Policy lapse
Also called: lapse, lapsed policy, policy termination
A policy lapse is when an insurance policy ends because premiums weren't paid or the client cancelled or replaced it.
Lapses end renewal commission and, early in a policy's life, can trigger a chargeback. Carriers usually report lapses on statements or in their portals, but often after the fact.
Seeing lapses by agent, carrier and product shows whether the problem is the clients, the products or the way the business was written.
Every lapse is lost recurring income. Catching the signs early is cheaper than replacing the client.
"Three lapses from the same carrier in one month is a pattern worth looking into."
How can an agency track lapsed policies across carriers?
Pull lapse and termination data from each carrier's statements or portal into one view, by agent, carrier and product, and review it monthly alongside chargebacks.