Definition of "Lapse ratio"

Sujata Katikala real estate agent
Sujata Katikala, Real Estate Agent Florida Realty Investments

Percentage of a life insurance company's policies in force at the beginning of the year that are no longer in force at the end of the year. This ratio is critical because it indicates the rate at which policies are going off the books and the resultant loss of earnings to the company.

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