What is the primary difference between a rewrite and a reinstatement in insurance?

The primary difference between a rewrite and a reinstatement in insurance lies in the fundamental nature of how policies are altered. A rewrite refers to the process of creating a new insurance policy that effectively changes the terms of an existing policy. This could involve adjustments to coverage limits, endorsements, or pricing to better fit the policyholder's current needs. Conversely, a reinstatement is about restoring a previously canceled policy to its original terms. It allows policyholders to recover coverage without needing to establish a new policy. By defining a rewrite in this way, it highlights the flexibility insurers have in adjusting terms to better align with the evolving requirements or circumstances of their clients.