System and method for establishing rates for an automobile insurance policy

• US 8,170,892 B1
• Filed: 06/09/2003
• Issued: 05/01/2012
• Est. Priority Date: 06/11/2002
• Status: Active Grant

• Current Assignee: United Services Automobile Association
• Original Assignee: United Services Automobile Association
• Inventors: Murphy, Deborah, Otis, Robert, Merwath, Michael A., Damrow, Thomas F., Meloni, Karen D., Stockland, Denise
• Primary Examiner(s): Cobanoglu, Dilek B
• Application Number:
  US10/457,114
• Time in Patent Office: 3,249 Days
• Field of Search: 705/4, 705/38
• US Class Current: 705/4
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

Automobile insurance rates are established by performing calculations for defining a single tier placement dependent upon a combination of mutually exclusive factors based on applicant data. The factors include a household driving record gradient, a stability gradient and an operator driving record gradient. In the case of a new policy, the factors also include a named insured driving experience gradient and a prior insurance gradient. Alternately, in the case of a renewal policy, the factors also include a household claims record gradient, a member relationship gradient and an operator claims record gradient. No single factor is the sole determinant for placement in a tier.

Claims

1. A method comprising:

performing by a computer processor calculations for determining a single tier placement of a vehicle insurance policy issued by a membership organization, the single tier placement dependent upon a combination of factors based on applicant data for the vehicle insurance policy, the factors including;

(a) determining a household driving record gradient associated with the applicant;

(b) determining a stability gradient of the applicant;

(c) determining an operator driving record gradient of the applicant; and

(d) determining a membership relationship gradient of the applicant as a function of a combination of;

a length of time the applicant has had a relationship with the membership organization issuing the vehicle insurance policy; and

whether the applicant currently has at least one of a homeowners, condo, or renters policy with the membership organization.

2. The method as defined in claim 1 wherein the policy is a renewal policy.

3. The method as defined in claim 1 wherein a plurality of gradients are considered to define each factor.

4. The method as defined in claim 3 wherein a plurality of characteristics are considered to define each gradient.

5. The method as defined in claim 1 wherein no single risk factor is the sole determinant for placement in a tier.

6. The method as defined in claim 1 wherein the factors further include:

determining a household claims record gradient.

7. The method as defined in claim 1 wherein the factors further include:

determining an operator claims record gradient.

8. The method as defined in claim 1 wherein the policy is a new policy.

9. The method as defined in claim 1 wherein the factors further include:

determining a named insured driving experience gradient.

10. The method as defined in claim 1 wherein the factors further include:

determining a prior insurance gradient.

11. A system comprising:

a computer system for determining a single tier placement of a vehicle insurance policy issued by a membership organization, the single tier placement dependent upon a combination of factors based on applicant data, the computer system including;

a storage device storing a program; and

a processor coupled to the storage device, the processor operative with the program for establishing the single tier placement in response to determining a household driving record gradient associated with the applicant, a stability gradient of the applicant, an operator driving record gradient of the applicant, and a membership relationship gradient of the applicant, wherein determining the membership relationship gradient is a function of a combination of;

a length of time the applicant has had a relationship with the membership organization issuing the vehicle insurance policy; and

whether the applicant currently has at least one of a homeowners, condo, or renters policy with the membership organization.

12. The system as defined in claim 11 wherein the factors further include:

(a) determining a household claims record gradient; and

(b) determining an operator claims record gradient.

13. The system as defined in claim 11 wherein the factors further include:

(a) determining a named insured driving experience gradient; and

(b) determining a prior insurance gradient.

14. A method comprising:

communicating a request for automobile insurance;

in response to the request, using a computer system for determining a single tier placement of a vehicle insurance policy issued by a membership organization to a member, the single tier placement dependent upon a combination of factors based on data provided by the applicant, the factors including;

(a) determining a household driving record gradient associated with the member;

(b) determining a stability gradient of the member;

(c) determining an operator driving record gradient of the member; and

(d) determining a membership relationship gradient of the member as a function of a combination of;

a length of time the applicant has had a relationship with the membership organization issuing the vehicle insurance policy; and

whether the member currently has at least one of a homeowners, condo, or renters policy with the membership organization.

15. The method as defined in claim 14 wherein the policy is a renewal policy.

16. The method as defined in claim 14 wherein a plurality of gradients are considered to define each factor.

17. The method as defined in claim 16 wherein a plurality of characteristics are considered to define each gradient.

18. The method as defined in claim 14 wherein no single risk factor is the sole determinant for placement in a tier.

19. The method as defined in claim 14 wherein the factors further include:

(a) determining a household claims record gradient; and

(b) determining an operator claims record gradient.

20. The method as defined in claim 14 wherein the policy is a new policy.

21. The method as defined in claim 20 wherein the factors further include:

(a) determining a named insured driving experience gradient; and

(b) determining a prior insurance gradient.

22. A method comprising:

performing by a computer processor calculations for determining a single tier placement of a vehicle renewal insurance policy issued by a membership organization, the single tier placement dependent upon a combination of factors based on applicant data, the factors including;

(a) determining a household driving record gradient associated with the applicant;

(b) determining a member relationship gradient of the applicant as a function of a combination of;

a length of time the applicant has had a relationship with the membership organization issuing the vehicle renewal insurance policy; and

whether the applicant currently has at least one of a homeowners, condo, or renters policy with the membership organization;

(c) determining an operator driving record gradient of the applicant; and

(d) determining a stability gradient of the driver, the stability gradient being characterized by a career position of the applicant; and

using a computer processor to transform data in a memory to indicate the single tier placement for the vehicle renewal insurance policy.

23. The method as defined in claim 22 wherein the factors further include:

determining a household claims record gradient.

24. The method as defined in claim 22 wherein determining a stability gradient comprises determining a military career position of the applicant.

25. The method as defined in claim 22 wherein the factors further include:

determining an operator claims record gradient.

27. The method as defined in claim 24 wherein determining a military career position of the driver comprising determining the military career position to be one of officer, non-commissioned officer (NCO), or enlisted non-NCO.

26. A system comprising:

a computer system for determining a single tier placement of a vehicle insurance policy issued by a membership organization, the single tier placement dependent upon a combination of mutually exclusive factors based on applicant data; and

means for performing calculations for establishing a single tier placement dependent upon a combination of factors based on applicant data, the factors including;

(a) determining a household driving record gradient associated with the applicant;

(b) determining a stability gradient of the applicant;

(c) determining an operator driving record gradient of the applicant; and

(d) determining a membership relationship gradient of the applicant as a function of a combination of;

a length of time the applicant has had a relationship with the membership organization issuing the vehicle insurance policy; and

whether the applicant currently has at least one of a homeowners, condo, or renters policy with the membership organization.