What is the term for the date when an insurance policy becomes active and coverage begins?

The term for the date when an insurance policy becomes active and coverage begins is the "Effective Date." This is a critical point in the life of an insurance contract, as it marks the moment when the insurer's obligations under the policy commence. From this date forward, the insured is protected according to the terms and conditions agreed upon in the policy.

Understanding the concept of the Effective Date is essential for policyholders, as it affects when claims can be made and how coverage is applied. If an incident occurs before the Effective Date, coverage would not be applicable, which underscores the significance of knowing when a policy becomes active.

The other terms mentioned, such as Initiation Date, Coverage Start Date, and Activation Date, are not the standard terminology used within the insurance industry to define the beginning of coverage. While these terms may seem intuitive, they do not carry the same legal and professional recognition as "Effective Date." Hence, the Effective Date is the correct and universally accepted term in insurance practices.