Lawsuits would inevitably skyrocket, clogging our already over-burdened court system.
The only people who would benefit from that would be trial lawyers. Closer to home, consider this: backdating a car insurance policy is insurance fraud.
The practice sometimes also occurs in the insurance industry, whereby policy issuers make the effective date of a policy (or claim) earlier than the application date in order to obtain a lower premium for the customer (or obtain better claim results). When he was hired, the Company XYZ board of directors offered John an attractive salary as well as an annual grant of 1,000 Company XYZ stock options.
Alternatively, is there a way of legally trying to achieve the required objective?
If the document is putting in place something which “should have been done” but hasn’t been, usually for tax or similar reasons, then the position is straightforward.
This is important to note, because the grant date is what determines the exercise price on the options.
For instance, if the board meeting is on January 3, 2012, and Company XYZ stock closes at $45 per share that day, then the exercise price of John's 2012 stock are backdated, then his exercise price is only $15 per share.
This resulted in keeping the life insurance age at policy issue at 30, and the cost of the policy the same as the original quote of $300.
Backdating this policy would result in a savings of 0 over the next 20 years.
Backdating refers to the procedure of dating any document to a date earlier than the application date.
Backdating is mostly used to make the age of the consumer at policy issue lower than the actual age to get a lower premium.
For the most part, life insurance premiums increase as you get older.