Question 34

Permission of the primary beneficiary is not required to reinstate a lapsed policy.

Reinstating a lapsed policy generally requires certain financial obligations and evidence of insurability, but not the permission of the primary beneficiary.

A) Permission of the primary beneficiary.

This option is correct because reinstating a lapsed policy does not necessitate obtaining permission from the primary beneficiary. The policyholder is primarily responsible for meeting the requirements for reinstatement, which do not include beneficiary consent.

B) Payment of past-due interest.

This option is incorrect because payment of past-due interest is typically a requirement for reinstating a lapsed policy. Insurers often require the policyholder to settle any accumulated interest on unpaid premiums before allowing reinstatement.

C) Payment of back premiums.

This option is incorrect as well, since payment of back premiums is generally necessary to reinstate a lapsed policy. Insurers expect policyholders to bring their payments up to date as part of the reinstatement process.

D) Evidence of insurability.

This option is also incorrect because providing evidence of insurability is often required to ensure that the insured still qualifies for the policy based on their current health status. Insurers need to assess risk before reinstating coverage.

Conclusion

The option regarding the permission of the primary beneficiary is definitively correct, as it is not a requirement for reinstating a lapsed policy. In contrast, all other options involve financial obligations or assessments that are essential for reinstatement, underscoring the importance of fulfilling these conditions to regain policy coverage.