If an insurance policyholder makes a claim, they may think that all they need to do is send the information to the insurance company and they’ll be done. In some situations, however, the insurance company may have the policyholder undergo an examination under oath (EUO).
Examination under oath
Insurance companies use an EUO to determine whether a claim is valid. It is part of their investigation when they believe there is fraud, misrepresentation or other factors that make the claim questionable.
The insurance company will notify the policyholder in writing, with the date, time and location of the EUO and will include a list of documents that the policyholder should bring. These may include financial statements, receipts, and medical records.
The policyholder will be placed under oath and asked questions about the claim, the loss or damage that occurred and other information.
If the policyholder is not truthful during the EUO, they can face consequences. The insurance company may deny the claim and the policyholder will not receive payment. In addition, the insurance company could cancel the policy.
If the insurance company believes that the policyholder intentionally provided false information, they may pursue legal action, either through criminal prosecution for insurance fraud or civilly to recover any payments already made to the policyholder.
Finally, the policyholder could have difficulty finding insurance coverage in the future, it could negatively affect their reputation in the community and could prevent them from finding employment or housing.