What term describes an insurance policy becoming active?

The term that describes an insurance policy becoming active is "bind." When an insurance policy is bound, it means that the insurer has agreed to provide coverage and the policy is in effect. Binding typically occurs after an application has been submitted and the insurer has accepted the risk associated with insuring the applicant. This term is commonly used in the insurance industry to indicate that the terms of the policy have been agreed upon and that the insured is now protected under the policy.

Other terms, while they might seem relevant, do not accurately convey the activation of an insurance policy. "Activate" and "commence" might imply starting something, but they are not standardized terms used within the insurance context to indicate that coverage is now in effect. Similarly, "enact" suggests putting a law or policy into effect, which is not specific to the insurance industry's terminology regarding policy activation. Thus, "bind" is the precise term used to describe when an insurance policy becomes actively protective for the insured.