effective date

Definitions (3)

1. The date on which an agreement, such as a contract or insurance policy, takes effect.
2. The date on which a registration of a new security filed with the SEC becomes effective, usually 20 days after the filing of the registration.
3. In an interest rate swap, the date the swap begins to accrue interest.

Use effective date in a sentence

Sherry double checked the effective date on her contract and sighed, knowing that today started a long six weeks working with her least favorite clients.

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Jake got into a car accident on March 20, 2015. He quickly realized he didn't have car rental as part of his auto insurance policy. As a result, he went online to his car insurance's website and added car rental coverage to his policy on March 21, 2015. After adding the coverage, he calls the insurance company immediately after to report the car accident and to request a rental car. The insurance agent explains to Jake that they cannot provide him with a rental car because the accident took place before the car rental effective date which is March 21, 2015.

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When applying for a new credit card, it is imperative to know the effective date that balances begin to accrue interest so that you can pay in a timely fashion and not get hit with unnecessary interest charges.

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