In the case of Mutual Life Insurance Company of New York v. Hilton-Green, Executors of Wiggins (1915), the U.S Supreme Court ruled in favor of Mutual Life Insurance Company. The dispute arose after Mr. Wiggins passed away and his executors claimed that a life insurance policy he had taken out was still valid despite lapsing due to non-payment before his death. They argued that because the company had accepted late payments in the past without penalty or notice, it constituted an implied waiver for future late payments as well. However, the court disagreed with this argument stating that each instance where payment was accepted late did not constitute a waiver for subsequent delays unless explicitly stated by both parties involved at those times; hence no precedent was set by these actions from which rights could be inferred later on.

In the dissenting opinion for Mutual Life Insurance Company of New York v. Hilton-Green, Executors of Wiggins, it was argued that the insurance company should not be held liable for a policy taken out on a person who had no insurable interest in their own life. The dissenting justices believed that such an arrangement would encourage moral hazard and could potentially lead to murder or suicide for financial gain. They also pointed out inconsistencies in how courts have interpreted laws regarding insurable interests, arguing that these discrepancies need to be resolved before any definitive ruling can be made on this case. Furthermore, they contended that if someone has no legitimate claim to an insurance payout because they lack an insurable interest then neither should anyone else who benefits from their death - including executors or beneficiaries named in wills or trusts.