What is the automatic continuance of insurance coverage referred to as?

The automatic continuance of insurance coverage is referred to as renewal. Renewal in the context of insurance means that the policyholder has the option to continue their coverage beyond the initial term, typically by paying the premium for the next coverage period. This process allows the insured to maintain their insurance protection without having to undergo a full underwriting process again, provided certain conditions are met, such as timely payment of premiums. Renewal is common in many types of insurance, including life insurance, where the terms may be reviewed and adjusted based on factors like age, health changes, and other risk assessments at the time of renewal.

Other terms such as reinstatement refer to restoring coverage after it has lapsed, while resumption and renovation are not standard terms used in the insurance context to describe the continuation of coverage. Understanding these terms is crucial for recognizing the mechanisms by which insurance policies can continue effectively over time.