The U.S. Supreme Court case Fischer, Commissioner of Insurance of Iowa, Receiver v. American United Life Insurance Co., et al., 1941 revolved around the issue of whether or not a state insurance commissioner had the authority to liquidate an insolvent domestic life insurance company and distribute its assets among policyholders in other states without violating the Full Faith and Credit Clause or Due Process Clause. The court ruled that it was within his power to do so as long as he did not discriminate against out-of-state creditors. This decision upheld a lower court's ruling which stated that while all policyholders have claims on their insurer's assets, those claims are subject to adjustment by state law if necessary for equitable distribution among all claimants.

In the dissenting opinion for Fischer v. American United Life Insurance Co., Justice Black argued that the majority's decision to allow a state receiver to sue in federal court contradicted previous rulings and undermined states' rights. He contended that this case was not about whether a receiver could sue, but rather where they could do so - specifically, whether it should be in state or federal courts. The justice believed that allowing such suits in federal courts would open up floodgates of litigation and burden these institutions with cases better suited for local adjudication. Furthermore, he expressed concern over potential conflicts between state and federal laws if receivers were allowed to choose their forum freely. Ultimately, Justice Black maintained that the Court had overstepped its boundaries by interfering with states' abilities to manage their own affairs through appointed receivers.