When can an insurance policy be nonrenewed?

An insurance policy can be nonrenewed based on the insurer's guidelines, meaning that the insurance company has specific criteria and conditions under which they can choose not to renew a policy at the end of its term. These guidelines may be influenced by factors such as changes in risk, frequency of claims, or modifications to the policy terms. Insurers are typically required to notify the policyholder about the nonrenewal and the reasons behind their decision, which aligns with regulatory requirements to ensure transparency and fairness in the insurance process.

The other choices do not encapsulate the overall practice regarding nonrenewals accurately. For example, while a policyholder can choose to cancel their policy at any time, this is not the same as nonrenewal, which specifically pertains to the insurer's decision at the end of a policy term. Similarly, nonrenewals are not restricted only to situations where a loss has occurred, nor can they be enacted solely on the policyholder’s request. Each of these scenarios highlights the importance of the insurer's guidelines in determining nonrenewal policies, making this answer the most fitting.