In most states, insurance companies cannot cancel a policy in mid-term except under circumstances such as non-payment of the premium or fraud by the policyholder. Some states may also permit the insurance company to cancel the policy for other reasons.
Even in states that permit mid term cancellations, most of them require the insurance company to give you 30 (thirty) to 90 (ninety) days WRITTEN notice. This is intended to give you an opportunity to obtain substitute insurance.
In most situations, insurance companies can refuse to renew a policy at the end of the current term as long as the refusal does not violate the existing contract. For example, some policies are guaranteed renewable or are written for a multi-year term. These types of policies must be renewed. Most others do not have to be renewed.
In most states, insurance companies can refuse to renew your coverage for any reason. An insurance company may decide to stop selling a particular line of insurance or policy, or it may change its underwriting criteria, or it may decide that the policyholder’s risk has changed. Regardless, it may decide not to renew your policy as long as you are provided adequate notice.