What is generally required for reinstatement of a lapsed policy?

For the reinstatement of a lapsed policy, the requirement for evidence of insurability is crucial. This means that the insured must provide proof that they are still eligible for coverage and acceptable risks despite the policy's lapse. Insurance companies typically require evidence of insurability to assess any changes in the health status of the insured since the policy lapsed, ensuring that they can still underwrite the risk appropriately.

By requiring proof of insurability, insurers can mitigate the risk of adverse selection, where individuals who are aware of their deteriorating health seek to reinstate their coverage. In this way, the insurer is protected from having to pay claims for conditions that may have developed during the lapse.

While payment of all past due premiums is often needed for reinstatement, it is not sufficient on its own without a demonstration of the insured's current health status. Approval from a designated insurer and completing a new application can be part of the reinstatement process, but the core aspect of demonstrating insurability is essential in most cases to ensure that the insurance coverage remains valid and equitable for the policyholder and the insurer alike.