What happens if the insurer takes no action regarding a reinstatement application within 45 days?

If an insurer takes no action regarding a reinstatement application within 45 days, the policy is automatically reinstated. This provision is designed to protect policyholders by ensuring that their coverage is not permanently lost simply due to a delay in processing the reinstatement request. Under Illinois law, the assumption is that the insurer's inaction signifies approval, allowing the insured to regain coverage without further complications.

This automatic reinstatement only occurs if the policyholder has submitted the necessary application and any required premium payment along with the application. Therefore, if the insurer remains silent, it indicates acceptance of the reinstatement, allowing the policy to be active once again without the need for additional affirmative action on the policyholder's part.