Within two years of a premium default, an individual life insurance policyowner in California applies to reinstate the lapsed policy. Which of the following is required for reinstatement under California law?

Why A is correct

California's standard reinstatement provision, as tested on the California life exam, allows reinstatement within two years from the default date upon: written application, evidence of insurability satisfactory to the insurer, and payment of the overdue premiums (with interest). The insured must show they are still insurable — the insurer does not have to reinstate an uninsurable risk, but within the window the right exists if the conditions are met.

Why the other options are wrong

• B) Evidence of insurability is a statutory requirement; reinstatement is not automatic upon payment alone.
• C) A full new application and medical exam are not required in every case — the insurer requests evidence of insurability 'satisfactory to it.' (Note: reinstatement generally does open a new contestability period, but the statutory prerequisites for reinstatement remain written application, insurability, and payment.)
• D) Lack of lapse notice is irrelevant to the reinstatement conditions; the statutory criteria are application, insurability, and payment.

Memory hook

Reinstate within 2 years = apply in writing, prove insurability, pay the arrears. Three keys, one door, and the original policy comes back.