We have a couple of questions on the Lapse FST 41.01 (below). We have looked at the other QA posted and it appears that no one has raised it before.

1) Should policies that are premium paying at the start of the reporting period and which become paid up during the reporting period be considered a lapse for the purposes of deriving the lapse rate by policy count?

2)If a policy that is premium paying at the start of the reporting period becomes paid up during the reporting period, should the associated change in technical provisions be included in the derivation of the lapse rate by volume of technical provisions?