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Duty to Cooperate Insurance Clauses

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The insured must cooperate with the investigation and handling of the claim by the insurance company.

The insured has a contractual obligation to cooperate with the insurer to investigate and handle the claim. However, the insured is never obliged to be abused. In most countries, the insured and the insurance company have a mutual obligation to act in good faith and deal fairly to investigate and process the claims. Neither the insured nor the insurance company can prevent the other from obtaining the benefits provided by the policy. This means that both should avoid taking any undue position or doing or saying anything that would in any way frustrate each other's rights under the policy. The insurer may require one or more registered statements from the insured. A copy of the tape and a transcript of the information should always be requested by the insured to review and correct any transcripts' errors. When the recording is complete, if it is recorded on tape, the insured should ask the adjuster to break the tab to record nothing on the video. The insured person should then place their signature or initials and the date on the tape label. If recorded electronically on a smartphone or other device, ask for an electronic copy of the transcript and a transcript if one exists. Repeat your request by e-mail, letter, or fax. The insured shall have the right to review and correct the transcript of any recorded declaration and always insist on the exercise of the right of review.

Insured persons who do not have sufficient documentation to establish a loss may also be required to appear for an "Examination Under Oath" (EUO). The insurer may, but is not required to, hire a lawyer to take the EUO to represent the insurer. If the insured retains a lawyer to represent the insured, the insurer will not pay for the insured's attorney. The insured should not appear for the EUO until he or she has understood all the rights available to the insured, the insurance coverage, the full extent of the claim, or until he or she has been retained to protect the insured's interests. The insured should never refuse to appear at the EUO, or the refusal would result in a breach of a material condition preceding the indemnity. It would allow the insurer to reject the claim due to the infringement of a material condition of the policy. The insured may reasonably request a delay in appearance at the EUO to obtain the services of a lawyer or a public insurance agent, and the insurer will invariably grant such a delay. Of course, it is in the best interests of the insured to fulfill the obligation to appear at the requested EUO to enable the claims to be resolved quickly. The insurer may request the insured to make available documents relating to the claim, including bank statements, investment reports, receipts, and other personal financial records.

A condition precedent for indemnity requires the insured to produce any documentation reasonably related to the insurer's investigation of the claim that may include tax returns. In some States, tax returns are considered privileged, and the insured cannot be forced to produce them, while in other States, the failure to make tax returns is a sufficient reason to deny the claim.

The insurer may require the insured to produce such documents as long as they are reasonably related to and exist to the investigation. Often the necessary documents are destroyed by fire, fire, flood, or hurricane. The EUO is used to allow the insured's sworn testimony to take the document's place devastated by the loss. The insured should not provide such records to the insurer until the insured understands the rights, duties, and obligations imposed by the insurance cover and the full extent of the claim. The insured should never refuse to produce documents unreasonably since the requirement to have documented a precondition for the insurer's obligation to provide a defense and indemnity.

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