In the case of a life insurance policy, the automatic lapse under the terms of the policy if the policy owner falls behind with the premium (the termination of an insurance policy because of the owner of the policy failing to pay the premium within the grace period [commonly within 30 days after the last regular premium was required and not paid]. Mostly it is possible to re-instate the coverage with the same premium and benefits unbroken; but the life insured will then have to qualify for this coverage all over again and bring up to date all unpaid premiums). Actions against a compulsory exclusion in the event of premium arrears have also been dismissed by the court of final appeal in Germany; the forfeiture of the contract is legal under the German Insurance Contract Act (VVG). Accordingly, an insurance company acts as a trustee of all policyholders when it excludes defaulting customers. – See Valuation Reserve, Default, DowngradeTrigger Clause, Third-Party Maturity Clause, Third-Party Default Clause, Final Maturity, First-Party Default Clause, Forfeiture Clause, Default.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/

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