Date of Inception of the Insurance Policy

Definition - What does Date of Inception of the Insurance Policy mean?

The date of inception of the insurance policy refers to the actual date when the insurance policy goes into effect. From the inception date until the policy expires or is cancelled, coverage is in effect for the policyholder. Before the date of inception of the insurance policy, the policyholder does not have coverage under the plan.

Insuranceopedia explains Date of Inception of the Insurance Policy

The date of inception of the insurance policy is provided so that both the insurer and the insured are fully aware of when coverage begins. If this date was not clearly assigned, then there could be confusion about whether or not the policy is in effect. If a policyholder files a claim before this date, the insurer would deny the claim as coverage was not active and the former would have to cover the costs themselves. Therefore, it is very important to be aware of this date in case coverage doesn't start right away.

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