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.
References in periodicals archive ?
Denver Woman Accused of Insurance Fraud Involving Lapsed Policy
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.
This happens because policy owners who do not pay the required premiums may have a lapsed policy following the end of the claim.
However, policyowners can resuscitate a lapsed policy if the insured meets certain tests and the policyholder puts the insurer back to the financial position it would have been in had the policyowner never allowed the policy to lapse.
For the client, a lapsed policy can be a devastating shock and be viewed as a broken promise.
If you have a lapsed policy and a bad insurance credit score, you'll probably pay much more than someone with a lapsed policy and a healthy credit history, Suarez says.
The firm said that the facility would enable customers to reinstate a lapsed policy and pay their premium online.
Mostly, a lapsed policy can only be revived by payment of due premiums along with applicable interest and "declaration of good health" by the policy-holder.
Between incurring penalty charges and losing life insurance coverage due to a lapsed policy, the tendency would be just to lose the policy coverage.