In the case of Century Indemnity Co. v. Nelson, the U.S Supreme Court was asked to determine whether an insurance company could be held liable for damages caused by a car accident involving one of its policyholders who had been driving while intoxicated. The court ruled in favor of Century Indemnity Co., stating that it was not responsible for paying damages because the driver's intoxication constituted a breach of contract under their insurance agreement, which specifically prohibited illegal activities such as drunk driving. This decision clarified that insurers are not obligated to cover losses resulting from unlawful actions committed by their insured parties and set an important precedent regarding liability coverage in auto insurance policies.

The dissenting opinion in the case of Century Indemnity Co. v. Nelson argued that the majority's decision to uphold a state law requiring out-of-state insurance companies to appoint an agent for service of process within the state was unconstitutional. The dissent contended that this requirement violated the Commerce Clause by imposing undue burdens on interstate commerce, and also infringed upon due process rights by forcing companies to submit themselves to jurisdiction in states where they may not have any significant contacts or business operations. Furthermore, it was suggested that such laws could lead to a patchwork of inconsistent regulations across different states, creating confusion and inefficiency for businesses operating nationally.