What indicates a policy owner's right to reinstate a lapsed policy?

A policy owner's right to reinstate a lapsed policy is specifically indicated by the reinstatement provision. This provision is a clause included in the insurance contract that outlines the conditions under which a policy that has lapsed due to non-payment of premiums can be renewed and put back into force.

Typically, the reinstatement provision will specify requirements such as the time frame within which reinstatement can occur, the payment of past due premiums, and possibly evidence of insurability. This gives the policyholder a clear understanding of their rights and obligations should their policy lapse, allowing them an opportunity to regain coverage rather than being forced to start a new policy.

Other options present factors that may affect the policy but do not directly indicate the right to reinstate. The expiration of the grace period refers to the end of the time allowed for premium payments before a policy lapses, while the auto-renewal clause pertains to automatic continuation of coverage rather than reinstating a lapsed policy. Lastly, while obtaining the insurer's consent may be part of the reinstatement process, it does not define the policy owner's inherent right to reinstate under the terms outlined in the reinstatement provision.