What is the difference between "cancellation" and "non-renewal" of a policy?
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Modified on: Mon, 28 Jan, 2013 at 1:33 PM
Under the Insurance Law, a personal automobile insurance policy must remain in effect for a required one year policy period. If an insurer decides not to renew the policy at the expiration of this period, this is a "non-renewal". However, if the insurer terminates the policy at any other time (which can only be done under limited circumstances ex. for non-payment of premium), this is a "cancellation".
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