Policy provisions, part 2. Mnemonic: RIME.

Reinstatement: brings a lapsed policy back to life. Typical policy terms: apply within a set period (commonly 3 years), show proof of insurability, and pay all overdue premiums with interest, plus any outstanding loan. It is available only for a policy that lapsed, not one that was surrendered for cash. In California a reinstated policy can be contested for fraud or material misrepresentation in the reinstatement application for the same period as a new policy (§10113.5).

Incontestability: once the policy has been in force during the insured's lifetime for no more than 2 years from issue, the insurer can no longer contest it, even for misrepresentation or concealment. Statutory exceptions: nonpayment of premium and certain supplemental benefits (§10113.5). If an impostor took part in the application process in place of the named insured, no contract was ever formed (§10113.5(b)). Provisions that exclude or restrict coverage can still be applied.

Misstatement of age or sex: the policy is not voided. The benefit is adjusted to what the premium paid would have bought at the correct age or sex.

Exclusions: common ones are aviation (other than as a fare-paying passenger), hazardous hobbies or occupations, war or military service, and suicide. Suicide during the exclusion period (usually the first 2 years) results in a refund of premiums, not payment of the death benefit.