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 ?
There are two ways to replace the active donors who don't respond: lapsed renewal and new donor acquisition.
With a discretionary trust, the lapse of a power of withdrawal will be a taxable gift by the holder [subject to the application of the exception in section 2514(e)], except to the extent his or her creditors may reach the lapsed amount (Practical Drafting, October 1996, chapter nine, section F, page 4657).
The cost to reactivate a lapsed donor by telephone has been running at approximately $2 per reactivated donor, Christianson said.
H3: Contracts generated from the tied agent sales channel are less likely to be lapsed than contracts sold by brokers.
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.
LTC insurers typically deposit all checks they receive immediately upon receipt and, if they later determine funds have been remitted on a lapsed policy, they refund it by issuing a separate check.
2) After multiple attempts at treating the donor as lapsed, these donors might then be cycled back into acquisition efforts, where despite having been a long-time donor earlier in their lifetime, they are now spoken to as if they've never been supportive at all or are not recognized as a dedicated donor.
The Tax Court ruled that, because Eleanor did not exercise her general power of appointment in full, the unexercised (or lapsed) portion of the trust, which passed to the grandchildren, was subject to the GST tax as a post-Sept.
Each lapsed contract is counted as a lapse in the model point, which represents the product and policy(holder) characteristics at the lapse date.
The making of any such Further Offer will require consent* of the Takeover Panel to a derogation from the prohibition on making a further offer within twelve months after the date on which the original Offer lapsed.
The old fundraising adage "as acquired so renewed" is an effective but ho-hum way to acquire donors and to recapture those slacker-donors who have lapsed.
* Is the expected increase in the value of the partnership interest, from the time of receipt to the time the risk of forfeiture has lapsed, substantial?