What term is used for termination of an insurance policy during its coverage period?

The term used for the termination of an insurance policy during its coverage period is "cancellation." This refers to the process by which either the insurer or the insured can terminate the policy before its scheduled expiration date.

Cancellation can occur for various reasons, such as non-payment of premiums, material misrepresentation, or other violations of the policy terms. It typically requires specific notice periods as governed by state laws and the terms of the policy itself.

In contrast, non-renewal refers to the end of a policy at its expiration date and is typically initiated by the insurer, indicating that the coverage will not be continued for another term. Suspension implies a temporary halt of coverage rather than complete termination, and reinstatement refers to the process of restoring a policy after it has lapsed or been canceled, usually after the insured has met specific conditions. These distinctions further highlight why "cancellation" is the correct term for this situation.