Interviews, Recorded Statements, and EUOs: Understanding the Claims Investigation Ladder
In the claims process, different tools serve different purposes, each playing a unique role in gathering information.
From interviews to recorded statements and, ultimately, the Examination Under Oath (EUO), these tools form a progression—or ladder—that leads to comprehensive claims investigations.
Let’s break down the steps on this investigative ladder, starting with the most basic tool: the interview.
Interviews: The Starting Point
An interview is typically an unrecorded, preliminary statement conducted to gauge what knowledge or information someone possesses. It serves as the first step in understanding the claim and determining whether further investigation is needed.
- Purpose: To gather preliminary information and assess what the person knows.
- Limitations:
1. No Penalty for Non-Cooperation: If a person refuses to participate, it’s considered non-cooperation—not non-compliance—which carries fewer consequences.
2. No Record: Interviews are not recorded, so facts cannot be locked in for future reference.
An interview is an initial fact-finding mission, but it lacks the legal weight or formal structure of other tools.
Recorded Statements: Adding Structure and Accountability
The next step up the ladder is the recorded statement. Unlike an interview, a recorded statement creates a record of the information provided, locking in facts that can be referenced later.
- Purpose: To document the witness’s or insured’s account of the events.
- Key Benefits:
1. Accountability: The recorded nature of the statement ensures consistency in the person’s testimony.
2. Progression: It helps determine whether further investigation—such as an EUO—is necessary.
While recorded statements are more structured than interviews, they still lack the formalities and legal weight of an EUO.
Examinations Under Oath: The Top of the Ladder
At the highest level of the claims investigation process is the Examination Under Oath (EUO). The EUO is a formal, sworn proceeding designed to gather critical information and documentation, enabling the insurer to make informed decisions about the claim.
- Purpose: To gather comprehensive information and protect the insurer’s rights under the policy.
- Advantages Over Interviews and Recorded Statements:
1. Sworn Testimony: The EUO is conducted under oath, with the insured’s responses legally binding.
2. Legal Protections: EUOs offer the ability to lock in testimony and safeguard against inconsistencies or false claims.
3. Flexibility and Depth: Unlike an affidavit or recorded statement, the EUO allows for real-time clarification and follow-up questions.
Cooperation vs. Non-Compliance
Understanding the distinction between non-cooperation and non-compliance is crucial. Non-cooperation, such as refusing to participate in an interview, doesn’t carry the same weight as non-compliance, such as failing to attend an EUO. Non-compliance with an EUO can result in claim denial due to a breach of policy conditions, making it a far more serious matter.
Conclusion
The claims investigation process is like a ladder, with interviews as the starting point and EUOs as the most comprehensive and formal tool at the top. Each step serves a distinct purpose, but understanding when and how to use these tools is key to conducting effective investigations.
By mastering the progression from interviews to EUOs, claims professionals can ensure a thorough and fair investigation process every time.
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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.
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