If you’ve ever fought with an insurance company over a totaled car or a leaky roof, you know that sinking feeling. It's the feeling that the person on the other end of the phone isn't actually trying to help you. They're following a script. And honestly? They probably are. This isn't just cynical rambling; it’s the core thesis of a book that sent shockwaves through the legal and insurance worlds when it first landed. We're talking about Deny, Defend, and Depose by Jay M. Feinman.
Most people think insurance is a safety net. You pay your premiums, you play by the rules, and when disaster strikes, they cut the check. Simple, right? Feinman, a distinguished professor at Rutgers Law School, argues it’s actually the opposite for many giant carriers. He suggests that some companies have pivoted from a "claims-paying" culture to a "profit-protection" culture. It’s a subtle shift that costs regular people billions every year.
What Deny, Defend, and Depose Actually Reveals
Let's get into the weeds. The book isn't just a rant. It's a calculated autopsy of the insurance industry's evolution over the last few decades. Feinman points to a specific turning point in the mid-1990s. This was when consulting giants like McKinsey & Company began advising major insurers—most notably Allstate and State Farm—on how to "streamline" their claims processes.
The result? A system designed to reduce "leakage." In insurance-speak, leakage is just money paid to you, the policyholder.
To stop this leakage, many companies adopted a three-pronged strategy that gives the book its name. First, they deny the claim outright or offer a "lowball" settlement that doesn't even cover the deductible. If the policyholder gets angry and hires a lawyer, the company moves to defend. They use their massive legal budgets to drag the case out for years, hoping the plaintiff gets tired or goes broke. Finally, they depose. They use aggressive litigation tactics to intimidate regular folks who just wanted their shingles replaced after a hail storm.
It’s a war of attrition. Most people can't afford to fight for three years over a $10,000 claim. The insurance company can. They have "in-house" counsel whose entire job is to file motions and delay trials. When you realize that 95% of people will just give up and take whatever crumbs are offered, the strategy makes perfect financial sense for the board of directors. It's cold. It's calculated. And according to Feinman, it's a massive betrayal of the "good faith" promise that sits at the heart of every insurance contract.
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The McKinsey Connection and "Boxing Gloves"
One of the most jarring parts of Deny, Defend, and Depose involves the internal PowerPoints and manuals that surfaced during various lawsuits. Feinman details how Allstate, for example, used a "CCP" (Claims Core Process) system.
They literally used images of "boxing gloves" for claimants who refused to accept the initial low offer. The idea was to create a "zero-sum" game. If the customer wins, the company loses. But wait—isn't insurance supposed to be a service you've already paid for?
The Colossus Problem
You might have heard of a software program called Colossus. It’s a "claim evaluation" tool used by a huge chunk of the industry. On paper, it sounds fair. It uses data to ensure consistency. But Feinman argues it’s a black box designed to drive down values. By removing the human element—the adjuster who actually sees the pain a car accident caused—the company can treat a human life like a line item on a spreadsheet.
If the software says a neck injury is worth $3,200, that’s what you get. Never mind that you can’t lift your toddler anymore.
Why This Matters for the Average Consumer Today
You might be thinking, "This book came out a while ago, things must have changed."
They haven't. If anything, the automation of claims has made the Deny, Defend, and Depose philosophy more efficient. Algorithms now flag claims for denial before a human even looks at the photos. The "defense" part is now bolstered by AI-driven legal research that makes it cheaper for insurance companies to fight you in court.
There’s a massive power imbalance here. On one side, you have a family trying to rebuild after a fire. On the other, you have a multi-billion dollar corporation with a fiduciary duty to its shareholders to maximize profit.
Common Tactics to Watch For
- The Explanatory Gap: They use complex policy language that sounds like Latin to justify why "water damage" isn't "flood damage."
- The "Independent" Medical Exam: In injury cases, they send you to a doctor they pay hundreds of thousands of dollars a year. Shockingly, that doctor almost always finds that you're totally fine.
- Document Requests: They ask for twenty years of medical records for a fender bender. It’s a fishing expedition designed to find a "pre-existing condition" so they can deny the claim.
Navigating the Minefield: Real-World Action
So, what do you do if you’re staring down the barrel of a denied claim? Feinman doesn't just leave you hanging with a sense of existential dread. The book, and the legal experts who follow its logic, suggest a few concrete steps.
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- Document everything. This isn't just about receipts. It's about every phone call. Get names, dates, and summaries. If they say "we don't cover that," ask them to point to the specific page and paragraph in your policy.
- Don't accept the first check. Often, that first check has "full and final settlement" written on the back in tiny print. Once you cash it, you’re done.
- Know the "Bad Faith" laws in your state. In many places, if an insurance company acts unreasonably, you can sue them for "bad faith." This is the only thing that actually scares them, because it can lead to "punitive damages"—penalties that go way beyond the original value of the claim.
- Hire a "Public Adjuster" or an Attorney. If the claim is big enough, don't DIY it. Public adjusters work for you, not the insurance company. They speak the jargon. They know how to counter Colossus.
Insurance is a contract. It's not a gift. It's not "being in good hands." It's a business transaction where you've already held up your end by paying the premium. Deny, Defend, and Depose serves as a vital reminder that when it's time for the company to hold up their end, you might need to bring a hammer to the negotiation.
Practical Steps for Your Next Renewal
Review your policy limits today, not after the accident. Most people are "underinsured" without realizing it because they chose the cheapest monthly premium. Check if your state allows for "Private Right of Action" regarding insurance practices. Knowing your local consumer protection laws is your best defense against the "depose" phase of the strategy. If you find yourself in a dispute, immediately request a complete copy of your claim file; you are legally entitled to see the notes the adjuster is making about you.