All of the following are common reinstatement requirements EXCEPT:

• A. Provide evidence of insurability.
• B. Pay all overdue premiums plus interest.
• C. Repay or reinstate any outstanding policy loans.
• D. Repay any cash value received for policy surrender.

Answer: (D)

Reinstatement brings a lapsed policy back to active status, and insurers typically want to verify the risk is still acceptable and that the policy remains financially intact. The usual requirements are catching up on all overdue premiums plus interest to restore the policy to current payment status, and providing evidence of insurability to confirm health hasn’t worsened since issuance. If there are any outstanding policy loans, those are generally required to be repaid (with interest) to restore the policy’s value and guarantees.

Why the cash value surrendered isn’t required: once you surrender and receive the cash value, that money is paid out and the policy is effectively terminated. Reinstatement does not call for returning cash you already received from surrender, so repaying cash value from a surrender isn’t a reinstatement requirement.