Backdating,
Definition of Backdating:
When the effective date of a policy is earlier than the application date. This is done so premiums can be calculated for a younger age than the insureds actual age.
Backdating is the practice of marking a document, whether a check, contract, or another legally binding document, with a date that is prior to what it should be. Backdating is usually disallowed and can even be illegal or fraudulent based on the situation. Sometimes though, backdating can be acceptable; however, the parties involved must agree to it.
Put an earlier date to (a document) than the actual one.
Consider the following examples of common backdating scenarios that are not allowed:.
How to use Backdating in a sentence?
- Backdating is usually not allowed and even can be illegal or fraudulent in some situations.
- However, there are times when backdating can be acceptable, but the parties involved must agree to it.
- They backdated the sale documents to evade a court order.
- Backdating is the practice of marking a check, contract, or other legally binding agreement with a date that is prior to the current date.
Meaning of Backdating & Backdating Definition
