SYSTEM AND METHOD FOR ADMINISTERING FIXED INDEX ANNUITIES

• US 20090292562A1
• Filed: 05/20/2008
• Published: 11/26/2009
• Est. Priority Date: 05/20/2008
• 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: Weiss, Joseph M., Golembiewski, Keith E., Michalowski, Philip W.
• Granted Patent: US 8,175,947 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 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A system for administering an insurance account includes a processor; a memory in communication with the processor; the processor being adapted to: access data indicative of a value of an index calculated based on a formula including as factors prices of individual equity securities; access data indicative of dividend yield; access data indicative of an asset value of an insurance account having a value based on the index; determine an updated asset value of the insurance account based on change in the index and on the dividend amount paid; store the determined updated asset value in the memory; and provide an output signal indicative of the determined updated asset value.

Claims

1. A system for administering a fixed-index annuity contract for the benefit of an annuitant, the asset value of the annuity being based on a formula in which the value of a stock index is a factor, comprising:

a processor;

a memory in communication with the processor;

the processor being adapted to;

access data indicative of an asset value of the annuity;

access data indicative of the value of the stock index;

access data indicative of a dividend yield of the stocks employed in calculation of the value of the stock index;

update an asset value of the annuity based on factors including the asset value of the annuity, the value of the stock index and a factor based on weighted dividend yields of the stocks employed in the stock index; and

provide an output signal including data indicative of the updated asset value.

2. The system of claim 1, wherein the factors further include a participation rate, a spread and a cap.

3. The system of claim 1, further comprising a second processor for receiving the output signal and causing a printer to print a report for the annuitant including the updated asset value of the annuity.

4. A system for administering an insurance account, comprising:

a processor;

a memory in communication with the processor;

the processor being adapted to;

access data indicative of a value of an index, the value of the index being calculated based on a formula including as factors prices of individual equity securities;

access data indicative of dividend yield of a portfolio holding the individual equity securities;

access data indicative of an asset value of an insurance account having a value based on the index;

determine an updated asset value of the insurance account based on change in the index and on the dividend yield;

store the determined updated asset value in the memory; and

provide an output signal indicative of the determined updated asset value.

5. The system of claim 4, wherein the insurance account is a fixed index account.

6. The system of claim 4, wherein the index is a stock index.

7. The system of claim 4, wherein the processor is adapted to determine the updated asset value based on the sum of percentage increase in the index value and the dividend yield as a percentage of securities value multiplied by a participation rate.

8. The system of claim 4, wherein the processor is adapted to determine the updated asset value by comparing the sum of the percentage increase in the index value and the dividend yield as a percentage of securities value to a cap, and updating the asset value by not more than the cap.

9. The system of claim 4, wherein the dividend yield is based on the dividend yield of a corresponding index fund.

10. The system of claim 4, wherein the dividend yield is based on a benchmark dividend yield.

11. The system of claim 4, further comprising:

a payment determination system having a processor for;

receiving the output signal, determining of a payor account and a payment method;

storing of the determined payor account information and the determined payment method in a memory of the payment determination system;

outputting of a digital signal indicative of the stored payor account information, the stored payment method, amount information and payee information; and

a payment fulfillment system for receiving the digital signal from the payment determination system and for fulfillment of payment in accordance with the information conveyed by the digital signal from the processor of the payment determination system.

12. A computer-implemented method for administering an annuity product, comprising the steps of:

storing by a processor in a memory in communication with the processor an account asset value;

accessing by the processor data indicative of a value of an index having weighted shares of individual equity securities;

accessing by the processor data indicative of an amount of dividends paid to owners of the individual equity securities;

accessing by the processor data indicative of an asset value of an insurance account having a value based on the index;

determining by the processor an updated asset value of the insurance account based on change in the index and on the dividend amount paid;

storing by the processor of the determined updated asset value in the memory; and

providing by the processor an output signal having data indicative of the determined updated asset value.

13. The method of claim 12, wherein the insurance account is a fixed index account.

14. The method of claim 12, wherein the index is a stock index.

15. The method of claim 12, wherein the updated asset value is determined based on the sum of percentage increase in the index value and the dividend amount as a percentage of securities value multiplied by a participation rate.

16. The method of claim 12, wherein the step of determining the updated asset value comprises comparing the sum of the percentage increase in the index value and the dividend amount as a percentage of securities value to a cap, and updating the asset value by not more than the cap.

17. The method of claim 12, wherein the dividend yield is based on the dividend yield of a corresponding index fund.

18. The method of claim 12, wherein the dividend yield is based on a benchmark dividend yield.

19. A computer-readable medium having a plurality of instructions thereon which, when executed by a processor, cause the processor to perform the steps of:

accessing data indicative of a value of an index calculated based on a formula including as factors weighted prices of individual equity securities;

accessing data indicative of a dividend yield of portfolio holding the individual equity securities in proportions corresponding to the weighting in the formula;

accessing data indicative of an asset value of an insurance account having a value based on the index;

determining an updated asset value of the insurance account based on change in the index and on the dividend yield data;

storing the determined updated asset value in the memory; and

providing an output signal indicative of the determined updated asset value.

20. The computer-readable medium of claim 19, wherein the output signal is provided to a printer driver to cause a printer to print the determined updated asset value.

21. The computer-readable medium of claim 19, wherein the output signal is provided to a video driver to cause a display to display the determined updated asset value.

22. A system for calculation and display of an annuity account, comprising:

a processor; and

a memory in communication with the processor;

wherein the processor is adapted to;

receive a signal having data indicative of a selection of fixed index annuity terms, including at least an index calculated based on a formula including as factors prices of individual equity securities, and investment amount;

store the fixed index annuity terms and investment amount in the memory;

access data indicative of exemplary index performance;

access data indicative of exemplary dividend yield of the individual equity securities;

access data indicative of an asset value of the fixed index annuity account based on the stored terms and investment amount;

determine an updated asset value of the fixed index annuity account based on an exemplary change in the index from the data indicative of exemplary index performance and on exemplary dividend yield data;

store the determined updated asset value in the memory; and

provide an output signal indicative of the determined updated asset value.

23. The system of claim 22, further comprising a user-accessible device having a user input and a display, wherein the signal having data indicative of a selection of fixed index annuity terms, is received by the processor from the user input.

24. The system of claim 23, wherein the output signal is received by the user-accessible device and displayed on the display.

25. The system of claim 23, wherein the processor is adapted to:

(a) repeat the steps of;

accessing data indicative of exemplary index performance;

accessing data indicative of exemplary dividend yield;

accessing data indicative of an asset value of an illustrative fixed index annuity based on the stored terms and investment amount;

determining an updated asset value of the illustrative fixed index annuity based on change in the index and on the dividend amount paid; and

storing the determined updated asset value in the memory; and

(b) prepare the updated asset values to be displayed in tabular form on the display.

26. A method for calculation and display of an annuity account, comprising:

receiving a signal having data indicative of a selection of fixed index annuity terms, including at least an index calculated based on a formula including as factors prices of individual equity securities, and an investment amount;

storing the fixed index annuity terms and investment amount in a memory;

accessing data indicative of exemplary performance of the index;

accessing data indicative of exemplary dividend yield of a portfolio containing the individual equity securities;

accessing data indicative of an asset value of a fixed index annuity based on the stored terms and investment amount;

determining an updated asset value of the fixed index annuity based on change in the index and on the dividend amount paid;

storing the determined updated asset value in the memory; and

providing an output signal indicative of the determined updated asset value.

27. The method of claim 26, wherein the signal having data indicative of a selection of fixed index annuity terms, including at least an index, and investment amount is received by the processor from a client-accessible device displaying a user-fillable form.

28. The method of claim 26, wherein the output signal further comprises instructions for printing of an illustration including the determined updated asset value.

29. A computer-readable medium having a plurality of instructions thereon, which when implemented by a processor, cause the processor to perform the steps of:

receiving a signal having data indicative of a selection of fixed index annuity terms, including at least an index calculated based on a formula including as factors prices of individual equity securities, and an investment amount;

storing the fixed index annuity terms and investment amount in the memory;

accessing data indicative of exemplary index performance;

accessing data indicative of exemplary dividend yield;

accessing data indicative of an asset value of a fixed index annuity based on the stored terms and investment amount;

determining an updated asset value of the fixed index annuity based on change in the index and on the dividend amount paid;

storing the determined updated asset value in the memory; and

providing an output signal indicative of the determined updated asset value.

30. The computer readable medium of claim 29, wherein the instructions cause the processor to perform the further steps of accessing data indicative of a total return of the index.

31. The computer readable medium of claim 29, wherein the output signal includes instruction for printing a document including the determined updated asset value.