Retroactive date, in insurance terminology, is the specific date mentioned in an insurance policy that marks the beginning of the coverage period for the policy. A retroactive date is often used in policies that cover events that occurred in the past but were unknown or undisclosed at the time of policy purchase. The retroactive date ensures that claims from incidents that happened before the policy's inception are covered. Policyholders generally must discover and report any incidents within the policy period for coverage to take effect. The retroactive date helps define the scope of coverage and sets a boundary for the timeframe within which claims can be made under the policy.
