Horizontal excess coverage for insurers and advisors

• US 20070282641A1
• Filed: 08/13/2007
• Published: 12/06/2007
• Est. Priority Date: 11/10/2003
• Status: Abandoned Application

• Current Assignee: Bruce Thomas, Lester Preston
• Original Assignee: Bruce Thomas, Lester Preston
• Inventors: Preston, Lester, Thomas, Bruce
• Application Number:
  US11/891,761
• Publication Number:
  US 20070282641A1
• Time in Patent Office: Days
• US Class Current: 705/4
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A method for underwriting and adjusting losses based on the losses paid by insurance and reinsurance policies.

Claims

1. A method for constructing a contractual payment provision, comprising the steps of:

a. specifying an insurance policy;

b. expressing said contractual payment as a mathematical function of the losses paid under said insurance policy;

c. incorporating said payment provision in a contract that is used to transfer the risk of collateral damages from the insurer of said policy to another company.

2. The method of claim 1 that is used to construct any type of non-insurance contract.

3. The method of claim 1 where said contractual payment is expressed as a mathematical function of the losses paid by a coverage subset of said insurance policy.

4. The method of claim 1 where said contractual payment is expressed as a proportional mathematical function of the losses paid by said insurance policy.

5. The method of claim 1 where said contractual payment is expressed as a nonproportional mathematical function that scales the payment based on the size of the losses paid by said insurance policy.

6. The method of claim 1 where said insurance policy is a casualty insurance policy.

7. The method of claim 1 where said insurance policy is a property insurance policy.

8. The method of claim 1 where said insurance policy is a health insurance policy.

9. The method of claim 1 where said insurance policy is a workers'"'"' compensation policy.

10. A method for constructing a contractual payment provision, comprising the steps of:

a. specifying a reinsurance policy;

b expressing said contractual payment as a mathematical function of the losses paid under said reinsurance policy;

c. incorporating said payment provision in a contract that is used to transfer the risk of collateral damages to another company.

11. The method of claim 10 that is used to construct any type of non-insurance contract.

12. The method of claim 10 where said contractual payment is expressed as a mathematical function of the losses paid by a coverage subset of said reinsurance policy.

13. The method of claim 10 where said contractual payment is expressed as a proportional mathematical function of the losses paid by said reinsurance policy.

14. The method of claim 10 where said contractual payment is expressed as a nonproportional mathematical function that scales the payment based on the size of the losses paid by said reinsurance policy.

15. The method of claim 10 where said reinsurance policy protects an against casualty losses.

16. The method of claim 10 where said reinsurance policy protects against property losses.

17. The method of claim 10 where said reinsurance policy protects against health losses.

18. The method of claim 10 where said reinsurance policy protects against workers'"'"' compensation losses.

19. A method for predefining acceptable combinations of loss payments and premiums, comprising the steps of:

a. specifying a reinsurance policy;

b. expressing said acceptable combinations of loss payments and premiums as a mathematical function of the losses paid under said reinsurance policy;

c. using a communication medium to communicate said acceptable combinations to potential coverage buyers.

20. The method of claim 19 where said acceptable combinations are expressed as a mathematical function of the losses paid by and the premiums paid for a coverage subset of said reinsurance policy.