To avoid risk while waiting for an insurance policy to be formally accepted,an insured may choose to have the insurer issue a 'lapse policy' to provide interim coverage.

Question

Quizplus · Accepted Answer

The correct term for interim coverage provided while waiting for an insurance policy to be formally accepted is a "binder," not a "lapse policy." A lapse policy would imply coverage that has expired or lapsed, not interim or temporary coverage.

To Avoid Risk While Waiting for an Insurance Policy to Be