Can an insurer non-renew a policy that is less than one year old?

An insurer generally cannot non-renew a policy that is less than one year old simply because they feel like it. This is primarily due to regulations that are in place to protect consumers. Most states have laws that provide guidelines regarding non-renewal, and these often stipulate that a policy must be in force for a minimum amount of time, typically 12 months, before it can be non-renewed without cause.

In this case, the option indicating that a policy cannot be non-renewed until after it has been in effect for 12 months aligns with the regulatory framework designed to ensure a degree of stability and predictability for policyholders who are looking for coverage. This rule helps to prevent insurers from frequently cycling through policies and thus supports the idea that once a policyholder has committed to a policy, they should have some assurance that their coverage will remain in force for at least a year, barring any significant changes in risk or circumstances that would warrant a review of the policy.