Pennsylvania Motor Vehicle Physical Damage Appraiser Practice Exam 2025 - Free Appraiser Practice Questions and Study Guide

The non-renewal of an insurance policy can occur due to information that has been misrepresented in the insurance application. When a policyholder submits an application for insurance, they are required to provide accurate and truthful information regarding their driving history, prior claims, vehicle details, and other relevant data. If an insurer discovers that a policyholder has intentionally provided false information or omitted critical details, it compromises the insurer's ability to assess risk accurately. As a result, the insurer may choose to non-renew the policy at the end of its term, as this misrepresentation could affect underwriting decisions and risk management practices.

This scenario underscores the importance of full transparency when applying for insurance. Insurers rely on accurate data to provide coverage and set appropriate premiums, and any dishonesty can lead to serious repercussions, including non-renewal or even cancellation of the policy during its active term.