Policy Reinstatement financial definition of Policy Reinstatement

The Reinstatement Clause

Definition of automatic reinstatement clause: A clause stating that the original policy limit will be reinstated after partial losses covered by the. Generally speaking, a policyholder is under no legal obligation to make premium payments, but if he/she fails to do so, the insurer has the right to rescind the policy. Reinstatement may require proof of continued eligibility for the policy and may also require the policyholder to pay. What is 'Reinstatement' Reinstatement is the process of re-establishing the status of a person, company or law. 2. In regards to insurance, reinstatement allows a previously terminated policy to resume active coverage. Reinsurance limits can be reinstated by adding a reinstatement provision to the policy. Reinstatements in Reinsurance. A reinstatement clause allows the. Depending on the circumstance of the termination, such as failure to pay the premium, the insured person may be required to compensate the insurer before reinstatement occurs. Next Up BREAKING DOWN 'Reinstatement' 1.

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What is Reinstatement clause? A contract in life insurance that allows a policy that has lapsed to be reinstated.

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DEFINITION of Reinstatement Clause An insurance policy clause that states when coverage terms are reset after the insured files a claim. Reinstatement clauses.

Policy reinstatement clause
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