What happens if notice of a material change is given less than 30 days before the renewal date?

When notice of a material change is given less than 30 days before the renewal date, the existing coverage and terms remain in effect. This means that the policyholder will continue to have the same terms and coverage that they originally had until the renewal process can be completed. This provision is typically in place to provide policyholders with stability and assurance that their coverage will not be altered on short notice, allowing them adequate time to understand and respond to any changes proposed by the insurer. The other options do not accurately reflect the practice in this situation, as they suggest immediate effects on the policy, which would be contrary to the standard practice of allowing existing terms to continue until the policy is properly renewed or modified.