Retroactive Period

Updated: 11 March 2024

What Does Retroactive Period Mean?

A retroactive period is a period of time during which an insurance company will not provide coverage for claims. The retroactive period is any period of time that occurs before a policy’s retroactive date, which is the day that the policy starts providing coverage for legitimate claims.

Insuranceopedia Explains Retroactive Period

The retroactive period is in place so that insurance companies don’t have to cover claims that took place far in the past, even if they are filed during the policy period. For example, a property insurance policyholder could not get coverage for damage to their property that happened in 2010 if the retroactive date for the policy is 2016, even if they filed their claim after the retroactive date had passed, because the event that caused the property damage took place during the retroactive period.

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