| Message |
Author |
|
 Posted: Mon Jan 26, 2009 11:31 am Post subject: difference in replacement and reinstatement clause in the po |
|
|
| I would like to understand difference in replacement and reinstatement clause in the insurance policy and its impact during claim settlement |
|
sandeepkunte
New member
Joined: 26 Jan 2009
Posts: 1
1.31 Dollars($)
|
|
| Posted: Mon Jan 26, 2009 12:38 pm Post subject: |
|
|
Hi dear..
I guess the replacement clause states till what worth the loss would be replaced by your coverage. On the other hand, reinstatement of coverage is mostly about reactivation of the coverage benefits following a stoppage/termination due to non-payment.
Roddick |
|
roddick
Senior member
Joined: 05 Oct 2005
Posts: 611
104.10 Dollars($)
|
|
| Posted: Mon Jan 26, 2009 1:49 pm Post subject: |
|
|
sandeepkunte, kind of sounds like two different topics you've asked about you can have a policy that gives you replacement coverage, or an endorcement that does same, but reinstatement would have to do with the policys status, ie, you were less than ten days late when you made your premium payment so your police was reinstated without a lapse in coverage. please be more specific re: your question and i'm sure we can help you out.
_________________
"Never, never be afraid to do what's right, especially if the well being of a person or animal is at stake. Society's punishments are small compared to the wounds we inflict on our soul when we look the other way." Martin Luther King Jr. |
|
Lori
Moderator
Joined: 10 Sep 2007
Posts: 7540
Location: Missouri
171.70 Dollars($)
|
|
| Posted: Tue Jan 27, 2009 6:44 am Post subject: |
|
|
Reinstatement is when you ask the insurer to put a lapsed policy back into effect with a promise to pay the premium for the entire period. It, however, would depend upon the insurance company's discretion whether or not to allow reinstatement of the plan. As far I know, after a certain period of time even reinstating a plan doesn't remain a feasible option to the policy holder.
Replacement clause of a policy would guarantee that the insurer would replace the damaged object instead of paying the actual cash value for it.
I agree with Lori you have combined two different topics into one. |
|
Juanita
Moderator
Joined: 04 May 2007
Posts: 550
Location: Idaho
112.83 Dollars($)
|
|
| Posted: Tue Jan 27, 2009 12:22 pm Post subject: |
|
|
re-reinstatement as opposed to having to re-issue a policy i think this is both state dependent and carrier...meaning the carrier can be more lenient, in my state it's ten days (auto policys) you have up to ten day after the expiration to pay that premium for it to reinstate it, after that, it lapses and a new policy would have to be issued...
_________________
"Never, never be afraid to do what's right, especially if the well being of a person or animal is at stake. Society's punishments are small compared to the wounds we inflict on our soul when we look the other way." Martin Luther King Jr. |
|
Lori
Moderator
Joined: 10 Sep 2007
Posts: 7540
Location: Missouri
171.70 Dollars($)
|
|
