New Jersey Life Producer Law Practice Test

Question: 1 / 400

How does one typically reinstate a lapsed life insurance policy?

By contacting the insurer after one year

By applying for reinstatement and paying owed premiums within a specified period

The process of reinstating a lapsed life insurance policy generally involves applying for reinstatement and fulfilling certain conditions, which typically include paying any outstanding premiums within a specified time frame. Life insurance policies often have a grace period after a premium payment is missed. If this period lapses, the policy can become inactive or lapsed.

In many cases, insurers allow policyholders to reinstate their coverage by demonstrating insurability—often through a medical questionnaire or examination—and by settling any overdue premiums. This reinstatement period can vary by the insurer but often ranges from a few months to a couple of years following the lapse.

This option reflects the necessary actions that must be taken in order to restore the policy to active status, ensuring that the insured maintains coverage without needing to apply anew or start over.

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By renewing the policy automatically every year

By submitting a new application for coverage

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