I would think that Spherion would have a fiduciary responsibility to act in the best interests of the insured.
To fail to notify them of a provision which could have been easily met seems to me to be a breach of that fiduciary relationship.

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“ The subjects of every state ought to contribute towards the support of the government, as nearly as possible, in proportion to their respective abilities; that is, in proportion to the revenue which they respectively enjoy under the protection of the state.”

Adam Smith , The Wealth of Nations 1776

"We have always known that heedless self-interest was bad morals; we know now that it is bad economics"
FDR's second Inaugural Address