In the event of a policy cancellation due to non-payment, what can occur after the payment is completed?

When a policy is canceled due to non-payment but the insured later completes payment, reinstatement or a rewrite for changes can occur. Reinstatement refers to the process of restoring the policy to its original terms and conditions, thus allowing coverage to continue as if the cancellation never occurred. This is often subject to the insurer’s guidelines and may involve certain stipulations, such as the payment of any late fees.

Additionally, a rewrite can be considered when modifications to the policy are necessary or desirable. This could include changes to coverage limits or adjusting the terms to better fit the insured’s current needs. This option allows both the insurer and the insured to address any changes that may have developed since the policy was originally issued.

In this context, the other options do not fully address the circumstances surrounding reinstatement or rewriting after non-payment. Automatic renewal may not be applicable since non-payment often leads to cancellation, while starting anew with a different policy does not take into account the potential for reinstatement. Refunds are also typically not issued in these situations, as the policyholder is regaining coverage rather than receiving payments back.