Cheese Makers Mutual Casualty Co. v. Duel

This appeal presents two questions: (1) May, a mutual casualty company, reinsured by another mutual casualty company, compel the liquidator of the insolvent insuring company to pay, out of assessments levied on the policyholders of the insolvent company, the unearned premium on the reinsurance contract, which was terminated by the order for the liquidation of the insuring company? (2) May such a claim, if disallowed, be used as an offset against valid claims of.the liquidator against the claimant? Both questions were answered in the negative by the court below.

The court below based its…