State RegulationsVA specificDifficulty 3/5
A lapsed life policyowner mails only the overdue premium to the insurer, with no application and no evidence of insurability, and declares the policy reinstated. Under Va. Code § 38.2-3311, is she correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Va. Code § 38.2-3311 conditions reinstatement on more than money: the policyowner must furnish evidence of insurability satisfactory to the insurer, pay the arrears with interest at no more than 6% per year, and repay or reinstate any policy debt. Mailing the overdue premium by itself does not restore coverage, and the policyowner who assumes otherwise may find herself without insurance precisely when she believes she is protected. Reinstatement under the statute is a package deal, not a unilateral act.
Why the other options are wrong
- A) Arrears alone do not revive the policy; the statute also requires evidence of insurability and repayment of policy debt.
- B) There is no 31-day passivity rule; reinstatement occurs only when the statutory conditions under Va. Code § 38.2-3311 are satisfied.
- C) Consent without the payment terms is not the statute's formula; the arrears with interest are part of every reinstatement.
Memory hook
Money alone cannot buy back a lapsed policy — health proof and debt payoff come too.