What is reinstatement in the context of a health insurance policy?

• A. The process to restore a lapsed policy, usually after paying back premiums and possibly providing evidence of insurability.
• B. A rider to extend coverage to include additional benefits.
• C. A policy that never lapses.
• D. The cancellation of a policy by the insurer.

Answer: (A)

Reinstatement lets you bring a health insurance policy back into force after it has lapsed due to missed premiums. If you let the premium go unpaid and the policy lapses, you can usually apply within a defined period to have it reinstated. This process typically requires you to pay back any overdue premiums and may include providing evidence of insurability (a medical questions or exam) to confirm you’re still eligible for coverage. If reinstated, the policy generally resumes with the same benefits and coverage as before, subject to the policy’s terms and any waiting periods or exclusions for new conditions. This is different from adding a rider to extend coverage, from a policy that never lapses, or from cancellation by the insurer.