Delay, Deny, Defend audiobook cover - Why Insurers Don’t Pay Claims and What You Can Do About It

Delay, Deny, Defend

Why Insurers Don’t Pay Claims and What You Can Do About It

Jay M. Feinman

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Delay, Deny, Defend
Core Strategy & Industry Shift+
The McKinsey Influence+
The MIST Playbook+
Mass Scale Denials (Hurricane Katrina)+
Fighting Back & Reforms+

Quiz — Test Your Understanding

Question 1 of 6
What is the primary financial incentive behind the insurance industry's 'delay, deny, defend' strategy?
  • A. To systematically reduce the number of fraudulent claims filed by policyholders.
  • B. To keep premium money in the 'float' longer, earning investment income while avoiding payouts.
  • C. To encourage policyholders to switch to more comprehensive and expensive coverage plans.
  • D. To redirect funds toward better training programs for field adjusters.
Question 2 of 6
How did McKinsey & Company redefine the concept of 'leakage' for the insurance industry?
  • A. As the loss of customers to competitors during a period of aggressive price slashing.
  • B. As the administrative costs associated with processing minor impact claims.
  • C. As the money 'lost' by the company when paying out the full value of a policyholder's claim.
  • D. As the physical water damage caused to properties during natural disasters like hurricanes.
Question 3 of 6
Why did insurance companies specifically target MIST (Minor Impact, Soft Tissue) claims for their aggressive denial strategies?
  • A. Because soft tissue injuries are easily disproven with standard X-rays and medical imaging.
  • B. Because these claims usually involve uninsured motorists who lack legal representation.
  • C. Because the injuries are difficult to document visually, and the high volume of these claims yields massive profits.
  • D. Because federal regulations strictly limit the compensation allowed for rear-end collisions.
Question 4 of 6
During Hurricane Katrina, how did insurers use the 'anti-concurrent causation clause' to avoid paying claims?
  • A. By claiming that policyholders failed to evacuate and secure their homes in a timely manner.
  • B. By asserting that if excluded water damage contributed to the loss in any sequence with covered wind damage, the entire claim was denied.
  • C. By requiring policyholders to prove they had professionally maintained their roofs prior to the storm.
  • D. By stating that homes reduced to concrete slabs were automatically classified as uninsured structures.
Question 5 of 6
According to the text, what is a major systemic obstacle to achieving fair insurance reform?
  • A. The lack of technological infrastructure to accurately track insurance company payouts.
  • B. The revolving door between insurance regulators and the companies they are supposed to supervise.
  • C. The refusal of state courts to hear cases involving minor insurance disputes.
  • D. The federal government's strict monopoly on regulating property insurance.
Question 6 of 6
What is one of the key recommendations the author makes for consumers dealing with a major property damage claim?
  • A. Accept the first settlement offer quickly to avoid the high costs of having the claim sent to arbitration.
  • B. Rely solely on the insurance company's adjuster to provide an accurate and fair estimate.
  • C. Consider hiring a public adjuster, because getting a percentage of fair compensation is better than getting nothing.
  • D. Wait at least six months before filing a claim to ensure all structural damages become apparent.

Delay, Deny, Defend — Full Chapter Overview

Delay, Deny, Defend Summary & Overview

Delay, Deny, Defend (2010) exposes the insurance industry’s playbook for maximizing profit and minimizing claim payouts. You’ll see how “delay, deny, defend” became a profitable strategy, all at your expense. And by the end, you’ll have an understanding of how we got here – and where we go from here.

Who Should Listen to Delay, Deny, Defend?

  • Policyholders tired of being ripped off by insurers
  • Lawyers and advocates fighting systemic corporate abuse
  • Anyone angered by corporate corruption and financial injustice

About the Author: Jay M. Feinman

Jay M. Feinman is a Distinguished Professor Emeritus at Rutgers Law School, where he specialized in insurance and contract law. He has authored numerous scholarly articles and several books, including Law 101 and Un-Making Law.

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