What does "nonrenewal" mean in health insurance?

The term "nonrenewal" in health insurance specifically refers to an insurer's decision not to extend a health insurance policy beyond its current term. This means that once the policy reaches its expiration date, the insurer opts not to offer a new contract for coverage to the policyholder. Nonrenewal can occur for various reasons, such as changes in the insured's health status, claims history, or changes in the underwriting guidelines of the insurance company.

The other options present different concepts in insurance. Ending a policy without cause typically implies a cancellation, which is distinct from nonrenewal because cancellation can occur during the policy term. Modifying the terms of a policy suggests that changes are being actively made to the existing agreement, while nonrenewal means the policy will not continue at all. Lastly, automatically renewing a policy refers to the automatic extension of coverage, contrary to the notion of nonrenewal, where there is an explicit action not to renew. Hence, the correct understanding of "nonrenewal" involves the insurer's choice to discontinue the policy rather than any modification or continuation.