When a policyholder does challenge an insurance company in court or in a regulatory proceeding, the cards are stacked against the policyholder. A policyholder can expect a major casualty loss once every 30 years. Thus, policyholders, both large and small, generally have no experience with insurance coverage disputes. One of the very reasons policyholders buy insurance is that they are averse to litigation. On the other side, litigation is the bread and butter of insurance companies.
Litigation is their business, and they are comfortable with it.
Clearly, insurers regard policyholders as pussycats when it comes to litigation. Should an insurance company capriciously deny a claim, it can do so without fear of regulatory reprisal. Insurance regulators rarely take effective steps to protect the rights of individual policyholders. In Riordan, et al vs. Even more rarely do insurance regulators act on behalf of commercial policyholders.