Can an insurance company cancel or refuse to renew a policy?
During the policy term the insurer generally cannot cancel except for specific reasons, such as failure to pay premiums, fraud by the policyholder, or a material (important) misrepresentation made in the application. In most situations, insurance companies can refuse to renew a policy at the end of the current term as long as the refusal does not violate the existing contract. For example, some policies are guaranteed renewable or are written for a multi-year term. These types of policies must be renewed. Most others do not have to be renewed.
