Asked by Alison Vidas on Jun 19, 2024
Verified
What is meant by an antilapse clause, and how do these usually work? Do you believe that all states and all types of policies should have antilapse clauses, and why or why not?
Antilapse Clause
A provision in a will or estate plan that allows for the substitution of beneficiaries in the event the original beneficiary predeceases the testator.
Insurance Policy
A contract between an insurer and a policyholder that specifies the terms under which the insurer agrees to pay for losses or damages to the insured.
- Gain insight into the consequences of certain insurance stipulations (arbitration, appraisal, antilapse).
Verified Answer
KS
Kirsten SchwenkJun 24, 2024
Final Answer :
Some states require that insurance companies include an antilapse clause, typically in life insurance policies, that provides a grace period of usually 30 days in which to make an overdue payment. During this grace period, the insurance is effective. If the insured fails to make a payment in those 30 days, the insurer is not allowed to automatically cancel the policy. Student responses will vary on the issue of whether all states and all policies should have antilapse clauses.
Learning Objectives
- Gain insight into the consequences of certain insurance stipulations (arbitration, appraisal, antilapse).
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