Reinstatement
/ree-in-STAYT-muhnt/
Restoring a lapsed insurance policy.
Definition
Reinstatement is the process of restoring a lapsed insurance policy to active status. Requirements vary by insurer and may include paying past-due premiums, a reinstatement fee, proof of insurability (for life insurance), and a waiting period.
Example
After her policy lapsed, she was able to reinstate it by paying the overdue premiums plus a $50 fee.
More General Terms Terms
The amount you pay for your insurance policy.
The amount you pay out-of-pocket before insurance kicks in.
The contract between you and your insurance company.
A request for payment under your insurance policy.
The protection provided by your insurance policy.
The maximum amount an insurer will pay for a covered loss.
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