The respondent was insured under an accidental death and dismemberment policy and submitted a claim for the loss of use of her leg.
The appellant insurer rejected the claim.
The respondent commenced an action slightly more than a year after submitting her proof of claim, but less than a year after the rejection.
The appellant moved for summary judgment, arguing the action was barred by the one-year limitation period in s. 206(1) of the Insurance Act.
The motion judge dismissed the motion, holding the period began upon unequivocal rejection.
The Court of Appeal allowed the appeal, holding that the limitation period begins to run when the insurer receives sufficient evidence to assess the claim, not upon rejection, and that the discoverability principle does not apply to this statutory provision.