Sworn Proof of Loss: What’s That?

A sworn statement in proof of loss is a document that policyholders are required to complete and sign in order to prove their loss or damages in an insurance claim. The purpose of the sworn statement is to provide the insurer with a detailed description of the loss and its cause, as well as the amount of damages suffered. This statement is a requirement under most insurance policies, and failing to provide one when requested by the insurer can result in the denial of a claim.

While it may seem like a straightforward requirement, there are some pitfalls to keep in mind. Policyholders need to be aware that the information they provide in the sworn statement can be used against them in court. This is because the statement is a sworn statement, meaning it is made under oath and subject to perjury laws. As such, policyholders need to ensure that the information provided is true, accurate, and complete.

The sworn statement in proof of loss has been in use for many years, and while it once served a useful purpose in ensuring that insurance claims were properly documented, it is now considered by many to be an antiquated practice. In fact, the National Association of Insurance Commissioners has recommended that the use of the sworn statement in proof of loss be eliminated altogether, in favor of more modern methods of documenting claims.

Despite its limited usefulness, policyholders must still comply with the sworn statement requirement under their policies. Failure to comply can result in the insurer denying the claim if the failure to comply is found to be prejudicial. This means that if the insurer can show that it was harmed in some way by the policyholder’s failure to provide the sworn statement, it can use that failure as a basis for denying the claim. Rest assured, if you fail to comply by failing to complete a sworn statement in proof of loss after your insurer has requested it, your insurer will allege that such failure was prejudicial in some way. 

In practice, the use of sworn statements in proof of loss has diminished, and many insurers now rely on other methods to document claims. These methods may include photographs, video recordings, and other types of documentation that provide detailed information about the loss or damage. While these methods are generally considered to be more reliable and efficient, policyholders should still be prepared to provide a sworn statement if requested by their insurer.

In summary, a sworn statement in proof of loss is a document that policyholders are required to complete and sign in order to prove their loss or damages in an insurance claim. While it may seem like a simple requirement, policyholders need to be aware of the potential consequences of providing inaccurate or incomplete information. While the use of sworn statements has diminished, policyholders must still comply with the requirement under their policies, or risk having their claim denied if the insurer can show that it was prejudiced by the failure to provide the statement. If you have any questions about sworn statements or any other aspect of your insurance claim, please do not hesitate to contact the experienced attorneys at Parrish Law.