What is the difference between rewrite and reinstatement?


Editorial team Published on

A reinstatement restores an existing cancelled insurance policy back to active status with no break in coverage, while a rewrite cancels an old policy and replaces it with a brand-new policy, often creating a new policy number or coverage gap.

Reinstatement

  • Definition: Brings a lapsed or terminated policy back to life.
  • Continuity: Keeps the exact same policy number, original effective date, and original expiration date.
  • Coverage: Maintains continuous coverage with no lapse (if processed within the allowed grace period).
  • Common Use: A customer pays a late premium after a brief non-payment cancellation.

Rewrite

  • Definition: Creates an entirely new policy period or replacement contract when modifications or corrections are too major for a standard endorsement.
  • Continuity: May generate a new policy number or new account details, and often introduces a coverage gap or altered term dates.
  • Coverage: Replaces the old terms entirely (can be full-term or mid-term).
  • Common Use: Correcting fundamental submission errors (like wrong payroll or location) or handling a long lapse in coverage where reinstatement rules no longer apply.