Washington Life Producer Practice Exam

For how long may Tim's lapsed individual life insurance policy be reinstated?

1. 1 year

2. 2 years

3. 3 years

4. 5 years

The correct answer is: 3 years

A lapsed individual life insurance policy can typically be reinstated within a specified period as outlined by insurance regulations and the terms of the policy. In many states, including Washington, the standard period for reinstating a lapsed policy is three years. This allows policyholders the opportunity to restore their coverage without having to reapply for a new policy, provided they meet certain conditions, such as paying back any missed premiums and demonstrating insurability. Reinstatement generally requires the insured to fulfill specific criteria, such as passing a health examination or submitting proof of good health, depending on the policy. This three-year window is a common protection offered to ensure that individuals have time to rectify lapses without losing their insurance benefits entirely. Other time frames such as one year, two years, or five years do not align with the typical provisions found in life insurance policies, thus making the three-year reinstatement period the correct choice in this scenario.