In the 1947 case Connecticut Mutual Life Insurance Co. et al. v. Moore, Comptroller of the State of New York, the U.S Supreme Court ruled in favor of New York state's right to tax out-of-state insurance companies on premiums collected from policyholders residing within its borders. The plaintiffs, a group of life insurance companies incorporated outside New York but doing business within it, argued that such taxation violated both their due process rights and interstate commerce clause protections under the Constitution. However, Justice Hugo Black delivered an opinion for a unanimous court rejecting these claims and upholding states' authority to levy taxes on businesses operating within their jurisdiction regardless of where they are incorporated or headquartered.

In the dissenting opinion for Connecticut Mutual Life Insurance Co. et al. v. Moore, Justice Jackson argued that New York's tax on out-of-state insurance companies was unconstitutional because it violated the Commerce Clause of the U.S Constitution by imposing a direct burden on interstate commerce. He contended that this case should not be distinguished from previous cases where similar taxes were struck down as unconstitutional burdens on interstate commerce simply because insurance is considered a unique type of business or product in legal terms. Instead, he believed that any state-imposed tax affecting transactions and activities crossing state lines should be subject to scrutiny under the Commerce Clause regardless of what kind of business or product is involved.