SYSTEM AND METHOD FOR ADMINISTERING LIFE INSURANCE POLICIES ISSUED PRIOR TO UNDERWRITING

• US 20110125651A1
• Filed: 11/23/2009
• Published: 05/26/2011
• Est. Priority Date: 11/23/2009
• Status: Active Grant

• Current Assignee: Prudential Insurance Company of America (Prudential Financial Incorporated)
• Original Assignee: Hartford Fire Insurance Company (The Hartford Financial Services Group, Inc.)
• Inventors: Howard, Rodney R., Roscoe, Michael J., Reynolds, Leslie Ann
• Granted Patent: US 8,224,677 B2
• Time in Patent Office: Days
• US Class Current: 705/64
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A computer system for administering applications for life insurance has a processor and a memory storage device in communication with the processor. The processor is configured to receive data indicative of an application and an initial premium payment from a proposed insured for life insurance; based on the received data, determine whether the proposed insured is uninsurable; responsive to a determination that the proposed insured is not uninsurable, generate an output signal having data indicative of a decision to respond to the application by issuing a policy and commencing a comprehensive underwriting process; receive data indicative of a result of the comprehensive underwriting process; based on the result of the comprehensive underwriting process, determine a rating of the proposed insured; and, based on the rating, provide an output signal indicative of a same or changed premium for the policy.

Claims

1. A computer system for administering applications for life insurance, comprising:

a processor;

a memory storage device in communication with the processor;

the processor configured to;

receive data indicative of an application by a proposed insured for life insurance, the data including a rating category, and an initial premium payment;

based exclusively on the received data, determine whether the proposed insured is uninsurable;

responsive to a determination that the proposed insured is uninsurable, generate an output signal having data indicative of a decision to respond to the application by declining to provide insurance;

responsive to a determination that the proposed insured is not uninsurable, generate an output signal having data indicative of a decision to respond to the application by issuing a policy, having the received rating category assigned to the proposed insured, and commencing a comprehensive underwriting process;

receive data indicative of a result of the comprehensive underwriting process;

based on the result of the comprehensive underwriting process, determine a rating category of the proposed insured; and

if the determined rating category is the same as the received rating category, provide an output signal indicative of no change to the policy, and otherwise provide an output signal indicative of a changed premium for the policy and no other change to the policy.

2. The system of claim 1, wherein the processor is further configured to determine a rating category of the proposed insured, responsive to the proposed insured being identified as uninsurable as a result of the comprehensive underwriting, by assigning a rating category having a highest mortality risk to the proposed insured.

3. The system of claim 1, wherein the processor is further configured to, responsive to a determination that the proposed insured is not uninsurable, provide an output signal having data indicative of a commission to be paid to a broker in connection with issue of the policy.

4. The system of claim 1, wherein the determination whether the proposed insured is uninsurable is made not later than two business days after receipt of the data indicative of the application.

5. The system of claim 1, wherein the data indicative of an application includes a death benefit amount, and wherein the policy includes the death benefit amount.

6. The system of claim 1, wherein the policy is a whole life insurance policy.

7. A computer system for administering applications for life insurance, comprising:

a processor; and

a memory storage device in communication with the processor;

the processor configured to;

receive data indicative of an application and an initial premium payment from a proposed insured for life insurance;

based on the received data, determine whether the proposed insured is uninsurable;

responsive to a determination that the proposed insured is not uninsurable, generate an output signal having data indicative of a decision to respond to the application by issuing a policy and commencing a comprehensive underwriting process;

receive data indicative of a result of the comprehensive underwriting process;

based on the result of the comprehensive underwriting process, determine a rating of the proposed insured; and

based on the determined rating, provide an output signal indicative of a same or changed premium for the policy.

8. The system of claim 7, wherein the processor is further configured to determine a rating of the proposed insured, responsive to the proposed insured being identified as uninsurable as a result of the comprehensive underwriting, by assigning a highest insurable rating to the proposed insured.

9. The system of claim 7, wherein the processor is further configured to receive, with the data indicative of the application, a rating category for the proposed insured, and wherein the data indicative of a decision to respond to the application by issuing a policy includes data indicative of a premium based on the received rating category.

10. The system of claim 7, wherein the processor is further configured to, responsive to a determination based on the received data that the proposed insured is uninsurable, generate an output signal having data indicative of a decision to respond to the application by declining to provide insurance.

11. The system of claim 7, wherein the processor is further configured to, responsive to a determination that the proposed insured is not uninsurable, provide an output signal having data indicative of a commission to be paid to a broker in connection with issue of the policy.

12. The system of claim 7, wherein the determination whether the proposed insured is uninsurable is made not later than two business days after receipt of the data indicative of the application.

13. The system of claim 7, wherein the determination whether the proposed insured is uninsurable is made based solely on the received data indicative of an application.

14. The system of claim 7, further comprising a printing and mailing system for responsive to the output signal having data indicative of a decision to respond to the application by issuing a policy, printing the policy and mailing the policy to the proposed insured.

22. The method of claim 7, further comprising receiving by a printing and mailing system the output signal having data indicative of a decision to respond to the application by issuing a policy, and responsive thereto, printing the policy by the printing and mailing system and mailing the policy to the proposed insured by the printing and mailing system.

15. A computer-implemented method for administering evaluation and issue of life insurance policies, comprising:

receiving by a processor, and storing by the processor in a memory device in communication with the processor, data indicative of an application and an initial premium payment from a proposed insured for life insurance;

based on the received data, determining by the processor whether the proposed insured is uninsurable;

responsive to a determination that the proposed insured is not uninsurable, generating by the processor an output signal having data indicative of a decision to respond to the application by issuing a policy and commencing a comprehensive underwriting process;

receiving by the processor data indicative of a result of the comprehensive underwriting process;

based on the result of the comprehensive underwriting process, determining by the processor a rating of the proposed insured; and

based on the determined rating, providing by the processor an output signal indicative of a same or changed premium for the policy.

16. The method of claim 15, further comprising, determining by the processor a rating of the proposed insured, responsive to the proposed insured being identified as uninsurable as a result of the comprehensive underwriting, by assigning a highest insurable rating to the proposed insured.

17. The method of claim 15, further comprising receiving by the processor, with the data indicative of the application, a rating category for the proposed insured, and wherein the data indicative of a decision to respond to the application by issuing a policy includes data indicative of a premium based on the received rating category.

18. The method of claim 15, further comprising, responsive to determining based on the received data indicative of the application that the proposed insured is uninsurable, generating by the processor an output signal having data indicative of a decision to respond to the application by declining to provide insurance.

19. The method of claim 15, further comprising, responsive to determining that the proposed insured is not uninsurable, providing by the processor an output signal having data indicative of a commission to be paid to a broker in connection with issue of the policy.

20. The method of claim 19, wherein the output signal having data indicative of a commission is provided not later than two business days after receipt of the data indicative of the application.

21. The method of claim 15, wherein the step of determining whether the proposed insured is uninsurable comprises determining based solely on the received data indicative of an application.

23. A computer-readable medium having a plurality of instructions thereon which, when executed by a processor, cause the processor to:

receive data indicative of an application and an initial premium payment from a proposed insured for life insurance;

based on the received data, determine whether the proposed insured is uninsurable;

responsive to a determination that the proposed insured is not uninsurable, generate an output signal having data indicative of a decision to respond to the application by issuing a policy and commencing a comprehensive underwriting process;

receive data indicative of a result of the comprehensive underwriting process;

based on the result of the comprehensive underwriting process, determine a rating of the proposed insured; and

based on the determined rating, provide an output signal indicative of a same or changed premium for the policy.

24. The computer-readable medium of claim 23 wherein the instructions further cause the processor to determine a rating of the proposed insured, responsive to the proposed insured being identified as uninsurable as a result of the comprehensive underwriting, by assigning a highest insurable rating to the proposed insured.

25. The computer-readable medium of claim 23 wherein the instructions further cause the processor to receive, with the data indicative of the application, a rating category for the proposed insured, and wherein the data indicative of a decision to respond to the application by issuing a policy includes data indicative of a premium based on the received rating category.

26. The computer-readable medium of claim 23 wherein the instructions further cause the processor to, responsive to a determination based on the received data that the proposed insured is uninsurable, generate an output signal having data indicative of a decision to respond to the application by declining to provide insurance.

27. The computer-readable medium of claim 23 wherein the instructions further cause the processor to, responsive to a determination that the proposed insured is not uninsurable, provide an output signal having data indicative of a commission to be paid to a broker in connection with issue of the policy.

28. The computer-readable medium of claim 23 wherein the determination whether the proposed insured is uninsurable is made not later than two business days after receipt of the data indicative of the application.

29. The computer-readable medium of claim 23 wherein the instructions further cause the processor to system of claim 7, wherein the determination whether the proposed insured is uninsurable is made based solely on the received data indicative of an application.

30. The computer-readable medium of claim 23, wherein the policy is a whole life insurance policy.

31. A computer system for issue and administration of life insurance policies, comprising:

a processing module for receiving data indicative of an application and an initial premium payment from a proposed insured for life insurance and for determining, based on the received data, whether the proposed insured is uninsurable;

an administration module for, responsive to a determination by the processing module that the proposed insured is not uninsurable, administering a comprehensive underwriting process; and

for determining a rating classification based on a result of the comprehensive underwriting process; and

an issuance module for issuing an insurance policy to the proposed insured responsive to the determination by the processing module that the proposed insured is not uninsurable.

32. The system of claim 31, wherein the issuance module is further for furnishing the life insurance policy to the proposed insured.

33. The system of claim 32, wherein the issuance module is for furnishing the life insurance policy by printing and mailing a physical copy of the policy.

34. The system of claim 32, wherein the issuance module is for furnishing the life insurance policy by transmitting an electronic file having an image of the policy to the proposed insured.

35. The system of claim 32, wherein the issuance module is for furnishing the life insurance policy by making an electronic file having an image of the policy accessible to the proposed insured on a server.

36. The system of claim 31, wherein the administration module is further for, upon receipt of data indicative of cancellation of the policy by the insured within an initial period, causing a refund of the premium to be paid to the insured.

37. The system of claim 31, wherein the administration module assigns an insurable rating classification to the insured on issue of the policy, and the initial premium payment is for one year of coverage at the insurable rating classification.

38. A system for life insurance administration comprising:

at least one policy administration device having a processor and a communications interface, the policy administration device configured to receive data indicative of an application for life insurance and an initial premium payment via the communications interface from a proposed insured for life insurance, the received data being transmitted from at least one handheld communications device operated by the proposed insured;

the policy administration device further configured to determine via the processor whether the proposed insured is not uninsurable and if so then generate a policy for transmission to the handheld communications device;

the policy administration device further configured to enable a comprehensive underwriting process and process via the processor a rating of the proposed insured; and

based on the determined rating, provide an output signal via the communications interface indicative of a same or changed premium for the policy to the handheld communications device operated by the proposed insured.

39. The system of claim 38, wherein the handheld communications device is configured to authenticate an identity of the proposed insured.

40. The system of claim 39, wherein authentication is based on a biometric evaluation of the proposed insured administered via the handheld communications device.

41. The system of claim 38, wherein the at least one policy administration device is an insurance agent device.

42. The system of claim 41, wherein the insurance agent device and the handheld communications device communicate via a secure cryptographic based communications scheme.

43. The system of claim 38, wherein the at least one policy administration device provides a real time help facility to the handheld communications device via the communications interface.