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 ?
Statistical modeling is one way to identify lapsed donors who are most likely to renew.
When selecting lapsed donors to receive a specific appeal, let's say your September appeal, those who gave to previous September appeals are good prospects.
Therefore, most of these policies have no surrender value when they are lapsed.
Every organization has a varying definition of a lapsed donor.
For today's direct marketing driven organizations, huge pools of lapsed donors represent a challenge--who to select for renewal efforts, who to include in acquisition and who to leave alone.
Some nonprofit organizations lose track of their lapsed donors and simply do nothing about it, and doing that is a major faux pas in the direct response world.
However, now that the exchange offer lapsed according to its terms, the Trust has terminated and the Trustee has permanently closed the Trust's unit transfer records.
Additional features of interest include: simultaneous recording and playback, alarm recording search function, quick/random access and convenient jog/shuttle control which give the user more flexibility than is possible with a conventional time lapsed recorder.
488035AE6) (the "old notes"), in any combination totaling no more than $96 million in aggregate, lapsed in accordance with its terms on August 15, 2001.
If these requirements are not met, however, policyholders have the ability to "catch up" and restore the life insurance coverage by paying "back premiums" with no interest, so long as the policy has not lapsed and the accumulated cash value is greater than zero.
The results for the quarter were impacted by non-recurring expenses assumed by the Company in connection with the lapsed First Saddle tender offer.
As of May 1, 1997, 6,892 warrant shares became unexercisable due to non-accreditation of the holder, and have lapsed.