Final answer:
A conditionally renewable policy allows an insurer to cancel a policy based on specific conditions outlined within the contract.
Step-by-step explanation:
The type of policy that allows an insurer to cancel a policy if certain circumstances stated in the contract happen is known as a conditionally renewable policy. Unlike non-cancelable and guaranteed renewable policies, which do not allow the insurer to cancel the policy as long as premiums are paid, a conditionally renewable policy gives the insurer the option to not renew the policy if predefined conditions are met. Policies that are optionally renewable give insurers a broader discretion to cancel or not renew policies for any reason they deem appropriate.