Question
____________ is the ratio of the number of life
insurance policy that lapsed within a given period to the number of policy in Force at the beginning of that period.Solution
Lapse ratio is the number of policies that are that are not renewed compared to the number of policies that were active at the beginning of that same period. The lapse ratio represents the percentage of policies that were not renewed, and thus have lapsed in coverage. Lapsed policies are not the same as canceled policies.
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