All the following are common reinstatement requirements EXCEPT

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

Answer: (B)

Reinstatement of a lapsed life insurance policy is about restoring the contract by bringing it back to force under conditions that protect the insurer and the policyholder. Common requirements include paying all overdue premiums plus interest to bring the policy current, providing evidence of insurability to confirm you still qualify for coverage, and addressing any outstanding policy loans by repaying them or reinstating the loan terms. These steps focus on restoring the policy’s financial and risk status.

Repaying or reinstating outstanding policy loans is part of that process because loans reduce the policy’s value and death benefit, so bringing the loan balance current is essential to reinstating full coverage. Providing evidence of insurability ensures the insurer is comfortable with the applicant’s current health.

The cash value received for policy surrender, however, is what you get when you surrender the policy; once surrendered, the policy generally cannot be reinstated. Requiring repayment of cash value in a reinstatement process does not fit how reinstatement typically works, which is why that item is the exception.