Which clause gives an insurer the right to terminate coverage on any policy anniversary date?

• A. Nonrenewability clause
• B. Conditional renewal clause
• C. Optional renewability clause
• D. Cancellable at will clause

Answer: (C)

Renewal provisions control what happens when a policy term ends. An optional renewability clause gives the insurer the option to renew the policy, meaning the insurer can decide at each policy anniversary whether to extend coverage. If the insurer chooses not to renew, the policy terminates on that anniversary date. This is different from nonrenewable (no renewal allowed), conditional renewal (renewal only under certain conditions), or cancellable at will (policy can be canceled at any time with notice). So the option to discontinue coverage on a policy anniversary is characteristic of an optional renewability clause.