What is the characteristic of 'Nonrenewal' in an insurance policy?

The characteristic of 'Nonrenewal' in an insurance policy is best described as occurring at the expiration date. When a policy is nonrenewed, it means that the insurer has decided not to extend the coverage beyond the existing policy term. This decision takes effect when the policy reaches its expiration date, so the coverage will end, and the insured will not have the opportunity to renew it for another term.

In contrast, cancellation refers to terminating a policy before its expiration date. Nonrenewal does not involve such an early termination, as it specifically pertains to the end of the policy period. The nonrenewal process typically requires proper notification to the policyholder, which highlights that it is not an automatic renewal situation; hence the aspect of notice is more relevant to the nature of policy communication rather than the definition of nonrenewal itself. Furthermore, nonrenewal does not imply that coverage is automatically renewed; by definition, nonrenewal means the opposite, indicating that the insurer will not provide coverage in the next period.