A policy provision that requires the insurer to renew your coverage as long as premiums are paid on time, regardless of changes in your health or claims history. The insurer may increase premiums for an entire class of policyholders but cannot single you out.
Related Terms
Premium
The amount you pay to an insurance company to maintain your coverage, typically billed monthly, quarterly, or annually. Premiums are determined by factors such as risk level, coverage amount, deductible, location, and claims history.
Conditional Renewal
A renewal of an insurance policy that comes with modified terms, such as higher premiums, increased deductibles, or reduced coverage. Insurers use conditional renewals when the risk profile has changed but does not warrant full non-renewal.
Non-Renewal
An insurer's decision not to renew a policy at the end of its term. Unlike cancellation, non-renewal happens at the natural expiration date. Insurers must typically provide advance notice (30 to 60 days) and may decline to renew due to excessive claims or increased risk.