System and method for establishing rates for an automobile insurance policy

• US 8,489,434 B1
• Filed: 04/27/2012
• Issued: 07/16/2013
• Est. Priority Date: 06/11/2002
• Status: Active Grant

• Current Assignee: United Services Automobile Association
• Original Assignee: United Services Automobile Association
• Inventors: Otis, Robert, Murphy, Deborah, Damrow, Thomas F., Meloni, Karen D., Merwarth, Michael, Stockand, Denise
• Primary Examiner(s): Cobanoglu, Dilek B
• Application Number:
  US13/458,447
• Time in Patent Office: 445 Days
• Field of Search: 705/4, 705/38, 705/3, 705/400
• 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 an organization, the single tier placement dependent upon a combination of factors based on applicant data for the vehicle insurance policy, the factors identified by determining a relationship gradient of the applicant as a function of a combination of;

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

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

2. The method of claim 1, wherein the vehicle insurance policy is a renewal policy.

3. The method of claim 1, wherein the factors are further identified by determining a household driving record gradient associated with the applicant.

4. The method of claim 1, wherein the factors are further identified by determining a stability gradient of the applicant.

5. The method of claim 4, wherein determining a stability gradient comprises determining a military career position of the applicant.

6. The method of claim 1, wherein the factors are further identified by determining an operator driving record gradient of the applicant.

7. The method of claim 1, wherein the organization is a membership organization and where the applicant is a member of the membership organization.

8. A non-transitory computer-readable medium comprising instructions, which when executed by a computer, cause the computer to:

determine a single tier placement of a vehicle insurance policy issued by an organization, the single tier placement dependent upon a combination of factors based on applicant data for the vehicle insurance policy, the factors identified by determining a relationship gradient of the applicant as a function of a combination of;

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

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

9. The non-transitory computer-readable medium of claim 8, wherein the vehicle insurance policy is a renewal policy.

10. The non-transitory computer-readable medium of claim 8, wherein the factors are further identified by determining a household driving record gradient associated with the applicant.

11. The non-transitory computer-readable medium of claim 8, wherein the factors are further identified by determining a stability gradient of the applicant.

12. The non-transitory computer-readable medium of claim 11, wherein determining a stability gradient comprises determining a military career position of the applicant.

13. The non-transitory computer-readable medium of claim 8, wherein the factors are further identified by determining an operator driving record gradient of the applicant.

14. The non-transitory computer-readable medium of claim 8, wherein the organization is a membership organization and where the applicant is a member of the membership organization.

15. A system comprising:

a computer system for determining a single tier placement of a vehicle insurance policy issued by an 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 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.

16. The system of claim 15, wherein the vehicle insurance policy is a renewal policy.

17. The system of claim 15, wherein the processor is further operative to establish the single tier placement in response to determining a household driving record gradient associated with the applicant.

18. The system of claim 15, wherein the processor is further operative to establish the single tier placement in response to determining a stability gradient of the applicant.

19. The system of claim 18, wherein determining a stability gradient comprises determining a military career position of the applicant.

20. The system of claim 15, wherein the processor is further operative to establish the single tier placement in response to determining an operator driving record gradient of the applicant.

21. The system of claim 15, wherein the organization is a membership organization and where the applicant is a member of the membership organization.