The Research On Reinstatement Provision Of Life Insurance Contract

If the policy-holder postpone to pay the other premiums excluding the first installment premium,the validity of the contract shall be suspended by the insurer or after the statutory period.After the suspension,the contract shall come back to effect at the time which the applicant pays back the premium with the consent of the insurer.For the conditions of reinstatement,upon the Insurance Law in China,it demands the consent of the insurer,and the insurer holds the decision-making power of reinstatement.And for reinstatement procedures,it sets double restrictions on the re-application,as the applicant and time;the range of premiums paid is not yet clear.Even if the Article 8 of the Third Judicial Interprtation of Insurance Law restricts the consent of the insurer from the conditions and procedure of consent,due to the contradiction and omission of the legislation,the system of lapse and reinstatement is still in an embarrassing situation where it is rarely applicable or even difficult to apply.Moreover,the nature of the suspension and reinstatement rules is vague so that it is not clear that the effect of the parties agreed on the exclusion of the application of the system or the limitation of the terms and conditions stipulated by the law.There are several questions which the legislation does not give the answers,as when the contract should be reinstated,whether the contract can be suspended again after the reinstatement,whether the time of reinstatement has impact on the special period.In view of the above problems,first of all,clear the nature of the suspension and reinstatement rules.As tumbling relief clause,it is semi-mandatory.The parties shall not make an agreement that is not conducive to the insured.Second,improve the conditions of reinstatement.On the one hand clear the insurer's urging responsibility.On the other hand,limit the consent of the insurer and only when the insured does not satisfy the "general rational insurer standards" of the insurability,the insurer can refuse to replenish.Again,standardize the procedures for re-application.Expand the scope of the applicant for re-application,enlarge the time limit of the application,establish the applicant's obligation of truthfully informing and clarify the verification liability of the insurer in time.The premium should be paid including the premiums and interests during the suspension period.Finally,make rules for the effect of reinstatement.As the time of reinstatement should be unified,the nature of the insurance contract after the reinstatement is the continuation of the original contract and the rule of suspension and reinstatement can be applied again.The grace period is not affected by the date of reinstatement.However,the period of exemption shall be resumed.Only through the continuous discussion of the above-mentioned legislative disputes and gaps,we could improve the system of lapse and reinstatement of life insurance,balance the interests of the policy-holder,the insured,the beneficiaries and the insurer so as to achieve the security functions of system and promote the development of the insurance industry.