What does a non-renewal of an insurance policy mean?

A non-renewal of an insurance policy signifies that upon reaching the end of the current term, the coverage provided by the policy will cease and not be extended into a new term. This could happen for various reasons, such as changes in the risk profile of the insured, noncompliance with policy conditions, or the insurer's business decisions. Essentially, it means that the policyholder will need to seek alternative coverage if they desire insurance beyond the current policy's expiration date.

The other options suggest continuance or cancellation of the policy in a way that doesn’t align with the definition of non-renewal. For instance, stating that the policy continues until further notice would imply ongoing coverage, which contradicts the essence of non-renewal. Similarly, indicating that the policy is extended means it remains in effect, while immediate cancellation would imply an abrupt termination rather than one that occurs at the end of the term.