Reinstatement
Definition of "Reinstatement"
Restoration of a policy that has lapsed because of nonpayment of premiums after the grace period has expired. In life insurance the reinstatement time period is three years from the premium due date. The company usually requires the insured to show evidence of continued insurability (for example, by taking a medical examination); to pay all past premiums plus interest due; and to either reinstate or repay any loans that are still outstanding. Because the insured is now older and a new policy would require a higher premium, it may be to the advantage of an insured to reinstate a policy.
Popular Insurance Terms
Insurance purchased from an insurance company that has been licensed in the state in which the policy is purchased. This insurance is purchased through an agent or broker who are licensed ...
Act of stealing. Coverage can be purchased under most property insurance policies such as the homeowners insurance policy. ...
Insurance transactions conducted across national boundaries. Such transactions occur when the insurance company sells insurance outside the country of the company's domicile. ...
Total limit of coverage under all policies applicable to the covered loss for which an insured can be indemnified. For example, if two health insurance policies are in force on the same ...
Same as term Medical Examination: physical checkup required of applicants for life and/or health insurance to ascertain if they meet a company's underwriting standards or should be ...
Small face amount life insurance policy. ...
Insurance company that specializes in underwriting casualty insurance. ...
Division of a sum of money between a deferred annuity and an immediate life annuity certain. ...
Company that buys life insurance policies from policyowners on the lives of insureds who are terminally ill. This type of company pays cash for the life insurance policies, usually in the ...
Have a question or comment?
We're here to help.