When is a policy deemed to be lapsed?

A. If the premiums are not paid on due date

B. If the premiums are not paid before the due date

C. If the premium has not been paid even during days of grace

D. If the policy is surrendered

Answer: Option C

Solution(By Examveda Team)

If the premium has not been paid even during days of grace policy is deemed to be lapsed. The policy for which all benefits to the policy holder cease and is terminated due to non payment of premium amount on the due date or even after the grace period is called a lapsed policy.