What can trigger a new incontestable period during the reinstatement of a policy?

When a policy is reinstated, a new incontestable period can be triggered by submitting a new application. This process typically involves the insurer reassessing the risk associated with the policyholder based on their current health status and any other relevant factors. A new application provides the insurer with up-to-date information, which can change the terms of coverage or the risk assessment, thereby starting a fresh incontestable period.

The incontestable clause is important because it allows the insurer a certain period, usually two years, during which they can contest claims based on misrepresentations or omissions made during the application process. By submitting a new application at the time of reinstatement, the insurer effectively resets this period, which adds a layer of security for the insurer regarding the accuracy of the information being provided.

On the other hand, paying missed premiums or providing health updates does not independently initiate a new incontestable period, as these actions do not involve a reassessment of the policyholder's risk through a new application. Paying back policy loans also does not impact the incontestable status; it is merely an adjustment to the financial responsibilities under the policy.