Lapse

What Does Lapse Mean?

A lapse occurs when certain privileges are no longer in effect. In the context of insurance, it typically refers to the termination of coverage. A lapse in coverage can happen if a policyholder fails to pay the premiums owed to the insurer.

Insuranceopedia Explains Lapse

If a lapse in coverage occurs on an insurance policy, the policyholder will not be eligible for reimbursement on any claims made during this period. Most insurance policies include clauses that outline the specific conditions that can trigger a lapse in coverage.