Method and apparatus for providing professional liability coverage
First Claim
1. A machine-readable data storage medium encoded with a set of machine-executable instructions for using a data processing system including a printer to perform a method of providing professional liability coverage to a professional, during a coverage period having a starting date and an ending date, said professional having clients including a substantial number of publicly traded corporations each having a respective securities price at a respective starting price on said starting date, and with respect to whom a professional liability triggering event could cause a decline in said respective securities price, said method comprising the steps of:
- using said data processing system, determining a respective number of positions in securities of each of said publicly traded corporations needed to provide said professional liability coverage, based on market correlation between prices of securities of said publicly traded corporations, and on at least one of (a) probability that a professional liability triggering event will occur relative to any one or more of said publicly traded corporations, and (b) likely effect of said professional liability triggering event on said price of securities of said one or more publicly traded corporations,using said data processing system to buy and/or sell financial instruments for securing at a respective cost a right to deliver at a respective delivery price, at any time at least as late as said ending date, said respective number of positions in securities of each of said publicly traded corporations;
using said data processing system, determining from said respective costs a payment to be charged to said professional in exchange for said coverage; and
using said printer of said data processing system, generating a coverage document conferring, in exchange for said payment, a right to sell, at a respective claim price, at any time during said coverage period, up to said respective number of positions in securities of any one of said publicly traded corporations when there is a professional liability triggering event with respect to any of said publicly traded corporations, said coverage document setting forth said payment and evidencing said right to sell.
2 Assignments
0 Petitions
Accused Products
Abstract
A system and method are provided that, in the case of professionals having large numbers of publicly traded corporate clients, are able to use the relative probabilities of different ones of those clients suffering a professional liability triggering event and the likely relative impact of such an event on different clients, to provide professional liability coverage at either lower cost to the professional or higher profits to the provider. The right to deliver securities in the publicly traded client companies at any time during the coverage period, at the price in effect at the starting date, is secured. The covered professional or its insurer is granted the qualified right to sell those securities at the starting price. If the value of a company falls because of a professional liability triggering event, the covered party is allowed to exercise that right to sell. To exercise the right to sell, the party will be able to buy the securities at the then current reduced price, thus reaping as a gain substantially the amount of potential claims against it. A data storage medium encoded with instructions for performing the method is also provided.
72 Citations
41 Claims
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1. A machine-readable data storage medium encoded with a set of machine-executable instructions for using a data processing system including a printer to perform a method of providing professional liability coverage to a professional, during a coverage period having a starting date and an ending date, said professional having clients including a substantial number of publicly traded corporations each having a respective securities price at a respective starting price on said starting date, and with respect to whom a professional liability triggering event could cause a decline in said respective securities price, said method comprising the steps of:
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using said data processing system, determining a respective number of positions in securities of each of said publicly traded corporations needed to provide said professional liability coverage, based on market correlation between prices of securities of said publicly traded corporations, and on at least one of (a) probability that a professional liability triggering event will occur relative to any one or more of said publicly traded corporations, and (b) likely effect of said professional liability triggering event on said price of securities of said one or more publicly traded corporations, using said data processing system to buy and/or sell financial instruments for securing at a respective cost a right to deliver at a respective delivery price, at any time at least as late as said ending date, said respective number of positions in securities of each of said publicly traded corporations; using said data processing system, determining from said respective costs a payment to be charged to said professional in exchange for said coverage; and using said printer of said data processing system, generating a coverage document conferring, in exchange for said payment, a right to sell, at a respective claim price, at any time during said coverage period, up to said respective number of positions in securities of any one of said publicly traded corporations when there is a professional liability triggering event with respect to any of said publicly traded corporations, said coverage document setting forth said payment and evidencing said right to sell. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 36, 37, 38, 39, 40, 41)
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13. A machine-readable data storage medium encoded with a set of machine-executable instructions for using a data processing system including a printer to perform a method for providing professional liability coverage to a plurality of professionals, each professional being covered during a respective coverage period having a starting date and an ending date, each professional having clients including a substantial number of publicly traded corporations each having a respective securities price at a respective starting price on said starting date, and with respect to whom a professional liability triggering event could cause a decline in said respective securities price, said method comprising the steps of:
for each said professional; using said data processing system, determining a respective number of positions in securities of each of said publicly traded corporations needed to provide said professional liability coverage, based on market correlation between prices of securities of said publicly traded corporations, and on at least one of (a) probability that a professional liability triggering event will occur relative to any one or more of said publicly traded corporations, and (b) likely effect of said professional liability triggering event on said price of securities of said one or more publicly traded corporations, using said data processing system to buy and/or sell financial instruments for securing at a respective cost a right to deliver at said respective starting price, at any time at least as late as said ending date, said respective number of positions in securities of each of said publicly traded corporations, using said data processing system, determining from said respective costs a payment to be charged in exchange for said coverage, and using said printer of said data processing system generating a coverage document conferring, in exchange for said payment, a right to sell, at a respective claim price, at any time during said coverage period, up to said respective number of positions in securities of any one of said publicly traded corporations when there is a professional liability triggering event with respect to any of said publicly traded corporations, said coverage document setting forth said payment and evidencing said right to sell; using said data processing system, establishing an account for each of said professionals; using said data processing system to process collection of said payment and to credit a respective one of said accounts; using said data processing system, monitoring for occurrence of a professional liability triggering event with respect to any of said professionals and a respective one of said publicly traded corporations and on occurrence of a professional liability triggering event with respect to any one of said professionals; using said data processing system, evaluating effect of said professional liability triggering event on price of securities of said respective one of said publicly traded corporations and deriving an exposure therefrom based on a post-event price of said securities, honoring said conferred right to sell, as to said one of said professionals, at least up to said exposure, using said data processing system to acquire securities of at least said one of said publicly traded corporations at said post-event price, and using said data processing system, exercising said right to deliver said securities of at least said one of said publicly traded corporations at said delivery price. - View Dependent Claims (14, 15, 16, 17, 18, 19, 20, 21, 22, 23)
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24. A machine-readable data storage medium encoded with a set of machine-executable instructions for using a data processing system including a printer to perform a method for financing professional liability insurance for a plurality of professionals, each professional being covered by an insurer during a respective coverage period having a starting date and an ending date, each professional having clients including a substantial number of publicly traded corporations each having a respective securities price at a respective starting price on said starting date, and with respect to whom a professional liability triggering event could cause a decline in said respective securities price, said method comprising the steps of:
for each said professional; using said data processing system, determining a respective number of positions in securities of each of said publicly traded corporations needed to provide said professional liability coverage, based on market correlation between prices of securities of said publicly traded corporations, and on at least one of (a) probability that a professional liability triggering event will occur relative to any one or more of said publicly traded corporations, and (b) likely effect of said professional liability triggering event on said price of securities of said one or more publicly traded corporations, using said data processing system to buy and/or sell financial instruments for securing at a respective cost a right to deliver at a respective delivery price, at any time at least as late as said ending date, said respective number of positions in securities of each of said publicly traded corporations, using said data processing system, determining from said respective costs a payment to be charged to said insurer in exchange for financing said coverage for said professional, and using said printer of said data processing system, generating a coverage document for delivery to said insurer conferring on said insurer, in exchange for said payment, a right to sell, at a respective claim price, at any time during said coverage period, up to said respective number of positions in securities of any one of said publicly traded corporations then there is a professional liability triggering event with respect to said professional and a respective one of said publicly traded corporations, said coverage document setting forth said payment and evidencing said right to sell. - View Dependent Claims (25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35)
Specification