Insurance Company v. Thwing was a case heard by the United States Supreme Court in 1871. The case involved a dispute between an insurance company and a policyholder over the validity of a policy. The insurance company had issued a policy to the policyholder, but the policyholder had failed to pay the premiums. The insurance company then sought to have the policy declared void. The Supreme Court held that the policy was valid and enforceable. The Court reasoned that the policyholder had not been given any notice that the policy was voidable due to nonpayment of premiums. The Court also noted that the policyholder had acted in good faith and had not attempted to defraud the insurance company. The Court's decision established that insurance policies are valid and enforceable even if the policyholder fails to pay the premiums. The Court also established that insurance companies must provide notice to policyholders when a policy is voidable due to nonpayment of premiums. This decision has been cited in numerous subsequent cases involving insurance policies.

In Insurance Company v. Thwing, the Supreme Court was asked to decide whether a contract between an insurance company and its insured could be enforced when it contained a clause that required arbitration of any disputes arising from the contract. The majority opinion held that such clauses were enforceable because they did not violate public policy or interfere with judicial proceedings. However, Justice Strong dissented on the grounds that such clauses should not be enforced as they are contrary to public policy and undermine the authority of courts in deciding matters of dispute resolution. He argued that allowing parties to bypass court proceedings by agreeing to arbitrate their disputes would lead to unequal bargaining power between them and deprive individuals of their right to seek justice through legal means. Furthermore, he noted that these agreements can easily become oppressive if one party has more knowledge than another about how arbitration works or is able to manipulate it for their own benefit at the expense of others.