Method and system for processing data related to a deferred annuity with available benefit payments and a deferral bonus

• US 8,359,257 B2
• Filed: 05/20/2011
• Issued: 01/22/2013
• Est. Priority Date: 11/15/2007
• Status: Expired due to Fees

• 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: Weiss, Joseph M.
• Primary Examiner(s): Cheung, Mary
• Application Number:
  US13/112,350
• Publication Number:
  US 20110218936A1
• Time in Patent Office: 613 Days
• Field of Search: 705/35, 705/36.R, 705/312
• US Class Current: 705/36.R
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• 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 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A computer implemented data processing system and method administers a deferred variable annuity contract during the accumulation phase for a relevant life. The annuity contract has a payment base value, a contract value, and benefit payments. A maximum annual benefit payment withdrawal amount available without reducing the payment base value is calculated by multiplying the payment base value by a factor including a deferral bonus percent, which is a function of a number of years deferred by the relevant life until taking a first lifetime benefit payment.

Claims

1. A computer system for processing data associated with a deferred annuity contract during the accumulation phase, comprising:

a data storage device storing data associated with the deferred annuity contract, including data indicative of a contract value, a withdrawal base value, a withdrawal percent value, and a formula for determining a value of benefit payments available during a current period in accordance with a guarantee and without reduction of the withdrawal base value; and

a processor in communication with the storage device, the processor configured to;

receive data indicative of an amount of a withdrawal requested by a relevant life;

responsive to receipt of the data indicative of an amount of a withdrawal requested by a relevant life, determine a maximum amount available for withdrawal without reduction of the withdrawal base value by calculating the maximum amount available based on multiplying the withdrawal base value by the sum of the withdrawal percent value and a factor equal to the product of (i) a number of completed periods of eligibility to withdraw without a withdrawal being taken and (ii) a percentage;

determine whether the amount of the withdrawal, together with amounts of other withdrawals requested during the current period, is greater than the maximum amount available for withdrawal; and

responsive to determining that the amount of the withdrawal, together with amounts of other withdrawals requested during the current period, is not greater than the maximum amount available for withdrawal, provide an output signal having data indicative that the withdrawal base value will not be reduced as a result of the withdrawal.

2. The computer system of claim 1, wherein the processor is configured to determine the maximum amount available for withdrawal without reduction of the withdrawal base value by accessing the maximum amount from the storage device.

3. The computer system of claim 1, further comprising a display module in communication with the processor for receiving the output signal and displaying a user-readable indication that the withdrawal base value will not be reduced as a result of the withdrawal.

4. The computer system of claim 1, wherein the deferred annuity contract is a deferred variable annuity.

5. The computer system of claim 1, further comprising a payment module in communication with the processor for effecting payment of the requested withdrawal amount to the relevant life.

6. The computer system of claim 1, wherein the withdrawal percent value is dependent on an age of the relevant life.

7. A computer-implemented method for processing data associated with a deferred annuity contract during the accumulation phase, comprising:

receiving by a processor data indicative of an amount of a withdrawal, from the deferred annuity contract, requested by a relevant life;

accessing by the processor, from a data storage device in communication with the processor, data associated with the deferred annuity contract, including data indicative of a withdrawal base value, a withdrawal percent value, and a formula for determining a value of benefit payments available during a current period in accordance with a guarantee and without reduction of the withdrawal base value; and

responsive to the receipt of the data indicative of an amount of a withdrawal requested by a relevant life, determining by the processor a maximum amount available for withdrawal without reduction of the withdrawal base value, the maximum amount available being calculated by the processor based on multiplying the withdrawal base value by the sum of the withdrawal percent value and a factor equal to the product of (i) a number of completed periods of eligibility to withdraw without a withdrawal being taken and (ii) a percentage;

determining by the processor whether the amount of the withdrawal, together with amounts of other withdrawals requested during the current period, is greater than the maximum amount available for withdrawal; and

responsive to determining that the amount of the withdrawal, together with amounts of other withdrawals requested during the current period, is not greater than the maximum amount available for withdrawal, providing by the processor an output signal having data indicative that the withdrawal base value will not be reduced as a result of the withdrawal.

8. The computer-implemented method of claim 7, wherein the periods of eligibility are each in the range from three years to eight years in length.

9. The computer-implemented method of claim 8, wherein the percentage is in the range from 0.2% to 1.0%.

10. The computer-implemented method of claim 9, wherein the withdrawal percent value is the range from 5% to 7%.

11. The computer-implemented method of claim 7, further comprising receiving the output signal via a communications bus by a display device in communication with the processor, and displaying by the display device a user-readable indication that the withdrawal base value will not be reduced as a result of the withdrawal.

12. The computer-implemented method of claim 7, wherein the withdrawal percent value is based on an age of the relevant life during the current period.

13. A non-transitory computer-readable medium having processor-executable instructions stored thereon, which instructions, when executed by a processor, cause the processor to:

receive data indicative of an amount of a withdrawal, from the deferred annuity contract, requested by a relevant life;

access, from a data storage device in communication with the processor, data associated with the deferred annuity contract, including data indicative of a contract value, a withdrawal base value, a withdrawal percent value, and a formula for determining a value of benefit payments available during a current period in accordance with a guarantee and without reduction of the withdrawal base value; and

responsive to the receipt of the data indicative of an amount of a withdrawal requested by a relevant life, determine a maximum amount available for withdrawal without reduction of the withdrawal base value, the maximum amount available being based on multiplying the withdrawal base value by the sum of the withdrawal percent value and a factor equal to the product of (i) a number of completed periods of eligibility to withdraw without a withdrawal being taken and (ii) a percentage;

determine whether the amount of the withdrawal, together with amounts of other withdrawals requested during the current period, is greater than the maximum amount available for withdrawal; and

responsive to determining that the amount of the withdrawal, together with amounts of other withdrawals requested during the current period, is not greater than the maximum amount available for withdrawal, provide an output signal having data indicative that the withdrawal base value will not be reduced as a result of the withdrawal.

14. The non-transitory computer-readable medium of claim 13, wherein at least one of the eligibility periods is one year in length.

15. The non-transitory computer-readable medium of claim 13, wherein the instructions, when executed by the processor, further cause the processor to calculate an updated contract value by accessing a current contract value from the data storage device, subtracting the amount of the withdrawal from the current contract value, and causing the calculated updated contract value to be stored in the data storage device.

16. The non-transitory computer-readable medium of claim 13, wherein the instructions, when executed by the processor, further cause the processor to, responsive to determining that the amount of the withdrawal, together with amounts of other withdrawals requested during the current period, is greater than the maximum amount available for withdrawal, provide an output signal having data indicative that the withdrawal base value will be reduced as a result of the withdrawal.

17. The non-transitory computer-readable medium of claim 13, wherein the withdrawal percent value is determined based on a current age of the relevant life, and is in the range from 5% to 7%, and the percentage is in the range from 0.2% to 1.0%.

18. The non-transitory computer-readable medium of claim 13, wherein the withdrawal percent value is determined based on an age of the relevant life at the date of first withdrawal.