LLQP (Life Licence Qualification Program) Practice Exam · Question
When a life insurance policy lapses, what is generally required for 'Reinstatement'?
Reinstatement allows a lapsed policy to be put back in force. Generally, the policyowner must pay all back premiums (plus interest), provide evidence of insurab
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Question: When a life insurance policy lapses, what is generally required for 'Reinstatement'?
Answer options:
- Payment of the current year's premium only and a new application. ✅ Payment of overdue premiums plus interest and evidence of insurability.
- A simple written request to the insurer within 5 years of the lapse.
- Verification that the beneficiary designation has not changed.
Correct answer: Payment of overdue premiums plus interest and evidence of insurability.
Explanation: Reinstatement allows a lapsed policy to be put back in force. Generally, the policyowner must pay all back premiums (plus interest), provide evidence of insurability (a new medical or health declaration), and do so within a specific timeframe (usually 2 years).
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- A life insurance policy that offers lifelong coverage, a guaranteed death benefit, and a savings component tha
- Group benefits in Canada commonly include:
- Sarah, a 35-year-old marketing professional in Ontario, purchases a participating whole life insurance policy
- Mark, a 45-year-old business owner in British Columbia, has a Universal Life policy with a Level Cost of Insur
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