Reinstatement
When an insurer restores a policy that was set to cancel, usually after an overdue payment is received.
What it means for your firm
A notice of cancellation for nonpayment usually gives a future cancellation date. If the insurer receives payment before then, it may reinstate the policy without a gap. Rules vary by insurer and state.
Ask for written confirmation, such as a rescission notice, and keep it with your policy.
Guides that use it
Articles that explain it
General definition for education only. It is not an interpretation of any policy or contract, and it is not legal advice. The wording of your own policy and contract controls. Policies and definitions vary by insurance company.
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