When reinstating a lapsed policy, which of the following is typically required?

When reinstating a lapsed policy, which of the following is typically required?

• A. Surrender and reapply.
• B. Payment of overdue premiums and interest plus proof of insurability.
• C. No medical underwriting.
• D. Automatic reinstatement after 60 days.

Answer: (B)

Reinstating a lapsed policy typically requires paying the overdue premiums plus interest and providing proof of insurability. The overdue amount with interest brings the policy back to current status financially, while proof of insurability lets the insurer reassess the insured’s health and risk since the original issue. Underwriting may involve a medical exam or health questionnaire. Automatic reinstatement isn’t standard, and simply surrendering the policy and reapplying would be treated as a new policy, not reinstatement.

Reinstating a lapsed policy typically requires paying the overdue premiums plus interest and providing proof of insurability. The overdue amount with interest brings the policy back to current status financially, while proof of insurability lets the insurer reassess the insured’s health and risk since the original issue. Underwriting may involve a medical exam or health questionnaire. Automatic reinstatement isn’t standard, and simply surrendering the policy and reapplying would be treated as a new policy, not reinstatement.