The (insurance) world in which we reside is quite an inhospitable place, where one can scarcely count on a good "neighbor" or "friend" to do the right thing, Jay M. Feinman asserts in so many words in Delay, Deny, Defend: Why Insurance Companies Don't Pay Claims and What You Can Do About It.
An inflammatory, self-proclaimed expose, Feinman's new book depicts a wasteland of cantankerous insurance carriers that have grossly deviated from a culture of promise and good faith to one of deceit and greed. The shift in focus from customer service to padding the bottom line is not accidental, Feinman contends. Rather, it is demonstrative of a systemic change in the way insurers go about their day-to-day operations following the desperation of a 12-year soft market.
The author goes on to portray denial of valid claims as commonplace and desired by insurers rather than infrequent. In fact, the author operates under the premise that insurers' collective objective is to avoid paying legitimate claims and instead resort to unsavory practices to, above all, bolster profits, and thus victimize policyholders and claimants in the process.
Insurers' alleged modus operandi can be summed up in three basic statements: delay payment of legitimate claims; deny payment altogether; and defend actions by forcing claimants to enter litigation. Also outlined in the book are strategies for consumers to counteract insurer intimidation, advice on exercising caution when selecting policies and carriers, and how to pursue disputed claims. The proposed solution to fix the flawed system is initiating legal reform, as the onus to prevent future abuse ultimately falls to the government.
It would be imprudent to say that readers should not lend any credence whatsoever to Feinman's litany of claimants victimized by the "system." As insurance professionals are undoubtedly aware, there are isolated incidents involving misguided employees or occasional lapses in judgment. However, it is altogether likely that any semblance of the truth may be eclipsed by Feinman's battle-cry rhetoric, which may primarily fuel contentiousness between policyholders and insurers and misconceptions about the claim process.
Feinman is a professor at the Rutgers University School of Law (Camden, N.J.) and is a member of The American Law Institute.
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