Which of the following best defines "policy expiration"?

The definition of "policy expiration" refers to the conclusion of the policy term. This marks the end of the coverage period stated in the insurance contract, after which the policy is no longer in effect unless it is renewed. At this point, the insured loses the benefits of coverage that the policy provided, and new coverage would need to be arranged if the insured wishes to continue protection.

Understanding this concept is crucial for policyholders and agents alike, as several actions typically need to be taken as the expiration date approaches, including evaluating renewal options, adjusting coverage amounts, or considering changes in terms based on the insured's needs or risk profile. The other options each pertain to different insurance processes, such as claims handling or premium payment, but do not accurately capture what policy expiration signifies.