Method and system for providing a fixed rate annuity with a lock-in interest rate feature

• US 20090063203A1
• Filed: 10/31/2008
• Published: 03/05/2009
• Est. Priority Date: 04/16/2007
• 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: Baiye, Simpa
• Granted Patent: US 7,945,499 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 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A data processing method and system administers a deferred annuity contract during the accumulation phase of a contract term. The annuity contract permits the annuitant to select both an interest rate which is reset periodically (reset rate) and an interest rate which is guaranteed for multiple years (MYG rate), during the same contract term. The annuitant may elect to automatically switch from the reset rate to the MYG rate, for the remainder of the contract term, when the reset rate falls below the MYG rate.

Claims

1. A data processing system for administering a deferred annuity contract during an accumulation phase, said system comprising:

a communications module for receiving information for said deferred annuity contract, wherein said deferred annuity contract further including an account value, a annuity term and an annuity commencement date;

a storage device coupled to said communications module for storing said received information;

a processing module operably coupled to said storage device, for determining an interest rate, said interest rate provides a guaranteed interest rate and a periodic reset interest rate and an interest rate lock-in feature; and

said communications module for offering said deferred annuity contract.

2. The data processing system of claim 1 further comprising said communications module coupled to said processing module for receiving premium payments, said premium payments are received during said accumulation phase;

3. The data processing system of claim 2 wherein said guaranteed interest rate is a fixed interest rate, said guaranteed interest rate being fixed over said accumulation phase.

4. The data processing system of claim 3 wherein said reset interest rate is an adjustable interest rate, said adjustable interest rate being varied over said accumulation phase.

5. The data processing system of claim 4 further comprising said communications module in communication with said processing module for receiving a request to select said reset interest rate.

6. The data processing system of claim 5 wherein said reset interest rate is applied to said premium payments.

7. The data processing system of claim 6 wherein said interest rate lock-in feature comprises an option to transfer said interest rate from said reset interest rate to said guaranteed interest rate, said transfer being made during said accumulation phase.

8. The data processing system of claim 7 further comprising said processing module configured for transferring from said reset interest rate to said guaranteed interest rate when said reset interest rate falls below said guaranteed interest rate.

9. The data processing system of claim 8 wherein said transfer is a one-time transfer.

10. The data processing system of claim 9 wherein said account value is calculated according to said guaranteed interest rate for a remainder of said annuity term.

11. The data processing system of claim 9 further comprising said processing module configured for transferring said interest rate from said reset interest rate to said guaranteed interest rate, said transfer being automatically made.

12. The data processing system of claim 9 further comprising said processing module configured for transferring said interest rate from said reset rate to said guaranteed rate, said transfer manually being received.

13. The data processing system of claim 1 wherein said reset interest rate is based upon an external index.

14. The data processing system of claim 1 wherein said reset interest rate is determined annually.

15. The data processing system of claim 1 further comprising said processing module for determining optional riders, said riders being provided with said annuity contract.

16. The data processing system of claim 5 wherein said account value is a product of said premium payments and said interest rate.

17. The data processing system of claim 1 wherein said information is received from an annuitant

18. A computer implemented data processing method for administering a deferred annuity contract during an accumulation phase, the method comprising:

receiving, via a communications module, information for the deferred annuity contract, wherein the deferred annuity contract further including an account value, an annuity term and an annuity commencement date;

determining, via a processing module coupled to the communications module, an interest rate, the interest rate is selected from one of a guaranteed interest rate and a periodic reset interest rate;

offering, via the processing module, an interest rate lock-in feature;

issuing, via the communications module, the deferred annuity contract.

19. The computer implemented method of claim 18 further comprising the step of receiving, via the communications module, premium payments, wherein the premium payments are received during the accumulation phase;

20. The computer implemented method of claim 19 wherein the guaranteed interest rate is a fixed interest rate, and wherein the guaranteed interest rate is fixed over the accumulation phase.

21. The computer implemented method of claim 20 wherein the reset interest rate is an adjustable interest rate, and wherein the adjustable interest rate varies over the accumulation phase.

22. The computer implemented method of claim 21 further comprising the step of receiving, via the communications module, a request to select the interest rate, wherein the interest rate is applied to the received premium payments.

23. The computer implemented method of claim 22 wherein the interest rate lock-in feature comprises an option to transfer the interest rate from the reset interest rate to the guaranteed interest rate, the transfer being made during the accumulation phase.

24. The computer implemented method of claim 23 further comprising the step of transferring, via the processing module, from the reset interest rate to the guaranteed interest rate when the reset interest rate falls below the guaranteed interest rate.

25. The computer implemented method of claim 24 wherein the transfer is a one-time transfer.

26. The computer implemented method of claim 25 wherein the account value is calculated according to the guaranteed interest rate for a remainder of the annuity term.

27. The computer implemented method of claim 24 further comprising the step of transferring, via the processing module, from the reset interest rate to the guaranteed interest rate, the transfer automatically being made.

28. The computer implemented method of claim 24 further comprising the step of transferring, via the processing module, from the reset interest rate to the guaranteed interest rate, the transfer being manually received from the annuitant.

29. The computer-implemented method of claim 18 wherein the reset interest rate is based upon an external index.

30. The computer implemented method of claim 18 wherein the reset interest rate is determined annually.

31. The computer implemented method, of claim 18 further comprising the step of determining, via the processing module, optional riders, the riders being provided with the annuity contract.

32. The computer implemented method of claim 21 wherein the account value is a product of the premium payments and the interest rate.