Lapse

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Related to lapsed: Lapsed Policy

Lapse

The termination of a right or privilege due to inaction. In insurance, lapses occur on a policy if the policyholder fails to pay premiums. In this case, the right to receive the benefit lapses. In options, the contract lapses if the option is not exercised on or by the expiration date. In this case, the right to buy or sell the underlying asset lapses.

Lapse.

A lapse causes a policy, right, or privilege to end because the person or institution that would benefit fails to live up to its terms or meet its conditions.

For example, if you have a subscription right to buy additional shares of a stock at a price below the public offering price, you must generally act before a certain date. If that date passes, your right is said to lapse.

Similarly, if you have a life insurance policy that requires you to pay annual premiums, the policy will lapse if you fail to pay the premiums in time.

References in periodicals archive ?
Each lapsed contract is counted as a lapse in the model point, which represents the product and policy(holder) characteristics at the lapse date.
With this revival initiative, Reliance Life policy-holders will be able to reincarnate their lapsed policies by simply paying their due premium - without any penalty or medical tests.
All you need to pay is $4 (for MTNA members) for each lapsed year and $15 for this year's renewal.
Since certain regulatory approvals have not been accorded, the closing did not occur by December 31, 2009 and the SPA stands lapsed in accordance with the terms, MCB Bank said.
He estimated that the lapsed file could be "a couple million" names.
If you have lapsed, buy special "lapse coverage" E&O insurance.
To form the lapse rate for a specific life insurer, the value of lapsed policies for ordinary life products is divided by the average total life insurance in force during the time period.
The alternative also creates perverse incentives for employers and insurers to encourage an employee to attempt to work until the designated time period in the policy has lapsed.
While being transported to a nearby hospital, he lapsed into respiratory arrest.
Moreover, the Trade Act of 2002 extended and expanded a number of preferential trade laws that had lapsed, covering some $20 billion of developing country trade.
Many of the claims lapsed, but for the handful that remain within the proposed protected lands and for others that abut against.
5 trillion face amount of life insurance policies expired, lapsed or was cancelled by policyholders; each policy was a potential source of wealth had the owner sold it on the secondary market.