System and method for providing exchange traded insurance funds

• US 20040044609A1
• Filed: 08/30/2002
• Published: 03/04/2004
• Est. Priority Date: 08/30/2002
• Status: Abandoned Application

• Current Assignee: Charles Perry Moore
• Original Assignee: Charles Perry Moore
• Inventors: Moore, Charles Perry
• Application Number:
  US10/232,973
• Publication Number:
  US 20040044609A1
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A method of facilitating the sale of shares of exchange traded insurance funds, wherein an order to trade in shares of an exchange traded insurance fund is received from an authorized agent through an ETIF portal, the order is matched with a corresponding order, a price is determined with respect to the order, and a confirmation is provided to the authorized agent with respect to the order, wherein if the received order is an order to purchase shares, the corresponding order is an order to sell shares, wherein if the received order is an order to sell shares, the corresponding order is an order to purchase shares, and wherein the confirmation comprises at least the price.

Claims

1. A method of facilitating the sale of shares of exchange traded insurance funds, comprising:

(a) receiving an order to trade in shares of an exchange traded insurance fund from an authorized agent through an ETIF portal;

(b) matching the order with a corresponding order;

(c) determining a price with respect to the order; and

(d) providing a confirmation to the authorized agent with respect to the order,

wherein if the order received in step (a) is an order to purchase shares, the corresponding order in step (b) is an order to sell shares;

wherein if the order received in step (a) is an order to sell shares, the corresponding order in step (b) is an order to purchase shares; and

wherein the confirmation comprises at least the price determined in step (c).

2. The method of claim 1, wherein the exchange traded insurance fund is an index fund.

3. The method of claim 2, wherein the order relates to an instruction from a qualified customer to purchase units of the exchange traded insurance fund.

4. The method of claim 2, wherein the order comprises at least an identifier specifying a customer account, an identifier specifying an exchange traded insurance fund, an identifier specifying an order type, and a quantity of shares.

5. The method of claim 2, wherein the price determined in step (c) is based at least in part on the net asset value of the underlying securities owned by the exchange traded insurance fund.

6. The method of claim 2, wherein the price determined in step (c) is based at least in part on the terms of the order and the corresponding order.

7. The method of claim 2, wherein the price determined in step (c) is based at least in part on the price at which shares of the exchange traded insurance fund were traded in at least one previous trade.

8. The method of claim 2, wherein the price determined in step (c) is net of a mortality charge.

9. The method of claim 2, wherein the price determined in step (c) is net of an operating expense charge.

10. The method of claim 2, further comprising:

(e) adjusting the price determined in step (c) by deducting one or more charges, including at least a mortality charge.

11. The method of claim 2, wherein the order relates to funds contained in a customer controlled insurance product.

12. The method of claim 11, wherein the customer controlled insurance product is a variable annuity.

13. The method of claim 11, wherein the customer controlled insurance product is a variable life insurance policy.

14. The method of claim 2, wherein the exchange traded fund is an open end fund.

15. The method of claim 2, wherein the exchange traded fund is a close ended fund.

16. The method of claim 2, wherein the exchange traded fund is a unit investment trust.

17. The method of claim 2, wherein the exchange traded fund is an index fund.

18. The method of claim 2, wherein the exchange traded fund is an actively managed fund.

19. The method of claim 2, further comprising:

(e) sending to a custodian information relating to the order.

20. The method of claim 19, wherein the information sent in step (e) includes at least information relating to the number of shares to which the order relates, information relating to the identity of the owner of such shares prior to the execution of such order, and information relating to the identity of the owner of such shares following the execution of such order.

21. The method of claim 1, wherein the exchange traded insurance fund is an actively managed fund.

22. A method of facilitating the sale of shares of exchange traded insurance funds, comprising steps for:

(a) receiving an order to trade in shares of an exchange traded insurance fund from an authorized agent through an ETIF portal;

(b) executing the order; and

(c) providing a confirmation to the authorized agent with respect to the order,

wherein the confirmation comprises at least the price at which the order was executed in step (b).

23. The method of claim 22, wherein the exchange traded insurance fund is an index fund.

24. The method of claim 22, wherein the exchange traded insurance fund is an actively managed fund.

25. A system for facilitating the sale of shares of exchange traded insurance funds, comprising:

means for receiving an order to trade in shares of an exchange traded insurance fund from an authorized agent through an ETIF portal;

means for matching the order with a corresponding order;

means for determining a price with respect to the order; and

means for providing a confirmation to the authorized agent with respect to the order,

wherein if the received order is an order to purchase shares, the corresponding order is an order to sell shares;

wherein if the received order is an order to sell shares, the corresponding order is an order to purchase shares; and

wherein the confirmation comprises at least the determined price.

26. The system of claim 25, wherein the exchange traded insurance fund is an index fund.

27. The system of claim 25, wherein the exchange traded insurance fund is an actively managed fund.

28. A system for facilitating the sale of shares of exchange traded insurance funds, comprising:

a first computer, comprising at least a processor and a memory; and

a second computer, comprising at least a processor and a memory, in communication with said first computer,

wherein an order is received by said first computer from said second computer to trade in shares of an exchange traded insurance fund through an ETIF portal;

wherein said second computer is operated by an authorized agent;

wherein said first computer matches the order with a corresponding order;

wherein said first computer determines a price with respect to the order;

wherein said first computer provides a confirmation to said second computer with respect to the order;

wherein if the received order is an order to purchase shares, the corresponding order is an order to sell shares;

wherein if the received order is an order to sell shares, the corresponding order is an order to purchase shares; and

wherein the confirmation comprises at least the determined price.

29. The system of claim 28, wherein the exchange traded insurance fund is an index fund.

30. The system of claim 29, further comprising:

a third computer, comprising at least a processor, a display, and an input device, in communication with said second computer,

wherein said third computer is operated by a customer;

wherein the customer enters an order relating to an exchange traded insurance fund into said third computer;

wherein the entered order relates to assets contained in a customer controlled insurance product; and

wherein the entered order is transmitted from said third computer to said second computer.

31. The system of claim 29, further comprising:

a third computer, comprising at least a processor and a memory, in communication with said first computer,

wherein said third computer is operated by a custodian;

wherein said first computer transmits a confirmation of the order to said third computer.

32. The system of claim 29, wherein the confirmation includes at least information relating to the number of shares to which the order relates, information relating to the identity of the owner of such shares prior to the execution of such order, and information relating to the identity of the owner of such shares following the execution of such order.

33. The system of claim 28, wherein the exchange traded insurance fund is an actively managed fund.

34. A computer-readable medium having stored thereon computer-executable instructions for performing the steps comprising:

(a) receiving an order to trade in shares of an exchange traded insurance fund from an authorized agent through an ETIF portal;

(b) matching the order with a corresponding order;

(c) determining a price with respect to the order; and

(d) providing a confirmation to the authorized agent with respect to the order,

wherein if the order received in step (a) is an order to purchase shares, the corresponding order in step (b) is an order to sell shares;

wherein if the order received in step (a) is an order to sell shares, the corresponding order in step (b) is an order to purchase shares; and

wherein the confirmation comprises at least the price determined in step (c).

35. The computer-readable medium of claim 34, wherein the exchange traded insurance fund is an index fund.

36. The computer-readable medium of claim 34, wherein the exchange traded insurance fund is an actively managed fund.

37. A method of facilitating the sale of shares of exchange traded insurance funds, comprising:

(a) if the per share net asset value of an exchange traded insurance fund is a predetermined amount greater than the price at which it is trading on an exchange, purchasing shares of the exchange traded insurance fund from third parties and redeeming the purchased shares for the proportional share of the underlying assets of the exchange traded insurance fund represented by the redeemed shares; and

(b) if the per share net asset value of an exchange traded insurance fund is a predetermined amount less than the price at which it is trading on an exchange, contributing assets identical to the proportional share of the underlying assets of the exchange traded insurance fund represented by a number of shares in exchange for that number of shares of the exchange traded insurance fund and selling shares of the exchange traded insurance fund to third parties.

38. The method of claim 37, wherein the exchange traded insurance fund is an index fund.

39. The method of claim 37, wherein the predetermined amount in step (a) is zero.

40. The method of claim 37, wherein the predetermined amount in step (a) is greater than zero.

41. The method of claim 37, wherein the predetermined amount in step (b) is zero.

42. The method of claim 37, wherein the predetermined amount in step (b) is greater than zero.

43. The method of claim 37, wherein the number of shares redeemed in step (a) is equal to the number of shares in one creation lot multiplied by an integer equal to or greater than one.

44. The method of claim 37, wherein the number of shares received in exchange for the contributed assets in step (b) is equal to the number of shares in one creation lot multiplied by an integer equal to or greater than one.

45. The method of claim 37, wherein steps (a) and (b) are performed by a specialist.

46. The method of claim 37, wherein steps (a) and (b) are performed by a marketmaker.

47. The method of claim 37, wherein steps (a) and (b) are performed by a registered trader.

48. The method of claim 37, wherein steps (a) and (b) are performed by one or more of a specialist, a marketmaker, and one or more registered traders.

49. The method of claim 37, wherein the exchange traded insurance fund is an actively managed fund.

50. A method of facilitating the sale of shares of exchange traded insurance funds, comprising:

(a) prompting a qualified customer to submit an order to trade in units of an exchange traded insurance fund;

(b) transmitting an order to trade in shares of an exchange traded insurance fund relating to the order received in response to step (a) to an exchange through a portal;

(c) receiving a confirmation from the exchange if the order results in a trade; and

(d) providing information based on at least part of the information included in the confirmation to the qualified customer.

51. The method of claim 50, wherein the exchange traded insurance fund is an index fund.

52. The method of claim 51, further comprising:

(e) verifying that the qualified customer is a qualified customer.

53. The method of claim 50, wherein the exchange traded insurance fund is an actively managed fund.

54. A method of facilitating the sale of shares of exchange traded insurance funds, comprising steps for:

(a) transmitting an order to trade in shares of an exchange traded insurance fund received from a qualified customer to an exchange; and

(b) providing a confirmation relating to the order to the qualified customer.

55. The method of claim 54, wherein the exchange traded insurance fund is an index fund.

56. The method of claim 54, wherein the exchange traded insurance fund is an actively managed fund.

57. A system for facilitating the sale of shares of exchange traded insurance funds, comprising:

means for prompting a qualified customer to submit an order to trade in shares of an exchange traded insurance fund;

means for transmitting a received order to an exchange through a portal;

means for receiving a confirmation from the exchange if the order results in a trade; and

means for providing information based on at least part of the information included in the confirmation to the qualified customer.

58. The system of claim 57, wherein the exchange traded insurance fund is an index fund.

59. The system of claim 57, wherein the exchange traded insurance fund is an actively managed fund.

60. A computer-readable medium having stored thereon computer-executable instructions for performing the steps comprising:

(a) prompting a qualified customer to submit an order to trade in shares of an exchange traded insurance fund;

(b) transmitting an order received in response to step (a) to an exchange through a portal;

(c) receiving a confirmation from the exchange if the order results in a trade; and

(d) providing information based on at least part of the information included in the confirmation to the qualified customer.

61. The computer-readable medium of claim 60, wherein the exchange traded insurance fund is an index fund.

62. The computer-readable medium of claim 60, wherein the exchange traded insurance fund is an actively managed fund.

63. A system for facilitating the sale of shares of exchange traded insurance funds, comprising:

a first computer, comprising at least a processor and a memory;

a second computer, comprising at least a processor and a memory, in communication with said first computer; and

a third computer, comprising at least a processor, a display, and an input device, in communication with said second computer,

wherein said second computer is operated by an authorized agent;

wherein said third computer is operated by a qualified customer;

wherein a qualified customer is prompted to submit an order to trade in shares of an exchange traded insurance fund into said third computer;

wherein the order is transmitted from said third computer to said second computer;

wherein the order is transmitted from said second computer to said first computer;

wherein said first computer transmits a confirmation to said second computer if the order results in a trade; and

wherein said second computer transmits to said third computer information based on at least part of the information included in the confirmation.

64. The system of claim 63, wherein the exchange traded insurance fund is an index fund.

65. The system of claim 63, wherein the exchange traded insurance fund is an actively managed fund.

66. A method of facilitating the sale of shares of exchange traded insurance funds, comprising:

(a) prompting a customer to purchase a customer controlled insurance product;

(b) prompting a customer to trade in shares of at least one exchange traded insurance fund using funds in a customer controlled insurance product;

(c) providing an order received from a customer to trade in shares of an exchange traded insurance fund to at least one of a broker, a portal, an exchange, or a specialist; and

(d) providing a statement relating to the customer controlled insurance product to the customer.

67. The method of claim 66, wherein the exchange traded insurance fund is an index fund.

68. The method of claim 66, wherein the exchange traded insurance fund is an actively managed fund.

69. A method of facilitating the sale of shares of exchange traded insurance funds, comprising steps for:

(a) receiving an order to trade in shares of at least one exchange traded insurance fund using funds in a customer controlled insurance product;

(b) providing an order received from a customer to trade in shares of an exchange traded insurance fund to at least one of a broker, a portal, an exchange, or a specialist; and

(c) providing a statement relating to the customer controlled insurance product to the customer.

70. The method of claim 69, wherein the exchange traded insurance fund is an index fund.

71. The method of claim 69, wherein the exchange traded insurance fund is an actively managed fund.

72. A computer-readable medium having stored thereon computer-executable instructions for performing the steps comprising:

(a) prompting a customer to purchase a customer controlled insurance product;

(b) prompting a customer to trade in shares of at least one exchange traded insurance fund using funds in a customer controlled insurance product;

(c) providing an order received from a customer to trade in shares of an exchange traded insurance fund to at least one of a broker, a portal, an exchange, or a specialist; and

(d) providing a statement relating to the customer controlled insurance product to the customer.

73. The computer-readable medium of claim 72, wherein the exchange traded insurance fund is an index fund.

74. The computer-readable medium of claim 72, wherein the exchange traded insurance fund is an actively managed fund.

75. A system for facilitating the sale of shares of exchange traded insurance funds, comprising:

means for prompting a customer to purchase a customer controlled insurance product;

means for prompting a customer to trade in shares of at least one exchange traded insurance fund using funds in a customer controlled insurance product;

means for providing an order received from a customer to trade in shares of an exchange traded insurance fund to at least one of a broker, a portal, an exchange, or a specialist; and

means for providing a statement relating to the customer controlled insurance product to the customer.

76. The system of claim 75, wherein the exchange traded insurance fund is an index fund.

77. The system of claim 75, wherein the exchange traded insurance fund is an actively managed fund.

78. A system for facilitating the sale of shares of exchange traded insurance funds, comprising:

a first computer, comprising at least a processor and a memory;

a second computer, comprising at least a processor and a memory, in communication with said first computer; and

a third computer, comprising at least a processor, a display, and an input device, in communication with said second computer,

wherein a customer is prompted to purchase a customer controlled insurance product;

wherein said third computer is operated by a customer;

wherein a customer is prompted to enter into said third computer an order to trade in shares of at least one exchange traded insurance fund using funds in a customer controlled insurance product;

wherein the order is transmitted from said third computer to said second computer;

wherein said second computer is operated by an insurer;

wherein the received order is transmitted to said first computer;

wherein said first computer is operated by one of a broker, a portal, an exchange, or a specialist; and

wherein a statement relating to the customer controlled insurance product is transmitted to said third computer.

79. The system of claim 78, wherein the exchange traded insurance fund is an index fund.

80. The system of claim 78, wherein the exchange traded insurance fund is an actively managed fund.

81. A method of operating a virtual private exchange within a public exchange, comprising:

(a) receiving orders through a predetermined portal from authorized agents to engage in transactions involving a predetermined type of security;

(b) matching received orders with corresponding orders;

(c) executing matched orders; and

(d) sending confirmations of executed orders to authorized agents.

82. The method of claim 81, wherein the exchange traded insurance fund is an index fund.

83. The method of claim 81, wherein the exchange traded insurance fund is an actively managed fund.

84. A computer-readable medium having stored thereon a data structure relating to an order to trade in shares of an exchange traded insurance fund, comprising:

an attribute relating to the identity of an exchange traded insurance fund;

an attribute relating to the number of shares of the exchange traded insurance fund to be traded; and

an attribute relating to the type of trade.

85. The computer-readable medium of claim 84, wherein the exchange traded insurance fund is an index fund.

86. The computer-readable medium of claim 84, wherein the attribute relating to the identity of an exchange traded insurance fund comprises a CUSIP number.

87. The computer-readable medium of claim 84, wherein the attribute relating to the identity of an exchange traded insurance fund comprises the name of the exchange traded insurance fund.

88. The computer readable medium of claim 85, further comprising:

an attribute relating to the identity of an authorized agent.

89. The computer readable medium of claim 85, further comprising:

an attribute relating to the identity of a qualified customer.

90. The computer readable medium of claim 85, further comprising:

an attribute relating to the identity of an insurer.

91. The computer readable medium of claim 85, further comprising:

an attribute relating to the identity of an account of an insurer.

92. The computer readable medium of claim 85, further comprising:

an attribute relating to the identity of a sub-account of an insurer.

93. The computer readable medium of claim 85, further comprising:

an attribute relating to the compensation received by an authorized agent.

94. The computer readable medium of claim 85, further comprising:

an attribute relating to the compensation received by a broker.

95. The computer readable medium of claim 85, further comprising:

an attribute relating to a commission paid with respect to the order.

96. The computer readable medium of claim 85, further comprising:

an attribute relating to a spread relating to the order.

97. The computer readable medium of claim 85, further comprising:

an attribute relating to the identity of an account of a qualified customer.

98. The computer readable medium of claim 85, further comprising:

an attribute relating to the identity of a customer controlled insurance product.

99. The computer readable medium of claim 85, further comprising:

an attribute relating to the date and time of the order.

100. The computer readable medium of claim 85, wherein the data structure comprises an object.

101. The computer readable medium of claim 85, wherein the data structure comprises a database record.

102. The computer readable medium of claim 85, wherein the data structure comprises a record in a flat file.

103. The computer-readable medium of claim 84, wherein the exchange traded insurance fund is an actively managed fund.

104. A computer-readable medium having stored thereon a data structure relating to a confirmation relating to a transaction in shares of an exchange traded insurance fund, comprising:

an attribute relating to the identity of an exchange traded insurance fund;

an attribute relating to a number of shares of the exchange traded insurance fund involved in the transaction; and

an attribute relating to the type of transaction.

105. The computer-readable medium of claim 104, wherein the exchange traded insurance fund is an index fund.

106. The computer readable medium of claim 105, further comprising:

an attribute relating to the identity of an authorized agent.

107. The computer readable medium of claim 105, further comprising:

an attribute relating to the identity of a qualified customer.

108. The computer readable medium of claim 105, further comprising:

an attribute relating to the identity of an insurer.

109. The computer readable medium of claim 105, further comprising:

an attribute relating to the identity of an account of a qualified customer.

110. The computer readable medium of claim 105, further comprising:

an attribute relating to the identity of a customer controlled insurance product.

111. The computer readable medium of claim 105, further comprising:

an attribute relating to the price of the exchange traded insurance fund in the transaction.

112. The computer readable medium of claim 105, further comprising:

an attribute relating to the capacity in which a broker has acted.

113. The computer readable medium of claim 105, further comprising:

an attribute relating to any compensation received with respect to the trade by a broker.

114. The computer readable medium of claim 105, wherein the data structure comprises an object.

115. The computer readable medium of claim 105, wherein the data structure comprises a database record.

116. The computer readable medium of claim 105, wherein the data structure comprises a record in a flat file.

117. The computer-readable medium of claim 104, wherein the exchange traded insurance fund is an actively managed fund.

118. A method of facilitating the sale of shares of exchange traded insurance funds, comprising:

(a) receiving an order to purchase units in an exchange traded insurance fund from a qualified customer;

(b) purchasing shares in the exchange traded insurance fund on behalf of the qualified customer;

(c) periodically selling shares held on behalf of the qualified customer to meet expenses relating to the exchange traded insurance fund; and

(d) adjusting the unit/share ratio in response to each sale in step (c),

wherein the number of shares purchased in step (b) is determined based on a unit/share ratio in effect at the time of receipt of the order.

119. The method of claim 118, wherein the exchange traded insurance fund is an index fund.

120. The method of claim 119, wherein the expenses comprise mortality charges.

121. The method of claim 119, wherein the expenses comprise expenses relating to an insurance product.

122. The method of claim 119, wherein the expenses comprise expenses relating to the investment of assets held in an insurance product.

123. The method of claim 118, wherein the exchange traded insurance fund is an actively managed fund.