What is the term used when an insurer does not renew a contract but has provided coverage for the entire term?

The term used when an insurer does not renew a contract but has provided coverage for the entire term is "non-renewal." This situation occurs at the end of a policy period when the insurer decides not to extend the coverage for another term. Non-renewal distinguishes itself from cancellation, which refers to the insurer ending the coverage before the policy term has been fully completed.

In the context of property and casualty insurance, non-renewal may happen for various reasons, including changes in underwriting guidelines, claims history, or the risk profile of the insured. This allows the insurer to legally choose not to continue the policy without needing to provide a cause, as long as proper notice is given to the insured.

Understanding the difference between non-renewal and cancellation is essential for policyholders, as it affects their options for obtaining future coverage and can impact their insurance costs.