Washington Life Producer Practice Exam

Carmen can reinstate her lapsed individual life insurance policy within how many years?

1. 1 year

2. 2 years

3. 3 years

4. 5 years

The correct answer is: 3 years

In Washington state, an individual life insurance policyholder like Carmen is allowed to reinstate a lapsed policy within three years from the date of lapse. This provision is designed to provide policyholders a reasonable timeframe to reclaim their insurance coverage, following a missed premium payment or other lapse in the policy. During this reinstatement period, insurers may require proof of insurability, meaning that Carmen would need to demonstrate that her health status has not changed significantly since the policy lapsed. This shows the insurer that they are still willing to face the risk associated with reinstating the policy. The three-year guideline helps ensure that policyholders maintain their coverage while also allowing the insurance company to manage risk effectively. Other timeframes suggested in the choices do not align with Washington’s insurance regulations regarding individual life insurance policies.