Key Takeaway
Court rules insurance company's EUO defense was precluded due to untimely scheduling letter sent more than 30 days after receiving claims, highlighting critical timing requirements.
Understanding EUO Timing Requirements: When Insurance Companies Lose Their Defense
In New York’s no-fault insurance system, insurance companies have powerful tools to investigate potentially fraudulent claims, including the ability to require Examinations Under Oath (EUOs). However, these tools come with strict procedural requirements that must be followed precisely. When insurance companies fail to meet these deadlines, they can lose important defenses entirely.
The timing of EUO scheduling letters is particularly critical in no-fault cases. Insurance companies must act promptly after receiving claims, and courts have consistently enforced these timing requirements across New York’s appellate departments. This creates a strategic opportunity for healthcare providers and other no-fault claimants when insurance companies miss these crucial deadlines.
Understanding when EUO objections may be futile versus when timing defenses are available can significantly impact case strategy and settlement negotiations.
Jason Tenenbaum’s Analysis:
St. Locher Med., P.C. v IDS Prop. Cas. Ins. Co., 2017 NY Slip Op 50919(U)(App. Term 2d Dept. 2017)
“As plaintiff argues, defendant’s moving papers failed to establish that the first EUO scheduling letter defendant sent to plaintiff had been timely, since defendant stated that the letter was sent more than 30 days after defendant had received the claims”
Why not call and settle if you are defendant? This is the law in both the First and Second Departments.
Key Takeaway
When insurance companies fail to send EUO scheduling letters within 30 days of receiving claims, their EUO defense may be completely precluded. This timing requirement is consistently enforced across New York’s appellate departments, creating settlement leverage for plaintiffs. Unlike situations involving EUO no-shows where discovery may be waived, timing violations offer a more straightforward path to victory for healthcare providers pursuing no-fault claims.
