Question

Which of the following is not a condition that μst be met by an owner of a lapsed policy to reinstate it?

a) Payment of outstanding premiums
b) Proof of insurability
c) Payment of a reinstatement fee
d) Cancellation of the policy

Answer 1

Cancellation of the policy is not a condition for reinstating a lapsed policy.

The correct answer is d) Cancellation of the policy. This is because cancellation of the policy is not a condition that must be met by an owner of a lapsed policy to reinstate it. The other three options - payment of outstanding premiums, proof of insurability, and payment of a reinstatement fee - are common requirements for policy reinstatement.