What type of provision states the insurer can refuse to renew the policy only under certain conditions?

The provision that allows the insurer to refuse to renew the policy only under specific conditions is known as Conditional Renewal. This type of provision typically outlines the circumstances under which the insurer may choose not to renew the policy, providing a level of protection to the policyholder by ensuring that the insurer cannot arbitrarily decline renewal. Understanding Conditional Renewal is crucial for both the insurer and the insured because it clarifies the rules governing policy renewal and helps policyholders remain aware of their rights.

When an insurer has a Conditional Renewal, it may stipulate, for example, that renewal can be refused if certain conditions, like the emergence of significant claims or changes to the insured's risk profile, occur. This ensures that policyholders have some predictability regarding their coverage.

The other options describe different aspects of insurance policies. A Non-cancelable Provision means that the insurer cannot cancel the policy or increase premiums under certain conditions, providing greater security to the insured. A Renewable Clause typically refers to the automatic renewal of the policy unless either party opts out, while a Waiver of Premium allows for the suspension of premium payments under specific circumstances, such as the policyholder's disability. However, none of these provisions specifically address the insurer’s right to conditionally refuse renewal based on specified circumstances