System and method for administration of costs related to annuities
First Claim
1. A system for administration of a variable annuity account issued to a customer by an insurance company and having a premium invested in funds selected by the customer, comprising:
- a processor;
a memory in communication with the processor;
the processor being configured to;
receive data including a net asset value of the account at a commencement of an annual period;
receive data including an amount of a performance-independent management fee for payment to advisors of the customer-selected funds applicable to the account and based on a fraction of the net asset value of the account;
on a daily basis throughout the annual period;
calculate a fractional daily charge based on the net asset value of the account on each day during the period, the amount of the management fee and the number of days in the annual period;
on a daily basis, update the net asset value by decrementing the net asset value in the amount of the daily charge;
store the daily updated net asset value in memory; and
store each of the daily charges in memory;
at the end of the annual period;
calculate an annual charge based on the net asset value of the account on one day during the annual period and the amount of the management fee;
calculate a sum of the daily charges for the annual period;
calculate a difference between the annual charge and the sum of the daily charges;
if the annual charge is less than the sum of the daily charges, calculate an annually updated net asset value equal to the sum of the daily updated net asset value for the day of calculation and the difference between the annual charge and the sum of the daily charges;
if the annual charge is equal to or greater than the sum of the daily charges, make no change to the net asset value; and
provide an output signal having data indicative of the annually updated net asset value and the difference between the annual charge and the sum of the daily charges.
3 Assignments
0 Petitions
Accused Products
Abstract
A system for administration of an insurance annuity account has a processor and a memory. The processor receives a net asset value of the account at a commencement of a first period and a charge applicable to the account based on a fraction of the net asset value of the account; on a basis of a second period, shorter than the first period, throughout the first period: the processor calculates a fractional charge based on the net asset value of the account, and updates the net asset value by decrementing the net asset value in the amount of the fractional charge. At the end of the first period, the processor compares a charge for the first period based on the net asset value of the account on one day during the first period to a sum of the fractional charges for the first period, and increases the net asset value by the difference if the first period charge is less than the sum of the fractional charges.
56 Citations
24 Claims
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1. A system for administration of a variable annuity account issued to a customer by an insurance company and having a premium invested in funds selected by the customer, comprising:
- a processor;
a memory in communication with the processor;
the processor being configured to;
receive data including a net asset value of the account at a commencement of an annual period;
receive data including an amount of a performance-independent management fee for payment to advisors of the customer-selected funds applicable to the account and based on a fraction of the net asset value of the account;
on a daily basis throughout the annual period;
calculate a fractional daily charge based on the net asset value of the account on each day during the period, the amount of the management fee and the number of days in the annual period;
on a daily basis, update the net asset value by decrementing the net asset value in the amount of the daily charge;
store the daily updated net asset value in memory; and
store each of the daily charges in memory;
at the end of the annual period;
calculate an annual charge based on the net asset value of the account on one day during the annual period and the amount of the management fee;
calculate a sum of the daily charges for the annual period;
calculate a difference between the annual charge and the sum of the daily charges;
if the annual charge is less than the sum of the daily charges, calculate an annually updated net asset value equal to the sum of the daily updated net asset value for the day of calculation and the difference between the annual charge and the sum of the daily charges;
if the annual charge is equal to or greater than the sum of the daily charges, make no change to the net asset value; and
provide an output signal having data indicative of the annually updated net asset value and the difference between the annual charge and the sum of the daily charges. - View Dependent Claims (2)
- a processor;
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3. A system for administration of an insurance annuity account issued to a customer by an insurance company and having a premium invested in funds selected by the customer, comprising:
- a processor;
a memory in communication with the processor;
the processor being adapted to;
receive data including a net asset value of the account at a commencement of a first period;
receive data including a performance-independent charge applicable to the account in the nature of a charge related to compensation of advisors of the customer- selected funds and based on a fraction of the net asset value of the account;
on a basis of a second period, shorter than the first period, throughout the first period;
calculate a fractional charge based on the net asset value of the account on the basis of the second period, the value of the charge and the number of second periods in the first period;
update the net asset value on the basis of the second period by decrementing the net asset value in the amount of the fractional charge;
store the updated net asset value in memory; and
store each of the fractional charges in memory;
at the end of the first period;
calculate a charge for the first period based on the net asset value of the account on one day during the first period and the value of the charge;
calculate a sum of the fractional charges for the first period;
calculate a difference between the first period charge and the sum of the fractional charges;
if the first period charge is less than the sum of the fractional charges, calculate an updated net asset value equal to the sum of the updated net asset value for the day of calculation and the difference between the first period charge and the sum of the fractional charges; and
provide an output signal having data indicative of the net asset value and, if the net asset value was increased by the difference between the first period charge and the sum of the fraction charges, indicative of the difference between the first period charge and the sum of the fractional charges. - View Dependent Claims (4, 5, 6, 7, 8, 9, 10, 11, 12, 13)
- a processor;
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14. A computer-implemented method for administration of a variable annuity account issued to a customer by an insurance company and having a premium invested in funds selected by the customer, comprising the steps of:
- receiving by a processor data including a net asset value of the account at a commencement of a first period;
receiving by the processor data including a performance-independent charge in the nature of a charge related to compensation of advisors of the customer-selected funds applicable to the account and based on a fraction of the net asset value of the account;
on a basis of a second period, shorter than the first period, throughout the first period;
calculating by the processor of a fractional charge based on the net asset value of the account on the basis of the second period, the value of the charge and the number of second periods in the first period;
storing the fractional charge in memory;
updating the net asset value by decrementing the net asset value in the amount of the fractional charge;
storing the updated net asset value in memory; and
storing each of the fractional charges in memory;
at the end of the first period;
calculating a first period charge for the first period based on the net asset value of the account on one day during the first period and the rate of the charge;
calculating a sum of the fractional charges for the first period;
calculating a difference between the first period charge and the sum of the fractional charges for the first period;
if the first period charge is less than the sum of the fractional charges, calculating an updated net asset value equal to the sum of the updated net asset value for the day of calculation and the difference between the first period charge and the sum of the fractional charges; and
providing an output signal having data indicative of the net asset value and, if the net asset value was increased by the difference between the first period charge and the sum of the fraction charges, indicative of the difference between the first period charge and the sum of the fractional charges. - View Dependent Claims (15, 16, 17, 18, 19, 20, 21)
- receiving by a processor data including a net asset value of the account at a commencement of a first period;
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22. A non-transitory computer-readable medium having a plurality of instructions thereon which, when executed by a processor, cause the processor to perform the steps of:
- receiving data including a net asset value of a variable annuity account issued to a customer by an insurance company and having a premium invested in funds selected by the customer at a commencement of a first period;
receiving data including a performance-independent charge in the nature of a charge related to compensation of advisors of the customer-selected funds applicable to the account and based on a fraction of the net asset value of the account;
on a basis of a second period, shorter than the first period, throughout the first period;
calculating a fractional charge based on the net asset value of the account on the basis of the second period, the value of the charge and the number of second periods in the first period;
updating the net asset value by decrementing the net asset value in the amount of the fractional charge;
storing the updated net asset value in memory; and
storing each of the fractional charges in memory;
at the end of the first period;
calculating a first period charge for the first period based on the net asset value of the account on one day during the first period and the rate of the charge;
calculating a sum of the fractional charges for the first period;
calculating a difference between the first period charge and the sum of the fractional charges for the first period;
if the first period charge is less than the sum of the fractional charges, calculating an updated net asset value equal to the sum of the updated net asset value for the day of calculation and the difference between the first period charge and the sum of the fractional charges; and
providing an output signal having data indicative of the net asset value and, if the net asset value was increased by the difference between the first period charge and the sum of the fraction charges, indicative of the difference between the first period charge and the sum of the fractional charges. - View Dependent Claims (23, 24)
- receiving data including a net asset value of a variable annuity account issued to a customer by an insurance company and having a premium invested in funds selected by the customer at a commencement of a first period;
Specification