To reinstate a lapsed policy, which combination of actions is typically required?

• A. Complete a medical exam and update beneficiary
• B. Pay current year's premium and sign a new application
• C. Pay past due premiums and provide evidence of insurability
• D. Update beneficiary and obtain new policy number

Answer: (C)

Reinstatement of a lapsed policy hinges on restoring coverage by addressing both the missed payments and the insured’s current risk. The insurer typically requires paying all past-due premiums (often with interest) and submitting evidence of insurability so they can re-evaluate health and underwriting after the lapse. This combination ensures the policyholder brings the policy back into force financially and underwrites the risk again to determine if coverage can continue.

Updating a beneficiary isn’t part of the reinstatement process, and simply paying the current year's premium or signing a new application doesn’t alone restore the policy. Obtaining a new policy number would indicate a new contract rather than reinstating the existing one.