Which of the following statements about the renewability of small group plans is NOT true?

The statement that plans are automatically renewable each year regardless of circumstances is not true. In the context of small group health insurance plans, there are various factors that can affect the renewability of these plans. Insurers can impose certain conditions or changes to the plans during renewal periods. For example, the insurer may decide to change the premium rates based on the claims experience, market conditions, or changes to the group's composition. Additionally, there are circumstances where an insurer might not renew a plan, such as if the group loses its eligibility due to a decrease in the number of employees or if the group fails to pay premiums.

The other statements reflect accurate aspects of small group plan renewability. For instance, advance notice is generally required before cancellation and termination clauses can indeed apply if eligibility requirements are not met, highlighting that insurers maintain specific protocols regarding renewals.