A policyowner wants to reinstate a Pennsylvania life policy that lapsed for non-payment. Under the reinstatement provision cited at 40 P.S. § 510(k), what is generally required?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
The reinstatement provision of the Insurance Company Law, cited by the Pennsylvania Insurance Department's outline at 40 P.S. § 510(k), conditions revival of a lapsed policy on a reinstatement application, evidence of insurability that satisfies the insurer, and payment of the overdue premiums. Reinstatement is not automatic: the insurer is being asked to resume coverage on a life whose health may have changed since issue, which is why the evidence-of-insurability requirement exists. Producers should also warn clients that reinstated coverage carries its own terms, including how the revived policy treats claims arising soon after reinstatement.
Why the other options are wrong
- A) A verbal request does nothing; the provision requires a formal application with evidence of insurability, and the grace period applies before lapse, not after.
- B) Back premiums alone cannot revive lapsed coverage; the insurer is entitled to satisfactory proof that the insured remains insurable.
- D) Assignment to the insurer is not part of reinstatement; the mechanism is an application, evidence of insurability, and payment of overdue premiums under 40 P.S. § 510(k).
Memory hook
To come back from lapse: apply, prove you're insurable, pay what you owe.