What must an insurance company do if they decide not to renew a policy?

When an insurance company decides not to renew a policy, it is required to notify the policyholder in writing at least 60 days in advance. This requirement serves to give the policyholder ample time to seek alternative coverage and make necessary arrangements before their existing policy expires. Such notification is vital in maintaining transparency and ensuring that policyholders are not left without insurance, which could happen if they are unaware of the impending non-renewal.

Providing advance notice also allows policyholders to understand their options and helps promote accountability within the insurance company. The advance notice requirement is a regulatory obligation, reflecting the importance of communication between insurers and insured parties.