Renewal of Policy Law and Legal Definition

Renewal of policy refers to the continuance of insurance in force by the payment of a new premium. Generally, renewal is done under a provision for renewal contained in the contract of insurance, by payment of a new premium. Where there is no provision in the policy for its renewal, it is done by a new contract on the same terms as the old, but where the renewal is in pursuance of a provision to that effect, it is not a new contract but an extension of the old.