Final answer:
The true statement about the conditions to reinstate a lapsed life insurance policy is that reinstatement may require evidence of insurability. It is not automatic, guaranteed, nor possible if death occurs during the lapse period.
Step-by-step explanation:
Among the options listed regarding the conditions to reinstate a lapsed life insurance policy, statement b) Reinstatement may require evidence of insurability is true. When a life insurance policy lapses, typically due to non-payment of premiums, it is not automatically reinstated after the grace period. Instead, the policyholder must usually apply for reinstatement, which can involve providing evidence that they are still insurable. This evidence of insurability could include a medical examination or health questionnaire, depending on the insurance company's policies. Reinstatement is not guaranteed and the insurance company will assess the risk before allowing the policy to be reinstated.
Options a), c), and d) are incorrect. Reinstatement is not automatic and is not always granted. Also, reinstatement is certainly not possible if death occurs during the lapse period, as the purpose of the insurance is no longer applicable once the insured person has passed away.