This case involved a dispute between an insurance company and the assignee of a policyholder. The policyholder had taken out a life insurance policy with the insurance company and had assigned the policy to the assignee. The insurance company refused to pay the policy proceeds to the assignee, claiming that the policyholder had not paid the premiums due on the policy. The assignee argued that the policyholder had paid the premiums and that the insurance company was liable to pay the policy proceeds. The Supreme Court held that the insurance company was liable to pay the policy proceeds to the assignee. The Court found that the policyholder had paid the premiums due on the policy and that the insurance company was therefore liable to pay the policy proceeds to the assignee. The Court also held that the assignee was entitled to the policy proceeds even though the policyholder had died before the policy was assigned. The Court reasoned that the assignee had taken the policy in good faith and had paid the premiums due on the policy. Therefore, the insurance company was liable to pay the policy proceeds to the assignee.

In Insurance Company v. Brune's Assignee, the Supreme Court was asked to determine whether an insurance company could be held liable for a debt that had been assigned by its original debtor prior to the policy being issued. The majority opinion found in favor of the insurance company and held that they were not responsible for any debts incurred before their policy was issued. However, Justice Field dissented from this decision and argued that it would be unjust if an assignee of a debt did not have recourse against an insurer who had accepted premiums on behalf of their insured after such assignment occurred. He further noted that under common law principles, when one party pays money or gives credit to another with knowledge of a third party’s right thereto, then such payment is considered as made directly to the third party even though no express agreement exists between them. Thus he concluded that since there was evidence showing the insurance company knew about Brune’s assignment at least two months before issuing their policy, they should still be liable for his debt despite having taken out coverage afterwards.