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 at which the insurance policy goes into effect. From the inception date until the date 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, there could be confusion about whether or not the policy is in effect.

Since it delineates the insurer's obligations, providing a clear and explicit date of inception is very important. If a policyholder were to file a claim for an event that took place before this date, the insurer would deny their claim as coverage was not active and the policyholder would have to cover the costs themselves.

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