Examinations Under Oath in North Carolina
February 13, 2012 By Law Offices of John M. Kirby, PLLC
This Article examines the procedure in the handling of an insurance claim referred to as an "Examination Under Oath." It addresses the Insurer's right to conduct this process, the Insured's duty to cooperate, the effect of the failure of the Insured to submit to the Examination, and the general nature of an Examination Under Oath in North Carolina.
An insured might be asked to submit to an "examination under oath." If you have received this sort of request from your insurer, you might be asking "What is an Examination Under Oath," or "What do I do in an Examination Under Oath?"
This process can appear to be a daunting experience, but with proper preparation and guidance, it should not be a bad experience and should speed up the claims handling process.
Many insurance policies issued in North Carolina (and other states) have a clause which provides that the insurer can take an "examination under oath" (or EUO) of the insured. This occurs after the insured makes a claim for coverage, and the insurer has some question regarding the claim. For example, following a fire or other loss under a homeowner's policy of insurance, the insurer might want to ask questions of the homeowner pertaining to the cause of the loss (e.g. fire), the extent of loss (e.g. furniture destroyed or stolen), and even to the making of the policy itself (e.g. policy application materials). Under North Carolina law, if the insured fails to submit to the EUO, or otherwise fails to cooperate with the EUO process, then the insurer can assert that the insured failed to comply with the policy provisions, and can argue that the insured has lost his or her claim for benefits. Although the scope of this doctrine has not been thoroughly addressed by the courts in North Carolina, there is some authority that the failure to submit to an EUO negates coverage under the policy, regardless of whether the insurer is actually prejudiced by the insured's conduct.
An examination under oath in North Carolina is similar to a "deposition" taken in a civil proceeding. The insured is placed under oath (i.e. he swears to tell the truth) and the lawyer for the insurance company asks him questions, which the insured must answer. This is typically done at an attorney's office, but other locations are used also (e.g. library room, hotel room, or insured's premises). A court reporter (or stenographer) makes a record of the questions and answers. The insurer also often requests that the insured bring documents with him to the EUO.
It is not clear whether the insured is entitled to have a lawyer present, but it is not uncommon for a lawyer to appear for the insured. Both the insured and the insurer (through its attorney) have duties to act in good faith. Thus, the EUO should not be a highly adversarial procedure.
Hopefully the claim will proceed in a timely fashion following the EUO and the claim will be paid (assuming there are no coverage questions). There are, however, several courses the claim could take at that time, including further requests for documents and other EUO's, in addition to other investigation (e.g. hiring of experts or site visits).
ABOUT THE AUTHOR: John M. Kirby, J.D.
John Kirby has conducted several Examinations Under Oath in North Carolina. John Kirby has represented individuals and insurers in coverage disputes in North Carolina since 1995.
Copyright Law Offices of John M. Kirby, PLLC
More information about Law Offices of John M. Kirby, PLLC
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
This process can appear to be a daunting experience, but with proper preparation and guidance, it should not be a bad experience and should speed up the claims handling process.
Many insurance policies issued in North Carolina (and other states) have a clause which provides that the insurer can take an "examination under oath" (or EUO) of the insured. This occurs after the insured makes a claim for coverage, and the insurer has some question regarding the claim. For example, following a fire or other loss under a homeowner's policy of insurance, the insurer might want to ask questions of the homeowner pertaining to the cause of the loss (e.g. fire), the extent of loss (e.g. furniture destroyed or stolen), and even to the making of the policy itself (e.g. policy application materials). Under North Carolina law, if the insured fails to submit to the EUO, or otherwise fails to cooperate with the EUO process, then the insurer can assert that the insured failed to comply with the policy provisions, and can argue that the insured has lost his or her claim for benefits. Although the scope of this doctrine has not been thoroughly addressed by the courts in North Carolina, there is some authority that the failure to submit to an EUO negates coverage under the policy, regardless of whether the insurer is actually prejudiced by the insured's conduct.
An examination under oath in North Carolina is similar to a "deposition" taken in a civil proceeding. The insured is placed under oath (i.e. he swears to tell the truth) and the lawyer for the insurance company asks him questions, which the insured must answer. This is typically done at an attorney's office, but other locations are used also (e.g. library room, hotel room, or insured's premises). A court reporter (or stenographer) makes a record of the questions and answers. The insurer also often requests that the insured bring documents with him to the EUO.
It is not clear whether the insured is entitled to have a lawyer present, but it is not uncommon for a lawyer to appear for the insured. Both the insured and the insurer (through its attorney) have duties to act in good faith. Thus, the EUO should not be a highly adversarial procedure.
Hopefully the claim will proceed in a timely fashion following the EUO and the claim will be paid (assuming there are no coverage questions). There are, however, several courses the claim could take at that time, including further requests for documents and other EUO's, in addition to other investigation (e.g. hiring of experts or site visits).
ABOUT THE AUTHOR: John M. Kirby, J.D.
John Kirby has conducted several Examinations Under Oath in North Carolina. John Kirby has represented individuals and insurers in coverage disputes in North Carolina since 1995.
Copyright Law Offices of John M. Kirby, PLLC
More information about Law Offices of John M. Kirby, PLLC
View all articles published by Law Offices of John M. Kirby, PLLC
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
