I always look at how much time has lapsed.

Evicting for a lease violation or lapse of time takes a lot longer typically. 

Their insurance policy exists to indemnify you and bring you financially whole because of their action/inaction.Now, IF the tenant let their policy lapse and you were not notified, you'll probably need to take them to small claims for your deductible--may as well sue for eviction at the same time and start over with new tenants in a fresh house.

I am a novice, but it would seem to me like the IRS is so busy with so many other issues that they will most likely let the 120 days lapse without redemption, whether they forget about it or it's just not worth the trouble to them.

My GC/partner for one reason or another had his contractor license forfeited/invalidated due to his insurance lapsing.

These were so that should someone move out and there was a lapse b/w tenants, the utilties would not be shut off. 

You can be added as interested party to receive notifications in the even the policy lapses.

There are a number of states where insurance companies will not add you as an additional insured but you can be recorded as an additional interest which means you will be notified if the policy lapses.

@Marinelle TanI wonder what would happen if you let the permit lapse.

You want to be listed as Additional Interest not Additional Insured.That way you get notified if insurance policy lapses.