What is typically required from the policyowner to reinstate a lapsed policy?

To reinstate a lapsed policy, it is usually necessary for the policyowner to provide proof of insurability and pay any back premiums owed. This process ensures that the insurer has updated information regarding the policyowner's health status, which can affect risk assessment and premium calculations. Payment of back premiums is also required to bring the policy back into good standing, effectively reactivating the coverage that had lapsed due to non-payment.

In many cases, insurers want to verify that the risk they are taking on with reinstatement is still acceptable, as changes in health could alter the policyowner’s insurability. Therefore, proof of insurability acts as a safeguard for both the insurer and the policyowner. By requiring these two elements, insurers can adequately evaluate the risk before reinstating the policy.

The other options do not align with standard practices regarding reinstatement. For example, a new policy application may not be necessary since the policyowner is seeking to revive their existing policy rather than start a new one. Approval from the insurer's board is typically not required for reinstating a lapsed policy, as the process is usually handled directly by the underwriting department. Additionally, immediate reinstatement without any requirements contradicts standard insurance practices and could expose