When an insurance application is considered 'backdated,' what does it typically mean?

When an insurance application is referred to as 'backdated,' it typically means that the date of the application is earlier than the actual date on which the application was submitted to the insurance company. This practice can occur for various reasons, including allowing the policyholder to lock in a lower premium rate based on the age of the applicant at that earlier date.

Backdating can also help align the policy's effective date with other insurance coverage that the applicant may have. This allows the insured to benefit from coverage without having to start a new policy from the day of application submission, which could mean higher premiums depending on the current age of the insured.

In this context, the option regarding the application date being earlier than the submission accurately reflects the concept of backdating in insurance applications.