Minnesota Life Insurance License Practice Exam

To qualify for reinstatement of an individual life policy, which of the following is NOT required?

1. Reinstate the policy within 5 years from the date of premium default

2. Provide proof of insurability

3. Pay all overdue premiums

4. Submit a written application for reinstatement

The correct answer is: Reinstate the policy within 5 years from the date of premium default

To qualify for reinstatement of an individual life policy, it is essential to adhere to specific requirements set forth by insurance laws and policies. One of the key requirements is to ensure that the policy is reinstated within a defined time frame, typically within a period of five years from the date of the premium default. This timeframe is crucial because it provides a clear boundary within which the policyholder can recover their lapsed policy. However, reinstating a policy is contingent upon fulfilling other conditions as well. These include providing proof of insurability, which demonstrates to the insurer that the policyholder's health status has not deteriorated to the extent that it would warrant a risk that is unacceptable for coverage. Paying all overdue premiums is also a necessary step, as it settles the financial obligation that caused the lapse in coverage. Additionally, submitting a written application for reinstatement is required, as it formalizes the request and allows the insurer to review the reinstatement request properly. In this context, the correct response identifies that the reinstatement does not hinge upon satisfying the condition mentioned in the first point, as the specific requirement pertaining to the five-year period is indeed a necessary factor for reinstatement eligibility. It is important for individuals studying for their insurance licensing to recognize these