System and method for administering dynamic security benefits and payments

• US 8,103,528 B2
• Filed: 04/24/2008
• Issued: 01/24/2012
• Est. Priority Date: 11/20/2007
• Status: Active Grant

• Current Assignee: Hartford Fire Insurance Company (The Hartford Financial Services Group, Inc.)
• Original Assignee: Hartford Fire Insurance Company (The Hartford Financial Services Group, Inc.)
• Inventors: Read, Katherine, McConnell, Steve Robert, Shaher, Ahmed, Wadsworth, Theresa, Lukawicz, Robert, Balboni, Richard, Molinsky, Bradley D., Jaworski, Edward, Fisher, Karen McQueeney
• Primary Examiner(s): Wong, Eric T
• Application Number:
  US12/150,088
• Publication Number:
  US 20090204441A1
• Time in Patent Office: 1,370 Days
• Field of Search: 705/4
• US Class Current: 705/4
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

Disclosed is a novel security benefits product that provides customizable benefits to the purchaser for a variety of different triggering conditions. The product of the present invention may be sold to an individual or a group. The product contains a feature that allows a purchaser to modify and/or vary his or her coverage related to one or more serious health events, such as disability, accident, illness, or death. Additionally, a conversion feature is provided, which allows the insured individual who purchased the product through a third party to maintain the product of the present invention even after the individual is no longer affiliated with the third party.

Claims

1. A computer system for administering of data associated with insurance coverage provided by a service provider for a client, the data indicative of coverage of at least two categories of health events, said system comprising:

a data storage module comprising a memory storage device storing data indicative of an aggregate benefit amount associated with the insurance coverage, the aggregate benefit amount being a maximum benefit amount payable under the insurance coverage;

information associated with said at least two categories of health events, the information including data indicative of an identification of each of the two categories of health events, a benefit allocation corresponding to each of said categories of health events, the benefit allocations being fractions of and totaling the aggregate benefit amount, and a payout structure associated with each of said health events; and

a processing module, comprising a processor and in communication with the data storage module, configured to, in response to receipt of data indicative of a claim, access data from the data storage module, determine benefit eligibility, benefit amount and payout structure, and provide an output signal having data indicative of the benefit amount, the benefit amount for each of the categories of health events having a maximum equal to the corresponding benefit allocation; and

a payment module configured to, responsive to receipt of the output signal from the processing module pay the benefit in accordance with the data received from the processing module.

2. The computer system according to claim 1, wherein said at least two categories of health events include at least one of the following:

death, disability, accident, and illness.

3. The computer system according to claim 2, wherein at least one of said categories of health events further comprises individual risk factors.

4. The computer system according to claim 3, wherein said risk factors are chosen from at least one of the following:

cause of illness, type of illness, cause of accident, type of accident, cause of disability, type of disability, and cause of death.

5. The computer system according to claim 3, wherein said risk factors are at least in part used by said processor to determine disbursement of said benefit.

6. The computer system according to claim 1, wherein said benefit amount varies with time.

7. The computer system according to claim 3, wherein said health events include any additional event which is detrimental to the health of said client.

8. The computer system according to claim 1, wherein said processing module is further configured to responsive to receipt of data indicative of a claim based on death, determine a benefit amount equal to:

said aggregate benefit amount minus the amount of benefits paid under the insurance coverage up to the date of death.

9. The computer system according to claim 1, wherein said processing module is further configured to reallocate the benefit allocations for one or more of said categories of covered health events while maintaining the aggregate benefit amount based on at least one of the following:

percentages determined by said service provider, predetermined percentages, or percentages determined by said client.

10. The computer system according to claim 1, wherein said processing module is further configured to allow said client to elect to cancel coverage for one or more of said categories of health events while maintaining coverage for said at least one category of health events based on at least one of the following conditions:

after a predetermined period of time, upon the occurrence of a life altering event, upon the discretion of said service provider, and upon the discretion of said client.

11. The computer system according to claim 10, wherein said processing module is further configured to reallocate said aggregate benefit amount among the other remaining categories of said covered health events equally.

12. The computer system according to claim 1, wherein said processing module is further configured to receive and transmit information regarding said client from and to said service provider and a third party, wherein said third party extends said coverage to said client.

13. The computer system according to claim 12, wherein either said service provider or said third party requires said client to submit proof of insurability as defined by said service provider or said third party.

14. The computer system according to claim 12, wherein said client terminates his/her relationship with said third party, and further continues to receive coverage from said service provider.

15. The computer system according to claim 1, wherein upon payment of a benefit for at least one of said at least two categories of health events, coverage is still provided for each of the other categories of said health events.

16. The computer system of claim 1, wherein the fractions of the aggregate benefit amount are stored as percentages of the aggregate benefit amount.

17. A computer implemented method for administering data indicative of insurance coverage provided by a service provider to a client with coverage of at least two categories of health events the method comprising the steps of:

receiving by a processor via a communications module data indicative of;

a selection of at least two categories of health events, wherein each category of health events comprises at least one benefit;

an aggregate benefit amount;

a benefit allocation corresponding to each of the at least two categories of health events, the benefit allocations having a total corresponding to the aggregate benefit amount; and

a payout structure corresponding to each of the at least two categories of health events;

storing by the processor in a database having data stored in a tangible data storage medium the selected categories of health events, the aggregate benefit amount, the benefit allocations, the benefit allocations being stored as fractions of the aggregate benefit amount, and the payout structure;

providing an output signal by the processor having data indicative of instructions to furnish to the client an insurance policy in accordance with the insurance coverage, including the selected at least two categories of health events, the aggregate benefit amount, the benefit allocations and the payout structure;

wherein the processor is configured to output a payout schedule for each of the at least two categories of health events in accordance with the benefit allocation and payout structure corresponding to each of the categories of health events, a maximum benefit amount associated with each of the categories of health event being equal to the corresponding benefit allocation.

18. The computer implemented method according to claim 17, wherein at least one of the categories of health events further comprises at least one risk factor.

19. The computer implemented method according to claim 18, wherein the at least one category of health events is chosen from the following:

death, illness, accident and disability.

20. The computer implemented method according to claim 19, wherein coverage for death is term coverage set to expire after a predetermined period of time.

21. The computer implemented method according to claim 20, wherein the predetermined period of time is determined by the client.

22. The computer implemented method according to claim 20, wherein the predetermined period of time is determined by the service provider.

23. The computer implemented method according to claim 19, wherein the at least one of the risk factors is illness.

24. The computer implemented method according to claim 19, wherein the at least one of the risk factors is disability.

25. The computer implemented method according to claim 19, wherein the at least one of the risk factors is related to an accident.

26. The computer implemented method according to claim 19, wherein the at least one of the risk factors is cause of death.

27. The computer implemented method according to claim 17, wherein the aggregate benefit amount varies over time.

28. The computer implemented method according to claim 17, wherein more than one category of health events applies to a single event.

29. The computer implemented method according to claim 17, wherein the duration of coverage for the at least one category of health events to be covered is chosen by the client.

30. The computer implemented method according to claim 29, wherein the duration of coverage for the at least one category of health events to be covered is chosen from:

1 year of coverage, 10 years of coverage, or a lifetime of coverage.

31. The computer implemented method according to claim 17, wherein the payout structure is chosen from the following:

lump sum payout, predetermined multiple payments, or variable payments based on performance of investment made by the service provider.

32. The computer implemented method according to claim 31, wherein the pay out schedule for the predetermined multiple payments is chosen from a variable number of payments.

33. The computer implemented method according to claim 17, wherein data related to the coverage is exchanged with a third party which extends coverage to the client, wherein the third party receives and transmits information regarding the client from and to the service provider.

34. The computer implemented method according to claim 33, wherein either the service provider or the third party require the client to submit proof of insurability as defined by the service provider or the third party.

35. The computer implemented method according to claim 33, wherein the client terminates his/her relationship with the third party, and further continues to receive coverage from the service provider.

36. The computer implemented method according to claim 17, wherein the pay out structure is chosen separately for each of the at least two categories of health events to be covered.

37. The computer implemented method according to claim 18, wherein the pay out structure is the same for each of the at least two risk factors.

38. The computer implemented method according to claim 17, wherein the processor is further configured to, responsive to receipt of data indicative of payment to the client of at least one of the benefits data indicative of nonpayment of premiums from the client, store data indicative of the coverage remaining in force.

39. The computer implemented method according to claim 17, wherein the processor is further configured to subtract from the aggregate benefit amount an amount of benefits paid.

40. The computer implemented method according to claim 17, wherein upon payment of a benefit for at least one of said two categories of health events, coverage is still provided for the other of said health event.

41. The computer implemented method of claim 17, wherein the fractions of the aggregate benefit amount are stored as percentages of the aggregate benefit amount.

42. A computer implemented method for administering data associated with insurance coverage provided to a client with coverage of at least two categories of health events by a service provider, the method comprising the steps of:

receiving by a processor via a communications module data indicative of;

a selection of at least two categories of health events to be covered, wherein each category of the health events comprises at least one benefit;

an aggregate benefit amount;

an allocation of the aggregate benefit amount to each of the selected categories of health events, the allocation being a fraction of the aggregate benefit amount to each of the selected categories; and

a payout structure for each of the selected categories of health events;

storing by the processor in a database data indicative of the selected categories of health events, the aggregate benefit amount, the allocation; and

providing an output signal by the processor having data indicative of instructions to furnish to the client an insurance policy in accordance with the insurance coverage, including the selected categories of health events, the aggregate benefit amount, and the allocation;

wherein the processor is configured to store in the database, responsive to receipt of data indicative of instructions received from the client, data indicative of a reallocation of the aggregate benefit amount associated with each of the at least two categories of coverage;

wherein the benefit amount for each of the two categories of coverage is changed responsive to and in accordance with the reallocation of the aggregate benefit amount.

43. The computer implemented method according to claim 42, wherein the client is capable of canceling coverage for the at least one category of health events.

44. The computer implemented method according to claim 43, wherein upon the canceling of coverage of the at least one category of health events, the remaining benefit amount at the time of canceling is reallocated to the remaining categories of health events.

45. The computer implemented method according to claim 44, wherein upon canceling coverage for the at least one category of health events the remaining benefit amount at the time of canceling is reallocated to the remaining coverage for the categories of health events based on percentages determined by the client.

46. The computer implemented method according to claim 45, wherein the percentages determined by the client are not equal to each other.

47. The computer implemented method according to claim 44, wherein upon canceling coverage for the at least one category of health events the remaining benefit amount at the time of canceling is reallocated to the remaining categories of health events based on percentages determined by the service provider.

48. The computer implemented method according to claim 44, wherein the client cancels coverage for the at least one health event upon the occurrence of a life altering event.

49. The computer implemented method according to claim 48, wherein the life altering event is selected from at least one of the following:

marriage, death of spouse, retirement, disability, and illness.

50. The computer implemented method according to claim 44, wherein the client cancels coverage for the at least one health event at the discretion of the client.

51. The computer implemented method according to claim 44, wherein the client cancels coverage for the at least one health event upon being given permission by the service provider.

52. The computer implemented method according to claim 42, wherein after a predetermined period of time the percentage of benefits associated with each of the at least two categories of health events may be reallocated.

53. The computer implemented method according to claim 44, wherein upon the occurrence of a life altering event the percentage of the benefit associated with each of the at least two categories of health events may be reallocated.

54. The computer implemented method according to claim 42, wherein upon payment of a benefit for at least one of said two categories of health events, coverage is still provided for the other of said health events.

55. The computer implemented method of claim 42, wherein the fractions of the aggregate benefit amount are stored as percentages of the aggregate benefit amount.