Which statement best describes a short-term medical expense policy?

A short-term medical expense policy is best described as a nonrenewable policy. These policies are designed to provide coverage for a specified, limited duration, typically ranging from a month to a year, and do not offer the option to renew once the term expires. The primary purpose of these policies is to fill temporary gaps in health insurance coverage, such as during a transition between jobs or while waiting for another health plan to start.

This type of policy represents a short-term solution, as opposed to long-term health insurance options that allow for continuous and renewable coverage over many years. Therefore, by classifying a short-term medical expense policy as nonrenewable, it accurately reflects the limitations and nature of this type of insurance, emphasizing that it is not intended to provide ongoing protection beyond its predetermined coverage period.