Found in the conditions section of many insurance policies, the insurer’s right to examine an insured under oath following a loss. It is taken from an insured under oath and in the presence of a court reporter. The carrier asks questions pertinent to the claim involved, and the examination helps a carrier determine what happened in the loss and whether or not there is a claim that needs to be paid. Often referred to as EUO.
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A sworn statement in question and answer form usually taken before a notary and a certified shorthand reporter. It can be taken by any person appointed by the insurer but should be taken by an attorney experienced in first party property insurance matters (Third party liability policies do not have examination under oath provisions). It is taken for the purpose of allowing the insurer to cross-examine the proof of loss submitted by the insured. It is one of the most valuable tools an insurer has against fraud.