Hi When the notes says "number if renewals invited" does this includes those lapsed policies as well as those coming up for renewal? Thanks.
Not all policies coming up to the renewal date will be invited to renew. The denominator for the lapse rate is the number of policies actually invited to renew. A policyholder is said to lapse if they are invited to renew but do not. To avoid confusion for other students reading this, you are referring to Section 4.2 of Chapter 19.
