METHODS FOR SELLING INSURANCE USING HYBRID LIFE

• US 20090182583A1
• Filed: 01/14/2008
• Published: 07/16/2009
• Est. Priority Date: 01/14/2008
• Status: Active Grant

• Current Assignee: Fidelity Life Association (Investment Portfolio) (Members Mutual Holding Co.)
• Original Assignee: Fidelity Life Association (Investment Portfolio) (Members Mutual Holding Co.)
• Inventors: Harkensee, James, Hemmings, Richard A.
• Granted Patent: US 8,209,198 B2
• Time in Patent Office: Days
• US Class Current: 705/4
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

An insurer sells a life insurance policy with two distinct coverage periods. Prior to accepting the offer of insurance, the insurer underwrites the insurance contract on a limited basis using information obtainable by querying a remote database. During the first coverage period, full coverage is provided and the premium rates approximate a comprehensively underwritten risk. The value of coverage provided at the end of the first coverage period may be reduced if the insured fails to satisfy various obligations. If before a contractually defined compliance period the insured undergoes medical tests and submits blood, urine, or other tissue samples to an underwriter or approved laboratory, the underwriter comprehensively underwrites the policy. If the comprehensive underwriting is satisfactory, the insurance contract is amended, modified, or replaced with a new contract effectively extending full coverage for a longer, extended coverage period, while maintaining or even reducing the premiums owed.

Claims

1. A method of providing life insurance, the method comprising:

receiving identification information and underwriting information associated with a person on an application for life insurance covering the person'"'"'s life;

performing at least one database query based on the underwriting information to produce a query result;

determining that the person qualifies for life insurance based on the query result;

providing the life insurance from a life insurance provider, the life insurance having a first coverage period beginning on a policy issue date and an extended coverage period, the policy issue date and the first coverage period being chronologically prior to the extended coverage period;

providing life insurance coverage beginning on the policy issue date and continuing through the first coverage period without requiring medical test results associated with the person; and

providing life insurance coverage during the extended coverage period if the medical test results associated with the person are satisfactory and are received after the policy issue date and before the end of the first coverage period.

2. The method of claim 1, including fully guaranteeing the life insurance regardless of a medical condition associated with the person that is discovered after the life insurance is provided to the person.

3. The method of claim 2, including adjusting the premium amount associated with the life insurance on a going forward only basis after determining the medical condition associated with the person.

4. The method of claim 2, wherein fully guaranteeing the life insurance does not include fully guaranteeing the life insurance if the underwriting information includes intentionally false information.

5. The method of claim 1, including receiving the medical test results from a doctor selected by the person.

6. The method of claim 1, including receiving the medical test results from a paramedical examination performed by a paramedical examiner approved by the life insurance provider.

7. The method of claim 1, including receiving the medical test results from an approved laboratory selected by the person.

8. The method of claim 1, wherein the person is given an incentive if the medical test results are provided to the life insurance provider within a predefined period of time after the life insurance is provided to the person.

9. The method of claim 8, wherein the incentive includes reducing the premium amount.

10. The method of claim 8, wherein the incentive includes increasing the full coverage amount.

11. The method of claim 8, wherein the incentive includes a cash back amount.

12. The method of claim 1, wherein the life insurance converts to accidental death coverage if the medical test results are not received within a predefined time period after providing the life insurance to the person.

13. The method of claim 1, wherein the life insurance converts to annual renewable term life insurance such that the person may renew the life insurance at the end of each year following the predefined time period by paying an adjusted premium.

14. The method of claim 13, wherein the person may renew the life insurance at the end of each year so long as the person is younger than a predefined age.