When does the insurer invoke the limitation period?

• A. When the policy lapses
• B. When the insured dies
• C. When there is a dispute about coverage
• D. When a claim was not made in a timely fashion according to applicable provincial legislation

Answer: (D)

Limitation periods are time limits set by provincial law for bringing a claim against an insurer after a loss or event. The insurer can invoke this deadline to deny payment if a claim isn’t filed within the statutory window. This is a legal deadline, separate from what happens to the policy itself or the event that triggered the claim.

That’s why the timing matters here: the key factor is whether a claim was made within the applicable provincial timeframe. The other options don’t create or govern that deadline. A policy lapses affects whether coverage exists under the contract, not the statutory deadline to sue. The insured dying is the event that creates the potential claim, not the deadline itself. A dispute about coverage may lead to a claim, but the limitation period is still the statutory period within which the claim must be filed or sued.