METHOD AND SYSTEM FOR INSURING AGAINST INVESTMENT LOSS

• US 20110213701A1
• Filed: 05/10/2011
• Published: 09/01/2011
• Est. Priority Date: 05/04/2001
• Status: Active Grant

• Current Assignee: Stockshield, Inc.
• Original Assignee: Stockshield, Inc.
• Inventors: Yolles, Brian
• Granted Patent: US 8,229,827 B2
• Time in Patent Office: Days
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

Participants purchase into a given system for a given period of time. Those with investment gains, by definition, are without loss and need no compensation from the system. Those with investment losses are reimbursed by the system according to previously agreed upon terms. Total loss of a given system'"'"'s participants is calculated, with that figure compared to the previously agreed upon amount of funds available for loss compensation (total revenue generated by participant premiums minus previously agreed upon detracted percentage for firm or a sum set forward by the company that is independent of a given system'"'"'s generated revenue).

Claims

1. A method implemented at least partially in a programmed computer for sharing risk of loss among at least three investment instrument holders, the method comprising:

aggregating by the programmed computer premiums to form a loss reduction fund, the premiums at least partially contributed by said at least three investment instrument holders;

determining by the programmed computer, losses or gains incurred by each of said at least three investment instrument holders for at least one investment instrument at a predetermined time; and

determining by the programmed computer, a loss threshold wherein losses less than the loss threshold incurred by any of said at least three investment holders are uncompensated and at least a portion of the losses greater than the loss threshold incurred by any of said at least three investment holders are compensated;

reimbursing by the programmed computer, at least a portion of the compensated losses,

wherein reimbursement of a compensated loss to one investment instrument holder from said at least three investment instrument holders is at least partially determined by the loss of said one holder, with consideration for losses of the plurality of holders.

2. The method of claim 1 wherein said at least one investment instrument is selected from a group consisting of stocks, bonds, futures, options, derivatives, funds, trusts, currencies, commodities, residential real estate or commercial real estate.

3. The method of claim 1 wherein said at least one investment instrument is selected from a group consisting of artistic works, antiques, collectibles, or an intellectual property asset.

4. The method of claim 1 wherein said at least one investment instrument is an American Depository Receipt (ADR), or an American Depository Share (ADS).

5. The method of claim 1 further comprising creating a pool of a plurality of loss reduction funds.

6. The method of claim 5 wherein a fund in the pool of loss reduction funds includes investment instruments within the same or related investment categories.

7. The method of claim 5 wherein the funds in the pool of loss reduction funds have different reimbursement terms.

8. The method of claim 1 wherein the method comprises a step of allocating risk through risk capital allocation.

9. The method of claim 1 further comprising redistributing profit.

10. A method implemented at least partially in a programmed computer for sharing risk of loss by a plurality of participants in a loss reduction fund, the method comprising:

aggregating by the programmed computer, premiums to form a loss reduction fund, the premiums at least partially contributed by each of said participants;

determining by the programmed computer, losses or gains incurred by each of said participants participating in the loss reduction fund;

determining by the programmed computer if the total losses accumulated by each of said participants is greater than the loss reduction fund; and

if so determining by the programmed computer, a loss threshold wherein losses less than the loss threshold incurred by any of said participants are uncompensated and at least a portion of the losses above the loss threshold incurred by any of said participants may be compensated to disburse the loss reduction fund;

reimbursing by the programmed computer, at least a portion of the compensated losses,

wherein reimbursement is at least partially determined by the size of the loss of any of said participants, with consideration for losses of said participants.

11. The method of claim 10 wherein each of said participants incurs losses or gains on at least one investment instrument.

12. The method of claim 10 wherein said at least one investment instrument is selected from a group consisting of stocks, bonds, futures, options, derivatives, funds, trusts, currencies, commodities, residential real estate or commercial real estate.

13. The method of claim 10 wherein said at least one investment instrument is selected from a group consisting of artistic works, antiques, collectibles, or an intellectual property asset.

14. The method of claim 10 wherein said at least one investment instrument is an American Depository Receipt (ADR), or an American Depository Share (ADS).

15. The method of claim 10 further comprising creating a pool of a plurality of loss reduction funds.

16. The method of claim 15 wherein a fund in the pool of loss reduction funds includes investment instruments within the same or related investment categories.

17. The method of claim 15 wherein the funds in the pool of loss reduction funds have different reimbursement terms.

18. The method of claim 10 wherein the method comprises a step of allocating risk through risk capital allocation.

19. The method of claim 10 further comprising redistributing profit.

20. The method of claim 16 wherein the same or related investment categories is an equity risk.