In plain English
This means the policy is set to continue into a new term by default. It carries on at the end of the current term unless it is cancelled.
In context
Here, "automatic renewal" names the setting that indicates the policy will continue for the next term unless it is cancelled.
- Situation
- Renewing, changing, cancelling, and retrieving policy documents
- What it communicates
- names a setting for next-term policy continuation
Meaning limits
The term by itself does not say who may cancel the policy or what other renewal conditions apply.
Examples
“Because the policy had automatic renewal, it carried on into a new term when the current one ended and nobody cancelled it.”
“The customer left the policy on automatic renewal for the next term.”