What Does Date Of Issue Mean?
The date of issue, in the context of insurance, refers to the actual date when an insurance company issues a policy.
It may also be known as the issue date.
Insuranceopedia Explains Date Of Issue
The date of issue may be the same as the policy date, or the date indicated on the policy, but it is not necessarily the same as the effective date, or when the policy comes into force. Policyholders should carefully read their policy to ensure they know when their coverage comes into force and what exact dates apply to the terms of the contract. This can be especially important to determine liability in future claims.
For example, imagine if a life insurance policyholder commits suicide a little over two years after the date of issue, and the beneficiary files a claim to receive the death benefit. However, the insurer denies the claim because the policyholder committed suicide within two years of the effective date, which voids the insurer’s liability as stipulated in the suicide clause.