When a policy is said to lapse?
A
If premiums are paid within grace period
B
If premiums are paid after grace period
C
If premiums are not paid after grace period
D
If premiums are not paid within grace period
Correct Answer: If premiums are not paid within grace period
If premiums are not paid within grace period a policy is said to lapse. The typical grace period is 30 days. If the premium is unpaid even after the grace period, the policy would lapse. The process of reviving a policy varies depending on the time lapsed.