restoring a borrower's credit standing to an acceptable condition. Reinstatement occurs when a borrower has cured a delinquency by making past-due payments plus any applicable penalty fees or late charges. If the account is a bank credit card, the customer's account number is removed from a list of accounts-the warrant-that limits the consumer's ability to use the card. Reinstatement generally is reported to local or national credit bureaus, so that credit reports can be updated accordingly.
restoration of a policy that has lapsed because of nonpayment of premiums after the grace period has expired. In life insurance, the reinstatement time period is three years from the premium due date. The company usually requires the insured to show evidence of continued insurability (for example, by taking a medical examination); to pay all past premiums plus interest due; and to either reinstate or repay any loans that are still outstanding. Because the insured is now older and a new policy would require a higher premium, it may be to the advantage of an insured to reinstate a policy.
in insurance, the restoration of coverage after a policy has lapsed because premium payments have not been made. Typically, life insurance can be reinstated within a three-year period if premiums are paid and subject to evidence of continued insurability.
restoration of a policy that has lapsed because of nonpayment of premiums after the grace period has expired. In life insurance the reinstatement time period is three years from the premium due date. The company usually requires the insured to show evidence of continued insurability (for example, by taking a medical examination); to pay all past premiums plus interest due; and to either reinstate or repay any loans that are still outstanding. Because the insured is now older and a new policy would require a higher premium, it may be to the advantage of an insured to reinstate a policy.
placement of a customer record in active status after having been suspended (see suspend), canceled, expired, or otherwise inactivated. Reinstated subscriptions have usually been canceled for nonpayment and are reinstated when a late payment is received. A subscription renewal that is received after expire, but in enough time to provide unbroken service, will be reinstated rather than treated as a new subscription with no prior customer history.
