How many days does an insurance company have to notify a policyholder of a denial of reinstatement before the policy is automatically placed back in force?

The correct answer reflects the specific timeframe within which an insurance company must take action regarding the reinstatement of a policy. In North Carolina, if a policyholder applies for reinstatement of a lapsed policy, the insurance company has a maximum of 45 days to notify the policyholder of any denial. If the company fails to do so, the policy is automatically reinstated.

This rule is designed to protect policyholders from prolonged uncertainty regarding their coverage and ensures that they are informed in a timely manner about decisions related to their insurance policy. Having a definitive period prompting a response from the insurer helps ensure transparency and provides assurance to the policyholder that their interests are being considered.

Understanding this timeframe is critical for policyholders who may need to navigate the reinstatement process and know their rights concerning the insurance policy.