The insurance industry operates on a fundamental principle: profit maximization. This often leads to practices that can feel adversarial to policyholders. Three key tactics – deny, depose, and defend – exemplify this approach.  

1. Deny:

• The Goal: To avoid paying claims whenever possible.
• The Tactics: Insurance companies meticulously scrutinize every claim, searching for any reason to deny coverage. This can involve:
  • Policy loopholes: Insurance contracts are often complex and riddled with exclusions and limitations. Companies exploit these to deny valid claims.  
  • Lack of evidence: Policyholders are burdened with the responsibility of proving their claim, often requiring extensive documentation and medical records.  
  • Denying coverage based on pre-existing conditions: Even with seemingly valid claims, companies may deny coverage by citing pre-existing conditions, even if the current claim is unrelated.

2. Depose:

• The Goal: To gather information that can be used to weaken the policyholder’s claim.
• The Tactics: Depositions involve sworn testimony under oath. Insurance companies often use these to:
  • Challenge the validity of the claim: Attorneys aggressively question policyholders about their medical history, lifestyle, and the circumstances surrounding the incident.
  • Obtain information to discredit the policyholder’s credibility: Depositions can be emotionally draining and intimidating, potentially leading to inconsistencies in testimony that the insurance company can exploit.
  • Minimize the settlement amount: By gathering information about the policyholder’s financial situation and medical expenses, the insurance company aims to minimize their payout.  

3. Defend:

• The Goal: To vigorously defend against any lawsuit, regardless of the merits of the claim.
• The Tactics: Even when a claim appears valid, insurance companies often engage in protracted legal battles:
  • Hiring aggressive defense attorneys: Experienced litigators are employed to delay, complicate, and ultimately defeat the policyholder’s claim.
  • Mounting expensive legal defenses: Lawsuits can drain the resources of both the policyholder and the insurance company. This often forces policyholders to settle for less than what they are entitled to.
  • Exploiting the legal system: Insurance companies may utilize procedural tactics and legal loopholes to delay proceedings and increase the pressure on the policyholder.  

Why This Approach is Problematic:

• Unequal Power Dynamic: Insurance companies possess significant financial and legal resources, creating an inherent power imbalance. This allows them to leverage their resources to pressure and intimidate policyholders.
• Focus on Profit Over People: The primary focus of many insurance companies appears to be maximizing profits, often at the expense of their policyholders. This leads to a system that prioritizes denying claims and minimizing payouts.
• Erosion of Trust: These tactics erode trust between policyholders and insurance companies. Many individuals feel betrayed and unsupported when their insurance companies fail to honor their commitments.

While insurance can provide valuable financial protection, the realities of the industry often leave policyholders feeling vulnerable and unsupported. The “deny, depose, defend” approach highlights the inherent conflict of interest between insurance companies and their policyholders. It’s crucial for individuals to understand their rights and to seek legal counsel when dealing with insurance claims.

Disclaimer: This article is for informational purposes only and should not be construed as legal advice.

Note: This article presents a critical perspective on insurance companies. It’s important to acknowledge that not all insurance companies operate in this manner, and many strive to provide fair and equitable treatment to their policyholders..