for the unearned portion of the
premium on any cancelled policy, unless that policy was cancelled prior to
the entry of the Order of Liquidation or Rehabilitation, and unless the
unearned portion of the premium on that cancelled policy was refunded or
credited to the assured or his representative prior to the entry of the
Order of Liquidation or Rehabilitation.
(Source: Laws 1967, p. 789.)
|