Insurance is the one product that you buy and have to fight for the benefits. The average person rarely files a claim against the homeowners or auto carriers. When you do, the exclusions that no one ever reads are dusted off. Friendly advice, demand your agent thorough review your exclusions.
I read this WSJ article with amusement. The insurance companies that have failed recently, did not manage their business properly. They either gave their product away and did not post sufficient reserves relying on their investments.
This has zero to do with their claims or risk. I'm glad to see some of the Insurance Commissioners fighting back.