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- Reinstatement in insurance means a person's previously terminated policy can resume if the already insured meets the specific requirements for reinstatement1. This may happen after a late payment or an accident that triggers a claim12. A reinstatement clause is part of an insurance policy that stipulates when and how coverage can begin again after a reinstatement2.Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Reinstatement in the insurance industry means a person's previously terminated policy can resume if the already insured meets the specific requirements for reinstatement. Typically insurance companies offer policyholders a grace period for late payments before a policy terminates.www.investopedia.com/terms/r/reinstatement.aspA reinstatement clause is part of an insurance policy that stipulates when coverage can begin again after a recent accident. While filing a current claim from a customer, an insurance company may not want to restart coverage again until the claim is complete, leaving the customer uninsured for that period.www.investopedia.com/terms/r/reinstatement-claus…
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