Effective Date

The effective date in the context of insurance refers to the specific date upon which the coverage of an insurance policy begins. This is the point in time from which the insurer will start to provide protection and coverage for the risks outlined in the policy. Any claims made for events or incidents that occur before the effective date will not be covered by the policy. It is crucial for policyholders to be aware of the effective date so they know when they can start to benefit from the insurance coverage. The effective date is typically specified in the policy documentation and agreed upon by both the insurance provider and the policyholder during the underwriting process.