Insurance and bad faith
Insurance policies are taken so that in the event of an eventuality such as auto crash, theft or fire the insurance company could come to your aid and help totally or partially restore your loss. To be able to qualify to make such claims you have to have been paying monthly premiums to the insurance company. So insurance companies would however want to beg off their responsibility and look for ways to avoid settling your claim.
Different policies are taken to cover different eventuality. Theft insurance for example is guarantee that your stolen item is paid for up to a certain percentage of total cost while auto insurance covers the cost of repairs on a damaged vehicle due to accident.
Failure to meet up with claims is illegal and is sometimes referred as insurance bad faith. To convince you to take a policy they would promise you that you would get settled for any claim covered. The monthly premium you have been paying is out of faith that they would keep their promise. Failing to meet up with their end of the deal due to wrongly fabricated reasons is against the ethics of insurance.
You have to be sure that the accident or eventuality that occurred was not as a result of your negligence. The insurance reserves a right to investigate each claim to see the authenticity of it. If you feel that you have a genuine claim and have been wrongly refused by an insurance agency, then you should get a lawyer to file for another claim.