Question

John owned a term life insurance policy on his own life. The policy was terminated by the insurer for non-payment of premiums after the 30-day grace period. His agent informed him that the cancellation was not final.

Which of the following is not a condition for reinstatement of John's policy?

a) Apply for reinstatement within two years of the cancellation date
b) Pay the unpaid premiums
c) Prove medical insurability requirements to the satisfaction of the insurer
d) Provide a justification for missing the premium payment

Answer 1

The condition that is not required for the reinstatement of John's policy is 'providing a justification for missing the premium payment'. Conditions that are typically required include applying for reinstatement within a specific time frame, paying all unpaid premiums, and proving medical insurability.

Step-by-step explanation:

Conditions for Reinstatement of a Life Insurance Policy

The conditions for reinstatement of John's term life insurance policy after it was terminated for non-payment of premiums include the following:

• Applying for reinstatement within two years of the policy's cancellation date.
• Paying all unpaid premiums that are due.
• Providing proof of insurability, which typically means meeting medical underwriting requirements to the satisfaction of the insurer.

The option that is not a condition for reinstatement is providing a justification for missing the premium payment. While it may be helpful to explain the situation to the insurer, it is generally not a formal requirement for reinstatement.