If your insurance company has demanded an Examination Under Oath, simply refusing to participate can put your property insurance claim at serious risk.
Michigan courts have recognized the enforceability of Examination Under Oath provisions in insurance policies. When an applicable policy requires an insured to submit to an EUO, an unexcused refusal or material failure to cooperate may prevent the policyholder from recovering under the policy. The precise consequences depend on the policy language and circumstances, so an EUO demand should be reviewed rather than ignored.
That does not mean a policyholder has no rights during the process. Questions can arise concerning the scope of the examination, requested documents, scheduling, and other aspects of an insurer’s demand.
We represent Michigan policyholders facing EUO requests. When a client has concerns about participating, we review the insurance policy, the insurer’s demand, and the particular issue before advising how to respond.
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Is an Examination Under Oath Mandatory?
Whether you are required to participate begins with your insurance policy.
Property insurance policies commonly contain provisions describing an insured’s duties after a loss. Those duties can include submitting to an Examination Under Oath when reasonably requested by the insurance company.
Our existing Michigan EUO guidance explains that the obligation generally arises from the insurance contract, often through cooperation provisions or a section describing the policyholder’s duties after a loss.
This is why an EUO should not be viewed as merely an invitation from the insurance company.
If the policy requires an examination, compliance can be part of what the insured must do to pursue coverage.
What Happens If You Refuse an EUO in Michigan?
Refusing an Examination Under Oath can have significant consequences for an insurance claim.
Michigan courts have long recognized the enforceability of EUO requirements in property insurance policies. In Gordon v. St. Paul Fire & Marine Insurance Co., the Michigan Supreme Court addressed an insured’s refusal to submit to an examination required by a fire insurance policy and recognized that the examination requirement was a valid condition of the contract.
Later Michigan decisions have continued to recognize that an insured’s refusal to participate in a required EUO can prevent recovery under the policy.
Our existing Michigan EUO guidance similarly explains that refusing to attend or refusing to answer material questions can provide grounds for the insurance company to deny a claim.
The practical point is straightforward: do not ignore an EUO demand because you do not want to participate.
If you believe there is a legitimate problem with the request, address that problem directly.
Can the Insurance Company Deny My Claim for Refusing an EUO?
Potentially, yes.
If your policy requires cooperation with an EUO and you refuse without justification, the insurance company may assert noncooperation as a basis for denying coverage.
Michigan case law has treated compliance with applicable EUO requirements as significant to an insured’s ability to recover under a policy.
That does not mean every disagreement between an insurer and policyholder automatically justifies a denial. The policy language and facts matter.
There is an important difference between deliberately refusing to participate and raising a legitimate issue concerning a particular aspect of the insurer’s demand.
That distinction is one reason policyholders should obtain advice before deciding that they will not comply.
What Does “Failure to Cooperate” Mean?
Insurance policies can impose cooperation obligations on policyholders while a claim is being investigated.
An EUO is one potential part of those obligations.
Depending on the circumstances, problems can arise when a policyholder:
- Refuses to appear for a required EUO
- Repeatedly fails to attend scheduled examinations
- Refuses to answer material questions without a valid basis
- Refuses to provide documents required under applicable policy provisions
- Otherwise prevents the insurer from conducting an investigation authorized by the policy
The effect of a particular action depends on the insurance contract and facts.
Not every disagreement about a question, document, date, or request should automatically be characterized as a complete refusal to cooperate.
What If I Cannot Attend on the Date the Insurer Scheduled?
Being unavailable on a particular date is different from refusing to participate altogether.
If you have a legitimate scheduling conflict, do not simply miss the examination.
The insurer or its attorney should be contacted so the scheduling issue can be addressed. Our existing EUO guidance explains that if a policyholder cannot attend on the requested date, an attorney can seek a reasonable accommodation.
The important distinction is communication.
Failing to appear without addressing the demand can create an unnecessary dispute about whether you complied with your obligations. Raising a scheduling issue and attempting to resolve it presents a very different situation.
Can I Object to Questions During an EUO?
An EUO requirement does not mean every conceivable question is automatically appropriate.
The scope of the examination is connected to the insurer’s investigation and the policyholder’s obligations under the applicable insurance contract.
Questions may arise concerning whether particular information is material to the claim or whether an insurer’s request exceeds what the policy requires.
That does not mean a policyholder should independently decide, in the middle of an examination, to refuse broad categories of questions without understanding the potential consequences.
If you are represented by counsel, your attorney can address improper questions and protect the record during the examination. Our existing EUO materials specifically identify addressing improper questions as part of counsel’s role during an EUO.
Can You Refuse to Answer a Particular EUO Question?
This is different from refusing the examination entirely.
A dispute may arise over a particular question even when the policyholder is otherwise participating in the EUO.
The significance of refusing to answer depends on the question, the insurance policy, the reason for the objection, and the circumstances of the investigation.
Michigan authority has distinguished between material and immaterial matters when considering an insured’s compliance with an examination requirement. A refusal involving information material to the insurer’s investigation can have serious consequences.
For that reason, a policyholder should be cautious about deciding on their own that a question is irrelevant and refusing to answer it.
When there is a legitimate legal objection, that issue should be handled deliberately rather than through an impulsive refusal.
What If the Insurer Requests Documents I Do Not Have?
Not possessing a requested document is not necessarily the same as refusing to produce it.
If a record does not exist or is not in your possession, you should not manufacture one.
The appropriate response depends on what was requested and what the policy requires.
An EUO demand may seek documents such as photographs, proof of ownership, repair estimates, prior insurance information, or other materials connected to the claim.
If you cannot locate a requested document, be accurate about that fact. If you are uncertain whether you are required to produce a particular category of records, the request can be reviewed before you respond.
Can You Refuse to Provide Financial Records?
Financial document requests can require closer examination.
Depending on the nature of an insurer’s investigation, an EUO demand may seek financial information. Our existing Michigan EUO guidance specifically identifies requests for bank statements, tax returns, or other financial records as circumstances in which a policyholder should consider contacting an attorney before responding.
The answer is not to assume that every financial request must be rejected or that every request must be accepted without review.
The relevant questions include what the insurer requested, why the information may be relevant, and what obligations exist under the insurance policy.
If your EUO demand seeks substantial financial documentation, having the request reviewed before producing records can help clarify those issues.
What If I Think the Insurance Company Is Asking for Too Much?
An extensive EUO demand can be frustrating, particularly when it arrives after a policyholder has already submitted substantial information.
Still, frustration with the insurer’s investigation is not the same as a legal basis for refusing to participate.
The better approach is to identify the specific issue.
Is the problem the examination date? Is the insurer seeking a document you do not possess? Is there concern about a particular category of records? Is a question outside what you believe is relevant to the claim?
Once the issue is identified, the policy and demand can be reviewed to determine how it should be addressed.
A blanket refusal can create a coverage problem that might have been avoided through a more targeted response.
Can I Refuse an EUO Because I Already Gave a Recorded Statement?
A policyholder should not assume that providing a recorded statement eliminates an EUO requirement.
A recorded statement and an Examination Under Oath are different parts of an insurance investigation.
Our existing Michigan EUO guidance explains that a recorded statement is generally less formal and typically conducted by an adjuster, while an EUO involves sworn testimony and can involve substantially broader questioning.
If the insurance policy permits the insurer to require an EUO, the fact that you previously spoke with an adjuster does not necessarily satisfy that separate obligation.
Can I Refuse an EUO Because I Will Give a Deposition Later?
An EUO and a deposition serve different purposes.
An EUO occurs during the insurer’s investigation, before litigation necessarily exists. A deposition occurs after a lawsuit has been filed as part of formal discovery.
Michigan courts have specifically rejected the idea that participating in a later deposition necessarily cures an earlier failure to submit to a required EUO.
The insurer is entitled to investigate the claim at the stage when it must determine whether coverage applies. Testimony given only after litigation begins may not serve that same purpose.
Our Examination Under Oath vs. Deposition guide explains this distinction in greater detail.
What If I Already Missed or Refused My EUO?
Do not assume the situation will resolve itself.
If you missed an examination, declined to participate, or refused a request and the insurance company is alleging noncooperation, consider having the matter reviewed promptly.
The next step depends on what occurred.
There can be a significant difference between a single missed date caused by a legitimate issue and an unequivocal refusal to participate in the insurer’s investigation.
Likewise, the wording of the policy and communications between the parties can matter.
The important point is not to compound the issue by continuing to ignore correspondence from the insurance company.
Should You Talk to a Lawyer Before Refusing an EUO?
Yes, particularly if you are considering refusing the entire examination, declining to answer particular questions, or withholding requested documents.
The potential consequence is too significant to make the decision casually.
An attorney can review the policy and EUO demand, identify what the insurer is requiring, and determine whether there is a legitimate issue that should be addressed before the examination.
Attorney Henri O. Harmon has approximately 20 years of litigation experience, including property insurance coverage disputes and Examinations Under Oath.
When we represent policyholders, our objective is not to obstruct a legitimate insurance investigation. We help clients comply with appropriate obligations while protecting their interests throughout the process.
Do Not Simply Ignore an Examination Under Oath Demand
If your Michigan property insurance policy requires an Examination Under Oath, an unexcused refusal can jeopardize your ability to recover under the policy.
That does not mean you must navigate every disagreement with the insurance company on your own.
Questions involving scheduling, document requests, financial information, or the scope of questioning can be addressed before they turn into a broader dispute over cooperation.
For a complete explanation of EUOs and their role in property claims, visit our Michigan Examination Under Oath Guide. If you plan to participate but are unsure what comes next, our EUO Process and EUO Preparation resources address those issues separately.
We represent policyholders throughout Michigan, with our office in Southfield, Michigan.
We offer a free, confidential EUO consultation. If you have received an Examination Under Oath demand or are concerned about whether you can comply with a particular request, we can review the situation before you respond.
Contact us today to schedule a free confidential EUO consultation with Attorney Henri O. Harmon.
