Question 13

Lapsed individual life insurance may be reinstated at any time within 3 years.

Lapsed individual life insurance can be reinstated within a period of 3 years. This time frame allows policyholders the opportunity to restore their coverage without having to reapply for a new policy.

A) 2 years.

Option A is incorrect because the reinstatement period for lapsed individual life insurance is longer than 2 years. Policies typically allow for reinstatement for a minimum of 3 years, making this option insufficient for reinstating coverage.

B) 3 years.

Option B is correct as it accurately reflects the standard reinstatement period for lapsed individual life insurance. This 3-year period is designed to provide policyholders with adequate time to regain their coverage after it has lapsed.

C) 4 years.

Option C is incorrect because it exceeds the typical reinstatement period for lapsed individual life insurance. The standard period is 3 years, thus making 4 years an invalid option for reinstatement.

D) 5 years.

Option D is also incorrect as it extends beyond the allowable reinstatement timeframe for lapsed individual life insurance. Policies generally do not permit reinstatement beyond the 3-year limit, rendering this option invalid.

Conclusion

In conclusion, Option B is definitively the correct choice as it aligns with the established guidelines for reinstating lapsed individual life insurance, which is set at a maximum of 3 years. All other options fail to meet this requirement, either being too short or too long, thus confirming Option B as the only valid answer.