Backdating in chicagodatingguide com
Sure the accounting rules are arcane and most people don't know them.
But if someone asks you to write down a date from a month ago on a legal document, rather than today's date, doesn't it give you pause?
Backdating this policy would result in a savings of 0 over the next 20 years.
The date of an agreement is an important part of most business transactions and M & A is no exception.
Since age is one key factor in determining how much you will pay for your policy, it’s important to keep your age as low as possible when your policy is issued.
If the timing works out, we can sometimes backdate your policy and keep your life insurance age of the insured down by one year.
Backdating in most circumstances is considered fraudulent and illegal. For instance, backdating a claim for a past period is taken as legal.
That’s a legitimate use of a retroactive effective date. One good rule of thumb is this – would you expect the parties to object to signing the signature page if the actual date of execution (which is after the effective date) was adjacent to their signatures? But in the second example, the parties would presumably not want the actual execution date anywhere on the agreement!If someone presents you with a spreadsheet of the last month's stock prices and asks you to pick the date on which you want to pretend that you granted, or were granted, several million options, might that not at least spur further inquiry?When then-general counsel Nancy Heinen emailed Apple (AAPL) CEO Steve Jobs such a spreadsheet on January 30, 2001, she noted that it was a bad idea to choose January 2 as the grant date--even though that was the day the stock had been at its lowest--if they wanted "to avoid any perception that the Board was acting in appropriately [sic] for insiders prior to Macworld announcements." (They ultimately chose one of the next-best dates from after Macworld.) Now isn't it obvious to everyone on that email that shareholders are being misled?So having a life insurance age change during underwriting is most likely going to result in a higher final premium when the policy is issued.To prevent this change in premium, a policy may be backdated to save the previous age of the applicant.
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Backdating refers to the procedure of dating any document to a date earlier than the application date.