How long does the insurer have to approve or deny reinstatement of a lapsed policy after a conditional receipt is issued?

The insurer is typically required to approve or deny the reinstatement of a lapsed policy within 45 days from the date of the conditional receipt. This specific timeframe is established to ensure that policyholders receive a timely response regarding their reinstatement requests, providing a level of certainty and clarity about the status of their insurance coverage. The conditional receipt indicates that the insurer has received the application for reinstatement, and the 45-day period allows the insurer sufficient time to assess the application, review any necessary documentation, and make a decision.

The other options suggest longer periods than what is typically required, which may lead to unnecessary delays in the reinstatement process for policyholders. The 45-day timeframe strikes a balance between allowing the insurer to perform their due diligence while also respecting the policyholder’s need for a prompt resolution.