The EUO Condition Explained

When was the last time that you've actually even seen the policy or read this particular clause?

For many it’s, “I have not read my policy in a long time and I definitely I have not looked or paid attention to the EUO provision. "

SUMMARY

• Not many have looked at the EUO provision or policy in quite some time. 
• It’s important to understand the rights that lie within the EUO clause in the policy in order to take advantage of all the benefits it provides.
• You’ll always find the EUO clause under the, “DUTIES IN CASE OF AN ACCIDENT OR LOSS” and will usually say something like, “Person seeking coverage MUST...”.
• This video is part of our "EUO Compliance" training program where we train you on the EUO purpose, protection and process so you can ensure you are in compliance in every aspect of your examinations under oath.

If you have not already done so, take a look at our programs below.

TRAINING AND RESOURCES TO HELP YOU SUCCEED

EUO COMPLIANCE is our program which includes all the critical fundamentals regarding EUO, industry myths, critical insights, best practices and advanced strategies to effectively deal with insureds, witnesses and others involved in the EUO process.

EUO COMPLETE is our program which includes all the critical fundamentals, teaches you how to comprehensively prepare and conduct the EUO and goes in great detail into the EUO practice, from the decision to conduct the EUO to the closing of the file.

EUO CONDUCT is our interactive workshop specifically created and custom tailored to address your company’s specific challenges when it comes to conducting the EUO and empower the EUO examiners with real practice insights, strategies, and best practices relating to all the aspects and intricacies of preparing, managing and conducting the EUO.

EUO BUSINESS is our program for lawyers which includes how to easily and quickly position yourself as an EUO authority providing the latest EUO strategies, from the fundamentals all the way to how to set up your business (including all forms and templates).

PERFECT STATEMENT is our program for any statement taker which includes step-by-step training through a series of lessons that build on each other from how to prepare to conduct a statement to what to do at the end, and all the critical steps in between.

TELAWPORT is our technology that you can license to easily conduct, collaborate and video record any statement with just a few clicks., without any tech knowledge or hassles.

DID YOU KNOW?

All of our training programs can be easily customized and tailored to meet your specific needs. Want custom training for your entire team?

Send me a message here.

FULL TRANSCRIPT 

The EUO Condition Explained 

The question is... when was the last time that you've actually even seen the policy or read this particular clause?

So I know for many it's like, "Okay, now I have not seen it in a long time. I have not read my policy in a long time." "Definitely I have not looked or paid attention to the EUO provision. " 

I want to go over it with you so you understand the rights that lie within that.

You will always find the EUO clause, under the "DUTIES IN CASE OF AN ACCIDENT OR LOSS". Usually it'll say something like, "Person seeking coverage MUST".

Now notice if you're seeking coverage, you MUST, it doesn't say may, doesn't say could, doesn't say maybe, should we, could we, no, it says MUST. 

This is something that someone who's seeking coverage, and that could be, a named insured or others that we'll talk about, but whoever is seeking coverage, they must do these things right?

"...Allow us to take signed, recorded statements, including sworn statements".

And that's where you're going to see "examination under oath".

"Which we may conduct outside the presence of you or any other person seeking coverage and answer all the reasonable questions we may ask as often as we may reasonably require it."

So for our purpose I have highlighted and underlined a few sections, which is what we're going to focus on.

So obviously the examination under oath, we're not going to talk about... although I'll touch on recorded statements in a minute, but for now we'll just focus on the EUO because this is where the right comes in.

Remember I told you there is a right in that policy from the minute it was issued.

You're going to see it in there. In your policy, that's where it stands. Right? So "may conduct outside the presence of you or any other person seeking coverage". So if you face the question of, "I want my husband to sit in". "I want my son to sit in". "I want my driver to sit in". "I want whoever to sit in"... the answer is NO. Okay.

You have a right to do it privately outside the presence of any person seeking coverage.

So the answer is one person in the room at a time.

The surest way to know that you've hired the wrong defense counsel to conduct your EUOs is if they allow this to happen, which to me is like blasphemy.

That's where you get that right to only do one person at a time.

Then it says...

"...answer all reasonable questions".

So the question for you is: 

What's all and what's reasonable? Cause this is a question that I get all the time. Well, what's reasonable? What can we ask at an EUO? And later in this training, I'm going to break it down even further for you, but know that the key here is, is it reasonable?

Okay, well what makes something reasonable?

Well, I ask you... if you have a claim for example, that there is no, not a theft claim where someone potentially has a financial motive, let's say, right, but you have a claim, and there's no financial motive for them to either get rid of the debt or cash in on the risk. Right?

Do you have any business asking them about their financials? Is it reasonable for you to be asking about their financials?

Is that going to help your decision or not?

Because if the answer is no, then it will be unreasonable, right?

Now, same question... is it reasonable to inquire about their cell phone records when you're dealing with a theft and the insured is saying, well, I was nowhere near the loss when it happened.

All of a sudden that becomes reasonable because as we know, cell phone records will verify, will confirm the fact that the insured was there or not, or nearby or not. Right?

And if the insured says, "yeah, I went to sleep at a certain time and I was in my bed sleeping with the phone under my pillow, when the theft happened in the middle of the night. And I didn't call anybody. And I didn't talk to anybody".

Once again, cell phone records, all of a sudden become reasonable. Does that make sense? 

So what's reasonable is determined based on the claim, which is really what you should be asking. Is this reasonable for us to ask this in this particular claim?

Well, why is a reasonable?

Well, we need that information to further what? 

Decide upon your obligation.

If the answer is yes, then you can ask the questions. I'll show you different topic areas that should be covered throughout this training, when conducting the EUO, but know that, the basis of what's reasonable, it's really, it's really gray number one, but the true test is what is the claim about, what is the loss about, okay, and is what we're asking reasonable for us to request in order to get the information and the documentation to decide upon our obligation.

And then lastly, it says ... 

"may ask as often as we may reasonably require".

So, what does that mean?

That means that you don't just have one bite at the apple, meaning you're not limited to one EUO. 

You could ask the questions.

It doesn't mean in the same EUO, you can ask the same questions 20 times because you're not getting the answer that you want.

The truth is that would be badgering. That would be harassment. That would be not the right thing to do. Is borderline bad faith as you'll learn. 

Right? But it is reasonable and you can request someone to sit down for a 2nd and even a 3rd EUO.

"Well, Danny, that will be so costly". I know.

But ask me how many times in the last 20 years have I been called in to do more than one EUO in a particular claim?

I could probably count it with one hand.

So it's not a common occurrence for you to have to go back and do it a second and a third in the same claim.

Sometimes it merits it. Right? But not all the time.

So know that you're not limited for whatever reason the EUO is being conducted and you didn't get everything because maybe the customer didn't bring all the documentation or maybe because, you know, they were not answering all the questions then guess what?

You have a second and potentially even a third time that you can sit them down.

So know that you're not limited to one siting.