Who Can You Demand for an EUO? Understanding the Policy Limits
One of the most common questions in the Examination Under Oath (EUO) process is: “Who can we demand for an EUO?” While the named insured may seem like the obvious answer, the scope of who qualifies often goes beyond that. However, it is essential to stay within the policy’s limits to avoid mistakes like demanding an EUO from a non-insured party.
Let’s break down who can be demanded for an EUO and how the policy defines insureds.
Named Insureds and Beyond
The first and most obvious answer is the named insured. However, what happens when the named insured is a business or an LLC? In these cases, anyone associated with the company who has knowledge relevant to the claim can be demanded for an EUO, including:
- Employees: From security guards to the CEO, any employee with information that could help resolve the claim may be required to submit to an EUO.
- Authorized Representatives: Individuals authorized to act on behalf of the company may also fall within this scope.
Defining Insureds Under the Policy
The key to determining who can be demanded for an EUO lies in the policy language. Policies typically define insureds in ways that may include:
- Members of a Household: Individuals residing in the insured household.
- Company Members: Employees or stakeholders in a named business insured.
- Anyone Seeking Benefits: Those filing a claim or seeking coverage under the policy.
It’s essential to review the policy to confirm whether the individual in question qualifies as an insured.
The Critical Rule: Only Demand Insureds
One of the most critical rules in the EUO process is that you cannot demand an EUO from a non-insured. Here’s why:
- Policy Language: EUOs are a contractual right, and the policy defines who qualifies as an insured.
- Avoiding Errors: Demanding an EUO from a non-insured can lead to procedural errors and potential disputes.
Independent witnesses, third parties, or anyone not explicitly identified as an insured in the policy should not be subjected to an EUO demand.
Best Practices for Identifying Insureds
To ensure compliance and avoid mistakes, follow these steps:
- Review the Policy: Always confirm how insureds are defined in the specific policy.
- Confirm Status: Verify whether the individual qualifies as an insured before issuing a demand.
- Focus on Relevance: Ensure the individual has information or knowledge relevant to the claim.
Conclusion
The Examination Under Oath is a powerful tool, but its effectiveness depends on adhering to policy definitions and focusing only on insured parties. By understanding who qualifies as an insured and verifying their status, claims professionals can use the EUO process effectively and avoid common pitfalls.
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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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