Washington Life Producer Practice Exam 2026 – Complete Prep Guide

The Reinstatement Clause in life insurance policies is designed to allow a policyholder to restore a lapsed policy under certain conditions. To comply with this clause, the policyholder must take two main actions: provide evidence of insurability and pay any past due premiums.

Providing evidence of insurability means that the policyholder needs to demonstrate that they still meet the health requirements set by the insurance company at the time of policy issuance, as their health status may have changed since the policy lapsed. This ensures that the insurer can assess the current risk level associated with reinstating coverage.

Paying past due premiums is crucial because if premiums have not been paid and the policy has lapsed, the insurer requires that these amounts be settled before reinstating the policy. This action guarantees that the coverage is financially supported and acknowledges the policyholder's commitment to maintaining the policy.

Together, these actions ensure that both the insurer and the policyholder are protected and that coverage can continue without undue risk to the insurance company. Options like filing a claim, submitting medical records, or notifying beneficiaries do not align with the requirements outlined in the Reinstatement Clause, which focuses specifically on reinstatement actions related to premiums and insurability.