In Union Mutual Life Insurance Company v. Waters, the Supreme Court of the United States was asked to decide whether a life insurance policy was validly issued. The plaintiff, Union Mutual Life Insurance Company, had issued a policy to the defendant, Waters, in 1881. Waters had paid the premiums for the policy until 1883, when he stopped paying. In 1884, Waters died, and his estate sought to collect the proceeds of the policy. The insurance company argued that the policy was invalid because Waters had not paid the premiums for the policy after 1883. The Supreme Court held that the policy was validly issued and that the insurance company was obligated to pay the proceeds of the policy to Waters' estate. The Court reasoned that the policy was validly issued when it was delivered to Waters in 1881, and that the insurance company was obligated to pay the proceeds of the policy even if Waters had stopped paying the premiums after 1883. The Court noted that the policy did not contain any language that would have allowed the insurance company to void the policy if the premiums were not paid. Therefore, the Court held that the insurance company was obligated to pay the proceeds of the policy to Waters' estate.

In Union Mutual Life Insurance Company v. Waters, the Supreme Court was asked to determine whether a life insurance policy issued by the appellant company had been validly assigned to another party. The majority opinion held that it had not, as there were certain formalities required for an assignment of this type which had not been followed in this case. Justice Field dissented from this decision and argued that while such formalities may be necessary when assigning other types of contracts, they are unnecessary when assigning life insurance policies due to their unique nature. He reasoned that since these policies are intended solely for the benefit of those named on them, any transfer should be allowed so long as it is done with full knowledge and consent of both parties involved in order to ensure fairness between all concerned individuals or entities.