New Jersey Life Insurance Exam Practice Question
A reinstatement clause outlines reinstatement conditions that include
Correct Answer: C
Rationale: A reinstatement clause typically requires proof of insurability to ensure that the insured still meets the health criteria for coverage after a lapse.
Option A, a higher premium charge, is not standard in reinstatement clauses; premiums usually revert to original amounts. Option B, payment of outstanding loans, may be relevant but is not a core condition of reinstatement; it focuses more on policy status than on eligibility. Option D, a decrease in policy limits, is inaccurate as reinstatement generally restores original terms rather than altering them. Thus, proof of insurability is essential for reinstatement.
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