Upon reinstatement after a lapse, what may occur regarding pre-existing conditions?

• A. No changes to coverage; reinstatement guarantees the original terms.
• B. New conditions or waiting periods may apply.
• C. Reinstatement is prohibited after any lapse.
• D. Premium increases but coverage terms remain the same.

Answer: (B)

When you reinstate coverage after a lapse, the insurer may reassess your insurability and apply new conditions to the policy. Pre-existing conditions are commonly subject to waiting periods or exclusions after reinstatement, since the company is now evaluating risk again. This means a condition you had before reinstatement could be limited in coverage for a set period or not covered until the waiting period ends. Because of that underwriting possibility, it’s not guaranteed that coverage terms will be exactly the same as before, and some new conditions or waiting periods may apply.