However, such a result might be due to the absence of alternatives: if policyholders do not expect stable premiums from any other health insurance company, lapsing
their current contract would hold no advantage.
Today, the industry finds itself in a situation of stagnant new business growth at the same time that it is seeing significant portions of that business entering the post-level premium period and potentially lapsing
from their books.
But here's what you might not know: Even lapsing
your policy for as little as one day can leave you open to a financially devastating lawsuit down the road.
That court found that the lapsing
withdrawal rights given to four trust beneficiaries, although never exercised, gave those beneficiaries the right to immediate possession of the contributed property; thus, the donor was entitled to the annual exclusion for the gifts deemed made to each of the four beneficiaries.
All of the above restricted stock awards were granted on terms that include the following: (i) the shares are subject to restriction on transfer and are subject to forfeiture in the event of termination of employment for any reason prior to the lapse of such restrictions; (ii) lapsing
of restrictions with respect to 25% of the shares on each anniversary of the award date until fully vested.