What is a retroactive date in an insurance policy?

A retroactive date in an insurance policy is the date that marks when coverage begins. In North Carolina, this is the date that the policy was issued and accepted by the insurer. This concept is important because it sets the limit that an insurance company can pay for any claims you make on the policy. For example, if you have a policy that runs from September 1 and the retroactive date is September 1, then the insurance company is only responsible for any claims made on or after September 1. Any claims made before September 1 would not be covered. Insurance companies use the retroactive date to ensure that only legitimate claims are made and that the policyholder is not trying to get coverage for something that happened before the policy was issued.

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What is a retroactive date in an insurance policy?

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