Lapse

{
  "id": "MLC-T-INS-001953",
  "term": "Lapse",
  "field": "Insurance and risk management",
  "definition": "The termination of an insurance policy due to the policyholder's failure to pay premiums when due. When a policy lapses, coverage ceases, and the insurer is no longer obligated to pay claims. Some policies, particularly life insurance, may have a grace period during which premiums can still be paid to prevent a lapse.",
  "url": "https://mlchart.com/terminology/insurance/lapse/"
}