Home > Business Law > Abdelhamid v. Fire explains why Cooperation with your Insurer is Important.

Abdelhamid v. Fire explains why Cooperation with your Insurer is Important.

The California Third District Court of Appeals recently decided Abdelhamid v. Fire Insurance Exchange, No. C059098.  This was a homeowner’s action against her insurance company after it denied coverage to her for the fire that burned her house down.  Summary judgment was granted in favor of the insurance company and was affirmed by the appeals court, as the trial court did not err in granting summary judgment on the breach of contract claim.  Plaintiff’s failure to comply with reasonable requests under the insurance policy, constituted material breach of her contractual duties.  Specifically, it was held that in a EUO (Examination under Oath), a party is required to answer material questions from the insurer and cannot simply rely on a blanket response of refusing to answer, based on the advice of counsel.  Additionally, an insurer may be substantially prejudiced by an insured’s failure to produce documentation, failure to answer material questions, failure to submit a complete proof of loss with supporting documentation, and refusal to cooperate, that may under the circumstances justify an outright denial of a claim.

Nothing herein should be construed as legal advice or creating any attorney-client relationship. Please consult with an attorney for specific legal advice. Thank you.

All Rights Reserved © 2010 by Michael L. Mau, Esq.

The Mau Law Firm

Blog: http://maulaw.spaces.live.com

Website: www.MauLaw.com

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Categories: Business Law
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