State RegulationsOH specificDifficulty 1/5
A travel accident policy is issued for a single short term and labeled nonrenewable. What does the nonrenewable designation mean?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
A nonrenewable policy provides coverage only for the single term for which it was issued, with no promise of renewal by either party, which makes it the least protective of the renewability clause types under the Ohio Revised Code framework tested by the Ohio Department of Insurance. These term policies typically cover short, defined exposures such as travel. Notably, ORC 3923.31 excludes single-premium nonrenewable policies from the 10-day free-look right, which underscores that Ohio treats them as one-shot coverage.
Why the other options are wrong
- A) Evidence-of-insurability renewal describes a conditional arrangement; a nonrenewable policy has no renewal path at all.
- B) Automatic renewal is the opposite of nonrenewable, which ends at the stated term with no continuation.
- C) Renewal is not a matter of either party's option; the policy simply expires at the end of its term without any renewal right.
Memory hook
Nonrenewable = one term and done.