Method of determining the premium for and writing a policy insuring against specified weather conditions
First Claim
1. A method, with the aid of a digital computer system including a printer, of preparing a policy insuring a customer in a specified amount against a specified weather condition occurring in a given location during a given time period, said method comprising the steps of:
- (a) acquiring from the customer identification of the customer, the specified amount, the specified weather condition, the given location, and the given time period;
(b) applying the acquired identifications to the digital computer;
(c) acquiring data containing information about certain weather conditions, including the specified weather condition, in the given location during predetermined time intervals in available ones of a predetermined number of years previous to the given time period, each of the predetermined time intervals encompassing a time period corresponding with the given time period;
(d) storing the acquired data in the digital computer;
(e) actuating the digital computer to determine the number of occurrences of the specified weather condition in the given location during the predetermined time intervals and to calculate the premium for the policy based upon the specified amount, the number of occurrences of the specified weather condition in the given location, the number of predetermined time intervals, and a factor covering overhead expense and profit; and
(f) actuating the printer to print the policy at the calculated premium.
2 Assignments
0 Petitions
Accused Products
Abstract
A system and method for writing a policy insuring against the occurrence of a specified weather condition. Historical data of weather conditions is accumulated and stored in a computer memory. When a policy is to be written, information identifying the amount A of the policy, the weather condition against which the policy is to insure, the location of interest, and the time period of interest is applied to the computer which then calculates the policy premium as P=(A×N÷I)+E, or as P=(A×N÷I)×C, where N is the number of occurrences of the specified weather condition during I previous time intervals, E is a factor compensating for overhead expense and profit, and C is a constant. The policy is then written in the amount A at the premium P. Where the policy is to insure over an extended time period or in multiple locations, the premium is adjusted to cover the probability of occurrence of the specified weather condition in any of the locations.
367 Citations
27 Claims
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1. A method, with the aid of a digital computer system including a printer, of preparing a policy insuring a customer in a specified amount against a specified weather condition occurring in a given location during a given time period, said method comprising the steps of:
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(a) acquiring from the customer identification of the customer, the specified amount, the specified weather condition, the given location, and the given time period; (b) applying the acquired identifications to the digital computer; (c) acquiring data containing information about certain weather conditions, including the specified weather condition, in the given location during predetermined time intervals in available ones of a predetermined number of years previous to the given time period, each of the predetermined time intervals encompassing a time period corresponding with the given time period; (d) storing the acquired data in the digital computer; (e) actuating the digital computer to determine the number of occurrences of the specified weather condition in the given location during the predetermined time intervals and to calculate the premium for the policy based upon the specified amount, the number of occurrences of the specified weather condition in the given location, the number of predetermined time intervals, and a factor covering overhead expense and profit; and (f) actuating the printer to print the policy at the calculated premium. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14)
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15. A method, with the aid of a digital computer system including a printer, of preparing a policy insuring a customer in a total amount A against the occurrence in any one or more of L locations of a specified weather condition during a given time period comprising the steps of:
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(a) acquiring from the customer identification of the amount A, the one or more locations, the specified weather condition, the amount AL of insurance to be provided by the policy in each of the L locations, the given time period, a set of triggering conditions for each of the L locations, each triggering condition representing the occurrence or non-occurrence of a preselected percentage of the normal amount of the specified weather condition for the associated location, and a set of payout percentages associated with the triggering conditions, each payout percentage representing a payout level to be made by the policy in the event the associated triggering condition is met during the given time period; (b) applying the acquired identifications to the digital computer; (c) applying to the digital computer identification of a predetermined time interval encompassing the given time period and a normal amount of the occurrence of the specified weather condition in each of the L locations during the given time period; (d) acquiring data containing information about weather conditions in each of the L locations during I time intervals each corresponding with the predetermined time interval in the available ones of a predetermined number of years previous to the year of the given time period; (e) storing the acquired data in the digital computer; (f) actuating the digital computer to determine the number NC of occurrences of each triggering condition at each of the L locations during the I time intervals, to calculate the weighted pure loss ratio RC for each triggering condition for each of the L locations, and to calculate, from the weighted pure loss ratios, the refund risk for the policy; and (g) actuating the printer to print the policy at a premium made up of the policy refund risk and a value covering overhead and profit. - View Dependent Claims (16, 17, 18)
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19. A method, with the aid of a digital computer system including a memory, a data processor, and a printer, of preparing a policy insuring a customer in an amount A against a specified weather condition in a given location comprising:
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(a) acquiring from the customer identification of the amount A, the specified weather condition, and the given location; (b) applying the acquired identifications to the memory; (c) acquiring data records relating to weather conditions in the given location during I time intervals; (d) storing the acquired data records to the memory; (e) actuating the data processor to calculate the pure loss ratio R for a policy insuring against the occurrence of the specified weather condition in the given location as R=N÷
I, where N is the number of occurrences of the specified weather condition during the I time intervals, and to calculate the policy premium P based on A and R and a value covering overhead and profit; and(f) actuating the printer to print the policy based on A and P. - View Dependent Claims (20, 21, 22, 23, 24, 25, 26, 27)
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Specification