Digital electrical computer system for determining a premium structure for insurance coverage including for counterclaim coverage

• US 6,615,181 B1
• Filed: 10/18/1999
• Issued: 09/02/2003
• Est. Priority Date: 10/18/1999
• Status: Expired due to Term

• Current Assignee: Medical Justice Corporation
• Original Assignee: Medical Justice Corporation
• Inventors: Segal, Jeffrey
• Primary Examiner(s): Coggins, Wynn W.
• Assistant Examiner(s): ROSEN, NICHOLAS D
• Application Number:
  US09/420,768
• Time in Patent Office: 1,415 Days
• Field of Search: 705/4, 283/54
• US Class Current: 705/4
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A computer system for supporting a plan of counterclaim insurance provided to professionals, optionally along with professional liability insurance, deters frivolous professional malpractice claims. The insurance plan pays expenses, for example, of counterclaims for malicious prosecution when a frivolous claim has been made and tried to a judgment for the accused professional, and an independent review concludes that the claim was frivolous. The names of covered professionals are posted on a publicly accessible database. If potential plaintiffs or their attorneys find a potential defendant'"'"'s name on the database, they may be deterred from filing weaker claims that might be viewed as frivolous. Upon approval of an applicant for counterclaim insurance, the applicant'"'"'s name is posted to a public database, which may be accessible through the Internet, including the World Wide Web, or alternatively through a dial-up facility.

Claims

1. A computer-implemented method for determining a premium structure for insurance providing coverage including coverage for costs associated with advancing a counterclaim, the method comprising:

receiving actuarial data and census data, at least one of said data including indicia of litigation frequency and cost;

computing a premium structure, based upon the actuarial data and the census data, for the insurance providing coverage including coverage for costs associated with advancing a counterclaim; and

generating insurance documentation including said premium structure.

2. The method of claim 1, wherein:

said receiving the actuarial data and census data is carried out with data received from an actuarial computer system;

said computing a premium structure is carried out by means of a carrier computer system located remotely from the actuarial computer system;

said method further including;

communicating the actuarial data and census data from the actuarial computer system to the carrier computer system.

3. The method of claim 2, further including:

inputting broker information, including claim data, at a remote computer system; and

communicating the information to the carrier computer system; and

calculating an updated premium structure based upon the claim data in the broker information.

4. The method of claim 1 further including:

administering the insurance policy by;

receiving premium payment data for the insurance, and receiving claim data for the insurance; and

generating second documentation including at least one of the payment data for the insurance, and the claim data for the insurance.

5. The method of claim 4, wherein:

the step of generating second documentation is carried out by means of a carrier computer system, and the step of receiving the premium payment data is carried out by inputting information at a computer system remote from the carrier computer system;

said method further including;

communicating the information from the remote computer system for the generating second documentation.

6. The method of claim 4, wherein:

said generating second documentation is carried out by a carrier computer system and the step of receiving the claim data is carried out by inputting information at a computer system remote from the carrier computer system;

said method further including;

communicating the information to the carrier computer system.

7. The method of claim 6, further including:

inputting the claim data in the information at the computer system remote from the carrier computer system; and

communicating the claim data to the carrier computer system; and

calculating an updated premium structure based upon the claim data.

8. The method of claim 1, further including:

inputting payment data at an insured'"'"'s accounting system for remote monitoring of payment data.

9. The method of claim 1 further including:

receiving premium payment data for the insurance, the payment data including respective names corresponding to coverage by the insurance;

posting the names and indicia of the coverage by the insurance on a front end network gateway to provide a warning at remote terminals.

10. The method of claim 9, wherein said posting is carried out using the Internet as the front end network gateway.

11. The method of claim 9, wherein said posting is carried out using the world wide web as the front end network gateway.

12. The method of claim 1 further including:

receiving, at an intermediary computer, the actuarial data and census data for the insurance, at least one of said data including indicia of litigation frequency and cost; and

performing an independent verification of the premium structure.

13. The method of claim 1 wherein said receiving the actuarial data is carried out with actuarial data including an indicium of suits eliminated.

14. The method of claim 1 wherein said receiving the actuarial data is carried out with actuarial data including an indicium of reduced settlement cost for suits.

15. The method of claim 1 wherein said receiving the actuarial data is carried out with actuarial data including an indicium of defense cost.

16. The method of claim 1 wherein said receiving the actuarial data is carried out with actuarial data including an indicium of frequency of claims.

17. The method of claim 1 wherein said receiving the actuarial data is carried out with actuarial data including an indicium of the cost of the claims.

18. The method of claim 1 wherein said receiving the actuarial data is carried out with actuarial data including an indicium of indemnity savings.

19. The method of any one of claims 1-18 further including:

generating marketing documentation including a graphical representation of a pay out pattern corresponding to the insurance coverage.

20. The method of claim 19 wherein said receiving the actuarial data is carried out with actuarial data including an indicium of a reduction in medical malpractice cost.

21. The method of claim 1, wherein said computing the premium structure includes calculating a cost for filing an administrative complaint against an expert for improper conduct in litigation giving rise to the counterclaim.

22. The method of claim 1, wherein said computing the premium structure includes calculating a cost for filing an administrative complaint against an attorney for improper conduct in litigation giving rise to the counterclaim.

23. A computer-implemented method for determining a premium structure for insurance providing coverage including counterclaim coverage, the method comprising:

receiving actuarial data and census data, at least one of said data including indicia of litigation frequency and cost;

computing a premium structure, based upon the actuarial data and the census data, for the insurance providing coverage including counterclaim coverage, including calculating a premium cost for the counterclaim brought as a countersuit; and

generating insurance documentation including said premium structure.

24. The method of claim 23 wherein said receiving the actuarial data is carried out with actuarial data including an indicium of a reduction in medical malpractice cost.

25. The method of claim 23 wherein said computing the premium structure includes calculating a premium cost for the counterclaim including a counterclaim for frivolous litigation.

26. The method of claim 23, wherein:

said receiving the actuarial data and census data is carried out with data received from an actuarial computer system;

said computing a premium structure is carried out by means of a carrier computer system located remotely from the actuarial computer system;

said method further including;

communicating the actuarial data and census data from the actuarial computer system to the carrier computer system.

27. The method of claim 26, further including:

inputting broker information at a remote computer system; and

communicating the information to the carrier computer system; and

calculating an updated premium structure based upon the claim data in the broker information.

28. The method of claim 23 further including:

administering the insurance policy by sub-steps including receiving premium payment data for the insurance, and receiving claim data for the insurance;

generating second documentation including at least one of the payment data for the insurance, and receiving claim data for the insurance.

29. The method of claim 28, wherein:

the step of generating second documentation is carried out by means of a carrier computer system, and the step of receiving the premium payment data is carried out by inputting information at a computer system remote from the carrier computer system;

said method further including;

communicating the information from the remote computer system for the generating second documentation.

30. The method of claim 28, wherein:

said generating second documentation is carried out by a carrier computer system and the step of receiving the claim data is carried out by inputting information at a computer system remote from the carrier computer system;

said method further including;

communicating the information to the carrier computer system.

31. The method of claim 30, further including:

inputting the claim data in the information at the computer system remote from the carrier computer system; and

communicating the claim data to the carrier computer system; and

calculating an updated premium structure based upon the claim data.

32. The method of claim 23, further including:

inputting payment data at an insured'"'"'s accounting system for remote monitoring of payment data.

33. The method of claim 23 further including:

receiving premium payment data for the insurance, the payment data including respective names corresponding to coverage by the insurance;

posting the names and indicia of the coverage by the insurance on a front end network gateway to provide a warning at remote terminals.

34. The method of claim 33, wherein said posting is carried out using the Internet as the front end network gateway.

35. The method of claim 33, wherein said posting is carried out using the world wide web as the front end network gateway.

36. The method of claim 23 further including:

receiving, at an intermediary computer, the actuarial data and census data including for the insurance, at least one of said data including indicia of litigation frequency and cost; and

performing an independent verification of the premium structure.

37. The method of claim 23 wherein said receiving the actuarial data is carried out with actuarial data including an indicium of suits eliminated.

38. The method of claim 23 wherein said receiving the actuarial data is carried out with actuarial data including an indicium of reduced settlement cost for suits.

39. The method of claim 23 wherein said receiving the actuarial data is carried out with actuarial data including an indicium of defense cost.

40. The method of claim 23 wherein said receiving the actuarial data is carried out with actuarial data including an indicium of frequency of claims.

41. The method of claim 23 wherein said receiving the actuarial data is carried out with actuarial data including an indicium of the cost of the claims.

42. The method of claim 23 wherein said receiving the actuarial data is carried out with actuarial data including an indicium of indemnity savings.

43. A computer-implemented method for determining a premium structure for insurance providing coverage including counterclaim coverage, the method comprising:

receiving actuarial data and census data, at least one of said data including indicia of litigation frequency and cost;

computing a premium structure, based upon the actuarial data and the census data, for the insurance providing coverage including counterclaim coverage, including calculating a premium cost for the counterclaim brought as a countersuit to a professional malpractice cause of action; and

generating insurance documentation including said premium structure.

44. The method of claim 43 wherein said receiving the actuarial data is carried out with actuarial data including an indicium of counterclaim litigation cost for frivolous litigation, said counterclaim litigation cost not including countersuit cost.

45. The method of claim 43, wherein:

said receiving the actuarial data and census data is carried out with data received from an actuarial computer system;

said computing a premium structure is carried out by means of a carrier computer system located remotely from the actuarial computer system;

said method further including;

communicating the actuarial data and census data from the actuarial computer system to the carrier computer system.

46. The method of claim 45, further including:

inputting broker information at a remote computer system; and

communicating the information to the carrier computer system; and

calculating an updated premium structure based upon the claim data in the broker information.

47. The method of claim 43 further including:

administering the insurance policy by sub-steps including receiving premium payment data for the insurance, and receiving claim data for the insurance;

generating second documentation including at least one of the payment data for the insurance, and receiving claim data for the insurance.

48. The method of claim 47, wherein:

the step of generating second documentation is carried out by means of a carrier computer system, and the step of receiving the premium payment data is carried out by inputting information at a computer system remote from the carrier computer system;

said method further including;

communicating the information from the remote computer system for the generating second documentation.

49. The method of claim 47, wherein:

said generating second documentation is carried out by a carrier computer system and the step of receiving the claim data is carried out by inputting information at a computer system remote from the carrier computer system;

said method further including;

communicating the information to the carrier computer system.

50. The method of claim 49, further including:

inputting the claim data in the information at the computer system remote from the carrier computer system; and

communicating the claim data to the carrier computer system; and

calculating an updated premium structure based upon the claim data.

51. The method of claim 43, further including:

inputting payment data at an insured'"'"'s accounting system for remote monitoring of payment data.

52. The method of claim 43 further including:

receiving premium payment data for the insurance, the payment data including respective names corresponding to coverage by the insurance;

posting the names and indicia of the coverage by the insurance on a front end network gateway to provide a warning at remote terminals.

53. The method of claim 52, wherein said posting is carried out using the Internet as the front end network gateway.

54. The method of claim 52, wherein said posting is carried out using the world wide web as the front end network gateway.

55. The method of claim 43 further including:

receiving, at an intermediary computer, the actuarial data and census data including for the insurance, at least one of said data including indicia of litigation frequency and cost; and

performing an independent verification of the premium structure.

56. The method of claim 43 wherein said receiving the actuarial data is carried out with actuarial data including an indicium of suits eliminated.

57. The method of claim 43 wherein said receiving the actuarial data is carried out with actuarial data including an indicium of reduced settlement cost for suits.

58. The method of claim 43 wherein said receiving the actuarial data is carried out with actuarial data including an indicium of defense cost.

59. The method of claim 43 wherein said receiving the actuarial data is carried out with actuarial data including an indicium of frequency of claims.

60. The method of claim 43 wherein said receiving the actuarial data is carried out with actuarial data including an indicium of the cost of the claims.

61. The method of claim 43 wherein said receiving the actuarial data is carried out with actuarial data including an indicium of indemnity savings.

62. A computer-implemented method for determining a premium structure for insurance providing coverage including counterclaim coverage, the method comprising:

receiving actuarial data and census data, at least one of said data including indicia of litigation frequency and cost;

computing a premium structure, based upon the actuarial data and the census data, for the insurance providing coverage including counterclaim coverage, including calculating a premium cost for the counterclaim brought in a medical malpractice cause of action; and

generating insurance documentation including said premium structure.

63. The method of claim 62 wherein said computing the premium structure includes calculating a premium cost for the counterclaim as counterclaim litigation only for frivolous litigation.

64. The method of claim 62, wherein:

said receiving the actuarial data and census data is carried out with data received from an actuarial computer system;

said computing a premium structure is carried out by means of a carrier computer system located remotely from the actuarial computer system;

said method further including;

communicating the actuarial data and census data from the actuarial computer system to the carrier computer system.

65. The method of claim 64, further including:

inputting broker information at a remote computer system; and

communicating the information to the carrier computer system; and

calculating an updated premium structure based upon the claim data in the broker information.

66. The method of claim 62 further including:

administering the insurance policy by sub-steps including receiving premium payment data for the insurance, and receiving claim data for the insurance;

generating second documentation including at least one of the payment data for the insurance, and receiving claim data for the insurance.

67. The method of claim 66, wherein:

the step of generating second documentation is carried out by means of a carrier computer system, and the step of receiving the premium payment data is carried out by inputting information at a computer system remote from the carrier computer system;

said method further including;

communicating the information from the remote computer system for the generating second documentation.

68. The method of claim 66, wherein:

said generating second documentation is carried out by a carrier computer system and the step of receiving the claim data is carried out by inputting information at a computer system remote from the carrier computer system;

said method further including;

communicating the information to the carrier computer system.

69. The method of claim 68, further including:

inputting the claim data in the information at the computer system remote from the carrier computer system; and

communicating the claim data to the carrier computer system; and

calculating an updated premium structure based upon the claim data.

70. The method of claim 62, further including:

inputting payment data at an insured'"'"'s accounting system for remote monitoring of payment data.

71. The method of claim 62 further including:

receiving premium payment data for the insurance, the payment data including respective names corresponding to coverage by the insurance;

posting the names and indicia of the coverage by the insurance on a front end network gateway to provide a warning at remote terminals.

72. The method of claim 71, wherein said posting is carried out using the Internet as the front end network gateway.

73. The method of claim 71, wherein said posting is carried out using the world wide web as the front end network gateway.

74. The method of claim 62 further including:

receiving, at an intermediary computer, the actuarial data and census data including for the insurance, at least one of said data including indicia of litigation frequency and cost; and

performing an independent verification of the premium structure.

75. The method of claim 62 wherein said receiving the actuarial data is carried out with actuarial data including an indicium of suits eliminated.

76. The method of claim 62 wherein said receiving the actuarial data is carried out with actuarial data including an indicium of reduced settlement cost for suits.

77. The method of claim 62 wherein said receiving the actuarial data is carried out with actuarial data including an indicium of defense cost.

78. The method of claim 62 wherein said receiving the actuarial data is carried out with actuarial data including an indicium of frequency of claims.

79. The method of claim 62 wherein said receiving the actuarial data is carried out with actuarial data including an indicium of the cost of the claims.

80. The method of claim 62 wherein said receiving the actuarial data is carried out with actuarial data including an indicium of indemnity savings.

81. A digital electrical computer and data processing system comprising:

a digital electrical computer, an input device for inputting data electrically connected to the digital electrical computer, and an output device electrically connected to the digital electrical computer, wherein the digital electrical computer is controlled by a computer program to form a programmed digital electrical computer for processing input electrical signals, the input electrical signals being produced in response to information entered at the input device, the information including actuarial data and census data, at least one of said data including indicia of litigation frequency and cost, the processing including modifying the input electrical signals into output electrical signals representing a premium structure, based upon the actuarial data and the census data, for insurance funding of countersuit litigation for a frivolous medical malpractice claim, the output electrical signals being communicated to the output device which, in response to the output electrical signals, generates a depiction of the premium structure.

82. A method for making a programmed digital electrical computer and data processing system, the method including the steps of:

providing a digital electrical computer having a programmable processor, an input device for inputting data electrically connected to the digital electrical computer, an output device electrically connected to the digital electrical computer;

programming the processor to control the digital electrical computer for processing input electrical signals, the input electrical signals being produced in response to information entered at the input device, the information including actuarial data and census data, at least one of said data including indicia of litigation frequency and cost, the data in a format specified by the computer program, the processing including modifying the input electrical signals into output electrical signals representing a premium structure, based upon the actuarial data and the census data, for insurance funding of countersuit litigation for a frivolous medical malpractice claim, the output electrical signals being communicated to the output device which, in response to the output electrical signals, generates a depiction of the premium structure.