K failed to pay a renewal premium but later sent a payment that was accepted by the insurer. Which provision specifies that coverage may be restored in this situation?

The concept of reinstatement is central to understanding how coverage can be restored after a lapse due to non-payment of premiums. When an insurer accepts a late payment after the due date for a renewal premium, the reinstatement provision comes into play. This provision allows the policy to be reinstated, which means that the coverage is reinstated to its previous state, allowing the insured to continue to receive benefits under the policy as if there had not been a lapse.

Reinstatement typically requires adherence to specific conditions, which may include the payment of any past due premiums and possibly providing evidence of insurability. This provision is crucial for policyholders because it provides a pathway to regain coverage without starting anew, thus preserving their previous health insurance benefits.

The other options relate to different aspects of insurance policy management. The renewal clause generally outlines the terms under which a policy is renewed but doesn't specifically address coverage restoration after a lapse. The grace period refers to the allotted time frame after the premium due date during which payment can still be made without penalty, but it does not address what happens after that period if payment is not made. Grace restoration, while it sounds similar, is not a standard term used in insurance and does not specifically apply to the situation at hand.