SYSTEM AND METHOD FOR PROVIDING AN INSURANCE PREMIUM FOR PRICE PROTECTION

• US 20080306777A1
• Filed: 04/08/2008
• Published: 12/11/2008
• Est. Priority Date: 04/09/2007
• Status: Active Grant

• Current Assignee: Pricelock, Inc.
• Original Assignee: Pricelock, Inc.
• Inventors: Painter, Scott, Fell, Robert M., Bonsignore, Michael R., Magnuson, Gary A., Reed, Brian P.
• Granted Patent: US 7,945,500 B2
• Time in Patent Office: Days
• US Class Current: 705/4
• 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 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

Systems and methods for providing an insurance premium in association with an insurance strike price for a commodity are disclosed. By paying the insurance premium a consumer may obtain price protection for a commodity purchase. In particular, in one embodiment a consumer may obtain the right to be reimbursed for any amount paid over the insurance strike price for the commodity.

Claims

1. A method for providing insurance for commodity purchasing, comprising:

creating an insurance strike price matrix corresponding to a commodity, the insurance strike price matrix comprising a set of insurance strike prices and associated insurance premiums;

obtaining a payment associated with a first insurance strike price and associated insurance premium from first consumer; and

indemnifying the first consumer for purchases of the commodity based upon the first insurance strike price.

2. The method of claim 1, wherein the commodity is fuel.

3. The method of claim 2, wherein each insurance strike price and associated insurance premium is also associated with a time period, wherein the first consumer is indemnified for the time period.

4. The method of claim 3, further comprising

obtaining data regarding desired price protection from a second consumer;

and

providing a price protection contract for a commodity to the second consumer where the price protection contract has an associated quantity, time period, lock price and locale wherein the lock price is determined based upon the first insurance strike price and associated insurance premium and for a set of purchases occurring in the locale during the time period the consumer has a right to aggregately purchase the quantity of the commodity and for each purchase the commodity may be purchased at the lock price if a first index price associated with the commodity at a first time of the purchase is above the lock price or at a retail price of the commodity otherwise.

5. The method of claim 4, wherein determining the lock price comprises assessing a risk based upon the first insurance strike price and associated insurance premium.

6. The method of claim 5, Wherein the assessing of the risk and the providing of the price protection contract is done by the first consumer.

7. The method of claim 6, wherein first insurance strike price and associated insurance premium and first index price correspond to the locale.

8. A system for commodity purchasing, comprising:

an insurance system, the insurance system operable for;

creating an insurance strike price matrix corresponding to a commodity, the insurance strike price matrix comprising a set of insurance strike prices and associated insurance premiums;

obtaining a payment associated with a first insurance strike price and associated insurance premium from first consumer; and

indemnifying the first consumer for purchases of the commodity based upon the first insurance strike price.

9. The system of claim 8, wherein the commodity is fuel.

10. The system of claim 9, wherein each insurance strike price and associated insurance premium is also associated with a time period, wherein the first consumer is indemnified for the time period.

11. The system of claim 10, further comprising:

a price protection system operable for;

obtaining data regarding desired price protection from a second consumer; and

providing a price protection contract for a commodity to the second consumer where the price protection contract has an associated quantity, time period, lock price and locale wherein the lock price is determined based upon the first insurance strike price and associated insurance premium and for a set of purchases occurring in the locale during the time period the consumer has a right to aggregately purchase the quantity of the commodity and for each purchase the commodity may be purchased at the lock price if a first index price associated with the commodity at a first time of the purchase is above the lock price or at a retail price of the commodity otherwise.

12. The system of claim 11, wherein determining the lock price comprises assessing a risk based upon the first insurance strike price and associated insurance premium.

13. The system of claim 12, wherein the assessing of the risk and the providing of the price protection contract is done by the price protection system.

14. The system of claim 13, wherein first insurance strike price and associated insurance premium and first index price correspond to the locale.

15. A computer readable media for providing insurance for commodity purchasing, the computer readable media comprising instructions executable for:

creating an insurance strike price matrix corresponding to a commodity, the insurance strike price matrix comprising a set of insurance strike prices and associated insurance premiums;

obtaining a payment associated with a first insurance strike price and associated insurance premium from first consumer; and

indemnifying the first consumer for purchases of the commodity based upon the first insurance strike price.

16. The computer readable media of claim 15, wherein the commodity is fuel.

17. The computer readable media of claim 16, wherein each insurance strike price and associated insurance premium is also associated with a time period, wherein the first consumer is indemnified for the time period.

18. The computer readable media of claim 17, wherein the instructions are further executable for:

obtaining data regarding desired price protection from a second consumer; and

providing a price protection contract for a commodity to the second consumer where the price protection contract has an associated quantity, time period, lock price and locale wherein the lock price is determined based upon the first insurance strike price and associated insurance premium and for a set of purchases occurring in the locale during the time period the consumer has a right to aggregately purchase the quantity of the commodity and for each purchase the commodity may be purchased at the lock price if a first index price associated with the commodity at a first time of the purchase is above the lock price or at a retail price of the commodity otherwise.

19. The computer readable media of claim 18, wherein determining the lock price comprises assessing a risk based upon the first insurance strike price and associated insurance premium.

20. The computer readable media of claim 19, wherein the assessing of the risk and the providing of the price protection contract is done by the first consumer.

21. The computer readable media of claim 20, wherein first insurance strike price and associated insurance premium and first index price correspond to the locale.