What condition must be met for a person to reinstate a lapsed insurance policy?

To reinstate a lapsed insurance policy, one of the primary conditions that is typically required is the provision of proof of insurability. This means that the policyholder must demonstrate that they are still eligible for coverage based on their current health status and risk factors. Insurance companies want to assess any changes in the policyholder's situation since the policy lapsed.

This requirement is in place to ensure that the insurer can accurately evaluate the risk they are taking on by reinstating a policy. If the lapsed policy is reinstated without proof of insurability, the insurer may open itself up to undue risk, especially if the insured’s health has declined significantly since the policy lapsed.

In terms of the other options, while certain insurance policies may have a reinstatement fee, this is not universally required. Cancellation of another policy is unrelated to the reinstatement process and typically not a condition for reinstatement. Waiting periods can vary, but providing proof of insurability is a common stipulation in the reinstatement process.