Primerica Life Producer Practice Test

When a life insurance policy has lapsed, who is responsible for requesting the reinstatement application?

1. The insurer is responsible for providing the application

2. The policyowner must submit a new policy application

3. The policyowner must request the reinstatement application

4. The insurer initiates the reinstatement automatically

The correct answer is: The policyowner must request the reinstatement application

When a life insurance policy has lapsed, it is the policyowner's responsibility to request the reinstatement application. This process typically involves the policyowner reaching out to the insurer to express their intention to reinstate the lapsed policy. The insurer may provide specific requirements or forms to complete the reinstatement process, but the initiative to request reinstatement lies with the policyowner. This requirement emphasizes the importance of the policyowner's engagement in maintaining their insurance coverage. Insurers usually do not automatically initiate reinstatement after a lapse, as they must first be informed of the policyowner's desire to reinstate the policy. Therefore, understanding the policyowner's role in this situation is crucial for effectively managing life insurance policies.