What is an Examination Under Oath by Your Insurance Company?

An Examination Under Oath (EUO) under California Insurance Code § 2071.1 is a formal, sworn proceeding in which an insurance company questions a policyholder (the insured) about the facts, circumstances, and details of an insurance claim. It is usually set when the insurance company is suspecting that the claim is fraudulent. The examination is typically conducted by an attorney or representative for the insurer, with a court reporter present to transcribe the testimony under oath (similar to a deposition but occurring during the claims investigation process, before any lawsuit).

Context and Purpose

California Insurance Code § 2071 (the standard fire insurance policy provisions, which many property policies incorporate) requires the insured to "submit to examinations under oath" as a condition of the policy, "as often as may reasonably be required" and "subject to the provisions of Section 2071.1."

The EUO helps the insurer gather information that is often uniquely known to the insured, such as:

Details of the loss or damage
Circumstances surrounding the claim
Documentation of the claim amount
Potential coverage issues

It is not intended for harassment or unrelated purposes. Insurers commonly request an EUO in property damage claims (e.g., fire, theft, or other covered losses), especially if there are questions about the claim's validity, the extent of loss, or suspected issues like misrepresentation.

Key Rights of the Insured Under § 2071.1

Section 2071.1 (enacted in 2001) acts as a "Bill of Rights" for insureds during an EUO. It applies to examinations under the standard fire policy (or similar provisions in property policies originated or renewed on or after January 1, 2002). Among the rights are:

Notice requirement: The insurer must notify the insured of its intent to conduct the EUO and include a full copy of § 2071.1 with the notice.
Scope limitation: The insurer may only ask about information that is relevant and reasonably necessary to process or investigate the claim. Questions must stay within proper bounds (the insured can object to improper questions, similar to objections allowed in a deposition under state or federal law).
Reasonable conditions: The EUO must occur on reasonable notice, at a reasonably convenient place, and for a reasonable length of time.
Representation and recording: The insured may be represented by counsel and may record the entire proceeding (including audio or video).
Transcript and recording access: Upon request (and free of charge), the insurer must provide the insured with a copy of the transcript and any audio/video recording that exists.
Other protections: The insured can assert privileges (e.g., certain tax returns may be privileged but might still be relevant in some cases), and the process must comply with the overall duty of good faith and fair dealing.

The insured must generally cooperate with a proper EUO request, as failure to do so can lead to denial of the claim. However, the insured can challenge overly broad, unreasonable, or abusive requests.

Practical Notes

EUOs are often (but not always) requested when the claim involves a special investigation unit (e.g., potential fraud concerns or large/complex losses).
Preparation is important: Insureds are strongly advised to consult an attorney experienced in insurance claims before attending, as the sworn testimony can be used later (e.g., in litigation) and inconsistencies may affect coverage.
The proceeding is sworn testimony, so answers must be truthful; lying under oath can have serious legal consequences.

If you have an insurance claim that is valid but you are being examined under oath you should consider hiring an attorney. The Horowitz office can represent you. Call us at (925) 283-1863,