Collateral damage coverage

• US 20080162195A1
• Filed: 03/10/2008
• Published: 07/03/2008
• Est. Priority Date: 09/16/2002
• Status: Active Grant

• Current Assignee: Bruce Bradford Thomas, Lester Ware Preston
• Original Assignee: Bruce Bradford Thomas, Lester Ware Preston
• Inventors: Thomas, Bruce Bradford, Preston, Lester Ware
• Granted Patent: US 7,953,616 B2
• Time in Patent Office: Days
• US Class Current: 705/4
• CPC Class Codes: G06Q 30/0216 Investment accounts
• 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 40/08 Insurance

Abstract

A method for marketing, underwriting, and adjusting damages that are associated with insured loss events but that are not covered by traditional insurance policies. This method permits the marketing of loss expense coverage, underwriting, and claim adjustment processes of insurance to be performed by reference to the loss payments that are made by a specified insurance policy. By referencing insured loss payments, which both a buyer and a seller understand, this method provides an easy way to communicate and transact something that is otherwise difficult or impossible to define or measure.

Claims

1. A method for marketing collateral damage coverage to potential buyers, comprising the steps of:

a. specifying a type of insurance policy;

b. expressing said collateral damage coverage as a function of losses paid under said type of insurance policy;

c. communicating information about said collateral damage coverage to said potential buyers;

wherein at least one of said steps is carried out at least in part by an information system.

2. The method of claim 1 that specifies a type of commercial casualty insurance policy.

3. The method of claim 1 that specifies a type of personal insurance policy.

4. The method of claim 1 wherein said function is based on a qualitative coverage subset of said type of insurance policy.

5. The method of claim 1 that further comprises the step of:

a. communicating the cost of said collateral damage coverage by expressing a function of premiums charged for said type of insurance policy.

6. A method for providing collateral damage coverage, comprising the steps of:

a. receiving information from a buyer about an insurance policy;

b. determining the amount of said collateral damage coverage that can be provided based on said information and underwriting guidelines that are determined by a seller;

c. constructing a payment provision by expressing said collateral damage coverage as a function of losses paid under said insurance policy;

d. determining an acceptable premium for said collateral damage coverage;

e. incorporating said acceptable premium and said payment provision in a contract;

f. executing said contract; and

g. receiving payment for said contract.

wherein at least one of said steps is carried out at least in part by an information system.

7. The method of claim 6 that specifies a commercial casualty insurance policy.

8. The method of claim 6 that specifies an all risks commercial property policy.

9. The method of claim 6 that specifies a personal insurance policy.

10. The method of claim 6 wherein said function is based on a qualitative coverage subset of said insurance policy.

11. The method of claim 6 wherein a proportional function is used.

12. The method of claim 6 wherein a nonproportional function is used.

13. The method of claim 6 wherein said buyer is an indirect buyer.

14. The method of claim 6 wherein said seller is an indirect seller.

15. The method of claim 6 wherein said contract is a derivative contract.

16. A method for adjusting collateral damage claims, comprising the steps of:

a. receiving a collateral damage claim from a buyer, said collateral damage claim comprising an identifier of a given collateral damage contract and proof of payment made under a referenced insurance policy;

b. assessing the validity of said collateral damage claim by reviewing a seller'"'"'s records of valid collateral damage contracts and information about each of said contracts;

c. calculating and approving a claim payment amount;

d. paying said claim payment amount to said buyer;

wherein at least one of said steps is carried out at least in part using an information system.

17. The method of claim 16 wherein said referenced insurance policy is a commercial casualty insurance policy.

18. The method of claim 16 wherein said referenced insurance policy is an all risks commercial property policy.

19. The method of claim 16 wherein said referenced insurance policy is a personal insurance policy.

20. The method of claim 16 wherein said function is based on a qualitative coverage subset of said insurance policy.

21. The method of claim 16 wherein a proportional function is used to determine said appropriate claim payment.

22. The method of claim 16 wherein a nonproportional function is used to determine said appropriate claim payment.

23. The method of claim 16 wherein said buyer is an indirect buyer.

24. The method of claim 16 wherein said appropriate claim payment is made by an indirect seller.

25. The method of claim 16 wherein said collateral damage contract is a derivative contract.