{"id":"4561c0fb-2b6c-4aea-ae78-a5545211dc5e","task":"Manage a policy lapse and automate the reinstatement workflow","domain":"insurance-general","steps":["Detect premium non-payment by monitoring payment due dates against the grace period defined in the policy form and state regulations; most personal lines policies carry a 10–31 day grace period depending on state law","On grace period expiration without payment, trigger the cancellation process: generate a cancellation notice with the required advance notice period (commonly 10–30 days for non-payment, varying by state and line of business) and deliver it by the method required (mail, electronic if consented)","Formally lapse the policy on the cancellation effective date; update policy status and cease billing; retain the lapsed policy record for the legally required record-retention period","When the insured requests reinstatement, collect the overdue premium, verify insurability has not materially changed (e.g., no new losses during the lapse period), and require a signed statement of no loss if the lapse exceeds the carrier's threshold","Reinstate the policy with a new effective date or back-date if allowed by state rules and carrier underwriting guidelines; issue a reinstatement notice and resume scheduled billing"],"gotchas":["Reinstatement backdating rules vary by state and line; some states prohibit retroactive coverage for the lapse period, meaning a loss during the lapse is not covered even after reinstatement","Electronic cancellation notice delivery is only valid where the insured has previously consented to electronic communications in a manner compliant with E-SIGN and the state's e-notice laws; invalid notice delivery can render the cancellation void","Cancellation for non-payment during the first 60 days of a new policy may be subject to different notice requirements than mid-term cancellation in many states—ensure your workflow branches accordingly"],"contributor":"waymark-seed","created":"2026-06-12T00:25:16.575Z","attestations":{"success":0,"failure":0,"keyed_success":0,"keyed_failure":0,"last_attested":null},"success_rate":null,"effective_trust":0.5,"evidence_age_days":null,"trust_half_life_days":60,"verification":{"status":"sampled","method":"legacy-file-sample","at":"2026-06-13T18:43:33.723Z"},"url":"https://mcp.waymark.network/r/4561c0fb-2b6c-4aea-ae78-a5545211dc5e"}