Auction system and system of forming investment trust and financial products and funds including viatical and life settlement

• US 20090119134A1
• Filed: 01/05/2009
• Published: 05/07/2009
• Est. Priority Date: 03/11/2005
• Status: Active Grant

• Current Assignee: Research Center For The Prevention of Diabetes
• Original Assignee: Research Center For The Prevention of Diabetes
• Inventors: Sakaue, Kenji, Sakaue, Reiko
• Granted Patent: US 8,103,577 B2
• Time in Patent Office: Days
• US Class Current: 705/4
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/08 Insurance
• CPC Class Codes: G06Q 50/188 Electronic negotiation

Abstract

An auction system between a seller and a bidder via a communication network, for calculating a proper price of a viatical and life settlement policy based on the amount of insurance carried by an insured, the estimated remaining life of the insured, an insurance premium due to be paid by the insured, a commission fee of an investment trust institution and the annual interest of the policy, for preventing the policy from being set at an illegally low price and allowing the insured to sell the policy at an optimized market price while maintaining a fair trade. Whether or not already-distributed key information is used for login, charges can be withdrawn from a trade account available for online settlement, and it is possible to confirm whether a seller or bidder has carried out an illegal action, so that troubles such as unpaid fees can be greatly reduced.

Claims

1. A computer-implemented system for trading a viatical and life settlement insurance policy, comprising:

(a) means for receiving a selling price of the viatical and life settlement insurance policy, the selling price being provided by a seller of the viatical and life settlement insurance policy;

(b) means for virtually dividing the viatical and life settlement insurance policy into a plurality of units so that ownership of the viatical and life settlement insurance policy can be shared;

(c) means for determining a price of one unit based on the number of units;

(d) means for receiving a purchase price of the viatical and life settlement insurance policy, the purchase price being provided by at least one potential purchaser of the viatical and life settlement insurance policy;

(e) means for initially determining the number of units bought by the potential purchaser in order to be allocated depending on the purchase price;

(f) means for comparing the total number of units allocated to the potential purchaser with the total number of units into which the viatical and life settlement insurance policy was divided by the means for virtually dividing;

(g) means for adjusting the price of one unit based on the comparison carried out by the means for comparing; and

(h) means for redetermining the number of units of proprietary rights of the potential purchaser, wherein the initially determined units for the potential purchaser are reallocated depending on the adjusted purchase price;

wherein the means for comparing, the means for adjusting the price, and the means for redetermining repeat carrying out their functions for a given amount of time.

2. The system according to claim 1, wherein the means for adjusting the price raises the price of one unit, if the total number of units bought by the potential purchaser exceeds the total number of units into which the viatical and life settlement insurance policy is divided, otherwise the adjusting reduces the price of one unit.

3. The system according to claim 1, wherein if the total number of units bought by the potential purchaser is not over the total one of units into which the viatical and life settlement insurance policy is divided by the means for comparing, completion of the trading is decided based on instructions from the purchaser without the means for comparing and the means for adjusting the price carrying out their functions.

4. The system according to claim 1, further comprising:

means for adding an identifier to each unit of the viatical and life settlement insurance policy;

means for registering ownership of a units that has been purchased;

means for attributing to the registered unit information necessary for transaction processing, including online settlement of the unit;

means for extracting the attributed information of the registered unit using the identifier added to the unit; and

means for managing the units based on the identifiers.

5. The system according to claim 4, further comprising means for carrying out automated transaction processing using the attributed information.

6. The system according to claim 1, wherein the means for determining the price determines the price based on one of a price set by the seller, the suggested sales price of the viatical and life settlement insurance policy, and a successful bid condition of a similar viatical and life settlement insurance policy in a past auction.

7. The system according to claim 1, further comprising:

means for modifying a market price for the viatical and life settlement insurance policy at a predetermined interval based on at least one of the estimated remaining life expectancy of an insured person and ranking information of the insurance company, the term and the ranking information being updated at a given interval; and

means for setting the selling price or the purchase price based on the modified market price.

8. The system according to claim 1, further comprising means for calculating a market price of the viatical and life settlement insurance policy according to the formula

J=((H/(R×

SY+1))−

SY×

hy×

1.5)/(1+α

),

where H is the insurance money, SY is the latest estimated life expectancy, hy is the annual insurance premium, alpha is the rate of commission due to trust investment farm, R is the annual interest for the viatical and life settlement insurance policy, and C is a proportionality coefficient.

9. The system according to claim 1, further comprising:

means for calculating a change in the estimated remaining life expectancy of the insured person; and

means for reflecting the change in a market price of the viatical and life settlement insurance policy, if the change exceeds a predetermined range.

10. The system according to claim 1, wherein the viatical and life settlement insurance policy is aimed at least one of elderly people, an insured person'"'"'s likelihood of dying in the near future, and young and healthy people.

11. The system according to claim 10, wherein a market price of the viatical and life settlement insurance policy for the young and healthy people is calculated based on information including at least one of average expectation of life, immunity, and annual income of the insured person.