What term describes the situation when an insured is notified that their current policy will not be renewed?

The situation when an insured is notified that their current policy will not be renewed is accurately described as nonrenewal. This term specifically refers to the decision made by the insurer to not provide coverage beyond the current policy term, allowing the policyholder to understand that they need to seek new coverage after the expiration of their existing policy.

Nonrenewal is a distinct concept as it happens at the end of the policy period rather than during it. It denotes an action taken by the insurer based on various factors, such as changes in underwriting guidelines, risk assessment, or claims history. It's important to differentiate this from cancellation, which refers to the termination of a policy before the end of its term typically due to specific reasons like non-payment of premiums or breach of policy conditions.

Understanding nonrenewal is crucial for insured individuals as it impacts their ability to secure continued coverage and manage their insurance needs going forward.