In the Northwestern Mutual Life Insurance Company v. McCue case of 1911, the U.S Supreme Court ruled in favor of Northwestern Mutual Life Insurance Company. The dispute arose when Mrs. McCue's husband died and she claimed benefits from a life insurance policy he had taken out with Northwestern Mutual. However, the company refused to pay on grounds that Mr. McCue had misrepresented his health condition while applying for the policy - specifically regarding his alcohol consumption habits which led to cirrhosis causing his death. The court held that if an applicant knowingly misrepresents their health status during application process, it constitutes fraud and thus voids any obligations by insurer under such contract even if they have accepted premiums without knowledge of said misrepresentation at time of acceptance. This ruling set a precedent emphasizing importance of truthful disclosure during insurance applications as well as insurers' right to deny claims based on fraudulent information provided by applicants.

The dissenting opinion in the Northwestern Mutual Life Insurance Company v. McCue case argued that the insurance policy should be considered a contract, and as such, it is subject to all laws governing contracts. The justice disagreed with the majority's view that an insurance policy was not a contract because it lacked mutual obligations. He pointed out that there were indeed reciprocal duties: the insured must pay premiums and refrain from certain activities (like dangerous sports), while insurer must provide coverage if conditions are met. Furthermore, he contended that even if one party has more obligations than another, this does not negate its status as a contract; many valid contracts have uneven responsibilities between parties. Lastly, he criticized how majority’s decision could lead to unjust outcomes by allowing insurers to unilaterally change terms or cancel policies without any recourse for policyholders.