Insurance system and method for a high-risk asset purchaser or lessee

• US 20060080241A1
• Filed: 08/30/2005
• Published: 04/13/2006
• Est. Priority Date: 08/31/2004
• Status: Active Grant

• Current Assignee: Thomas F. Comstock
• Original Assignee: Thomas F. Comstock
• Inventors: Comstock, Thomas F.
• Granted Patent: US 8,160,956 B2
• Time in Patent Office: Days
• US Class Current: 705/40
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 30/0283 Price estimation or determination
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A method of financing a purchase or a lease a depreciating asset that includes determining a credit worthiness indication associated with a purchaser or lessee and establishing a finance contract for the lease or the purchase of the depreciating asset. A dealer is a guarantor of the finance contract. The method further includes issuing an insurance policy for a benefit of the dealer based on a liability associated with being the guarantor. The liability is based on at least the credit-worthiness indication and a value of the depreciating asset. The method also includes paying a payment associated with the finance contract. A portion of the payment based on a cost of the purchase or the lease of the depreciating asset and a cost associated with the insurance policy.

Claims

1. A method of financing a purchase or a lease a depreciating asset, the method comprising:

determining a credit worthiness indication associated with a purchaser or lessee;

establishing a finance contract for the lease or the purchase of the depreciating asset, wherein a dealer is a guarantor of said finance contract;

issuing an insurance policy for a benefit of said dealer based on a liability associated with being said guarantor, wherein said liability is based on at least said credit-worthiness indication and a value of the depreciating asset; and

paying a payment associated with said finance contract, wherein a portion of said payment based on a cost of the purchase or the lease of the depreciating asset and a cost associated with said insurance policy.

2. The method of claim 1 further comprising transferring the depreciating asset from said purchaser to a lender based on a payment default associated with said paying said payment.

3. The method of claim 2 further comprising paying a face value of said insurance policy to said dealer based on said transfer of the depreciating asset from said purchaser to said lender, said face value of said insurance policy is adapted to obviate said liability associated with being said surety associated with said finance contract.

4. The method of claim 3 wherein said paying said value of said insurance policy commences only after transfer of the depreciating asset from said consumer to said lender and after a predetermined period.

5. The method of claim 1 further comprising reporting a payment history to a credit reporting agency based on said paying said payment.

6. The method of claim 1 wherein the liability is based on a difference between a balance of the loan and a value of the depreciating asset over a period of said finance contract.

7. The method of claim 6 wherein the liability is based on a principle portion and an interest portion of the finance contract.

8. The method of claim 1 further comprises paying a face value of the insurance policy to the dealer upon repossessing the depreciating asset

9. The method of claim 1 further comprising reimbursing said lender for costs associated with said finance contract.

10. A financing system comprising:

a depreciating asset having a value;

a dealer that sells said depreciating asset for a purchase price;

a consumer that acquires said depreciating asset from said dealer;

said purchaser associated with a credit-worthiness indication;

a lender that provides a finance contract to said consumer in return for payments associated with said finance contract, wherein said dealer is a guarantor associated with said finance contract; and

an insurance policy for the benefit of said dealer based on a liability associated with being said guarantor for said financing contract, said liability based on said value of said depreciating asset and said credit-worthiness indication of said purchaser, wherein a portion of said payments is based on said purchase price of said depreciating asset and a cost associated with said insurance policy.

11. A financing arrangement between a lender, a purchaser and a dealer, the financing arrangement comprising:

an asset that depreciates over time;

a finance contract for purchase or lease of said asset from the dealer, wherein the dealer is a guarantor of said finance contract; and

an insurance policy valued to at least reimburse the costs associated with said finance contract when said asset is repossessed.

12. A financing system for purchase or lease of a vehicle, financing system comprising:

a first value defining a capitalized cost associated with the purchase or the lease of the vehicle;

a second value defining a credit worthiness indication associated with a purchaser or lessee; and

a scoring module that determines a purchase price or lease price of the vehicle, said purchase price or said lease price of the vehicle includes a cost of an insurance policy based on at least said first value and said second value.

13. The financing system of claim 12 further comprising a third value defining a residual value of the vehicle associated with a period of the lease, wherein the scoring module determines said purchase price for said insurance policy based on said third value.

14. The financing system of claim 12 wherein said credit worthiness indication includes a credit score.

15. The financing system of claim 12 wherein said scoring module determines a scoring bias, said scoring module determines said purchase price based on said scoring bias and wherein said scoring bias is based on a chance that the asset will be repossessed.

16. The financing system of claim 12 wherein said purchase price or said lease price are defines an installment payment that includes the cost of said insurance policy.

17. A method of leasing a vehicle from a top tier lender, the method comprising:

determining a credit score associated with a lessee;

establishing a lease for the vehicle, wherein a dealer is a guarantor of said lease;

issuing an insurance policy for a benefit of said dealer based on a liability associated with being said guarantor, wherein said liability is based on at least said credit score and a value of the vehicle; and

paying an installment payment associated with said lease, said installment payment includes is based on at least a lease payment and a cost associated with said insurance policy.

18. The method of claim 17 further comprising repossessing the vehicle from said lessee because of a payment default associated with said installment payment and said lease.

19. The method of claim 18 further comprising paying a face value of said insurance policy to said dealer when said repossession occurs.

20. The method of claim 17 wherein said liability is based on a difference between a balance of the lease and a value of the vehicle over a period of said lease.