What term specifies the time period that the insurance policy is active?

The term that specifies the time period that the insurance policy is active is referred to as the "policy term." This concept is essential in understanding how long the coverage will be in effect under the terms of the insurance agreement. The policy term outlines the start and end dates during which the insured party is protected under the policy.

While "policy duration" and "coverage period" might seem similar, they are not the specific terminology typically used in the context of auto insurance policies. "Active term" is also not a widely recognized term in insurance vernacular. Therefore, the clarity and consistency of using "policy term" is what sets it apart as the correct answer to denote the validity period of the insurance coverage.