L&HNJmedium
Under New Jersey mandatory life provisions, what must a policyowner generally do to reinstate a lapsed life policy?
APay only the next scheduled premium going forward, with no need to clear past-due amounts or prove insurability to the insurer
BWait one full year after lapse, then automatically reinstate
Provide evidence of insurability, pay all overdue premiums with interest, and apply within the statutory window
DFile a new application with DOBI before paying any premium
Why this is the answer
N.J.S.A. 17B:25-3 requires every NJ life policy to include a reinstatement provision. The owner must apply within the statutory window, furnish satisfactory evidence of insurability, and pay all overdue premiums plus interest and repay any loan balance.
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