Recent Developments: Disability Insurance Policies & Limitation Periods In Nova Scotia

Two recent Nova Scotia decisions have clarified the issue of limitation periods in disability insurance policies and "rolling" limitation periods.

THORNTON V. RBC GENERAL INSURANCE COMPANY, 2014 NSSC 215

In 1998, Unum denied Thornton's application for disability benefits under a group policy issued by Unum (which RBC later assumed responsibility for). In January, 2008, Thornton started an action against Unum as the disability insurer who provided benefits to employees of Volvo Canada. However, the pleadings were never served.

Fast forward to 2012; Thornton filed an amended pleading, replacing Unum with RBC because RBC had assumed Unum's liability for the disability benefits. RBC filed a motion for summary judgment, arguing (in part) that the applicable limitation period had expired.