Not true!
As a newbie insurance adjuster I believed it was my job to deny every claim and did. After a few weeks I was called into the President’s office and told that “Our policy is that every claim is payable”.
My decades of experience in the insurance industry has seen that principle decline because of overbearing regulations, ambulance chasers, forced coverage for incalcuable risks, resulting in a diminished product and increased premiums.
They (underwriters) were told to accept policies outside their standard parameters.
Interest rates were so high that it was worth getting the premiums to invest at those rates to cover the additional losses.
Of course, he added, that part of the underwriters' compensation was based on beating the actuarial tables...so they got shafted in that environment...