UK: Date that defines the extent of cover in time under claims made liability policies. Claims resulting from occurrences prior to the retroactive date are not covered notwithstanding the notification of claims during the policy period. Retroactive dates are commonly stated to be the inception date of the first year of cover. See ‘NOSE.
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REINSURANCE: The date on a claims made policy or reinsurance contract which triggers the beginning period of coverage for occurrences commencing prior to the effective date of the policy. A retroactive date is not required. If one is shown on a claims made policy, any claim made during the policy period on a loss that occurred before the retroactive date will not be covered. In reinsurance, losses occurring before the contract term are sometimes covered by the addition of “retroactive” coverage to the contract.
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The date that defines the extent of coverage in time under claims-made liability policies. Claims resulting from occurrences prior to the policy’s stated retroactive date are excluded.
Insurance Encyclopedia
Retroactive date (Liability Insurance)
A date that may exist in a claims made policy. If this date does exist, it represents the beginning of coverage. No claims made after this date will be honored.
Retroactive disability benefit
Insurance benefit paid from the date of disability after the insurance policy’s stated elimination period.
Retroactive insurance
Cover for a loss that has already occurred, e.g. a major fire, but for which the severity of the loss is uncertain. The insured pays a high premium to substitute certainty for the uncertain outcome. The insurer is attracted by the investment potential of a high premium pending settlement of the claims.
retroactive Medicaid eligibility
Qualified for the Medicaid program, which may begin as early as the first day of the third month before the month of application provided all appropriate factors are met in those months.
Retroactive Period
In health Insurance, a period of time at the onset of an injury or disease during which no benefits are payable unless the injury or disease causes disability which extends beyond the retroactive period. If disability last longer than the retroactive period, then benefits are payable retroactively from the first day of disability.
Retroactive rate credit
Funds from the premiums that the insurance company returns to a group insurance policyholder after analyzing the claims incurred, expenses, risk charges, changes in reserves, and profit.
Retroactive rate reduction
See: dividend, experience refund, and experience rating refund .
Retroactive reimbursement
See: retrospective reimbursement .
Retroactive Reinsurance
A contract that covers past insurable losses/losses that have already occurred, such as a loss portfolio transfer.