In the case of Wilentz et al. v. Sovereign Camp, Woodmen of the World (1938), the U.S Supreme Court ruled in favor of Sovereign Camp, a fraternal benefit society that provided insurance to its members. The dispute arose when New Jersey attempted to levy an annual tax on premiums received by out-of-state insurers including Sovereign Camp. The court held that such taxation was unconstitutional as it violated the Due Process Clause and Commerce Clause under Fourteenth Amendment since it imposed an undue burden on interstate commerce and did not provide sufficient connection between New Jersey and transactions carried out by non-resident insurers like Sovereign Camp outside state boundaries.

In the dissenting opinion for Wilentz et al. v. Sovereign Camp, Woodmen of the World, Justice Black argued that New Jersey's law requiring fraternal benefit societies to maintain a reserve fund was not unconstitutional as it did not violate due process rights under the Fourteenth Amendment. He believed that states have broad authority to regulate insurance companies and other similar organizations in order to protect policyholders and beneficiaries from potential insolvency or fraud by these entities. Therefore, he disagreed with the majority's view that this regulation interfered with contractual obligations between members and their society; instead, he saw it as a legitimate exercise of state power aimed at safeguarding public welfare.