What does "non-renewal" refer to in health insurance policies?

"Non-renewal" in health insurance policies specifically refers to the decision by an insurer not to renew a policy at the end of its current term. This means that when the policyholder's coverage period comes to a close, the insurance company has determined not to extend the policy for another term. This decision can stem from various reasons, including changes in the risk factors associated with the policyholder or alterations in the company's underwriting guidelines.

Understanding this definition is crucial because it impacts the policyholder's needs to seek new coverage before their current plan expires. Non-renewal is different from refusing to issue a new policy since that would apply to individuals who are seeking coverage for the first time or are looking to switch insurers. Additionally, non-renewal does not involve temporary halts in coverage or situations where coverage is still active while being reviewed; it simply indicates the insurer's choice concerning the continuation of an existing policy.