[amp_mcq option1=”Forcing a policy to lapse” option2=”Reinstating a lapsed policy” option3=”Not paying the premiums” option4=”Non-settlement of claim monies” correct=”option2″]<\/p>\n
The correct answer is B. Reinstating a lapsed policy.<\/p>\n
A life insurance policy is said to have lapsed when the policyholder has failed to pay the premiums for a certain period of time, usually 12 months. Once a policy has lapsed, the policyholder will no longer be covered by the policy and will not receive any benefits if they die. However, in some cases, it may be possible to revive a lapsed policy. This means that the policyholder can reinstate the policy and regain coverage.<\/p>\n
To revive a lapsed policy, the policyholder will need to contact the insurance company and pay all of the back premiums. The insurance company may also require the policyholder to take a medical exam and pay a reinstatement fee. Once the policy has been revived, the policyholder will be covered by the policy again.<\/p>\n
Option A is incorrect because forcing a policy to lapse is not the same as reviving a policy. Forcing a policy to lapse means that the insurance company has cancelled the policy because the policyholder has failed to pay the premiums.<\/p>\n
Option C is incorrect because not paying the premiums will cause the policy to lapse.<\/p>\n
Option D is incorrect because non-settlement of claim monies is not the same as reviving a policy. Non-settlement of claim monies means that the insurance company has not paid out the benefits on a life insurance policy.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”Forcing a policy to lapse” option2=”Reinstating a lapsed policy” option3=”Not paying the premiums” option4=”Non-settlement of claim monies” correct=”option2″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[261],"tags":[],"class_list":["post-32043","post","type-post","status-publish","format-standard","hentry","category-insurance","no-featured-image-padding"],"yoast_head":"\n