System for managing a stable value protected investment plan

• US 5,926,792 A
• Filed: 09/18/1998
• Issued: 07/20/1999
• Est. Priority Date: 09/09/1996
• Status: Expired due to Term

• Current Assignee: Bancorp Services LLC
• Original Assignee: Bancorp Services LLC
• Inventors: Gilje, Mark A., Fargo, Scott L., Garlich, Chris J., Lanigan, Edward J., Koppes, Seth C., Meier, William A., Hurwitz, Richard M.
• Primary Examiner(s): Peeso, Thomas R.
• Application Number:
  US09/157,096
• Time in Patent Office: 305 Days
• Field of Search: 705/4, 705/35, 705/36
• 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 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

Method and system to track, reconcile and administer the values of life insurance policies in separate accounts, including Stable Value Protected funds. Accordingly, targeted returns are translated into unit values on a daily basis for each fund. Additionally the system tracks restrictions (e.g., timing, amount of withdrawal and amount of reallocations) on a premium-by-premium basis, and tracks the book value, market value, duration and targeted return on a client-by-client basis. The system calculates and tracks the payments and credits applicable to a withdrawal or reallocation request, in addition to the liquidation schedules for each fund based on the payment amounts and credits of specific funds. Additionally, daily unit values are calculated given a periodic targeted return (i.e., a quarterly targeted return).

Claims

1. A computer system for managing a life insurance policy on behalf of a policy holder, the computer system comprising:

generating means for generating a life insurance policy including a stable value protected investment with an initial value based on a value of underlying securities;

fee calculating means for calculating fee units for members of a management group which manage the life insurance policy;

credit calculating means for calculating surrender value protected investment credits for the life insurance policy;

investment determining means for determining an investment value and a value of the underlying securities for the current day;

policy calculating means for calculating a policy value and a policy unit value for the current day;

storing means for storing the policy unit value for the current day; and

one of;

removing means for removing the fees units for members of the management group which manages the life insurance policy, and

accumulating means for accumulating fee units on behalf of the management group.

2. The system according to claim 1, wherein the generating means comprises:

determining means for determining premium amounts;

calculating means for calculating additional premium charges;

investing means for investing a specified amount of money;

means for calculating an initial unit value of the life insurance policy; and

storage means for storing the initial unit value of the life insurance policy.

3. The system of claim 2, wherein the investing means comprises:

means for notifying an investment manager of an amount of money to invest;

means for notifying a sub-adviser of the amount to invest;

means for wiring money to the sub-adviser;

means for purchasing securities; and

means for sending documentation to the investment manager.

4. The system of claim 1, further comprising:

notifying means for notifying a surrender value protected investment writer of the investment value and the value of the underlying securities for the current day.

5. The system of claim 1, further comprising a first time period update means, the first time period update means comprising:

adjusting means for adjusting a number of investment fee units held by the members of the management group;

removing means for removing a value of the fee units from the value of the underlying securities; and

transferring means for transferring cash to the members of the management group.

6. The system according to claim 1, further comprising a second time period updating means, the second time period updating means comprising:

selling means for selling policy units held by a policy owner to the investment manager system to pay for cost of insurance fees and administration fees;

adjusting means for adjusting a number of policy units held by the policy owner;

selling means for selling the number of policy units adjusted by the adjusting means;

removing means for removing from the underlying securities a value equivalent to the number of policy units adjusted by the adjusting means;

transferring means for transferring cash to a carrier; and

mortality calculating means for calculating ongoing mortality reserve activity.

7. The system according to claim 1, further comprising a third time period updating means, the third time period updating means comprising:

means for collecting information from sub-advisers on a duration and yield-to-maturity of the underlying securities.

8. A system according to claim 1, further comprising means for calculating a targeted return for an upcoming time period.

9. A method for managing a life insurance policy on behalf of a policy holder, the method comprising the steps of:

generating a life insurance policy including a stable value protected investment with an initial value based on a value of underlying securities;

calculating fee units for members of a management group which manage the life insurance policy;

calculating surrender value protected investment credits for the life insurance policy;

determining an investment value and a value of the underlying securities for the current day;

calculating a policy value and a policy unit value for the current day;

storing the policy unit value for the current day; and

one of the steps of;

removing the fee units for members of the management group which manage the life insurance policy, and

accumulating fee units on behalf of the management group.

10. The method according to claim 9, wherein the step of generating a policy comprises:

determining premium amounts;

determining additional premium charges;

investing a specified amount of money;

calculating an initial unit value of the life insurance policy; and

storing the initial unit value of the life insurance policy.

11. The method of claim 10, wherein the step of investing comprises:

notifying an investment manager of an amount of money to invest;

notifying a sub-adviser of the amount to invest;

wiring money to the sub-advisers;

purchasing securities; and

sending documentation to the investment manager.

12. The method of claim 9, further comprising the step of notifying a surrender value protected investment writer of the investment value and the value of the underlying securities for the current day.

13. The method of claim 9, further comprising the steps of:

adjusting a number of investment fee units held by the members of the management group;

removing a value of the fee units from the value of the underlying securities; and

transferring cash to the members of the management group.

14. The method according to claim 9, further comprising the steps of:

selling policy units held by a policy owner to the investment manager to pay for cost of insurance fees and administration fees;

adjusting a number of policy units held by the policy owner;

selling the number of policy units adjusted in the adjusting step;

removing from the underlying securities a value equivalent to the number of policy units adjusted in the adjusting step;

transferring cash to a carrier; and

calculating ongoing mortality reserve activity.

15. The method according to claim 9, further comprising the step of:

collecting information from sub-advisers on a duration and yield-to-maturity of the underlying securities.

16. The method for according to claim 9, further comprising the step of calculating a targeted return for a time period.

17. The method according to claim 9, wherein the steps of claim 9 are performed by a computer.

18. A computer readable media for controlling a computer to perform the steps of:

generating a life insurance policy including a stable value protected investment with an initial value based on a value of underlying securities;

calculating fee units for members of a management group which manage the life insurance policy;

calculating surrender value protected investment credits for the life insurance policy;

determining an investment value and a value of the underlying securities for the current day;

calculating a policy value and a policy unit value for the current day;

storing the policy unit value for the current day; and

one of the steps of;

removing the fee units for members of the management group which manage the life insurance policy, and

accumulating fee units on behalf of the management group.

19. A computer system for administering an existing life insurance policy, including a stable valve protected investment based on underlying securities, on behalf of a policy holder, the computer system comprising:

credit calculating means for calculating surrender value protected investment credits for the life insurance policy;

investment determining means for determining an investment value and a value of the underlying securities for the current day;

policy calculating means for calculating a policy value and a policy unit value for the current day; and

storing means for storing at least one of the policy value and the policy unit value for the current day.

20. The system as claimed in claim 19 further comprising fee calculating means for calculating fee units for members of a management group which manage the life insurance policy.

21. The system as claimed in claim 20, further comprising removing means for removing the fees units for members of the management group which manages the life insurance policy.

22. The system as claimed in claim 20, further comprising accumulating means for accumulating fee units on behalf of the management group.

23. The system as claimed in claim 19, further comprising notifying means for notifying a surrender value protected investment writer of the investment value and the value of the underlying securities for the current day.

24. The system as claimed in claim 20, further comprising a period update means comprising:

adjusting means for adjusting a number of investment fee units held by the members of the management group;

removing means for removing a value of the fee units from the value of the underlying securities; and

transferring means for transferring cash to the members of the management group.

25. The system as claimed in claim 20, further comprising a time period updating means comprising:

selling means for selling policy units held by a policy owner to an investment manager system to pay for cost of insurance fees and administration fees;

adjusting means for adjusting a number of policy units held by the policy owner;

selling means for selling the number of policy units adjusted by the adjusting means;

removing means for removing from the underlying securities a value equivalent to the number of policy units adjusted by the adjusting means;

transferring means for transferring cash to a carrier; and

mortality calculating means for calculating ongoing mortality reserve activity.

26. The system as claimed in claim 19, further comprising a time period updating means comprising means for collecting information from sub-advisers on a duration and yield-to-maturity of the underlying securities.

27. A system as claimed in claim 19, further comprising means for calculating a targeted return for an upcoming time period.

28. A method for managing a life insurance policy, including a stable valve protected investment based on underlying securities, on behalf of a policy holder, the method comprising the steps of:

(a) calculating surrender value protected investment credits for the life insurance policy;

(b) determining an investment value and a value of the underlying securities for the current day;

(c) calculating a policy value and a policy unit value for the current day; and

(d) storing at least one of the policy value and the policy unit value for the current day.

29. The method as claimed in claim 28, further comprising calculating fee units for members of a management group which manage the life insurance policy.

30. The method as claimed in claim 29, further comprising removing the fee units for members of the management group which manage the life insurance policy.

31. The method as claimed in claim 29, further comprising accumulating fee units on behalf of the management group.

32. The method as claimed in claim 29, further comprising the step of notifying a surrender value protected investment writer of the investment value and the value of the underlying securities for the current day.

33. The method as claimed in claim 29, further comprising the steps of:

adjusting a number of investment fee units held by the members of the management group;

removing a value of the fee units from the value of the underlying securities; and

transferring cash to the members of the management group.

34. The method as claimed in claim 28, further comprising the steps of:

selling policy units held by a policy owner to an investment manager to pay for cost of insurance fees and administration fees;

adjusting a number of policy units held by the policy owner;

selling the number of policy units adjusted in the adjusting step;

removing from the underlying securities a value equivalent to the number of policy units adjusted in the adjusting step;

transferring cash to a carrier; and

calculating ongoing mortality reserve activity.

35. The method as claimed in claim 28, further comprising the step of collecting information from sub-advisers on a duration and yield-to-maturity of the underlying securities.

36. The method as claimed in claim 28, further comprising the step of calculating a targeted return for a time period.

37. The method as claimed in claim 28, wherein the steps (a) - (d) are performed by a computer.