Health Insurance Mastery Practice Exam

If an insured lets a health policy lapse and wishes to reinstate it with a conditional receipt, after how many days will the policy be considered reinstated if the insurance company takes no action?

1. 30 days

2. 45 days

3. 60 days

4. 90 days

The correct answer is: 45 days

A health insurance policy that has lapsed can be reinstated if the insured pays the required premium and a conditional receipt is issued. In this scenario, if the insurance company does not take any action within a specified timeframe, the policy is automatically considered reinstated. The correct answer indicates that this period is 45 days. This 45-day timeframe is established to provide a balance between allowing the insurance company adequate time to review the reinstatement request and ensuring that the insured maintains coverage without an excessive delay. By having this rule in place, it encourages both parties to act promptly; the insured can secure their coverage again, and the insurance company can manage risk while assessing the application for reinstatement. It is essential for policyholders to understand these timelines, as they play a critical role in determining when coverage is reinstated and what steps need to be taken to avoid gaps in coverage.