A deposit premium. A premium paid at inception of the insurance with intention of adjustment to correct the premium later.
A deposit premium. A premium paid at inception of the insurance with intention of adjustment to correct the premium later.
(1) Restoring a lapsed policy and putting it back in force. The reinstatement may be effective after the cancellation date, creating a lapse of coverage. Some companies require evidence of insurability and payment of past due premiums plus interest.
(2) A practice whereby the amount which has been the subject of a claim is reinstated in the policy on payment of an additional premium, thus reverting the amount of cover which was reduced by the claim to the original sum insured.