Final answer:
After a policy lapse, the reinstatement provision requires a policyholder to meet certain requirements to bring the policy back up to date within a specified period. Conditions may include paying back premiums and evidence of insurability.
Step-by-step explanation:
After a policy lapse, the reinstatement provision sets forth the requirement to bring the policy back up to date within a certain period. This is generally a clause in an insurance policy that allows the policyholder to reinstate the policy under certain conditions if it has been canceled due to non-payment of premiums. The policyholder may need to provide evidence of insurability, pay back premiums, and possibly pay a penalty.
Policyholders are often given a grace period during which they can reinstate their policy without facing additional consequences, but there usually is a final reinstatement deadline after which the policy cannot be reinstated. Policyholders must act within this period if they wish to maintain their coverage without having to purchase a new policy.