State RegulationsMA specificDifficulty 2/5
A policyholder whose health has declined since issue applies to reinstate a lapsed Massachusetts life policy. What may the insurer do under M.G.L. c. 175, § 132(11)?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Reinstatement under M.G.L. c. 175, § 132(11) is conditioned on evidence of insurability, and that requirement does exactly the work this scenario suggests: because the lapse ended the insurer's protected risk, the insurer may look again at the insured's health before agreeing to put the old contract back in force. The policyholder's health decline since issue is precisely what the evidence requirement is designed to surface. Reinstatement is therefore an application the insurer can evaluate, not a mechanical restoration on demand.
Why the other options are wrong
- A) Automatic reinstatement on request would erase the statute's evidence-of-insurability condition under M.G.L. c. 175, § 132(11).
- B) The statute provides for evidence of insurability and payment of arrears with interest, not a surcharge that substitutes for underwriting.
- D) Employment status is irrelevant; the statutory condition is the insured's insurability, not an employer certification.
Memory hook
Reinstatement reopens the health question — the insurer may ask for proof.