In Usanovic v. Penncorp Life Insurance Company, 2017 ONCA 395, the Court of Appeal for Ontario concluded that an insurer has no obligation to advise the insured about the running of a limitation period as part of its duty of good faith. The Court held that although the parties in an insurance contract owe one another a duty of good faith, it does not amount to a fiduciary duty – the insurer has no obligation to consider “the insured’s interests as paramount.”
While the legislatures of some provinces have imposed a statutory obligation to that effect (B.C. and Alberta), there is no such requirement in Ontario. Whether there should be is a matter for the legislature.