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Resource LinksReference Library: Glossary of Terms
L
Lapse
The termination of an insurance policy because premiums were not paid when they came due.
Loss Ratio
In pricing health insurance, the loss ratio is a means of comparing claims losses to premium earnings. To determine its loss ratio, an insurer divides the dollar amount of claims it incurred during a given year by the dollar amount of premiums it earned during the same year.
Page last updated September 23, 2009