Renewal is the process by which an insurance policy is replaced with a new contract for a subsequent period, typically 12 months, following expiry of the current policy. Renewal constitutes a new contract rather than a continuation of the expired policy, allowing the insurer to modify terms, conditions, exclusions, premiums, limits, and excesses based on updated risk assessment, claims experience, or market conditions. The insured has no automatic right to renewal, and the insurer may decline to offer renewal terms. Both parties owe a duty of disclosure at renewal under the Insurance Contracts Act 1984 (Cth), with the insured required to disclose any material changes in circumstances and the insurer obliged to act in utmost good faith. For claims-made policies, continuous renewal is critical to maintaining uninterrupted coverage, as gaps may leave prior acts uninsured.
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