Retroactive Date Vs Prior Acts
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FAQ
* So purchase the new Professional indemnity insurance policy from the ABC Insurance Company, which comes into effect from 1 January 2021. * 1 January 2021 becomes the new inception date and the old inception date, 1 January 2020, becomes the retroactive date.
The retroactive date is the earliest point in time that your insurance policy will cover an incident or dispute. It's sometimes called the retro date or retroactive date of inception.
2. What is a Retroactive Date? Also called a Retro Date, or Prior & Pending Litigation Date, the Retroactive Date eliminates coverage for claims which occurred before the Retroactive Date stated on your certificate regardless of when the claim is reported.
Prior acts coverage protects you back to your retroactive date. Full prior acts coverage refers to a policy that provides complete protection for your previous conduct, with no retroactive date.
A retroactive date is a provision found in many (although not all) claims-made policies that eliminates coverage for claims produced by wrongful acts that took place prior to a specified date, even if the claim is first made during the policy period.