Financial

Lapsed Policy

Lapsed Policy

The termination of an insurance policy due to inaction on the part of the policyholder. In general, lapses occur if the policyholder fails to pay premiums. In this case, the right to receive the benefit if an insured event occurs ceases to exist.
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References in periodicals archive
The renewal process is just as easy for a lapsed policy, with inspection within one-hour of policy expiration and receipt of new policy on the same day.
"But if we have issues such as lapsed policy renewals, it could put a strain on the industry going forward.
About 20 minutes after the collision, Whittecar's husband renewed the lapsed policy on her car and she filed a claim for the damage to her car the next day.
Now, there is a dharam sankat-should he leave his action movie midway or work towards renewing his lapsed policy? With a heavy heart, he goes with the second option.
The firm said that the facility would enable customers to reinstate a lapsed policy and pay their premium online.
Between incurring penalty charges and losing life insurance coverage due to a lapsed policy, the tendency would be just to lose the policy coverage.
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