System and method for salvage calculation, fraud prevention and insurance adjustment

• US 20080097796A1
• Filed: 10/18/2006
• Published: 04/24/2008
• Est. Priority Date: 10/18/2006
• Status: Active Grant

• Current Assignee: Hartford Fire Insurance Company (The Hartford Financial Services Group, Inc.)
• Original Assignee: Hartford Fire Insurance Company (The Hartford Financial Services Group, Inc.)
• Inventors: Birchall, James T.
• Granted Patent: US 8,229,767 B2
• Time in Patent Office: Days
• US Class Current: 705/4
• CPC Class Codes: G06Q 10/087 Inventory or stock management, e.g. order filling, procurement or balancing against orders
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

Disclosed is a novel system and method that provides real time information to an insurance adjuster. The system obtains information related to an insured item which has an outstanding claim. Information includes the cost to repair a specific item, the salvage value of the item, and the cost to replace the item. The system then compares the information related to the insured item from an economic perspective to determine whether it should be repaired or replaced. Since the system is objective, it reduces the reliance on subjective human factors such as collusion and lack of expertise. As a result, the system reduces the number of fraudulent and inaccurate transactions related to the specific item.

Claims

1. A method for determining whether to repair or replace an insured item of an insured user, said method comprising the steps of:

acquiring information related to the repair cost of at least one insured item with an outstanding insurance claim;

determining the repair cost of said at least one insured item with an outstanding insurance claim;

acquiring information related to the replacement cost of said at least one insured item with an outstanding insurance claim;

determining the replacement cost of said at least one insured item with an outstanding insurance claim;

comparing said replacement cost of said at least one insured item with an outstanding insurance claim to said repair cost of said at least one insured item with an outstanding insurance claim; and

determining whether to repair or replace said at least one insured item with an outstanding insurance claim.

2. The method of claim 1 further comprising the step of:

acquiring information related to the salvage value of said at least one insured item with an outstanding insurance claim.

3. The method of claim 2 further comprising the step of:

determining the salvage value of said at least one insured item with an outstanding insurance claim.

4. The method of claim 1, wherein said step of acquiring information related to the repair cost of at least one insured item with an outstanding insurance claim occurs in real-time.

5. The method of claim 4, wherein said step of acquiring information related to the repair cost of at least one insured item with an outstanding insurance claim occurs by utilizing the Internet.

6. The method of claim 1, wherein said step of acquiring information related to the replacement cost of at least one insured item with an outstanding insurance claim occurs in real-time.

7. The method of claim 6, wherein said step of acquiring information related to the replacement cost of at least one insured item with an outstanding insurance claim occurs by utilizing the Internet.

8. The method of claim 2, wherein said step of acquiring information related to the salvage value of at least one insured item with an outstanding insurance claim occurs in real-time.

9. The method of claim 8, wherein said step of acquiring information related to the salvage value of at least one insured item with an outstanding insurance claim occurs by utilizing the Internet.

10. A method for determining whether to repair or replace an insured item of an insured user using a web-based system including a server with at least one database and at least one device connected to the server via a network, said method comprising the steps of:

storing information related to the repair cost of said insured item in a database;

storing information related to the replacement cost of said insured item in a database;

receiving a query from an insurer or agent at the server, pertaining to said insured item;

retrieving said information related to the repair cost of said insured item from said database in response to said received query;

retrieving said information related to the replacement cost of said insured item from said database in response to said received query;

comparing said retrieved information related to the replacement cost of said insured item with said retrieved information related to the repair cost of said insured item; and

determining whether to repair or replace said at least one insured item.

11. The method of claim 10, wherein said information related to the repair cost of said insured item in a database comprises historical data.

12. The method of claim 10, wherein said information related to the replacement cost of said insured item in a database comprises historical data.

13. The method of claim 10, further comprising the step of:

storing information related to the salvage value of said insured item in a database.

14. The method of claim 13, wherein said information related to the salvage value of said insured item in a database comprises historical data.

15. The method of claim 10, further comprising the step of:

storing information related to the rate of customer acceptance of said insured item which has been repaired.

16. The method of claim 10, further comprising the step of:

updating said information related to the repair cost of said insured item in a database in real time.

17. The method of claim 10, further comprising the step of:

updating said information related to the replacement cost of said insured item in a database in real time.

18. The method of claim 10, further comprising the step of:

displaying the result of said step of determining whether to repair or replace said insured item to said at least one device.

19. The method of claim 10, wherein said step of retrieving said information related to the repair cost of said insured item from said database in response to said received query occurs in real time.

20. The method of claim 10, wherein said step of retrieving said information related to the replacement cost of said insured item from said database in response to said received query occurs in real time.