Lapse rate table insurance
A lapse in coverage, also referred to a gap in coverage, is any period where you do not have car insurance. There are several reasons for a gap in coverage: You forgot to pay your premium on time. A “policy” includes a standalone policy or a rider providing an eligible coverage. An eligible coverage provides: • Ten-year term renewable and convertible life insurance; • On Canadian lives; • In Canadian currency; with • Guaranteed initial and renewal rates. The event of interest is a policy lapse during the period of observation. The lapse rate shown in Tables 2 to 5 and 7 to 16 is the percentage of policies, by number, which failed to pay any part of the third year's premi- um.