What happens on reinstatement after a lapse?

• A. The policy is automatically reinstated after a specified time.
• B. Reinstatement has no effect on coverage.
• C. The policy may require evidence of insurability and new conditions or waiting periods.
• D. Reinstatement resets the premium to the original rate regardless of underwriting.

Answer: (C)

Reinstatement after a lapse is not automatic; when you apply to reinstate, the insurer May require evidence of insurability and may impose new conditions or waiting periods. This is to guard against adverse selection and to ensure the risk being covered hasn’t changed in ways that could affect the policy’s terms. The process often involves paying any overdue premiums and potentially a medical review or exam, with benefits for any new conditions possibly delayed by a waiting period or subject to pre-existing-condition limitations. The other options don’t fit because reinstatement isn’t automatically granted, coverage isn’t guaranteed to resume without any restrictions, and premiums aren’t simply reset to the original rate without underwriting considerations.