The Michigan Supreme Court recently approved the use of an Examination Under Oath ("EUO") in a no-fault case. Cruz v State Farm, 466 Mich 588; 648 NW2d 591 (2002). However, an insured's failure to submit to an EUO cannot provide the sole basis for a denial of PIP benefits.
In the Cruz case, the plaintiff made a claim both for no-fault PIP benefits and for uninsured motorist (UM) benefits. His State Farm policy included a provision requiring him to submit to an EUO as often as reasonably asked. State Farm requested an EUO several times, but the plaintiff refused. Although State Farm admitted that the insured provided reasonable proof of the fact and amount of the loss, it denied the claim for both PIP and UM benefits because the insured would not undergo an EUO.
