Wash. Sets Hurdles For Insurers Testing Claims Under Oath

Law360, New York (January 25, 2013, 9:22 PM EST) -- Washington state's high court ruled Thursday that insurers can't automatically deny coverage to policyholders who refuse to be grilled under oath about their claims, a decision that overturns an insurer-friendly precedent and sets the stage for more coverage disputes to reach trial, attorneys say.

The Washington Supreme Court ruled that insurers cannot demand that policyholders submit to an examination under oath, known as an EUO, unless the examination is material to its claims investigation.

It rejected a lower court's ruling in Downie v. State Farm Fire...
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