Yes, this happens on occasion in high inclination orbits. The angle "beta" between the sun and the orbit plane varies as the earth orbits the sun and the orbit plane precesses in inertial space. At beta angles approaching 90 degrees the spacecraft can be in continuous sunlight. The spacecraft designer has to anticipate this and avoid any thermal problems.
Precession happens because the earth is not a perfect sphere, but an oblate spheroid due to its rotation. For orbital inclinations less than 90 degrees (e.g., the ISS), every time the spacecraft crosses the equator (northward or southward) the earth's equatorial bulge tugs it a little west of its original orbit track. The net effect is to cause the orbit plane to slowly precess westward at a rate that depends on the inclination and the orbital period. (The lower the inclination and the shorter the period, the faster the precession.)
The "sun synchronous" orbit widely used for polar weather and other earth-observing satellites makes effective use of this property to keep the beta angle as constant as possible. Since the earth orbits the sun in an eastward direction, you want the orbit plane to precess eastward at the same rate. This requires a retrograde orbit, i.e., an inclination greater than 90 degrees. For each inclination (or each period) there's a corresponding period (or inclination) that produces an eastward precession of about 360/365 degrees per day. The beta angle still won't be constant because of the tilt of the earth's axis but the local time under the spacecraft will remain approximately the same (e.g., 3AM/3PM, 9AM/9PM, etc). A 6AM/6PM sun-synch orbit is often in continuous sunlight.
Since you can't safely launch to the northwest or southwest from the east coast of Florida, NASA and the Air Force launches to these orbits from Vandenberg Air Force Base northwest of Los Angeles. They launch to the southwest, which takes them over open water all the way to Antarctica, flying down past San Diego (where I live) as they do so. When the sky is clear and the lighting is right, they can be very impressive sights. A Delta II typically stages just as it's passing by.