What Is Lapse?
The termination of an insurance policy due to non-payment of premiums after the grace period expires. Once lapsed, the policy is void unless the policyowner applies for reinstatement with proof of insurability.
Lapse across 2 exams
Lapse appears on the following exams. Each defines it in the context candidates are tested on:
- Life-Only Insurance
- The termination of an insurance policy due to non-payment of premiums after the grace period expires. Once lapsed, the policy is void unless the policyowner applies for reinstatement with proof of insurability.
- Health-Only Insurance
- The termination of an insurance policy due to nonpayment of the premium after the grace period expires. Once lapsed, the policy is no longer in force and coverage ends.