lapseover

Lapseover is a term used in insurance to describe the situation where an insurance policy has expired and has not been renewed, or has been terminated due to non-payment of premiums. When a policy lapses, the coverage it provided ceases to be in effect. This means that any claims arising after the lapse date would not be covered by the insurance company.

There are several reasons why a policy might lapse. The most common is simple non-payment of premiums by the policyholder. Policyholders may forget to pay, or they may no longer be able to afford the premiums. In some cases, a policy might lapse if the insured event no longer exists or if the policy terms are no longer met.

It is important for policyholders to be aware of their policy's expiration date and renewal terms. Insurance companies usually send out renewal notices, but it is ultimately the responsibility of the policyholder to ensure that coverage remains active. If a policy lapses, a new policy may need to be purchased, and this could come with different terms, higher premiums, or even the inability to obtain coverage due to pre-existing conditions or changes in risk factors. Some insurance policies may offer a grace period after the premium due date, during which the policyholder can still pay and keep the policy active without a lapse. However, this grace period varies by policy and insurer.