Glossary
Reinstatement
Restoring a cancelled policy to active status, typically after the insured pays overdue premium within an allowed window.
Reinstatement puts coverage back in force, often with or without a lapse in coverage depending on the carrier's rules and the state. Where a lapse occurred, the gap in coverage is permanent even though the policy resumes.
For reconciliation, a reinstatement reverses a reversal: the chargeback taken at cancellation is itself credited back. A policy that cancels and reinstates within a quarter can generate four separate commission lines, and matching them into a coherent history is exactly the kind of work that consumes reconciliation time.
See also
- Cancellation — The termination of a policy before its expiration date, initiated by the insured or by the carrier for reasons such as n…
- Lapse — A gap in coverage caused by a policy terminating — usually for non-payment — before a replacement or reinstatement takes…
- Chargeback — A reversal of a previously paid commission, typically because a policy was canceled, downgraded, or the premium was retu…