When Should You Demand an EUO?
Key Factors to Consider
One of the most common questions in claims handling is, “When is the right time to demand an Examination Under Oath (EUO)?” Many assume that the timing must align with a completed investigation or the discovery of fraud. However, these assumptions often miss the mark.
The truth is that the EUO is a versatile tool designed to gather information, clarify discrepancies, and secure documentation—often before an investigation is complete. Let’s break down the key considerations for deciding when to demand an EUO.
1. When You Don’t Have the Necessary Information or Documentation
The primary purpose of an EUO is to help insurers gather the information and documentation needed to decide upon their obligation. If you can’t make a decision based on the available evidence, it’s time to consider an EUO.
- Fraud Isn’t Always a Factor: While fraud may sometimes trigger an EUO, the tool is equally valuable in cases where information or documentation is simply incomplete.
- Addressing Discrepancies: If discrepancies arise in the claim, the EUO provides an opportunity to clarify and resolve them.
2. When You Need to Act Before Information Disappears
Time-sensitive claims require quick action. The longer you wait, the more likely it is that key information will fade or disappear.
- Memory Fades: Delays can lead to insureds claiming they “don’t remember” or “don’t recall,” reducing the effectiveness of the EUO.
- Documents Go Missing: Critical records may be lost, destroyed, or inaccessible if action isn’t taken promptly.
3. It’s Not About Confrontation
A common misconception is that EUOs are only for confronting the insured with investigative findings. In reality, the EUO is a non-adversarial process focused on clarification.
- Opportunity, Not Confrontation: The EUO allows the insured to address discrepancies, explain their side, and provide any missing documentation.
- Avoiding Conflict: EUOs should not be treated like depositions or used aggressively, particularly if outside counsel is involved.
4. Don’t Wait for Fraud to Be Apparent
Many claims professionals mistakenly believe that an EUO should only be used when fraud is suspected. In fact:
- EUO Indicators Matter: Certain scenarios, such as unclear documentation or inconsistent statements, can indicate the need for an EUO without overt signs of fraud.
- Proactive Use: Even low-exposure claims can benefit from an EUO, particularly if a pattern of fraudulent behavior is suspected.
Conclusion
Deciding when to demand an EUO isn’t about completing an investigation or waiting for fraud to emerge—it’s about recognizing when the tool is needed to move a claim forward. By considering the factors above, claims professionals can use EUOs effectively to gather information, clarify discrepancies, and protect the insurer’s rights.
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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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