Business, Legal & Accounting Glossary
The termination of an insurance policy due to the fact that a renewal premium is not paid by the conclusion of the grace period.
Under a will, the failure of a gift of property. A gift lapses when the beneficiary dies before the person who made the will, and no alternate has been named. Some states have anti-lapse statutes, which prevent gifts to relatives of the deceased person from lapsing unless the relative has no heirs of his or her own. A lapsed gift becomes part of the residuary estate.
Her auto insurance policy lapsed while she was out of the country, and when she returned, she was unable to drive.
If creditors see a client has a history of letting their policies lapse, they will be less inclined to extend credit at a favorable rate.
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This glossary post was last updated: 26th November, 2021 | 0 Views.