Lapse

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Related to lapsing: call on, so far, brought out, took over

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 classic literature ?
You'll not think, Mr Dorrit,' and here he laughed again in the easiest way, 'that I am lapsing into the freemasonry of the craft--for it's not so; upon my life I can't help betraying it wherever I go, though, by Jupiter, I love and honour the craft with all my might--if I propose a stipulation as to time and place?
If you have travelled abroad to participate in an armed conflict or the like, you can apply for dispensation to prevent your residence permit from lapsing.
2011) find that policyholders lapsing contracts have better health histories than do their peers continuing the contracts.
When played at normal speed, time appears to be moving faster and thus lapsing.
Today, the industry finds itself in a situation of stagnant new business growth at the same time that it is seeing significant portions of that business entering the post-level premium period and potentially lapsing from their books.