SYSTEM AND METHOD FOR ADMINISTERING VARIABLE ANNUITIES

• US 20090292563A1
• 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 8,805,705 B2
• Time in Patent Office: Days
• US Class Current: 705/4
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A system for administering a variable annuity account includes a processor and a memory in communication with the processor. The processor is adapted to: access from a memory storage device data indicative of actual performance over a time period of a fund within the variable annuity account; access from a memory storage device data indicative of benchmark performance of the fund; compare the actual performance data to the benchmark performance data, and store the result of the comparison in the memory; based on the results of the step of comparing, determine whether to refund to the account an amount; if the amount is to be refunded, access data indicative of the refund amount; access data indicative of the asset value of the account; determine an updated asset value based on the asset value and the amount to be refunded; store the determined updated asset value in a memory storage location; and provide an output signal including data indicative of the change in the asset value of the account.

Claims

1. A system for administering a variable annuity account, comprising:

a processor;

a memory in communication with the processor;

the processor being adapted to;

access from a memory storage device data indicative of a change over a time period in value of a fund within the variable annuity account;

if, based on the accessed data, the fund value declined during the time period, then determine that an amount based on a fund management fee charged to the account over the time period is to be refunded;

if the amount is to be refunded, access data indicative of the fund management fee, and determine the refund amount;

access data indicative of the asset value of the account;

determine an updated asset value based on the asset value and the refund amount;

store the determined updated asset value in a memory storage location; and

provide an output signal including data indicative of the increase in the asset value of the account as a result of the refund.

2. The system of claim 1, wherein the time period is a year, and the refund amount is equal to the fund management fee for the one year period.

3. The system of claim 2, wherein the refunded fund management fee is calculated as a percentage of the asset value of the account at the end of the time period.

4. A system for administering a variable annuity account, comprising:

a processor;

a memory in communication with the processor;

the processor being adapted to;

access from a memory storage device data indicative of actual performance of at least a fund within the variable annuity account;

access from a memory storage device data indicative of benchmark performance;

compare the actual performance data to the benchmark performance data, and store the result of the comparison in the memory;

based on the results of the step of comparing, determine whether to refund to the account an amount;

if the amount is to be refunded, access data indicative of the refund amount;

access data indicative of the asset value of the account;

determine an updated asset value based on the asset value and the amount to be refunded;

store the determined updated asset value in a memory storage location;

and provide an output signal including data indicative of the change in the asset value of the account.

5. The system of claim 4, wherein the actual performance data is data indicative of a change over a time period in value of a fund within the variable annuity account;

and the benchmark data is a benchmark change in value.

6. The system of claim 5, wherein the benchmark change in value is a zero gain in value of the fund after expenses.

7. The system of claim 5, wherein the benchmark change in value is a gain of an index.

8. The system of claim 7, wherein the fund is a stock fund, and the index is a stock index.

9. The system of claim 8, wherein the stock fund has an investment strategy, and the index is a stock index having substantially the same investment strategy.

10. The system of claim 4, wherein the actual performance data is account asset value data at present.

11. The system of claim 10, wherein the benchmark data is initial account asset value, and wherein a refund is to be paid if the account asset value at present is less than the initial account asset value.

12. The system of claim 4, wherein the processor is further adapted to provide an output signal indicative of instructions for payment of the management fee to an investment adviser.

13. The system of claim 4, wherein the processor is further adapted to receive a signal having data indicative of an instruction to provide a payment from the account, to calculate a payment amount based on the asset value of the account, and to provide an output signal having data indicative of the payment amount.

14. The system of claim 13, 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.

15. The system of claim 14, wherein the payment fulfillment system is a check printing and mailing system for printing and mailing a check drawn on the payor account in an amount and to a payee as determined by the information conveyed by the digital signal from the processor of the payment determination system.

16. The system of claim 14, wherein the payment fulfillment system is a system for generating electronic funds transfer requests for providing of an instruction to a bank determined by the payor account information to provide an electronic funds transfer from the payor account to a payee account in an amount determined by the information conveyed by the digital signal from the processor of the payment determination system.

17. The system of claim 4, wherein the output signal further comprises data indicative of instructions for printing of a statement including the amount of the refund.

18. The system of claim 4, wherein the refund amount is equal to a management fee for the fund for the time period.

19. The system of claim 18, wherein the management fee includes a 12b-1 fee.

20. The system of claim 4, wherein the refund amount is a predetermined dollar amount.

21. The system of claim 4, wherein the benchmark data comprises a benchmark fund value change, and the refund amount is based on a formula including a dollar value multiplied by a differential between a value change of the fund and a benchmark fund value change.

22. A computer-implemented method for administering a variable annuity account, comprising the steps of:

accessing from a memory storage device data indicative of actual performance over a time period in value of a fund within the variable annuity account;

accessing from a memory storage device data indicative of benchmark performance of the fund;

comparing the actual performance data to the benchmark data, and storing the result of the comparison in the memory;

based on the results of the step of comparing, determining whether to refund an amount to the account;

if the amount is to be refunded, accessing data indicative of the value of the amount to be refunded;

accessing data indicative of the asset value of the account;

determining an updated asset value based on the asset value and the amount to be refunded;

storing the determined updated asset value in a memory storage location;

and providing an output signal including data indicative of the change in value to the net asset value of the account.

23. The method of claim 22, wherein the actual performance data is data indicative of a change over a time period in value of a fund within the variable annuity account;

and the benchmark data is a benchmark change in value.

24. The method of claim 23, wherein the benchmark change in value is a zero gain in value of the fund after expenses.

25. The method of claim 23, wherein the benchmark change in value is a gain of an index.

26. The method of claim 25, wherein the fund is a stock fund, and the index is a stock index.

27. The method of claim 26, wherein the stock fund has an investment strategy, and the index is a stock index having substantially the same investment strategy.

28. The method of claim 22, wherein the actual performance data is account asset value data at present.

29. The method of claim 28, wherein the benchmark data is initial account asset value, and wherein a refund is to be paid if the account asset value at present is less than the initial account asset value.

30. The method of claim 22, further comprising providing an output signal indicative of instructions for payment of the management fee to an investment adviser.

31. The method of claim 22, further comprising receiving a signal having data indicative of an instruction to provide a payment from the account;

calculating, in response to receive of the signal, a payment amount based on the asset value of the account; and

providing an output signal having data indicative of the payment amount.

32. The method of claim 31, further comprising:

in response to receipt of the output signal at a payment determination system, 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 by the payment determination system of a digital signal indicative of the stored payor account information, the stored payment method, amount information and payee information; and

in response to receipt of the signal output by the payment determination system, fulfillment by a payment fulfillment system of payment in accordance with the information conveyed by the output signal from the payment determination system.

33. The method of claim 32, wherein the step of fulfillment comprises printing and mailing a check drawn on the payor account in an amount and to a payee as determined by the information conveyed by the digital signal from the processor of the payment determination system.

34. The method of claim 32, wherein the step of fulfillment comprises generating electronic funds transfer requests for providing of an instruction to a bank determined by the payor account information to provide an electronic funds transfer from the payor account to a payee account in an amount determined by the information conveyed by the digital signal from the processor of the payment determination system.

35. The method of claim 22, wherein the output signal further comprises data indicative of instructions for printing of a statement including the amount of the refund.

36. The method of claim 22, wherein the refund amount is equal to a management fee for the fund for the time period.

37. The method of claim 36, wherein the management fee includes a 12b-1 fee.

38. The method of claim 22, wherein the refund amount is a predetermined dollar amount.

39. 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 from a memory storage device data indicative of actual performance over a time period in value of a fund within the variable annuity account;

accessing from a memory storage device data indicative of benchmark performance of the fund;

comparing the actual performance data to the benchmark data, and storing the result of the comparison in the memory;

based on the results of the step of comparing, determining whether to refund an amount to the account;

if the amount is to be refunded, accessing data indicative of the value of the amount to be refunded;

accessing data indicative of the asset value of the account;

determining an updated asset value based on the asset value and the amount to be refunded;

storing the determined updated asset value in a memory storage location;

and providing an output signal including data indicative of the change in value to the net asset value of the account.

40. The computer-readable medium of claim 39, wherein the actual performance data is data indicative of a change over a time period in value of a fund within the variable annuity account;

and the benchmark data is a benchmark change in value.

41. The computer-readable medium of claim 39, wherein the output signal is provided to a printer driver to cause a printer to print the determined updated asset value.

42. The computer-readable medium of claim 39, wherein the output signal is provided to a video driver to cause a display to display the determined updated asset value.