Which provision establishes a procedure for restoring a policy after it has lapsed because of nonpayment of premium?

The provision that establishes a procedure for restoring a policy after it has lapsed due to nonpayment of premium is called reinstatement. This process allows a policyholder to reactivate their insurance coverage after it has expired, typically by paying any overdue premiums and possibly fulfilling additional requirements set by the insurer, such as providing evidence of insurability. The reinstatement process is crucial because it enables policyholders to regain their coverage without needing to apply for a new policy, which may involve different terms or higher premiums.

Other terms listed in the options serve different purposes. Renewal refers to the extension of an insurance policy for another term, generally done before the policy expires and does not pertain to cases of lapsed coverage. Conversion typically involves changing a policy from one type to another, like from a term life policy to a whole life policy, and does not relate to reinstating a lapsed policy. Cancellation is the termination of a policy by the insurer or the insured before its expiration date and does not include a process for restoring coverage after it has lapsed.