Here is how it works....an insurance company can not deny a claim if it does not conduct a reasonable investigation or if does not have a reasonable basis for denial.
For instance, lets say you, the insured, has $50K in coverage. You get into a car accident (your fault) and kill a family of four. Obviously, their damages are in excess of $50k, and the plaintiff's attorney demands your insurance limits. Your insurer can not, in good faith, deny this claim, particularly since the damages are likely to be in excess of your limits and, therefore, involve your personal assets.
Surprisingly, some insurance companies have internal documents that, um, "suggest" that claims should be delayed or low-balled.
Finally, I would suggest that you learn how an insurance company makes money before you go spouting off....