What type of renewable policy is Richard's insurance considered to be?

Richard's insurance is considered optionally renewable, which means that the insurer has the right to refuse renewal of the policy at the end of the term but can only do so under specific conditions. This gives the insured the advantage of continuing coverage if certain criteria are met. In this type of policy, the insurer typically retains the option to terminate coverage at renewal, but they may not cancel the policy during the term for reasons unrelated to the insured’s behavior or circumstances.

This characteristic differentiates it from other types of renewable policies. For instance, guaranteed renewable policies ensure that the insurance coverage must be renewed regardless of the insured’s health status, as long as premiums are paid. Conditionally renewable policies can be renewed but only under specific circumstances, which may involve certain conditions related to the insured's health. Non-renewable policies, on the other hand, do not allow renewal at the end of the term.