Insurance

Policy Reinstatement — Back Premium Collected

Reinstating a lapsed policy after the insured pays arrears of premium.

Account NameTypeDebit ($)Credit ($)
Cash / Premium Receivable (Arrears)Asset (+)650.00-
Written Premium — ReinstatementRevenue (+)-650.00

💡 Accountant's Note

Reinstatement restores lapsed cover from the reinstatement date (not retroactively). The back premium covers the gap period if the insurer agrees to backdate the reinstatement.

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