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Investments glossary

Lapse


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Quotes of the day:

An inexhaustible good nature is one of the most precious gifts of heaven, spreading itself like oil over the troubled sea of thought, and keeping the mind smooth and equable in the roughest weather.

— Washington Irving

A lapse is the cessation of a privilege, right or policy due to the passage of time or inaction. A lapse of a privilege due to inaction occurs when the party that is to receive the benefit does not fulfill the conditions or requirements set forth by a contract or agreement.

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