What is the term for the automatic continuance of insurance coverage?

The correct term for the automatic continuance of insurance coverage is renewal. When a policy is renewed, the coverage stays in effect without a need for the policyholder to apply again or undergo new underwriting requirements. This process ensures that there are no lapses in coverage, allowing the insured to maintain protection against risks during the renewal period.

Renewals typically occur at predetermined intervals, such as annually. They often come with the possibility of adjustments to premiums or terms based on factors like changes in the insured’s circumstances or risk profiles.

While reinstatement refers to the process of reactivating a policy that has lapsed due to non-payment of premiums, extension usually pertains to granting additional time on a policy or extending certain benefits under specific circumstances. Continuation may refer to keeping a part of a policy in effect, often used in contexts like group health insurance. Each of these terms serves a different function in insurance terminology, but renewal specifically highlights the straightforward continuation of coverage without interruption.