What occurs under Automatic Termination if a named insured does not renew their policy?

Under Automatic Termination, if a named insured does not renew their policy, the policy terminates at the end of the current period. This means that once the policy reaches its expiration date and has not been renewed, the coverage ceases, and the insured is no longer protected under that policy.

This mechanism is in place to ensure clarity and to avoid any confusion regarding coverage. When a policy reaches its term and renewal is not executed, it is understood that the contract has concluded, and the insurer is discharged from any further obligations. This highlights the importance of keeping track of policy dates and renewal processes to maintain continuous coverage.

The other options suggest scenarios where coverage might persist or change without an active renewal, which does not align with the principle of Automatic Termination. Thus, acknowledging the specific dynamics of termination at the end of the policy term is crucial for understanding the implications of not renewing a policy.