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The U.S. Supreme Court\'s Explanation of False Swearing at Examination Under Oath that Results in a Policy Being Declared Void

https://zalma.com/blog

The decision of the U.S. Supreme Court in CLAFLIN and others v. COMMONWEALTH INS. CO. OF BOSTON, MASSACHUSETTS, et al, 110 U.S. 81, 3 S.Ct. 507, 28 L.Ed. 76 (January 14, 1884) is the premier precedent that establishes that a falsely sworn statement at an insurance examination under oath requires the claim to be denied and the policy voided even if the insured had no intention of deceiving the insurer about the amount of loss.

THE REASON FOR AN EUO

The object of the provisions in the policies of insurance, requiring the assured to submit himself to an examination under oath, to be reduced to writing, was to enable the company to possess itself of all knowledge, and all information as to other sources and means of knowledge, in regard to the facts, material to their rights, to enable them to decide upon their obligations, and to protect them against false claims. And every interrogatory that was relevant and pertinent in such an examination was material, in the sense that a true answer to it was of the substance of the obligation of the assured. A false answer as to any matter of fact material to the inquiry, would be fraudulent. If it made, with intent to deceive the insurer, would be fraudulent. If it accomplished its result, it would be a fraud effected; if it failed it would be a fraud attempted. 

 2020 \\u2013 Barry Zalma

Barry Zalma, Esq., CFE, now limits his practice to service as an insurance consultant specializing in insurance coverage, insurance claims handling, insurance bad faith and insurance fraud almost equally for insurers and policyholders. He also serves as an arbitrator or mediator for insurance related disputes.