SYSTEM AND METHOD FOR APPLICATION PROCESSING AND POLICY ADMINISTRATION FOR INSURANCE POLICIES ISSUED BEFORE COMPREHENSIVE UNDERWRITING

• US 20110125537A1
• Filed: 12/02/2010
• Published: 05/26/2011
• Est. Priority Date: 11/23/2009
• Status: Active Grant

• Current Assignee: Prudential Insurance Company of America (Prudential Financial Incorporated)
• Original Assignee: Hartford Fire Insurance Company (The Hartford Financial Services Group, Inc.)
• Inventors: Rasmussen, Kimberly Ann, Lindquist, Greg D., Reynolds, Leslie Ann, Williams, Steven J., Roscoe, Michael J.
• Granted Patent: US 8,639,536 B2
• Time in Patent Office: Days
• US Class Current: 705/4
• CPC Class Codes: G06Q 10/10 Office automation; Time management
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A computer system for administering applications for life insurance has a processor and a memory storage device in communication with the processor. The processor is configured to receive data indicative of application data and data indicative of a health of a proposed insured; based on the received data, determine whether the proposed insured is eligible, and generate an output signal to cause a policy to be generated and comprehensive underwriting to commence. Upon completion of comprehensive underwriting, additional policy documents may be determined. Calculations of commissions and reinsurance premiums may be made upon issue of a policy and recalculated upon completion of comprehensive underwriting.

Claims

1. A computer system for generating life insurance policy documents, comprising:

a data storage device for storing life insurance policy document templates and first flags associated with the life insurance policy document templates, indicative of first documents for generation upon issuing of a life insurance policy issued prior to completion of comprehensive underwriting, and second flags associated with the life insurance policy document templates indicative of second documents for generation upon completion of comprehensive underwriting of the life insurance policy;

a processor in communication with the storage device and configured to, responsive to receipt of data indicative of issuing of a life insurance policy issued prior to completion of comprehensive underwriting, access from the storage device first templates having first flags associated therewith, generate first documents using the accessed first templates and the received data indicative of issuing of the life insurance policy, and provide an output signal indicative of the generated first documents; and

responsive to receipt of data indicative of completion of comprehensive underwriting of the life insurance policy, access from the storage device second templates having second flags associated therewith, generate second documents using the accessed second templates and the received data indicative of completion of comprehensive underwriting, and provide an output signal indicative of the generated second documents.

2. The computer system of claim 1, further comprising a printing system for receiving the output signals from the processor and printing the generated first and second documents.

3. The computer system of claim 1, wherein the processor is further configured to generate digital image files of the first and second documents, and the system further comprises a hardware server configured to render the first and second documents accessible over a network to the proposed insured.

4. The computer system of claim 1, wherein the processor is further configured to, responsive to user input, provide an output signal to the storage device for changing a flag associated with a template.

5. The computer system of claim 1, further comprising a user display device in communication with the processor, wherein the processor is configured to provide signals to the display device to display identifications of the first and second templates and associated first and second flags.

6. The computer system of claim 1, wherein the first documents comprise documents associated with first selected riders, and the second documents comprise documents associated with second selected riders.

7. The computer system of claim 6, wherein the riders comprise at least one of an accelerated benefit rider, an owner designated settlement options rider, a facility care rider, a waiver of deductions rider, a cost of living adjustment rider, an accidental disability rider, a term insurance rider, a child rider and a foreign travel exclusion rider.

8. A computer-implemented method for generating life insurance policy documents, comprising:

receiving by a processor data indicative of issuing of a life insurance policy issued prior to completion of comprehensive underwriting;

responsive to the receipt of the data indicative of issuing of a life insurance policy issued prior to completion of comprehensive underwriting, accessing by the processor from a data storage device in communication with the processor first life insurance policy document templates having associated first flags indicative of first documents for generation upon issuing of a life insurance policy issued prior to completion of comprehensive underwriting;

generating by the processor first documents using the accessed first templates and the received data indicative of issuing of the life insurance policy,

providing by the processor an output signal indicative of the generated first documents;

receiving by the processor data indicative of completion of comprehensive underwriting of the life insurance policy;

responsive to the receipt of the data indicative of completion of comprehensive underwriting of the life insurance policy, accessing by the processor from the data storage device second templates having second flags associated therewith; and

generating second documents using the accessed second templates and the received data indicative of completion of comprehensive underwriting.

9. The computer-implemented method of claim 8, further comprising receiving the output signals by a printing system and printing the generated first and second documents by the printing system.

10. The computer-implemented method of claim 8, further comprising generating by the processor digital image files of the first and second documents, and rendering the first and second documents accessible over a network by a hardware server to the proposed insured.

11. The computer-implemented method of claim 8, further comprising, responsive to user input, providing an output signal to the storage device for changing a flag associated with one of the templates.

12. The computer-implemented method of claim 8, further comprising providing provide signals to a user-accessible display device to display identifications of the first and second templates and associated first and second flags.

13. The computer-implemented method of claim 8, wherein the first documents comprise documents associated with first selected riders, and the second documents comprise documents associated with second selected riders.

14. The computer-implemented method of claim 13, wherein the riders comprise at least one of an overloan protection rider, a policy protection rider, and a policy continuation rider.

15. A computer system for determining reinsurance data for life insurance policies, comprising:

a data storage device for storing rules relating to ceding portions of risk on life insurance policies; and

a processor in communication with the data storage device and configured to, responsive to receipt of data indicative of issuing of a life insurance policy issued prior to completion of comprehensive underwriting, access from the data storage device the rules relating to ceding portions of risk on life insurance policies, determine a first amount of risk ceded and a first reinsurance premium amount based on the received data indicative of issuing of a life insurance policy issued prior to completion of comprehensive underwriting and the rules, and provide an output signal indicative of the first amount of risk ceded and the first reinsurance premium amount; and

responsive to receipt of data indicative of completion of comprehensive underwriting of the life insurance policy, access from the storage device the rules relating to ceding portions of risk on life insurance policies and determine a second amount of risk ceded and a second reinsurance premium amount based on the received data indicative of completion of comprehensive underwriting of the life insurance policy and the rules, and provide an output signal indicative of the second amount of risk ceded and the second reinsurance premium amount.

16. The computer system of claim 15, further comprising a payment system for receiving the output signals from the processor and effecting payment of the reinsurance premium amounts.

17. The computer system of claim 15, wherein the rules comprise rules for ceding risk on the life insurance policy in excess of a threshold amount.

18. The computer system of claim 15, wherein the rules comprise rules for associating a reinsurance agreement with the life insurance policy.

19. The computer system of claim 15, wherein the rules comprise rules for determining a percentage of risk associated with the life insurance policy to be ceded to a reinsurer.

20. A computer-implemented method for determining reinsurance data for life insurance policies, comprising:

receiving by a processor data indicative of issuing of a life insurance policy issued prior to completion of comprehensive underwriting;

responsive to the receipt of the data, accessing by the processor from a data storage device in communication with the processor rules relating to ceding portions of risk on life insurance policies;

determining by the processor a first amount of risk ceded and a first reinsurance premium amount based on the received data indicative of issuing of a life insurance policy issued prior to completion of comprehensive underwriting and the rules;

providing by the processor an output signal indicative of the first amount of risk ceded and the first reinsurance premium amount;

receiving by the processor data indicative of completion of comprehensive underwriting of the life insurance policy;

responsive to the receipt of the data indicative of completion of comprehensive underwriting of the life insurance policy, accessing by the processor from the data storage device the rules relating to ceding portions of risk on life insurance policies;

determining by the processor a second amount of risk ceded and a second reinsurance premium amount based on the received data indicative of completion of comprehensive underwriting of the life insurance policy and the rules; and

providing an output signal indicative of the second amount of risk ceded and the second reinsurance premium amount.

21. The computer-implemented method of claim 20, further comprising receiving the output signals by a payment system, and effecting payment to a reinsurer in accordance with the premium amounts.

22. The computer-implemented method of claim 20, wherein the determining comprises determining to cede an amount of risk on the life insurance policy in excess of a threshold amount.

23. The computer-implemented method of claim 20, wherein the determining comprises associating a reinsurance agreement with the life insurance policy.

24. The computer-implemented method of claim 20, wherein the determining comprises determining a percentage of risk associated with the life insurance policy to be ceded to a reinsurer.

25. A computer system for administration of applications for life insurance, comprising:

a processor in communication with a network via a hardware communications link;

a memory storage device in communication with the processor;

wherein the processor is configured to;

provide an output signal via the network to a user-accessible device including instructions for display of prompts for data sufficient to constitute an application for life insurance for issue before comprehensive underwriting and to authorize a premium payment;

responsive to receiving, via the network from the user-accessible device and responsive to the prompts, data indicative of an application for life insurance, including application data, and affirmative or negative responses to a plurality of questions relating to health of a proposed insured, and to receiving data indicative of receipt of a premium payment, determine whether the application is complete and determining, based on the responses to the plurality of questions, whether the proposed insured is eligible for life insurance for issue before comprehensive underwriting;

responsive to determining that the application is complete, and the proposed insured is eligible, provide an output signal via the network to the user-accessible device indicative of issue of a life insurance policy and access to policy documents for the life insurance policy; and

responsive to receiving data indicative of a result of comprehensive underwriting, provide an output signal via the network to the user-accessible device indicative of access to one or more policy documents for the life insurance policy.

26. The computer system of claim 25, wherein the processor is configured to provide the output signal indicative of issue of the life insurance policy in real time subsequent to receipt of the data from the user-accessible device.

27. The computer system of claim 25, wherein the processor is configured to receive the application from the proposed insured.

28. The computer system of claim 25, wherein the processor is configured to receive the application exclusively from a licensed insurance agent.

29. The computer system of claim 25, wherein the user-accessible device is a handheld communications device configured for wireless communication with the processor.

30. The computer system of claim 29, wherein the handheld communications device is configured to authenticate an identity of the proposed insured.

31. A computer-implemented method for administration of life insurance, comprising:

providing by a processor an output signal via a network to a user-accessible device including instructions for display of prompts for data sufficient to constitute an application for life insurance for issue before comprehensive underwriting and to authorize a premium payment;

responsive to receiving by the processor, via the network from the user-accessible device and responsive to the prompts, data indicative of an application for life insurance, including application data, and affirmative or negative responses to a plurality of questions relating to health of a proposed insured, and to receiving data indicative of receipt of a premium payment, determining by the processor whether the application is complete and determining by the processor, based on the responses to the plurality of questions, whether the proposed insured is eligible for life insurance for issue before comprehensive underwriting;

responsive to determining that the application is complete, and the proposed insured is eligible, providing by the processor an output signal via the network to the user-accessible device indicative of issue of a life insurance policy and access to policy documents for the life insurance policy; and

responsive to receiving data indicative of a result of comprehensive underwriting, providing by the processor an output signal via the network to the user-accessible device indicative of access to one or more policy documents for the life insurance policy.

32. The computer-implemented method of claim 31, further comprising providing the output signal indicative of issue of the life insurance policy in real time subsequent to receipt of the data from the user-accessible device.

33. The computer-implemented method of claim 31, further comprising receiving the application from the proposed insured.

34. The computer-implemented method of claim 31, further comprising determining whether the application has been received from a licensed insurance agent.

35. The computer-implemented method of claim 31, wherein the user-accessible device is a handheld communications device configured for wireless communication with the processor.

36. The computer-implemented method of claim 35, further comprising authenticating an identity of the proposed insured by the handheld communications device.

37. A computer system for determining commission data for life insurance policies, comprising:

a data storage device for storing rules relating to determining commissions payable to brokers by an insurer in connection with life insurance policies; and

a processor in communication with the data storage device and configured to, responsive to receipt of data indicative of issuing of a life insurance policy issued prior to completion of comprehensive underwriting, access from the data storage device the rules relating to determining commissions, determine a first commission amount based on the received data indicative of issuing of a life insurance policy issued prior to completion of comprehensive underwriting and the rules, and provide an output signal indicative of the first commission amount, and responsive to receipt of data indicative of completion of comprehensive underwriting of the life insurance policy, access from the storage device the rules, and determine a second commission amount based on the received data indicative of completion of comprehensive underwriting of the life insurance policy and the rules, and provide an output signal indicative of a second commission amount.

38. The computer system of claim 37, wherein the received data indicative of issuing of a life insurance policy issued prior to completion of comprehensive underwriting comprises a first death benefit amount, and the received data indicative of completion of comprehensive underwriting of the life insurance policy comprises a second death benefit amount and a final premium amount, the second commission amount being determined based on the final premium amount.

39. The computer system of claim 38, wherein the received data indicative of completion of comprehensive underwriting of the life insurance policy further comprises rating classification data.

40. A system for life insurance administration comprising:

at least one policy administration device having a processor and a communications interface, the policy administration device configured to receive data indicative of an application for life insurance and an initial premium payment via the communications interface from a proposed insured for life insurance, the received data being transmitted from at least one handheld communications device operated by the proposed insured;

the policy administration device further configured to determine via the processor whether the proposed insured is eligible, and responsive to a determination that the proposed insured is eligible, provide an output signal to a policy generation computer system for generation of first policy documents for transmission to the handheld communications device;

the policy administration device further configured to enable a comprehensive underwriting process and process via the processor a rating of the proposed insured; and

based on the determined rating, provide an output signal via the communications interface to the policy generation computer system for generation of second policy documents to the handheld communications device operated by the proposed insured.

41. The system of claim 40, wherein the first policy documents include policy documents relating to first riders and the second policy documents include policy documents relating to second riders.

42. The system of claim 41, wherein the second policy documents include policy documents relating to premium rates.

43. A non-transitory computer-readable medium of a handheld wireless communications device having a display, the non-transitory computer-readable medium having a plurality of computer-readable instructions thereon which, when executed by a processor, cause the processor to:

provide an output signal to the display to cause the display to prompt a user to provide data sufficient to constitute an application for life insurance for issue before comprehensive underwriting;

receive, in response to the prompting, data indicative of an application for life insurance for issue before comprehensive underwriting, including prospective insured data, policy type data, death benefit amount data, and beneficiary data, and data furnished by the proposed insured relating to the health of the proposed insured;

determine, based on the received data, a premium amount, and provide an output signal to cause the display to display the premium amount;

determine whether the application is complete and determine, based on the data furnished by the proposed insured relating to the health of the proposed insured, whether the proposed insured is eligible for life insurance for issue before comprehensive underwriting;

responsive to determining that the application is complete, and the proposed insured is eligible, provide an output signal to an insurance company computer system having data indicative of the application and eligibility of the proposed insured;

receive data indicative of issue of a life insurance policy on the life of the proposed insured and user access to policy documents; and

responsive to receiving the data indicative of issue of the life insurance policy and user access to policy documents, provide an output signal to cause the display to display a message indicative of issue of the life insurance policy and user access to the policy documents.

44. The non-transitory computer-readable medium of claim 43, wherein the instructions further cause the processor to display on the display a prompt for the user to enter payment information to effect payment of the displayed initial premium amount.

45. The computer-readable medium of claim 43, wherein the data furnished by the proposed insured relating to the health of the proposed insured consists of responses to not more than 10 questions.

46. The computer-readable medium of claim 43, wherein the instructions further cause the processor, responsive to receipt of data indicative of completion of comprehensive underwriting, to provide an output signal to cause the display to display an indication of availability of additional policy documents generated responsive to completion of comprehensive underwriting.