System and method for administering dynamic security benefits and payments

• US 20090204441A1
• Filed: 04/24/2008
• Published: 08/13/2009
• Est. Priority Date: 11/20/2007
• 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: Jaworski, Edward, Read, Katherine, Wadsworth, Theresa, Fisher, Karen M. Queeney, Balboni, Richard, McConnell, Steve Robert, Lukawicz, Robert, Shaher, Ahmed, Molinsky, Bradley D.
• Granted Patent: US 8,103,528 B2
• Time in Patent Office: Days
• US Class Current: 705/4
• 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

Disclosed is a novel security benefits product that provides customizable benefits to the purchaser for a variety of different triggering conditions. The product of the present invention may be sold to an individual or a group. The product contains a feature that allows a purchaser to modify and/or vary his or her coverage related to one or more serious health events, such as disability, accident, illness, or death. Additionally, a conversion feature is provided, which allows the insured individual who purchased the product through a third party to maintain the product of the present invention even after the individual is no longer affiliated with the third party.

Claims

1. A computer system for administering by a service provider a product for a client having coverage of at least two categories of health events and for providing a platform of integrated risk protection, said system comprising:

a data storage module for storing information associated with said at least two categories of health events for said product; and

a processing module for configuring percentage benefit allocations for the at least two categories of health events to be covered; and

a payment module for;

structuring payouts for each of said at least two categories of health events to be covered; and

paying a benefit according to said percentage benefit allocations for said each health events upon the occurrence of one of said health events.

2. The computer system according to claim 1, wherein said at least two categories of health events include at least one of the following:

death, disability, accident, and illness.

3. The computer system according to claim 2, wherein at least one of said categories of health events further comprises individual risk factors.

4. The computer system according to claim 3, wherein said risk factors are chosen from at least one of the following:

cause of illness, type of illness, cause of accident, type of accident, cause of disability, type of disability, and cause of death.

5. The computer system according to claim 3, wherein said risk factors are at least in part used by said processor to determine disbursement of said benefit.

6. The computer system according to claim 1, wherein said benefit amount varies with time.

7. The computer system according to claim 3, wherein said health events include any additional event which is detrimental to the health of said client.

8. The computer system according to claim 1, wherein said processing module is further configured to pay said benefit upon the occurrence of one or more of said health events using at least one of the following methods:

on a pro rata share directly proportional to the number of categories of said covered health events included in said product, or on a predetermined percentage ratio for each of said covered health events.

9. The computer system according to claim 1, wherein said processing module is further configured to pay said benefit according to a percentage of said benefit allocated to a given claimed health event upon the occurrence of said claimed health event.

10. The computer system according to claim 1, wherein said processing module is further configured to pay at least one of the following upon the occurrence of a claimed event:

said benefit minus the amount of benefits paid to said client up to the date of said claimed event wherein said claimed event is death, a predetermined percentage of said benefit allocated to a given claimed health event wherein said claimed event is death, or said benefits in full upon the death of said client.

11. The computer system according to claim 1, wherein said processing module is further configured to reallocate said benefit for one or more of said categories of covered health events while maintaining coverage for one or more of said categories of health events based on at least one of the following:

percentages determined by said service provider, predetermined percentages, or percentages determined by said client.

12. The computer system according to claim 1, wherein said processing module is further configured to allow said client to elect to cancel coverage for one or more of said categories of health events while maintaining coverage for said at least one category of health events based on at least one of the following conditions:

after a predetermined period of time, upon the occurrence of a life altering event, upon the discretion of said service provider, and upon the discretion of said client

13. The computer system according to claim 12, wherein said processing module is further configured to reallocate said benefit among the other remaining categories of said covered health events equally.

14. The computer system according to claim 1, wherein said processing module is further configured to receive and transmit information regarding said client from and to said service provider and a third party, wherein said third party extends coverage under said product to said client.

15. The computer system according to claim 14, wherein either said service provider or said third party requires said client to submit proof of insurability as defined by said service provider or said third party.

16. The computer system according to claim 14, wherein said client terminates his/her relationship with said third party, and further continues to receive coverage from said service provider.

17. The computer system according to claim 1, wherein upon payment of a benefit for at least one of said two categories of health events, coverage is still provide for the other of said health events.

18. A computer implemented method for administering a product to client with coverage of at least two categories of health events by a service provider the method comprising the steps of:

receiving via a communications module a selection of at least two categories of health events to be covered, wherein each category of health events comprises at least one benefit;

storing in a database the selected categories of health events to be covered;

determining in a processing module the amount of the benefit for each of the at least two categories of health events to be covered;

configuring in the processing module a payout structure for each of the at least two categories of health events to be covered; and

outputting a payout schedule for each of the at least two categories of health events to be covered.

19. The computer implemented method according to claim 18, wherein at least one of the categories of health events further comprises at least one risk factor.

20. The computer implemented method according to claim 19, wherein the at least one category of health events is chosen from the following:

death, illness, accident and disability.

21. The computer implemented method according to claim 20, wherein coverage for death is term coverage set to expire after a predetermined period of time.

22. The computer implemented method according to claim 21, wherein the predetermined period of time is determined by the client.

23. The computer implemented method according to claim 21, wherein the predetermined period of time is determined by the service provider.

24. The computer implemented method according to claim 20, wherein the at least one of the risk factors is illness.

25. The computer implemented method according to claim 20, wherein the at least one of the risk factors is disability.

26. The computer implemented method according to claim 20, wherein the at least one of the risk factors is related to an accident.

27. The computer implemented method according to claim 20, wherein the at least one of the risk factors is cause of death.

28. The computer implemented method according to claim 18, wherein the total amount of benefit varies over time.

29. The computer implemented method according to claim 18, wherein more than one category of health events applies to a single event.

30. The computer implemented method according to claim 18, wherein the duration of coverage for the at least one category of health events to be covered is chosen by the client.

31. The computer implemented method according to claim 30, wherein the duration of coverage for the at least one category of health events to be covered is chosen from:

1 year of coverage, 10 years of coverage, or a lifetime of coverage.

32. The computer implemented method according to claim 18, wherein the payout structure is chosen from the following:

lump sum payout, predetermined multiple payments, or variable payments based on performance of investment made by the service provider.

33. The computer implemented method according to claim 32, wherein the pay out schedule for the predetermined multiple payments is chosen from a variable number of payments.

34. The computer implemented method according to claim 18, wherein data related to the product is exchanged with a third party which extends coverage under the product to the client, wherein the third party receives and transmits information regarding the client from and to the service provider.

35. The computer implemented method according to claim 34, wherein either the service provider or the third party require the client to submit proof of insurability as defined by the service provider or the third party.

36. The computer implemented method according to claim 34, wherein the client terminates his/her relationship with the third party, and further continues to receive coverage from the service provider.

37. The computer implemented method according to claim 18, wherein the pay out structure is chosen separately for each of the at least two categories of health events to be covered.

38. The computer implemented method according to claim 19, wherein the pay out structure is the same for each of the at least two risk factors.

39. The computer implemented method according to claim 18, wherein during the time the client is collecting the at least one benefit the product remains in force without payment or premiums by the client.

40. The computer implemented method according to claim 18, wherein during the time the client is collecting the benefit, the collected benefit is subtracted from the total amount of the benefit available for the at least two categories of health events.

41. The computer implemented method according to claim 18, wherein upon payment of a benefit for at least one of said two categories of health events, coverage is still provided for the other of said health event.

42. A computer implemented method for administering a product to a client with coverage of at least two categories of health events by a service provider, the method comprising the steps of:

receiving via a communications module the selection of at least two categories of health events to be covered, wherein each category of the health events comprises at least one benefit;

storing in a database the selected categories of health events to be covered;

determining in a processing module the amount of benefit for each of the at least two categories of health events to be covered;

configuring in the processing module a payout structure for the at least two categories of health events to be covered; and

configuring in the processing module by the client a percentage of the total amount of benefit for each of the at least two categories of health events;

outputting a payout schedule for each of the at least two categories of health events to be covered; and

wherein the client is capable of reallocating using the processing module the percentage of the benefit associated with each of the at least two categories of coverage.

43. The computer implemented method according to claim 42, wherein the client is capable of canceling coverage for the at least one category of health events.

44. The computer implemented method according to claim 43, wherein upon the canceling of coverage of the at least one category of health events, the remaining benefit amount at the time of canceling is reallocated to the remaining categories of health events.

45. The computer implemented method according to claim 44, wherein upon canceling coverage for the at least one category of health events the remaining benefit amount at the time of canceling is reallocated to the remaining coverage for the categories of health events based on percentages determined by the client.

46. The computer implemented method according to claim 45, wherein the percentages determined by the client are not equal to each other.

47. The computer implemented method according to claim 44, wherein upon canceling coverage for the at least one category of health events the remaining benefit amount at the time of canceling is reallocated to the remaining categories of health events based on percentages determined by the service provider.

48. The computer implemented method according to claim 44, wherein the client cancels coverage for the at least one health event upon the occurrence of a life altering event.

49. The computer implemented method according to claim 48, wherein the life altering event is selected from at least one of the following:

marriage, death of spouse, retirement, disability, and illness.

50. The computer implemented method according to claim 44, wherein the client cancels coverage for the at least one health event at the discretion of the client.

51. The computer implemented method according to claim 44, wherein the client cancels coverage for the at least one health event upon being given permission by the service provider.

52. The computer implemented method according to claim 42, wherein after a predetermined period of time the percentage of benefits associated with each of the at least two categories of health events may be reallocated.

53. The computer implemented method according to claim 44, wherein upon the occurrence of a life altering event the percentage of the benefit associated with each of the at least two categories of health events may be reallocated.

54. The computer implemented method according to claim 42, wherein upon payment of a benefit for at least one of said two categories of health events, coverage is still provided for the other of said health events.