2.5 Duration and Renewal of Insurance Policies

The duration's craft: the policy's period (the fixed-term structure — the annual non-life's standard; the multi-year faces; the whole-life's duration in the life branch); the risk's duration within the period (the attachment-and-detachment — the risk's start-and-end; the retroactive faces); the duration's alteration (the cancellation's-and-suspension's faces — the mid-term changes). The renewal's craft: the expiring policy's continuation — the renewal's offer-and- acceptance (the fresh contract's character vs the continuation's theory); the grace period (the late-renewal's accommodation — the life premium's days-of-grace: the non-forfeiture's protection); the renewal's terms (the repricing-and-reunderwriting — the changed circumstances' reflection; the claim-history's loading); the non-renewal's notice (the consumer's protection — the regulator's notice requirements); the automatic-renewal's faces (the continuous-cover clauses). The Nepali practice: the annual-renewal cycle's dominance (the non-life's standard); the life policy's lapse- and-revival (the lapsed policy's reinstatement — the arrears' payment + the health-evidence faces); the renewal's evidence (the receipt's-and-certificate's world). Exam Focus Long questions: (i) The formation's anatomy (the five elements — the offer's-and- disclosure's craft); (ii) The cover note (the temporary-cover problem's full answer); (iii) The utmost good faith's formation-duty (the disclosure-and-representation). Short questions: the proposal form; the adhesion contract; the grace period; the lapse- and-revival. Trick areas: (i) The PROPOSAL is the applicant's OFFER (not the insurer's) — the acceptance completes the contract (the reversal error is the classic); (ii) The cover…