A Tennessee insured applies to reinstate a lapsed individual accident and health policy and submits the required premium with a conditional receipt. The insurer neither approves nor disapproves the reinstatement application. When does the reinstated coverage take effect?

Why A is correct

T.C.A. § 56-26-108(4) provides that if the insurer requires a reinstatement application with a conditional receipt, the policy is reinstated upon approval of the application or, absent the insurer's prior written disapproval, on the 45th day after the conditional receipt is issued — whichever is earlier. The statute also reinstates the policy automatically if the insurer accepts a late premium without requiring an application, so insurer silence cannot leave the insured hanging indefinitely.

Why the other options are wrong

• B) 60 days is the legal-actions waiting period after written proof of loss under T.C.A. § 56-26-108(11) (and the premium-credit lookback under § 56-26-108(4)), not the reinstatement backstop.
• C) 90 days is the proof-of-loss deadline under T.C.A. § 56-26-108(7), not a reinstatement trigger.
• D) T.C.A. § 56-26-108(4) supplies an automatic 45-day backstop precisely so that reinstatement does not depend on the insurer's affirmative approval.

Memory hook

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