What must an insurance company provide if it decides not to renew a policy?

If an insurance company decides not to renew a policy, it is required to provide sufficient notice to the insured. This notification allows the policyholder to prepare for the policy's expiration and seek coverage through another insurer if necessary. The notice period can vary by state but is often mandated by regulations to ensure that policyholders are not left without coverage unexpectedly. This practice is aimed at protecting consumers and promoting a smooth transition as they look for alternative options.

The necessity for providing sufficient notice is rooted in fairness and transparency, allowing the insured to understand their situation and take appropriate action.