Which of the following is true concerning reinstatement of a life insurance policy?
Asked by: Angelo Hackett | Last update: August 25, 2025Score: 5/5 (20 votes)
What is the reinstatement rule for life insurance?
A life insurance policy may typically be reinstated within 30 days of a lapse without additional paperwork, underwriting, or attestations of health. Insureds often pay a reinstatement premium, which is larger than the original premium.
Which of the following statements about the reinstatement provision is true?
The correct statement about the reinstatement provision is that it requires the policyowner to pay all overdue premiums with interest before the policy is reinstated. Reinstatement provisions typically allow policyholders to reinstate a lapsed insurance policy within a certain period, usually 2-3 years, not 10 years.
When a life insurance policy is to be reinstated, all of the following apply?
When a life insurance policy is to be reinstated, all of the following apply: All back premiums must be paid. This means that the policyholder will need to pay any missed premiums that were not paid during the period the policy was lapsed. The application must be submitted within 3 years of the lapse.
What is the order to reinstate a life insurance policy quizlet?
In order to reinstate, the insured must provide evidence of insurability and the owner must pay all back premiums from the date of lapse plus interest. Reinstatements are designed to put a policy back in force as if the lapse never occurred. Upon reinstatement, a new incontestability period takes effect.
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Which of the following is correct concerning reinstatement of a life insurance policy?
Final answer: The true statement about the reinstatement of a life insurance policy is that companies have the right to require medical examinations. Back premiums typically must be paid, and proof of insurability is usually required.
What happens when you reinstate your insurance?
See if your policy can be reinstated
That means you'll maintain continuous insurance with the policy you had previously. When reinstating, you'll pay the past due balance, and you'll be covered without any lapse.
What is the meaning of reinstatement of insurance policy?
Reinstatement of a policy means restoration of an insurance plan that had been previously cancelled or terminated. The reinstatement of a lapsed Term Plan may come with additional charges, interest, and outstanding premium amounts. This can vary according to the terms and conditions of the insurer.
Which of these is required to reinstate a lapsed policy?
Most insurers will require the following when reinstating a lapsed policy. All past due premiums, plus interest if applicable, must be paid. Any outstanding loans on the lapsed policy may be required to be paid back. Evidence of insurability may be required.
What is the advantage of reinstating an original life policy quizlet?
When the primary beneficiary dies before the insured. What is the advantage of reinstating a life insurance policy as opposed to applying for a new one? Policy premium in a reinstated policy will be set according to the insured's original age.
What is true about a reinstatement provision?
Key Takeaways
The life insurance reinstatement provision allows you to reactivate a lapsed policy. Reinstatement typically requires paying back premiums, accrued interest, and proof of insurability. Benefits of reinstatement include keeping your original rates and avoiding a new policy application.
What is the principle of reinstatement?
If we decide reinstatement is suitable, the employer must follow some rules. They must restore the employee's job to what it was before the dismissal. This means the position has the same pay, benefits and working conditions.
What are the reinstatement value conditions?
Reinstatement Value Conditions/RVCs – refers to clauses commonly found in property insurance policies in terms of which it is agreed that the insurer will accept the value of new property as a measure of the indemnity payment.
What is reinstatement of policy limits?
Aggregate Limits Reinstatement is an insurance policy clause that allows policy limits to be returned to their maximum amount during the policy's extended reporting period.
What does lifetime reinstatement mean?
At Aaron's, your lease includes "Lifetime Reinstatement," which means if you return your products before you complete all of your payments, you can pick back up where you left off with the same or similar condition merchandise whenever you're ready.
What is the initial reinstatement period?
Initial Reinstatement Period (IRP)
The IRP is completed when the individual has received a total of 24 months payable benefits. After completing the IRP, a Title II beneficiary gets a new trial work period (TWP) and an extended period of eligibility (EPE).
When can a life insurance policy be reinstated?
The process and conditions for reinstatement can vary across insurance companies, but here are the general steps and requirements for reinstatement: Act Quickly: Most insurers have a reinstatement period, often ranging from 2 to 5 years from the date of the lapse, during which you can reinstate your policy.
When a life insurance policy is to be reinstated, all of the following apply except?
Final answer: When reinstating a life insurance policy, the insured is generally required to provide evidence of insurability, pay all past-due premiums, and pay back interest on any outstanding policy loan. However, making a collateral assignment to the insurer is not required.
Which of the following is a reinstatement condition?
Final answer: The reinstatement condition for an insurance policy is proof of insurability. This is when insurers require evidence that the individual or property meets their underwriting criteria upon policy lapse.
What is reinstatement process?
Reinstatement is an application submitted to U.S. Citizenship and Immigration Services (USCIS) by a student who has violated their F-1 status to request return to legal student status. A reinstatement application costs $370 and can take approximately five months to be processed by USCIS.
When can a lapsed life insurance policy usually be reinstated on Quizlet?
The policyowner has only a limited period of time—3 years from the date of the last premium due—in which to reinstate a lapsed policy.
What are the two types of reinstatement?
There are two main types of Reinstatement, “Direct” and “Round the Clock”.
What is the reinstatement basis of insurance?
Reinstatement is the repair or replacement of property so that it is in the same condition or a materially equivalent condition to that which it was in prior to the loss occurring. The wording of reinstatement clauses, however, varies from Policy to policy with very different Outcomes for the policyholder.
How many days does an insurance company have to reject a reinstatement?
The insurer has the discretion to approve the application and issue a policy or to reject it. However, if the insurer takes no action either way within 45 days, the policy is considered reinstated automatically.
What is the reinstatement fee?
Reinstatement fee means the fee charged to reinstate an expired certificate or a certificate that was non-renewed based on performance. The appropriate certification fee is also required for reinstatement.