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Which of the following terms means termination of an insurance policy at its expiration date by not offering a policy continuation or replacement?

A) Lapse
B) Termination
C) Exclusion
D) Non-renewal

1 Answer

2 votes

Final answer:

The correct term for the termination of an insurance policy at its expiration date without offering a continuation or replacement is Non-renewal.

Step-by-step explanation:

The term you are looking for is D) Non-renewal. Non-renewal of an insurance policy refers to the insurer's decision not to offer a continuation or replacement of a policy once its expiration date is reached. This is different from a lapse, which is the termination of a policy due to nonpayment of premiums, and termination, which could be for various reasons such as fraud or a significant change in risk. Exclusion refers to specific conditions or circumstances that are not covered under the policy. Therefore, non-renewal specifically relates to the insurer choosing not to continue the relationship with the policyholder after the policy period ends.

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