In Phoenix Life Insurance Company v. Raddin, the Supreme Court of the United States was asked to decide whether a life insurance policy was validly issued. The plaintiff, Phoenix Life Insurance Company, had issued a policy to the defendant, Raddin, in 1881. The policy was for a term of twenty years and provided for a payment of $2,000 upon Raddin's death. However, the policy contained a clause that stated that the policy would be void if Raddin failed to pay the premiums due. Raddin failed to pay the premiums and the policy lapsed. The Supreme Court held that the policy was validly issued and that Raddin was liable for the premiums due. The Court reasoned that the policy was validly issued and that the clause requiring payment of premiums was a valid condition of the policy. The Court further held that the lapse of the policy did not invalidate the policy, but rather, it simply meant that the policy was no longer in effect. The Court concluded that Raddin was liable for the premiums due and that Phoenix Life Insurance Company was entitled to recover the amount due.

In Phoenix Life Insurance Company v. Raddin, the Supreme Court was tasked with deciding whether a life insurance policy could be assigned to another party without the consent of the insurer. The majority opinion held that such an assignment was invalid because it violated public policy and would lead to fraud and deception in insurance contracts. Justice Field dissented from this opinion, arguing that there were no legal or equitable grounds for denying assignments of policies when they are made in good faith by competent parties who have fully disclosed all material facts relating to them. He argued that allowing assignments would not only benefit those involved but also promote commerce as well as provide additional security for creditors who rely on these types of transactions. Furthermore, he noted that if insurers had any objections to particular assignments then they should reserve their right at the time of issuing a policy rather than attempting to deny valid ones after-the-fact.