What is required for the reinstatement of an individual health insurance plan?

For the reinstatement of an individual health insurance plan, the requirement of payment of premium and evidence of insurability is aligned with standard practices in insurance policies. When an insurance policy lapses due to non-payment of premiums, most insurers require that the policyholder not only brings their premium payments up to date but also provides evidence that they are still insurable. This is important because the insurer needs to ensure that the individual does not represent a higher risk than when they originally obtained the policy, which could have changed during the time the policy was not in force.

Payment of premium ensures that the insurer receives compensation for the coverage provided, while evidence of insurability might include health declarations or medical examinations, depending on the insurer's requirements. This process protects the insurer from potential losses while allowing the policyholder the opportunity to reinstate their coverage under reasonable terms.

Reinstatement fees usually apply to certain types of policies but aren't universally a requirement for reinstatement. Automatic reinstatement without any stipulations would not adequately protect an insurer's financial interests and thus is typically not the case in individual health insurance plans.