Glossary
Effective Date
The date on which coverage under a policy or endorsement begins.
The effective date starts the clock on coverage and on premium earning. It is not necessarily the date the policy was sold, bound, or issued — backdating and future-dating both occur, and the effective date is what governs.
In reconciliation, the effective date is one of the strongest matching keys available. Carrier statements frequently identify a transaction by policy number plus effective date, so an agency record with the wrong effective date will fail to match even when every dollar figure is correct.
See also
- Expiration Date — The date a policy's coverage ends unless it is renewed, extended, or replaced.
- Policy Term — The period during which a policy provides coverage, running from its effective date to its expiration date.
- Binder — A temporary insurance contract that provides coverage until the formal policy is issued, typically used while the applic…