Hunton Insurance Recovery Blog

Examinations under oath (EUOs) are a common coverage condition in property and other first-party insurance policies that can make or break an insurance claim.  In theory, EUOs are straightforward:  they’re an investigative tool for insurers to gather information about a claim.[1]  But in practice, insurers often use them to poke holes in the policyholder’s story, identify grounds to challenge coverage, and even set up fraud claims. 

In Philadelphia Indemnity Insurance Co. v. BAS Holding Corp., the Court of Appeals for the First Circuit rejected an insurer’s “insupportable” defense that the insured company had breached its duty to cooperate by refusing the insurer’s request for an examination under oath of the company’s president. The decision is a reminder that, while examinations under oath can be effective tools to allow the insurer to properly investigate a claim, an insured’s duty to cooperate is not boundless and does not demand attendance at examinations that are not reasonably requested.