Lapse


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Related to Lapse: lapse rate

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 ?
If the loan closes after the lapse in authority but the date of coverage was before the lapse period, then payment from the insured is acceptable within 10 days.
The consequences of not having an unintentional lapse feature on a policy could potentially be further compounded by the following two features that are also not required on a chronic illness rider.
Crocker and Moran (2003) provide theoretical and empirical evidence that lapse rates fall (i.
If your right to reside lapses because you have travelled abroad to participate in the above-mentioned activities, you will normally also be unable to obtain a new residence permit.
The higher the premium jump, the greater the shock lapse and the higher the mortality deterioration.
The environmental lapse rate in unsaturated air--air where the temperature and dewpoint are not equal--can be as large as 3 degrees C for every 1000 feet gain.
Of special interest in the area of lapse rate analysis is the role of the financial stress position of the insurer, and whether and in what ways stress considerations may influence policyholder lapsation/persistence.
Identifying the locus of an ethical lapse and the identity of the moral agent is crucial to our understanding of how and why these problems occur.
Finally, the preamble states that the proposed regulations are meant to clarify that the transfer of property pursuant to the exercise, release or lapse of a GPA created in a grandfathered GSTT-exempt trust is not a "transfer under the trust" but a transfer by the person holding the power at the time the exercise, release or lapse becomes effective.
2, 2007, when the restrictions lapse and the value of the shares is included in his income.
However, the lapse in the availability of NFIP coverage does not relieve lenders of any other obligations under federal flood insurance law or of their responsibility to prudently manage safety and soundness risks.
The AG-TL950 S-VHS/VHS Expansion Technology Time Lapse Recorder provides S-VHS recording with more than 400 lines of resolution on HG tape.