Illinois Compiled Statutes

215 ILCS 5/206 (2026)

Set-offs or counterclaims

✓ current as of May 2026
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(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.)

    
Notes of Decisions
Cited in 3 cases, 1997–2005 · leading case: Lincoln Towers Ins. Agency, Inc. v. Boozell, 684 N.E.2d 900 (Ill. App. Ct. 1997).
Lincoln Towers Ins. Agency, Inc. v. Boozell, 684 N.E.2d 900 (Ill. App. Ct. 1997). · cites it 8× “In addition, plaintiffs challenged the liquidator's administration of the insolvent insurance company's estate and requested a declaration that section 206 of the Illinois Insurance Code (215 ILCS 5/206 (West 1996)) is unconstitutional.”
Vill. of McCook v. Illinois Bell Tel. Co., 780 N.E.2d 335 (Ill. App. Ct. 2002). “2d 900 (1997) (holding that setoff provision in section 206 of the Insurance Code (215 ILCS 5/206 (West 1996)) is deemed a part of any contract executed by the insurer and the producers); S&D Service, Inc.”
Clark v. Cannon Steel Erection Co., 835 N.E.2d 394 (Ill. App. Ct. 2005). “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…”
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