System and method for generating and executing insurance policies for foreign exchange losses

• US 5,884,274 A
• Filed: 11/15/1996
• Issued: 03/16/1999
• Est. Priority Date: 11/15/1996
• Status: Expired due to Term

• Current Assignee: Inventor Holdings LLC (Walker Innovation Inc. (f/k/a Patent Properties, Inc.))
• Original Assignee: Walker Asset Management Limited Partnership
• Inventors: Jorasch, James A., Walker, Jay S.
• Primary Examiner(s): Cosimano, Edward R.
• Application Number:
  US08/749,241
• Time in Patent Office: 851 Days
• Field of Search: 235/375, 235/379, 235/380, 235/381, 364/400, 380/9, 380/23, 380/24, 705/1, 705/4, 705/16, 705/17, 705/18, 705/24, 705/35, 705/38, 705/39, 705/44, 707/104
• US Class Current: 705/4
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A system and method for providing a foreign exchange insurance policy that automatically considers factors such as the type of currency, exchange rate, amount of coverage, and period of coverage, to determine a premium. Users can access the system using credit cards, ATMs, banks or other media.

Claims

1. A method of calculating a premium for a foreign exchange insurance policy, comprising the steps of:

receiving, from a user, policy requirements for a foreign exchange insurance policy for a currency, the policy requirements including a user ID;

storing the policy requirements and the corresponding user ID;

accessing data corresponding to the currency and at least one current market condition of said currency;

estimating a currency volatility from the accessed data; and

determining a premium based on the currency volatility.

2. The method of claim 1 wherein the step of accessing the data includes the substep of

accessing historic exchange rates.

3. The method of claim 1 further including the steps of

accessing a period of coverage of the foreign exchange insurance policy, and

determining whether the period of coverage has expired.

4. The method of claim 1 wherein the step of receiving the policy requirement includes the substep of

receiving a credit card number as the user ID.

5. The method of claim 1 wherein the receiving step includes the substep of

authenticating the identity of the user.

6. The method of claim 1 wherein the receiving step includes the substeps of

receiving the user policy requirements in an encrypted format, and

decrypting the encrypted user policy requirements.

7. The method of claim 1 including the step of

transmitting the premium to the user.

8. The method of claim 7 including the step of

receiving from the user a confirmation to purchase the foreign exchange insurance policy.

9. The method of claim 1 wherein the policy requirements further include an exchange rate, an amount of coverage, and a period of coverage, and wherein the determining step further includes the substep of

determining the premium based on the policy requirements and the currency volatility.

10. The method of claim 3 further including the step of

updating a status of the foreign exchange insurance policy having an expired coverage period.

11. The method of claim 1 further including the step of

issuing a tracking code for the foreign exchange insurance policy.

12. The method of claim 11 further including the step of

storing the tracking code corresponding to the user ID.

13. The method of claim 11 wherein the step of issuing a tracking code includes the substep of

issuing the tracking code with the policy requirements.

14. The method of claim 13 wherein the step of issuing the tracking code includes the step of

encrypting the tracking code.

15. A method of calculating an insurance adjustment for a foreign currency transaction under a foreign exchange insurance policy, comprising the steps of:

receiving transaction data including a user ID, a transaction amount, and a transaction date;

accessing a foreign exchange rate corresponding to the transaction date;

accessing a policy exchange rate corresponding to the user ID;

comparing the foreign exchange rate with the policy exchange rate; and

determining the amount of an insurance adjustment using the transaction data and the compared exchange rates.

16. The method of claim 15 further including the step of

verifying the validity of the user ID.

17. The method of claim 15 wherein the receiving step includes the substep of

receiving the transaction data from an automatic teller machine.

18. The method of claim 15 wherein the receiving step includes the substep of

receiving the transaction data from a bank terminal.

19. The method of claim 15 wherein the receiving step includes the substep of

receiving the transaction data from a server on a computer network.

20. The method of claim 15 further including the step of

crediting a user'"'"'s account by the amount of the insurance adjustment.

21. The method of claim 20 wherein the crediting step includes the substeps of

accessing a remaining amount of coverage, and

determining whether the remaining amount of coverage exceeds the transaction amount.

22. A method of calculating an insurance adjustment for a foreign currency credit card transaction under a foreign exchange insurance policy, comprising the steps of:

receiving transaction data including a user ID, a credit card number, a transaction amount, and a transaction date;

verifying the validity of the credit card number;

accessing a foreign exchange rate corresponding to the transaction date;

accessing a policy exchange rate corresponding to the user ID;

comparing the foreign exchange rate with the policy exchange rate; and

determining the amount of an insurance adjustment using the transaction data and the compared exchange rates.

23. The method of claim 22, wherein the user ID comprises the credit card nunber.

24. The method of claim 22 further including the step of

crediting a user'"'"'s credit card account corresponding to the credit card number by the amount of the insurance adjustment.

25. The method of claim 24 wherein the crediting step includes the substeps of

accessing a remaining amount of coverage, and

determining whether the remaining amount of coverage exceeds the transaction amount.

26. A method of processing a transaction at a data processor, based on instructions received from a central controller, relating to a foreign exchange insurance policy, comprising the steps of:

receiving from a user a transaction request;

receiving from the user transaction data including a tracking number of a foreign exchange insurance policy;

transmitting the transaction data to the central controller;

receiving from the central controller instructions for processing the transaction request; and

processing the transaction request according to the received instructions.

27. The method of claim 26 wherein the step of receiving transaction data includes the substep of

receiving a user ID, a transaction amount, and a transaction date.

28. The method of claim 26 wherein the step of receiving instructions includes the substep of

receiving a currency exchange rate for the foreign exchange insurance policy.

29. A method of processing a transaction at an automatic teller machine (ATM), based on data received from a central controller, relating to a foreign exchange insurance policy, comprising the steps of:

receiving from a user a transaction request at the ATM;

receiving from the user transaction data including a tracking number of a foreign exchange insurance policy;

transmitting the transaction data to the central controller;

receiving from the central controller instructions for processing the transaction request; and

processing the transaction request at the ATM according to the received instructions.

30. The method of claim 29 wherein the step of receiving transaction data includes the substep of

receiving a user ID, a transaction amount, and a transaction date.

31. The method of claim 29 wherein the step of receiving instructions includes the substep of

receiving a currency exchange rate for the foreign exchange insurance policy.

32. A system for calculating a premium for a foreign exchange insurance policy comprising:

means for receiving, from a user, policy requirements for a foreign exchange insurance policy for a currency, the policy requirements including a user ID;

a database storing the policy requirements and the corresponding user ID;

means for accessing data corresponding to the currency and at least one current market condition of said currency;

means for estimating a currency volatility from the accessed data; and

means for determining a premium based on the currency volatility.

33. The system of claim 32 wherein the policy requirements further include an exchange rate, amount of coverage, and a period of coverage, and wherein the determining means further includes

means for determining the premium based on the policy requirements and the currency volatility.

34. The system of claim 32 wherein the accessing means further include

means for accessing at least one historic exchange rate for the currency.

35. The system of claim 32 wherein the receiving means includes

means for receiving a credit card number as the user ID.

36. The system of claim 32 wherein the receiving means includes

means for authenticating the identity of the user.

37. The system of claim 32 wherein the receiving means includes

means for receiving the user policy requirements in an encrypted format, and

means for decrypting the encrypted user policy requirements.

38. The system of claim 32 further including

means for transmitting the premium to the user.

39. The system of claim 38 further including

means for receiving from the user a confirmation to purchase the foreign exchange insurance policy.

40. The system of claim 33 further including

means for storing in the database the period of coverage of the foreign exchange insurance policy, and

means for determining whether the period of coverage has expired.

41. The system of claim 40 further including

means for updating a status of the foreign exchange insurance based on the period of coverage.

42. The system of claim 32 further including

first issuing means for issuing a tracking code for the foreign exchange insurance policy.

43. The system of claim 42 wherein the database further stores the tracking code corresponding to the user id.

44. The system of claim 42 wherein the first issuing means includes

means for issuing the policy requirements with the tracking code.

45. The system of claim 42 wherein the first issuing means includes

means for encrypting the tracking code.

46. A system for calculating an insurance adjustment for a foreign currency transaction under a foreign exchange insurance policy comprising:

means for receiving transaction data including a user ID, a transaction amount, and a transaction date;

first accessing means for accessing a foreign exchange rate corresponding to the transaction date;

second accessing means for accessing a policy exchange rate corresponding to the user ID;

means for comparing the foreign exchange rate with the policy exchange rate; and

means for determining the amount of an insurance adjustment using the transaction data and the compared exchange rates.

47. The system of claim 46 including

means for verifying the validity of the user ID.

48. The system of claim 46 wherein the receiving means receives the transaction data from an automatic teller machine.

49. The system of claim 46 wherein the receiving means receives the transaction data from a bank terminal.

50. The system of claim 46 wherein the receiving means receives the transaction data from a server on a computer network.

51. The system of claim 46 including

means for crediting a user'"'"'s account by the amount of the insurance adjustment.

52. The system of claim 51 wherein the crediting means includes

third accessing means for accessing a remaining amount of coverage, and

means for determining whether the remaining amount of coverage exceeds the transaction amount.

53. A system of calculating an insurance adjustment for a foreign currency credit card transaction under a foreign exchange insurance policy comprising:

means for receiving transaction data including a user ID, a credit card number, a transaction amount, and a transaction date;

means for verifying the credit card number;

first accessing means for accessing a foreign exchange rate corresponding to the transaction date;

second accessing means for accessing a policy exchange rate corresponding to the user ID;

means for comparing the foreign exchange rate with the policy exchange rate; and

means for determining the amount of an insurance adjustment using the transaction data and the compared exchange rates.

54. The system of claim 53, wherein the user ID comprises the credit card number.

55. The system of claim 53 including

means for crediting a user'"'"'s credit card account corresponding to the credit card number by the amount of the insurance adjustment.

56. The system of claim 55 wherein the crediting means includes

third accessing means for accessing a remaining amount of coverage, and

means for determining whether the remaining amount of coverage exceeds the transaction amount.

57. A system for processing a transaction, based on instructions received from a central controller, relating to a foreign exchange insurance policy, comprising:

first receiving means for receiving from a user a transaction request;

second receiving means for receiving from the user transaction data including a tracking number of a foreign exchange insurance policy;

means for transmitting the transaction data to the central controller;

third receiving means for receiving from the central controller instructions for processing the transaction request; and

means for processing the transaction request according to the received instructions.

58. The system of claim 57 wherein the second receiving means includes

fourth receiving means for receiving a user ID, a transaction amount, and a transaction date.

59. The system of claim 57 wherein the third receiving means include

fifth receiving means for receiving a currency exchange rate for the foreign exchange insurance policy.

60. An automatic teller machine (ATM) for processing a transaction based on instructions received from a central controller for a foreign exchange insurance policy, comprising:

first receiving means for receiving from a user a transaction request at the ATM;

second receiving means for receiving from the user transaction data including a tracking number of a foreign exchange insurance policy;

means for transmitting the transaction data to the central controller;

third receiving means for receiving from the central controller instructions for processing the transaction request; and

means for processing the transaction request at the ATM according to the received instructions.

61. The system of claim 60 wherein the second receiving means includes

fourth receiving means for receiving a user ID, a transaction amount, and a transaction date.

62. The system of claim 60 wherein the third receiving means includes

fifth receiving means for receiving a currency exchange rate for the foreign exchange insurance policy.

63. A computer-readable medium for calculating a premium for a foreign exchange insurance policy, the computer-readable medium comprising:

means for causing a data processor to receive, from a user, policy requirements for a foreign exchange insurance policy for a currency, the policy requirements including a user ID;

means for causing a database to store the policy requirements and the corresponding user ID;

means for causing the data processor to access data corresponding to the currency and at least one current market condition of said currency;

means for causing the data processor to estimate currency volatility from the accessed data; and

means for causing the data processor to determine a premium based on the currency volatility.

64. A computer-readable medium for calculating a premium for a foreign exchange insurance policy, said computer-readable medium comprising:

means for causing a data processor to receive, from a user, policy requirements for a foreign exchange insurance policy for a currency, the policy requirements including a user ID;

means for causing the data processor to store in a data storage device the policy requirements and the corresponding user ID;

means for causing the data processor to access data corresponding to the currency and at least one current market condition of said currency;

means for causing the data processor to estimate currency volatility from the accessed data; and

means for causing the data processor to determine a premium based on the currency volatility.