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 ?
Finally, over the course of the study, participants averaged a 3.13 per cent weight loss and reduction in unplanned lapses.
When asked if there is a possibility that the bill renewing the franchise of ABS-CBN may also lapse into law, Panelo said it is up to Congress to file a bill for the network.
Implementing the policyholder's dynamic optimization problem under realistic parameter specifications, we find that the policyholder should lapse a VA with a return-of-premium GMDB rider quite frequently (every 4 years on average).
Some in the insurance industry are concerned that Congress may again let the program lapse after this latest renewal and continue to postpone reforms.
When a loan closing is involved, if applications or change requests are dated after the lapse, then the policy or change request can't be issued.
For requests to increase or begin coverage that are on or before the last day of effective authorization, if the carrier receives the application and payment within the lapse period and within 10 days of the date of request, the policy or coverage change may be issued and effective on the requested date in accordance with standard rules.
WSP will now be subject to Rule 35.1 of the Code, save that it reserves the right, with the consent of the Takeover Panel, to approach Sweett with respect to a possible offer in the event that Currie and Brown's offer for Sweett is withdrawn, lapses or does not otherwise complete.
This is not a complete list of LTC consumer protections, but, rather, a list of protections that specifically help protect the policy from unintended lapse or the insured from loss of benefits.
But we didn't see that in the time lapse. What we saw was this very clear melting due to solar radiation."
Clinton Township, MI, December 04, 2014 --(PR.com)-- New Jersey-based construction site camera company Worksite Webcams have unveiled their newly redesigned website that features a more user-friendly interface and two new sections focusing on the latest news and sample time lapse videos, respectively.
I wanted to give something back to Fujairah and since photography is my hobby, I decided to make a time lapse of Fujairah to showcase its beauty to the good people from other emirates," Sachin said.
The two main drivers of in-force and new-business rate increases are: 1) lapse rates and 2) interest rates.