Collateral damage contracts

• US 8,271,306 B2
• Filed: 12/02/2010
• Issued: 09/18/2012
• Est. Priority Date: 09/16/2002
• Status: Active Grant

• Current Assignee: Bruce Bradford Thomas, Lester Ware Preston
• Original Assignee: Bruce Bradford Thomas, Lester Ware Preston
• Inventors: Thomas, Bruce Bradford, Preston, Lester Ware
• Primary Examiner(s): Patel, Jagdish
• Assistant Examiner(s): HAMILTON, SARA CHANDLER
• Application Number:
  US12/928,066
• Publication Number:
  US 20110077978A1
• Time in Patent Office: 656 Days
• Field of Search: 705/4, 705/35
• US Class Current: 705/4
• CPC Class Codes: G06Q 30/0216 Investment accounts
• 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 40/08 Insurance

Abstract

A method for marketing, underwriting, and providing coverage for damages that are associated with insured loss events but that are not covered by traditional insurance policies. This method permits the marketing of loss expense coverage, underwriting, and claim adjustment processes of insurance to be performed by reference to the loss payments that are made by a specified insurance policy. By referencing insured loss payments, which both a buyer and a seller understand, this method provides an easy way to communicate and transact something that is otherwise difficult or impossible to define or measure.

Claims

1. A system for incorporating a contractual provision into a standardized contract wording for a Collateral Damage Coverage agreement, comprising:

a data storage device; and

a computer linked to the data storage device configured to;

receive and store in the data storage device a standardized contract wording for a Collateral Damage Coverage agreement that includes contractual terms that are acceptable to a coverage seller and will be offered to coverage buyers, where the contractual terms define the conditions for making a payment under the Collateral Damage Coverage agreement and include and at least one acceptable payment function that when applied to losses paid under a referenced insurance policy results in a payment that increases as losses paid under the referenced policy increase;

offer the Collateral Damage Coverage agreement that includes the contractual terms that are acceptable to the coverage seller to coverage buyers;

receive and store in the data storage device the contractual terms for a Collateral Damage Coverage agreement that are acceptable to the coverage seller received from one of said coverage buyers in response to the Collateral Damage Coverage agreement offered, where the contractual terms include a specified referenced insurance policy associated with said one of said coverage buyers;

generate a contractual provision for the Collateral Damage Coverage agreement that specifies the acceptable payment function that will be applied to the losses paid by the specified referenced insurance policy; and

incorporate the contractual provision into the standardized contract wording.

2. The system of claim 1, for incorporating a contractual provision into a standardized contract wording for a Collateral Damage Coverage agreement, where the computer configured to generate the contractual provision for the Collateral Damage Coverage agreement comprises the computer being configured to specify that the payment function will be a percentage of the losses paid under the specified referenced insurance policy.

3. The system of claim 1, for incorporating a contractual provision into a standardized contract wording for a Collateral Damage Coverage agreement, where the computer configured to generate the contractual provision for the Collateral Damage Coverage agreement comprises the computer being configured to specify that the payment function will be a non-linear function of the losses paid under the specified referenced insurance policy.

4. The system of claim 1, for incorporating a contractual provision into a standardized contract wording for a Collateral Damage Coverage agreement, where the computer configured to generate the contractual provision for the Collateral Damage Coverage agreement comprises the computer being configured to specify that a quantitative limitation will be imposed on the losses paid by the specified referenced insurance policy and the amount of the Collateral Damage Coverage payment based on the quantitative limitation.

5. The system of claim 1, for incorporating a contractual provision into a standardized contract wording for a Collateral Damage Coverage agreement, where the computer configured to generate the contractual provision for the Collateral Damage Coverage agreement comprises the computer being configured to specify that a qualitative limitation will be imposed on the losses paid by the specified referenced insurance policy and the amount of the Collateral Damage Coverage payment based on the qualitative limitation.

6. The system of claim 1, for incorporating a contractual provision into a standardized contract wording for a Collateral Damage Coverage agreement, where the computer configured to generate the contractual provision for the Collateral Damage Coverage agreement comprises the computer being configured to specify that the Collateral Damage Coverage agreement will be based on an all risk commercial property policy that serves as the specified referenced insurance policy.

7. The system of claim 1, for incorporating a contractual provision into a standardized contract wording for a Collateral Damage Coverage agreement, where the computer configured to generate the contractual provision for the Collateral Damage Coverage agreement comprises the computer being configured to specify that the Collateral Damage Coverage agreement will be based on a commercial casualty policy that serves as the specified referenced insurance policy.

8. The system of claim 1, for incorporating a contractual provision into a standardized contract wording for a Collateral Damage Coverage agreement, where the computer configured to generate the contractual provision for the Collateral Damage Coverage agreement comprises the computer being configured to specify that the Collateral Damage Coverage agreement will be based on a personal insurance policy that serves as the specified referenced insurance policy.

9. The system of claim 1, for incorporating a contractual provision into a standardized contract wording for a Collateral Damage Coverage agreement, where the computer configured to generate the contractual provision for the Collateral Damage Coverage agreement comprises the computer being configured to specify that the Collateral Damage Coverage agreement will be based on a health insurance policy that serves as the specified referenced insurance policy.

10. The information system of claim 1, for incorporating a contractual provision into a standardized contract wording for a Collateral Damage Coverage agreement, where the computer configured to generate the contractual provision for the Collateral Damage Coverage agreement comprises the computer being configured to specify that the Collateral Damage Coverage agreement will be based on a workers'"'"' compensation insurance policy that serves as the specified referenced insurance policy.

11. The system of claim 1, for incorporating a contractual provision into a standardized contract wording for a Collateral Damage Coverage agreement, where the computer configured to generate the contractual provision for the Collateral Damage Coverage agreement comprises the computer being configured to specify that the Collateral Damage Coverage agreement will be based on a disability insurance policy that serves as the specified referenced insurance policy.

12. A computer-implemented method operative for incorporating a contractual provision into a standardized contract wording for a Collateral Damage Coverage agreement, comprising:

receiving and storing, in a data storage device linked to a computer, a standardized contract wording for a Collateral Damage Coverage agreement that includes contractual terms that are acceptable to a coverage seller and will be offered to coverage buyers, where the contractual terms define the conditions for making a payment under the Collateral Damage Coverage agreement and include at least one acceptable payment function that when applied to losses paid under a referenced insurance policy results in a payment that increases as losses paid under the referenced insurance policy increase;

offering, by the computer, the Collateral Damage Coverage agreement that includes the contractual terms that are acceptable to the coverage seller to coverage buyers;

receiving and storing, in the data storage device linked to the computer, the contractual terms for a Collateral Damage Coverage agreement that are acceptable to the coverage seller received from one of said coverage buyers in response to the Collateral Damage Coverage agreement offered, where the contractual terms include a specified referenced insurance policy associated with said one of said coverage buyers;

generating, by the computer, a contractual provision for the Collateral Damage Coverage agreement that specifies the acceptable payment function that will be applied to the losses paid by the specified referenced insurance policy; and

incorporating, by the computer, the contractual provision into the standardized contract wording.

13. The computer-implemented method of claim 12, where the step of generating the contractual provision for the Collateral Damage Coverage agreement comprises specifying that the payment function will be a percentage of the losses paid under the specified referenced insurance policy.

14. The computer-implemented method of claim 12, where the step of generating the contractual provision for the Collateral Damage Coverage agreement comprises specifying that the payment function will be a non-linear function of the losses paid under the specified referenced insurance policy.

15. The computer-implemented method of claim 12, where the step of generating the contractual provision for the Collateral Damage Coverage agreement comprises specifying that a quantitative limitation will be imposed on the losses paid by the specified referenced insurance policy to determine the amount of the Collateral Damage Coverage payment based on the quantitative limitation.

16. The computer-implemented method of claim 12, where the step of generating the contractual provision for the Collateral Damage Coverage agreement comprises specifying that a qualitative limitation will be imposed on the losses paid by the specified referenced insurance policy to determine the amount of the Collateral Damage Coverage payment based on the qualitative limitation.

17. The computer-implemented method of claim 12, where the step of generating the contractual provision for the Collateral Damage Coverage agreement comprises specifying that an all risk commercial property insurance policy will serve as the specified referenced insurance policy.

18. The computer-implemented method of claim 12, where the step of generating the contractual provision for the Collateral Damage Coverage agreement comprises specifying that a commercial casualty insurance policy will serve as the specified referenced insurance policy.

19. The computer-implemented method of claim 12, where the step of generating the contractual provision for the Collateral Damage Coverage agreement comprises specifying that a personal insurance policy will serve as the specified referenced insurance policy.

20. The computer-implemented method of claim 12, where the step of generating the contractual provision for the Collateral Damage Coverage agreement comprises specifying that a health insurance policy will serve as the specified referenced insurance policy.

21. The computer-implemented method of claim 12, where the step of generating the contractual provision for the Collateral Damage Coverage agreement comprises specifying that a workers'"'"' compensation insurance policy will serve as the specified referenced insurance policy.

22. The computer-implemented method of claim 12, where the step of generating the contractual provision for the Collateral Damage Coverage agreement comprises specifying that a disability insurance policy will serve as the specified referenced insurance policy.