Which policy provision allows for restoration of coverage if a renewal premium is paid late?

The policy provision that allows for the restoration of coverage if a renewal premium is paid late is the reinstatement provision. This provision provides an opportunity for the policyholder to restore a lapsed policy by paying any overdue premiums, along with any required interest or other charges.

Reinstatement typically comes with certain conditions, such as providing evidence of insurability if required, and it may have specific timelines within which the reinstatement must occur after the policy lapses. By relying on the reinstatement provision, a policyholder can regain their coverage without having to go through the process of applying for a new policy, which could involve new underwriting requirements or a higher premium based on changing health status.

The grace period, while related, specifically refers to the time allowed for the payment of premium after its due date without penalty or loss of coverage. The renewal provision pertains more to the terms under which a policy automatically renews, and the restoration clause is not a commonly standardized term seen in insurance policy language. Thus, the reinstatement provision is the correct term that specifically addresses the ability to restore coverage after a failure to timely pay a renewal premium.