Question 2018 of 303 · California Life-Only Agent Exam
In a contract situation, the term lapse most accurately refers to
Exactly one answer is correct.
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Correct answer to question 2018
- A: termination of coverage for failure to pay the premium
Explanation
A lapse ends coverage because the premium was not paid by the end of the grace period. Cancellation is a deliberate termination, and reinstatement restores a lapsed policy.
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