An insurance policy which purports to provide coverage for a period prior to its purchase date is an attempt to retroactively secure protection. For example, if an accident occurred on October 26th, and an individual obtains a policy on October 27th, attempting to have the effective date listed as October 25th would constitute this practice.
The value of genuine insurance lies in its ability to provide financial security against unforeseen future events. Engaging in retroactive coverage attempts undermines the principles of risk assessment and potentially constitutes insurance fraud. Historically, insurance models are designed to calculate premiums based on the likelihood of future incidents, not past occurrences.
