renewability

The term "renewable" means capable of being renewed or replaced by natural cycles or sound management practices. In the context of insurance, "renewability" refers to a condition of health insurance contracts. Some policies are cancelable by the insurer with short notice, while others may not be canceled during their term but can be refused renewal or renewed with higher rates or restrictions. This means an insured person with a chronic illness might find their policy no longer covers that condition upon renewal. Only noncancelable and guaranteed renewable policies assure continuous coverage, though they are more expensive. Insurance also covers indirect losses, such as lost profits or fixed charges resulting from direct damage, like a fire shutting down a business.123