If you're reading this with a denial letter in front of you and the company that denied you is American, you likely have one question above all others.

Am I out of luck?

You're not. Canadian law still protects you. But there's one deadline that matters more than anything else on this page.

This is probably what happened

You work in Canada for the Canadian arm of an American company. You were told you had long-term disability coverage. You got sick or injured and filed a claim.

Then things got strange. The letters come from one company, but your booklet names another. The person you reach in Canada is friendly but can't tell you anything, and eventually says the decision is being made "in the US."

That isn't a mix-up. Your coverage is likely attached to your employer's American group policy rather than a Canadian one. The insurer may not have an office here and often may not have a Canadian licence. A Canadian company handles the paperwork but isn't permitted to decide your claim.

Canada's financial regulator has confirmed this structure is lawful, provided the insurer keeps the real work outside Canada — underwriting, and assessing and paying claims. The Canadian side is limited to "liaison" functions and cannot bind the insurer.

So when the Canadian office says it can't help you, that's literally true.

Names you may recognize

These are companies we've seen in Canadian files. Naming them isn't an accusation — these arrangements are legal. It's so you can recognize your own situation.

The Prudential Insurance Company of America. Canada's regulator records that Prudential's authority to insure Canadian risks was revoked effective December 31, 2010. Yet Canadians are again being covered under Prudential group disability policies.

Cigna, and now New York Life. In December 2020, New York Life bought Cigna's group life, accident and disability business for $6.3 billion, renaming it New York Life Group Benefit Solutions. Life Insurance Company of North America came with that sale and appears on many booklets. If your claim began under Cigna, your file may now sit elsewhere.

You may also see a third-party administrator — a Canadian company that runs your plan's paperwork without being your insurer.

The deadline is urgent

Please read this even if you skip the rest.

In Ontario you generally have two years to sue a disability insurer under theLimitations Act, 2002. Some policies allow less. Other provinces set their own limits. And Ontario's Court of Appeal has confirmed that a clear denial isn't required for the clock to start running.

Cross-border claims are especially risky, because delay feels normal. Documents cross a border, adjusters change, appeals stretch on. It's easy to believe your file is moving when your time to act is draining away. If you're waiting on another internal appeal, get advice about your deadline now — not after it concludes.

Why these claims go wrong

Often nobody is acting in bad faith. It's what happens when a Canadian's health claim is judged by people who've never worked in our health system. American forms don't match Canadian medical records, and gaps get read as missing evidence. A six-month specialist wait is ordinary here but can look like someone not pursuing treatment.

Watch the CPP disability piece. Most policies deduct CPP disability from your monthly benefit rather than adding it, and many require you to apply. When approval arrives with a lump sum for past months, insurers often demand that money back. Don't assume an overpayment figure is correct.

What Canadian law says

Where the policy was printed doesn't decide which law applies. Ontario's Insurance Act deems a contract covering an Ontario resident's insurable interest to be made in Ontario.

A contract generally can't force you to sue abroad. In 2026, Ontario's Court of Appeal voided a clause requiring an Ontario worker to litigate in England.

Insurers owe you good faith. In Fidler v. Sun Life, the Supreme Court of Canada upheld damages for mental distress against an insurer that wrongly cut off benefits. Your employer may share responsibility too — and federally regulated employers must insure disability plans with a provincially licensed insurer.

What to do this week

Ask your employer in writing for the full group policy, not the booklet, which often omits the language that decides your claim. Write down which company is named as insurer, which sends your letters, and where decisions are made. Note the date of your first denial or cut-off — that date drives your deadline.

Where we come in

We're Canadian disability lawyers. We act for employees and claimants, never insurers.

We won't claim we've run hundreds of files against American carriers — this arrangement is only now spreading here. What we can tell you is that we understand it: why your insurer is American, why the Canadian office can't help, and what Canadian law says about your rights regardless. That's hard to find elsewhere, because searching mostly turns up American firms explaining American appeal rights that don't apply to you.

The worst thing you can do is wait for a decision from another country while your Canadian deadline expires.

Canadian law still applies to Canadian workers. It just has to be used in time.

Contact Share Lawyers today and let our experience work for you. Our 40 years of experience can help you win your case against Canada Life, Desjardins, Manulife, RBC Insurance, Sun Life, and other insurance companies. Our legal team offers a free consultation and works on a contingency basis—there are no fees unless you win your case.