What does it mean to make a policy effective at an earlier date than the present?

Making a policy effective at an earlier date than the present is referred to as backdating. This practice allows for the policy's coverage to begin on a specified date in the past, rather than the current date when the policy is issued. Backdating can be important for various reasons, such as allowing individuals to secure coverage at a younger age or at a time when their health status was more favorable, potentially resulting in lower premium costs. Insurance companies often have specific guidelines regarding how far back a policy can be backdated, typically within a regulatory timeframe.

The other terminology listed does not capture this concept accurately. Pre-dating and forward dating refer to making an action or event effective in the future rather than the past, and effective dating is a term that generally relates to when a policy becomes effective but does not specify an earlier date. Thus, backdating is the correct terminology for this practice.