A policy lapses when it is not renewed for a further term. Revival of lapsed life policies may occur under a non-forfeiture clause.The lapses risk in life business means a lower level of recovery of fixed costs. Where up-front commission is paid it becomes more difficult to recover.
Insurance Encyclopedia
Lapsed Policy
A Policy terminated because of non-payment of premium.
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US: A policy terminated for non-payment of premiums. The term is sometimes limited to a termination occurring before the policy has a cash or other surrender value.
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A policy that has been cancelled due to lack of payment of the premiums.
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MEDICAL,USA,REFERENCE: See: lapse.
Larceny
Generally, the unlawful taking of the personal property of another without his consent or against his will and with intent to deprive him of ownership or use thereof.
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The unlawful taking of personal property of another.
Larceny-theft
The unlawful taking, carrying, leading or riding away of another person’s property.
Large case management
See: catastrophic case management .
Large claim
Total of covered medical expenses of an insured that goes over a specified insurance claim limit. Also referred to as jumbo claim or shock claim .
Large claim management
See: case management .
Large claim pooling
Financial system that identifies insurance claims above a certain dollar amount and charges them to a pool that is funded by the charges of all groups who share the pool. This system is established to assist in stabilizing premium fluctuations.
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A system designed to help stabilize premium fluctuations in smaller groups. Large claims (those over a stated amount) are charged to a pool contributed to by many small groups who belong and share in that pool. The small the group of groups, the lower the poling level. Larger groups will have a larger pooling level.
Large claim pooling (Health Insurance)
A system wherein claims over a specified amount are placed in a pool. The pool is made up of claims charged by several smaller groups. This is done to help curb fluctuations in premium amounts in these smaller groups.
Large group
Dependent on each state’s regulations, but generally defined as a group with 100 or more employees eligible for a group insurance plan.