EUO Demand Indicator #5:
Fraud Indicators and Attorney Behavior
Fraud indicators are one of the most common reasons to consider an Examination Under Oath (EUO). Whether it’s inconsistencies in documentation, delays in providing information, or unusual attorney behavior, these red flags warrant further investigation. The EUO serves as a powerful tool to clarify discrepancies, deter fraud, and avoid unnecessary litigation costs.
Here’s why fraud indicators and attorney tactics should prompt you to consider an EUO.
When Fraud Indicators Appear
Fraud indicators can arise in many forms, including:
- Inconsistent or conflicting stories from the insured.
- Documents that appear suspicious or are delayed in being provided.
- Uncooperative behavior, such as avoiding questions or withholding information.
- Attorneys who actively delay or obstruct the claims process.
While any of these issues alone might not confirm fraud, a combination of these behaviors often signals deeper problems that require clarification through an EUO.
The Role of Attorneys in Delays
When an insured is represented by an attorney, it’s natural to expect that counsel will facilitate the claims process. However, some attorneys intentionally obstruct or delay proceedings to avoid scrutiny or prolong litigation.
Common tactics include:
- “Hiding the ball” by withholding information or failing to provide requested documents.
- Discouraging the EUO and suggesting that issues can be addressed during a plaintiff’s deposition instead.
- Prolonging the process to increase legal fees or push the case into costly litigation.
Why the EUO is Essential
An EUO provides several advantages when fraud indicators or attorney delays are present:
- Clarity and Documentation: The EUO creates a structured environment to address discrepancies, gather documentation, and clarify information directly with the insured.
- Cost Efficiency: Compared to the expenses of litigation, including discovery and depositions, the cost of an EUO is significantly lower.
- Proactive Fraud Deterrence: Sitting the insured down under oath often reveals critical details, deters fraudulent behavior, and resolves issues before they escalate to litigation.
Conclusion
Fraud indicators and obstructive attorney behavior are clear signs that an EUO is necessary. By leveraging the EUO early in the claims process, you can uncover the truth, deter fraud, and save the company from unnecessary litigation costs.
Stay tuned for the final part of this series, where we’ll cover another key EUO demand indicator and its role in claims handling.
Free Strategy Session
Want to learn whether your EUO process is compliant or how to launch your own EUO practice?
EUO Compliant?
Most companies are under-using and misusing the EUO, creating unforeseen exposure and unnecessary expenses.
FREE Strategy Session
We'll assess your existing process and guide you on the EUO:
- Purpose: It's not just a fraud fighting tool.
- Protection: The claim, company and even against bad faith.
- Process: Should take only 2-3 weeks if properly executed.
Are You A Lawyer?
Learn how you too can get your own clients, build a lucrative practice and have freedom conducting EUOs.
FREE Strategy Session
Discover how to:
- Learn everything you need to know about the EUO in just a few weeks.
- Get your own clients and create a steady stream of monthly repeat business.
- Build a lucrative practice and have time freedom to purse other passions.
Danny Vazquez
Danny Vazquez is the National EUO, LLC CEO.
Danny is a central leader on Claims, Investigations and EUOs in the insurance and legal industries.
As CEO, Danny took the knowledge and insights gained throughout his 25 plus years legal career to establish National EUO as the Nation's leading company on EUO services and EUO training.
*IMPORTANT: We can not and do not make any guarantees about your ability to get results or earn any money with our ideas, information, tools, or strategies. What we can guarantee is your satisfaction with our training. You should know that all products and services by our company are for educational and informational purposes only. Nothing on this page, any of our websites, or any of our content or curriculum is a promise or guarantee of results or future earnings, and we do not offer any legal, medical, tax or other professional advice. Any financial numbers referenced here, or on any of our sites, are illustrative of concepts only and should not be considered average earnings, exact earnings, or promises for actual or future performance. Use caution and always consult your accountant, lawyer or professional advisor before acting on this or any information related to a lifestyle change or your business or finances. You alone are responsible and accountable for your decisions, actions and results in life, and by your registration here you agree not to hold us liable for your decisions, actions or results, at any time, under any circumstance. Be sure to read our full terms, conditions, and disclaimers.
©COPYRIGHT 2009 - 2024 NATIONAL EUO, LLC - ALL RIGHTS RESERVED
PRIVACY POLICY TERMS & CONDITIONS
SUPPORT - 1.800.386.0703