Final answer:
The Reinstatement provision in an insurance policy is what specifies coverage may be restored if a policyholder fails to pay a premium on time but the insurer accepts a late payment. It's different from the Grace Period, Free-look, or Consideration provisions.
Step-by-step explanation:
When a policyholder fails to pay a renewal premium within the time granted but the insurer decides to accept the payment afterward, this situation is addressed by the Reinstatement provision in an insurance policy. The Reinstatement clause allows lapsed policies to be brought back into force under certain conditions that the policyholder needs to satisfy.
This typically involves filling out a reinstatement application, providing evidence of insurability, and paying all due premiums. It's different from the Grace Period, which is the time immediately after the premium is due in which the payment can be made without penalty and without the policy lapsing. Free-look and Consideration are not relevant to this situation. The Free-look provision allows the policyholder a specified number of days to review the policy and return it for a full refund if not satisfied, while Consideration refers to the exchange of value, in this case, the premium payment for insurance coverage.