Under automatic termination, when does coverage end if the named insured chooses not to renew?

Under automatic termination, when does coverage end if the named insured chooses not to renew?

• A. Immediately after renewal offer
• B. At the end of the policy period
• C. Immediately upon nonpayment
• D. Upon receipt of cancellation notice

Answer: (B)

Under automatic termination, coverage ends when the policy term expires if the named insured does not renew. If the insured chooses not to renew, there’s no continuation of coverage beyond the policy period, so it ends at the end of that period. This is different from cancellation for nonpayment or a cancellation notice from the insurer, both of which terminate coverage earlier. Therefore, the end date is the end of the policy period.

Under automatic termination, coverage ends when the policy term expires if the named insured does not renew. If the insured chooses not to renew, there’s no continuation of coverage beyond the policy period, so it ends at the end of that period. This is different from cancellation for nonpayment or a cancellation notice from the insurer, both of which terminate coverage earlier. Therefore, the end date is the end of the policy period.