If two policies covering the same exposure are not concurrently effective, they are termed what?

When two insurance policies cover the same exposure but are not active at the same time, they are referred to as nonconcurrent policies. This terminology is used to describe the situation where the effective dates of one policy do not coincide with the other, which can lead to gaps in coverage.

Understanding nonconcurrent policies is important because they can impact a policyholder's risk management strategy. If one policy expires and the other begins after a gap, there might be a period where there is no coverage at all for certain risks. This is critical when managing exposures, as it helps ensure that there are appropriate safeguards against potential claims or losses during transitions between coverage.

In contrast, concurrent policies would be those that are effective at the same time, providing overlapping coverage, which is not the case here. Disjoint and overlapping policies are not recognized terms in this context. Therefore, nonconcurrent policies specifically address the scenario where two policies intended to provide coverage for the same risk do not run simultaneously, leading to potential vulnerabilities in the insured's protection.