New Citizens Policy Language Raises Questions About the Obligations of Policyholders and Public Adjusters
(Note: This guest blog is by Nicole Vinson, an attorney with Merlin Law Group in the Tampa, Florida, office. She will be writing a guest blog series on Examinations Under Oath and Public Adjusters).
The new language in Citizens Property Insurance Corporation’s 2010 policy has spurred debate and questions about the obligations of both policyholders and public adjusters in Florida.
This is the Examination Under Oath (EUO) requirement in the Citizens’ policy. The highlighted portion, lines 5 a-b, are new and controversial part:
FORM CIT HO-01 10
As often as we reasonably require:
1. Show us the damaged property
2. Provide us with records and documents we request and permit us to make copies
3. You or any "insured" under this policy MUST:
a. Submit to examinations under oath and recorded statements, while not in the presence of any other "insured"; and
b. Sign the same;4. If you are an association, corporation, or other entity; any members, officers, directors, partners or similar representatives of the association must:
a. Submit to examinations under oath and recorded statements, while not in the presence of any other "insured"; and
b. Sign the same;5. Anyone you hire in connection with your claim and anyone insured under this policy other than an "insured" in (3) or (4) above, must:
a. Submit to examinations under oath and recorded statements, while not in the presence of any other "insured;"and
b. Sign the same;
Generally, insurance policies contain a requirement that the insured must give both a recorded statement and an Examination Under Oath (EUO) in the “Conditions” section of a policy. A recorded statement may be used to gather information by insurance company at the onset of the claim. An EUO is a more in-depth interrogation by a lawyer for the insurance company. The requirements of policyholders in connection with an EUO depend on the policy language. Many policies require insureds to sit for an EUO, sign the recorded transcription, and give the EUO while not in the presence of any other insured. Essentially, an attorney for the insurance company asks a long series of questions while a court reporter records the whole thing. An EUO is more similar to a deposition than a simple recorded statement, except that the EUO is governed by the rules explained in the policy and not the Rules of Civil Procedure. EUOs are adversarial. Now, at least for Citizens claims, it seems public adjusters are subject to the same requirements.
The insurance company has many other ways to learn about a claim and the public adjuster’s involvement and evaluation of it. This series of posts will consider the implications of Citizens’ new policy language and will discuss what is happening now on the front lines.
-Nicole Vinson
This raises many questions:
Does this apply to forensic accountants also?
What if the PA hires a forensice accountant?
Can they apply this to contactors, demolition experts etc...?
What binding authority is there on 3rd parties?
In any of the above including PA's, if an attorney hires the consultants, experts etc.. does this get around the requirment?
In the very recent past (2 weeks ago), I was given notice by an insurance company that they wanted to have me sit for an Examination Under Oath. This was the first time I had been asked to sit for an EUO, as a forensic accountant. As I knew from my many years of forensic accounting experience, working for both insurers and policyholders, this was not the norm. I therefore sought legal advice from Nicole.
In my particular case the policy did NOT have the "#5" verbage found in the Citizen's policy noted above. So to make a long story short, I told the insurer's attorney that I was willing to answer any questions regarding my analysis but not in an EUO.
I did not sit for an EUO. With the language in the Citizen's policy, I'm not sure that I could have taken the same tact. What say you Nicole?
According to #5 I would think that includes plaintiff counsel being required to sit fo the EUO. After all it says:
5. Anyone you hire in connection with your claim and anyone insured under this policy other an "insured" in (3) or (4) above, must:
a. Submit to examinations under oath and recorded statements, while not in the presence of any other "insured;"and
b. Sign the same;
Bruce, Duncan and Jeff:
You all have very good comments and I hope to be able to use this blog as an area where we can all discuss what is going on in the field.
The policy language seems to be requiring that those hired to assist with a claim are also required under the policy to give an EUO. However, the contractual obligations of an insured reaching out to a non-party of the insurance contract must be evaluated.
The blog on Thursday will consider this language in more detail. It is very concerning that this policy requirement seems to potentially change the role of representatives hired to assist with claims.
I have not heard of attorneys being asked to sit for an EUO with respect to this new policy provision. A lawyer's client communication hold the special privilege of having confidentiality, and I think the intent of this provision was an attempt by this insurer to get sworn testimony from the public adjuster.