Two of the chief evils of the way the insurance industry works, from the perspective of most policyholder, are the phenomena of "post-claim underwriting" and "insurance nullification by judicial decision."

Post-claim underwriting happens when insurance companies successfully convince the courts to apply exclusions in an overly broad fashion to eliminate risks from coverage after a loss has occurred. Insurance nullification by judicial decision happens when insurance companies convince the courts to construe exclusions in an insurance policy to thwart the reasonable expectations of a policyholder that their insurance policy protects them.