Examinations Under Oath
Almost every insurance policy (“policy”) requires an insured to comply with certain requirements if there is any loss or damage to property which is covered by the policy. These requirements are usually identified as “Duties After Loss.” One of the most important Duties After Loss is an Examination Under Oath (“EUO”).
An EUO is a formal proceeding during which an insured, under oath and in the presence of a court reporter, is questioned by an insurance company representative regarding the issues related to the insurance claim. An insurance company representative can be an insurance company adjuster, an independent adjuster, an attorney who represents the insurance company or any other representative. The purpose of the court reporter is to transcribe all of the questions and answers during the EUO and then prepare a transcript of the EUO. The EUO transcript is then given to the insured and any other persons questioned during the EUO for their review. Each person who testified during the Examination Under Oath will be asked to read the Examination Under Oath transcript and make any necessary changes to their testimony so that the transcript is true and correct. Each person who testified during the EUO will then be asked sign the EUO to verify the truthfulness of their testimony and any changes made to the EUO transcript.
The requirement that an insured submit to an Examination Under Oath is a contractual obligation that is based on policy language. This language normally requires an insured to: “submit to an EUO while not in the presence of another insured …and to sign the same.” An EUO can be one of the most useful tools available to an insurance company in determining whether a loss is covered under the policy and the amount of the loss covered by the policy.
Generally, the policy language will allow the insurance company to take an EUO of the named insured, any insured seeking coverage under the policy, and any persons assisting the insured in submitting the claim. Under this provision, if a public adjuster has assisted the insured in submitting a claim, then the public adjuster may be requested to submit to an EUO. The specific policy language will normally determine the persons who are required to submit to an Examination Under Oath.
While an Examination Under Oath is similar to a Deposition, one of the significant differences is that the insured’s attorney should not object to a question and instruct the insured not to answer that question. If the question relates to material information regarding the claim, then the insured’s refusal to answer the question can be sufficient grounds for the insurance company to deny the claim.
Another issue which is sometimes raised regarding an Examination Under Oath is whether an insured must submit to an EUO if the insured has already given a recorded statement to a representative of the insurance company. Most courts hold that a recorded statement is not a substitute for an EUO. Consequently, if an insured, who has previously given a recorded statement, is asked to submit to an EUO, the better choice would be for the insured to submit to an Examination Under Oath.
In conclusion, an Examination Under Oath can be a very useful tool for an insurance company to use in investigating an insurance claim. Most courts have held that an insured’s refusal to submit to an EUO is an absolute bar to coverage. Therefore, it is in the best interest of the insured to comply with a request from the insured company to submit to an Examination Under Oath.
If you need assistance with an Examination Under Oath please contact Max Factor.