Insurance system and method for a high-risk asset purchaser or lessee

• US 8,160,956 B2
• Filed: 08/30/2005
• Issued: 04/17/2012
• Est. Priority Date: 08/31/2004
• Status: Expired due to Fees

• Current Assignee: Thomas Franklin Comstock
• Original Assignee: Thomas Franklin Comstock
• Inventors: Comstock, Thomas Franklin
• Primary Examiner(s): Colbert, Ella
• Assistant Examiner(s): AMELUNXEN, BARBARA J
• Application Number:
  US11/214,587
• Publication Number:
  US 20060080241A1
• Time in Patent Office: 2,422 Days
• Field of Search: 705/4, 705/26, 705/35, 705/36, 705/36.R, 705/37, 705/38, 705/40, 705/400, 707/202
• US Class Current: 705/38
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 30/0283 Price estimation or determination
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• 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 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A method of financing a purchase or a lease a depreciating asset that includes determining a credit worthiness indication associated with a purchaser or lessee and establishing a finance contract for the lease or the purchase of the depreciating asset. A dealer is a guarantor of the finance contract. The method further includes issuing an insurance policy for a benefit of the dealer based on a liability associated with being the guarantor. The liability is based on at least the credit-worthiness indication and a value of the depreciating asset. The method also includes paying a payment associated with the finance contract. A portion of the payment based on a cost of the purchase or the lease of the depreciating asset and a cost associated with the insurance policy.

Claims

1. A method of determining financing for a purchase or a lease of a depreciating asset for a purchaser or a lessee, the method comprising:

electronically determining a credit worthiness on a computer based on the purchaser or the lessee;

electronically establishing a finance contract on said computer for the purchase or the lease of the depreciating asset, said finance contract includes a dealer who is a seller or a lessor of the depreciating asset designated as a guarantor of said finance contract;

determining a cost of an insurance policy, said dealer is designated as a beneficiary of said insurance policy, said cost of said insurance policy is based on a liability of said dealer being designated said guarantor of said finance contract, said liability of being designated said guarantor of said finance contract is based on at least said credit-worthiness and a value of the depreciating asset;

determining a payment required of the purchaser or the lessee by said finance contract, said payment having a value based on a cost of the purchase or the lease of the depreciating asset and a cost of said insurance policy.

2. The method of claim 1, further comprising:

recovering the depreciating asset from the purchaser or the lessee to a lender based on a payment default.

3. The method of claim 1, wherein said insurance policy has a face value based on said liability of said dealer being designated said guarantor of said finance contract.

4. The method of claim 1, further comprising:

paying said value of said insurance policy only after transfer of the depreciating asset from the purchaser or the lessee to said lender after a predetermined period.

5. The method of claim 1, further comprising:

reporting a payment history of said finance contract.

6. The method of claim 1, further comprising:

determining said liability of said dealer being designated said guarantor of said finance contract based on a difference between a remaining balance owed on said finance contract by the purchaser or the lessee and a value of the depreciating asset over a period of said finance contract.

7. The method of claim 6, wherein said remaining balance owed on said finance contract includes a principal portion and an interest portion of the finance contract.

8. The method of claim 1, further comprising:

paying a face value of said insurance policy to said dealer upon repossessing the depreciating asset.

9. The method of claim 1, further comprising:

reimbursing said lender for costs of said finance contract.

10. A method of establishing a financing contract for purchase of a depreciating asset, the method comprising:

electronically determining a value of the depreciating asset with a module;

electronically determining a purchase price with said module;

electronically determining a payment to a lender with said module;

providing a finance contract from said lender for the purchase of the depreciating asset from a dealer in return for said payment to said lender;

designating said dealer a guarantor of said finance contract and a beneficiary of an insurance agreement to cover default of said finance contract, said insurance agreement having a cost based on said dealer being designated said guarantor of said finance contract.

11. A method of electronically determining a financing arrangement between a lender, a purchaser and a dealer on a computer, the method comprising:

electronically determining a value of an asset that depreciates over time with the computer;

electronically preparing the financing arrangement with the computer for purchase or lease of said asset from the dealer;

designating the dealer as a guarantor in the financing arrangement;

electronically determining a value of an insurance agreement that reimburses the dealer costs of the financing arrangement when said asset is repossessed.

12. A method of electronically determining a cost of a purchase or a lease of a vehicle with a computer, the method comprising:

providing a dealer that sells or leases the vehicle;

providing a finance contract from a lender for sale of lease of the vehicle, said finance contract makes the dealer a guarantor of said finance contract when the dealer sells or leases the vehicle;

electronically determining a first value with the computer, said first value defines a capitalized cost of the purchase or the lease of the vehicle;

electronically determining a second value with the computer, said second value is descriptive of a credit worthiness indication of a purchaser or a lessee of the vehicle;

determining a cost of an insurance agreement to reimburse the dealer the cost of being designated the guarantor when default occurs on the finance contract;

electronically determining a purchase price or lease price of the vehicle with the computer, said purchase price or said lease price of the vehicle includes said cost of said insurance agreement based on at least said first value and said second value.

13. The financing system of claim 12 further comprising electronically determining a third value with the computer, said third value defines a residual value of the vehicle in a period of the lease, said cost of said insurance policy is also based on said third value.

14. The financing system of claim 12, wherein said credit worthiness indication includes a credit score.

15. The financing system of claim 12, wherein said purchase price is based on a scoring bias based on a chance that the asset will be repossessed.