I’m sure it’s no surprise to hear that people make some crazy claims to insurance companies and others take out policies for unbelievable coverages. Let’s take a look at a few of the stranger things in the insurance world and how companies might investigate such X-Files.
I recall hearing something about Gene Simmons (from the band KISS) insuring his trademark tongue for millions of dollars in the 70s, and also about Tom Jones insuring his voluptuous chest hair for millions of dollars. Both accounts are cringey, but seem to be true, though no tongues or hairs have reportedly been harmed on either of those fellas.
You can insure just about anything you can put a dollar amount on and where there is a risk of monetary loss to the owner of the policy. While you may think someone else is out of their mind, insurance is partly about peace of mind that allows one to rest a little easier that all may not be lost should tragedy strike. Gene Simmons wore so much make-up, would anyone even recognize him if his serpentine tongue weren’t hanging down past his chin? Did the band’s success truly depend on
Brendon Urie’s premium to insure his life and those of his concertgoers must be quite high since he plays a “floating” piano that drifts over his audience. I can’t imagine!
Anything can happen during a concert, festival, or other live event, so it’s important to have liability and property insurance that can handle the unexpected. Large crowds, elaborate sets, and lots of equipment mean risks are ever-present.
from ProSightSpecialty.com
I didn’t mean to get stuck on musicians and concerts; you’re probably wondering what’s with the Parking for Aliens Only sign. One, it’s an attention grabber. Two, policies actually exist for people who are fearful of an alien abduction. A U.K.-based insurer has sold more than 30,000 such policies across Europe. Premiums can cost up to $150 per month for $1.5 million in total coverage, according to projectparanormal.org, which is quite high considering the probability of alien abduction ever occurring. Should one ever make a claim, however, definitive proof is required to collect any damages.
Enter the EUO 
An EUO is not related to a UFO, and actually seems scarier to me. The acronym stands for examination under oath and is a formal statement taken by the insured describing the events in the matter of their particular claim. EUOs are typically, although not always, conducted by an attorney representing the insurance company. A court reporter will type every question and answer verbatim, and sometimes a videographer will record the proceedings. Examinations under oath usually last only a few hours, but could possibly extend over multiple days depending on the case. It’s a serious matter.
An insured should anticipate questions about the cause and origin of the loss, the financial condition of the insured leading up to the event (motive), the insured’s whereabouts at the time (opportunity), the nature and extent of the loss, particular items claimed to have been damaged or destroyed, and the accuracy of answers provided in the insurance application. Seeking legal counsel would be a prudent move before undertaking this examination, although an EUO is not part of a court proceeding, anything you say can be used should the claim be taken to litigation and the insurance company may deny the claim based on the results of the investigation.
An insurance company’s authority to take an examination under oath comes from the insurance contract, which typically contains a provision, under the section “Duties of the Insured,” that the insured must answer questions under oath when requested by the insurer. Even without such a provision, there is almost always a “duty of cooperation” provision in the policy which would also require the insured’s participation in an examination under oath. If an insured refuses, it could result in the insurance company’s denial of the claim based on its assertion that the insured breached the insurance policy by refusing to cooperate. See Spears v. Tenn. Farmers Mut. Ins. Co., 300 S.W.3d 671 (Tenn. Ct. App. 2009).
FAQs about EUOs:
- Are EUOs always required? Not always. EUOs are often demanded when there are red flags for fraud, strange circumstances, large claims, potential problems with the application for insurance, etc.
- What do I need to bring? Bring several documents in support of your claim and be prepared to answer questions about those documents and specific questions about the loss by the attorney.
- Do I have to cooperate? Yes. Your insurance policy has a section that provides you, as the insured, have a duty to cooperate with your insurance company’s investigation, including submitting to an examination under oath. However, you may not have to answer every question or provide every document, but it is important to know that you need to cooperate with your insurance company as your failure to do so may result in the denial of your claim.
- Do I need an attorney? It would help. An attorney experienced with EUOs can prepare you for the types of questions you will face, assist in the gathering (and presenting) of documentation, streamline and coordinate communication with the insurance company, and assist you in making strategic decisions, all of which can impact whether your claim is paid or denied.
- Why am I being investigated? Insurance companies send claims into the examination under oath process for a variety of reasons. Some reasons are serious and legitimate, while others seem to be trivial. You may never know exactly why, but stick to the truth and everything should work out.
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