US6009402A
Expired / Lapsed
US
⏱️ 0.0 years remaining
System and method for predicting, comparing and presenting the cost of self insurance versus insurance and for creating bond financing when advantageous
Assignee: Individual
•
Filing: 1997-07-28
•
Granted: 1999-12-28
•
Expires: 2017-07-28
Abstract
Abstract A system and method for predicting, comparing, and presenting the cost of self insurance versus insurance for property, casualty, or employee benefit liabilities, and for creating bond financing when advantageous. For a self insured entity, the cost of insurance is estimated by reviewing available data from actuarial studies, claims audits, loss runs, similar self insureds, recent similar insurance deals and rating agencies. These preliminary pricing estimates are used to decide if pursuing insurance is likely to provide savings to the self insured. Suggested pricing estimates are also provided to facilitate marketing the program to insurance carriers. If a carrier offers an insurance program which provides savings and the insured entity requires bond financing, the system is adapted to calculate bond payments based on budget constraints or claims payout patterns.
Inventors
- 👤 Brian L. Whitworth
Bibliographic Details
Application Number
—
Jurisdiction
US
Data Source
google_patents
Last Synchronized
2026-11-09 14:36
CPC Classifications
G; G06; G06Q; G06Q40/00; G06Q40/08; G06Q30/00; G06Q30/02; G06Q30/0283
Claims Analysis
Total Claims: 73
Claim 1
Independent Claim
192 words
A system for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance employing a computer, a video monitor, a printer, and at least one user input mechanism, the system comprising: a computer executable program or programs adapted to: estimate a cost of self insurance by processing self insurance information; estimate a cost of insurance and savings realized by replacing self insurance with insurance by processing insurance information; adjust said savings where said cost of self insurance is not equal to an average cost of self insurance; generate and provide, to the video monitor, data usable by the video monitor to generate at least one visual display representing a preliminary evaluation questionnaire; enable a user of the computer to input said insurance information with the user input mechanism at said preliminary evaluation questionnaire; generate data usable by the computer to provide an indication of said cost of a liability, said cost of insurance, and said savings; determine a plurality of payout patterns for a premium financing mechanism employed to pay for said insurance; and generate data usable by the computer to provide an indication of said payout pattern.
Claim 2
Independent Claim
192 words
A system for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance employing a computer, a video monitor, a printer, and at least one user input mechanism, the system comprising: a computer executable program or programs adapted to: estimate a cost of self insurance by processing self insurance information; estimate a cost of insurance and savings realized by replacing self insurance with insurance by processing insurance information; adjust said savings where said cost of self insurance is not equal to an average cost of self insurance; generate and provide, to the video monitor, data usable by the video monitor to generate at least one visual display representing a preliminary evaluation questionnaire; enable a user of the computer to input said insurance information with the user input mechanism at said preliminary evaluation questionnaire; generate data usable by the computer to provide an indication of said cost of a liability, said cost of insurance, and said savings; determine a plurality of payout patterns for a premium financing mechanism employed to pay for said insurance; and generate data usable by the computer to provide an indication of said payout pattern.
Claim 3
Independent Claim
109 words
A method for predicting, comparing, and presenting a cost of a liability versus a cost of insurance, the method comprising the steps of: estimating a cost of a liability by processing liability information; estimating a cost of insurance and savings realized by replacing said liability with insurance by processing insurance information; adjusting said savings where said cost of a liability is not equal to an average cost of said liability; providing an indication of said cost of a liability, said cost of insurance, and said savings; determining a payout pattern for a premium financing mechanism employed to pay for said insurance; and providing an indication of said payout pattern.
Claim 4
Independent Claim
109 words
A method for predicting, comparing, and presenting a cost of a liability versus a cost of insurance, the method comprising the steps of: estimating a cost of a liability by processing liability information; estimating a cost of insurance and savings realized by replacing said liability with insurance by processing insurance information; adjusting said savings where said cost of a liability is not equal to an average cost of said liability; providing an indication of said cost of a liability, said cost of insurance, and said savings; determining a payout pattern for a premium financing mechanism employed to pay for said insurance; and providing an indication of said payout pattern.
Claim 5
Dependent Claim
35 words
The method for predicting, comparing, and presenting a cost of a liability versus a cost of insurance of claim 2 wherein: said liability comprises self insurance; and said premium financing mechanism comprises a municipal bond.
Claim 6
Dependent Claim
46 words
The method for predicting, comparing, and presenting a cost of a liability versus a cost of insurance of claim 2 wherein: said payout pattern is determined such that a net present value of said payout pattern is equal to a principal of said premium financing mechanism.
Claim 7
Independent Claim
74 words
A method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance, the method comprising the steps of: estimating a cost of self insurance by processing self insurance information; estimating a cost of insurance and savings realized by replacing self insurance with insurance by processing insurance information; and estimating a cost of a premium financing mechanism proposed to pay for said insurance in consideration of regulatory and budget constraints.
Claim 8
Independent Claim
74 words
A method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance, the method comprising the steps of: estimating a cost of self insurance by processing self insurance information; estimating a cost of insurance and savings realized by replacing self insurance with insurance by processing insurance information; and estimating a cost of a premium financing mechanism proposed to pay for said insurance in consideration of regulatory and budget constraints.
Claim 9
Dependent Claim
31 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 5 wherein: said self insurance information includes data from an actuarial study.
Claim 10
Dependent Claim
63 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 5 wherein: said self insurance information includes: estimates of ultimate losses for at least one past year; estimates of ultimate losses for at least one upcoming year; and an estimate of a portion of ultimate losses that will be paid in a budget year.
Claim 11
Dependent Claim
38 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 5 wherein: said self insurance information includes data contained within a self insurer's report filed with a regulatory body.
Claim 12
Dependent Claim
51 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 5 wherein: said self insurance information includes estimates of costs and cash flows calculated from loss, exposure and expense data of a self insured entity and industry loss rates and payout patterns.
Claim 13
Dependent Claim
41 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 5 wherein said step of estimating a cost of insurance and savings further comprises: applying a regression analysis to said insurance information.
Claim 14
Dependent Claim
33 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 5 wherein: said insurance information includes data from an audit of an employer's claims.
Claim 15
Dependent Claim
31 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 5 wherein: said insurance information includes data from a preliminary evaluation questionnaire.
Claim 16
Dependent Claim
34 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 5 wherein: said self insurance information includes ultimate losses and cash flows by budget year.
Claim 17
Dependent Claim
34 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 13 wherein: said ultimate losses are forecast using incurred loss and paid loss development methods.
Claim 18
Dependent Claim
27 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 5 wherein: said insurance information includes regression variables.
Claim 19
Dependent Claim
41 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 15 wherein said step of estimating a cost of insurance and savings further comprises: applying a regression analysis to said regression variables.
Claim 20
Dependent Claim
58 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 16 wherein: said regression variables include at least one of: a state of operation regression variable; an industry regression variable; a portion of claims currently litigated regression variable; a number of employees regression variable; and a carrier regression variable.
Claim 21
Dependent Claim
52 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 5 wherein said step of estimating a cost of insurance and savings further comprises: analyzing benchmarking data to determine whether an employer is likely to obtain more or less savings than similar employers.
Claim 22
Dependent Claim
41 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 18 wherein: said benchmarking data includes losses, claim counts, payroll, and employee count by year for a plurality of self insured employers.
Claim 23
Dependent Claim
46 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 18 wherein: said benchmarking data is stored in a benchmarking database which has been check summed against client data from which said benchmarking data was originally obtained.
Claim 24
Dependent Claim
42 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 5 further comprising the step of: providing a benchmarking comparison of a loss experience of an employer with loss experiences of other employers.
Claim 25
Dependent Claim
35 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 21 wherein: said benchmarking comparison includes a comparison of losses as a percentage of a payroll.
Claim 26
Dependent Claim
32 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 21 wherein: said benchmarking comparison includes an indication of loss trends over time.
Claim 27
Dependent Claim
48 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 21 wherein: said benchmarking comparison includes an indication of loss rates attributable to changes in a payroll over time for a particular employer versus a group of similar employers.
Claim 28
Dependent Claim
36 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 5 further comprising the step of: identifying a particular premium financing mechanism to pay for said insurance.
Claim 29
Dependent Claim
28 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 25 wherein: said premium financing mechanism comprises a bond.
Claim 30
Dependent Claim
43 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 26 wherein: interest rates associated with said bond vary over a term of said bond in a manner known before said bond is issued.
Claim 31
Dependent Claim
32 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 5 wherein: said insurance information includes data from a database of recent deals.
Claim 32
Dependent Claim
34 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 28 wherein: said data from a database of recent deals includes data from insurance quotes.
Claim 33
Dependent Claim
66 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 29 wherein: said data from insurance quotes includes at least one of: type of coverage data; date of quote data; carrier data; states of operation of employers data; size of employers data; industry SIC code; and private, not for profit, or public sector status of employers data.
Claim 34
Dependent Claim
34 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 28 wherein: said data from a database of recent deals includes data from a survey.
Claim 35
Dependent Claim
49 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 28 wherein said step of estimating a cost of insurance and savings further comprises: applying a grouping analysis to selected data of said data from a database of recent deals.
Claim 36
Dependent Claim
34 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 5 further comprising the step of: determining a payout pattern for said premium financing mechanism.
Claim 37
Dependent Claim
29 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 33 wherein: said payout pattern comprises a level payout pattern.
Claim 38
Dependent Claim
29 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 33 wherein: said payout pattern comprises an arbitrary payout pattern.
Claim 39
Dependent Claim
32 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 33 wherein: said payout pattern comprises a fixed amount of savings payout pattern.
Claim 40
Dependent Claim
30 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 33 wherein: said payout pattern comprises an upfront savings payout pattern.
Claim 41
Dependent Claim
69 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 37 wherein said step of determining a payment pattern further comprises: starting with a last payment of said upfront savings payout pattern, sequentially calculating payments of said upfront savings payout pattern until a net present value of said upfront savings payout pattern equals a principal of said premium financing mechanism.
Claim 42
Dependent Claim
31 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 33 wherein: said payout pattern comprises a fixed percentage savings payout pattern.
Claim 43
Dependent Claim
54 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 39 wherein said step of determining a payment pattern further comprises: determining payments of said fixed percentage savings payout pattern by setting said payments at a constant percentage of estimated costs of said self insurance.
Claim 44
Dependent Claim
43 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 5 further comprising the step of: providing a simulation of sensitivities of savings and premium estimates to changes in a plurality of risk factors.
Claim 45
Dependent Claim
31 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 41 wherein: said plurality of risk factors have varying partial regression coefficients.
Claim 46
Dependent Claim
39 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 41 wherein: said plurality of risk factors include variations in an interest rate a carrier uses for discounting cash flows.
Claim 47
Dependent Claim
34 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 41 wherein: said plurality of risk factors include variations in a carrier's expected payout pattern.
Claim 48
Dependent Claim
34 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 41 wherein: said plurality of risk factors include variations in a carrier's expected profit margin.
Claim 49
Dependent Claim
40 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 41 wherein: said plurality of risk factors include variations in a number of years a carrier takes to close all claims.
Claim 50
Dependent Claim
34 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 41 wherein: said plurality of risk factors include variations in a length of financing period.
Claim 51
Dependent Claim
43 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 41 wherein: said plurality of risk factors include variations in a difference between a bond interest rate and an interest rate of a carrier.
Claim 52
Dependent Claim
31 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 41 wherein: said plurality of risk factors include variations in bond fees.
Claim 53
Dependent Claim
33 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 41 wherein: said plurality of risk factors include variations in fees for professional services.
Claim 54
Dependent Claim
32 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 41 wherein: said simulation provides an indication of a range of possible savings.
Claim 55
Dependent Claim
32 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 41 wherein: said simulation provides an indication of a range of possible premiums.
Claim 56
Dependent Claim
34 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 41 wherein: said simulation provides an indication of a likelihood of obtaining a particular premium.
Claim 57
Dependent Claim
36 words
The method for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 41 wherein: said simulation provides an indication of a likelihood of obtaining a particular amount of savings.
Claim 58
Independent Claim
121 words
A system for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance utilizing a computer, a video monitor, a printer, and at least one user input mechanism, and at least one output mechanism, the system comprising: at least one computer executable program adapted to: accept user input regarding self insurance and insurance using at least one user input mechanism, estimate a cost of self insurance by processing self insurance information; and estimate a cost of insurance and savings realized by replacing self insurance with insurance by processing insurance information; generate and provide output data regarding a cost of self insurance versus a cost of insurance, said output being provided to at least one computer output mechanism.
Claim 59
Independent Claim
121 words
A system for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance utilizing a computer, a video monitor, a printer, and at least one user input mechanism, and at least one output mechanism, the system comprising: at least one computer executable program adapted to: accept user input regarding self insurance and insurance using at least one user input mechanism, estimate a cost of self insurance by processing self insurance information; and estimate a cost of insurance and savings realized by replacing self insurance with insurance by processing insurance information; generate and provide output data regarding a cost of self insurance versus a cost of insurance, said output being provided to at least one computer output mechanism.
Claim 60
Dependent Claim
52 words
The system for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 55 wherein: said computer executable program is further adapted to: generate data usable by the computer to provide an indication of said cost of a liability, said cost of insurance, and said savings.
Claim 61
Dependent Claim
56 words
The system for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 55 wherein: said computer executable program is further adapted to: generate data usable by the computer to provide an indication of a benchmarking comparison of a loss experience of an employer with loss experiences of other employers.
Claim 62
Dependent Claim
57 words
The system for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 55 wherein: said computer executable program is further adapted to: generate data usable by the computer to provide an indication of a simulation of sensitivities of savings and premium estimates to changes in a plurality of risk factors.
Claim 63
Dependent Claim
59 words
The system for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 55 wherein: said computer executable program is further adapted to: determine a payout pattern for a premium financing mechanism employed to pay for said insurance; and generate data usable by the computer to provide an indication of said payout pattern.
Claim 64
Dependent Claim
27 words
The system of claim 55, wherein said output mechanism comprises at least one of the group consisting of: A printer; A video monitor; and A memory device.
Claim 65
Dependent Claim
46 words
The system for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 55 wherein: said computer executable program is further adapted to: determine a plurality of payout patterns for a premium financing mechanism employed to pay for said insurance.
Claim 66
Dependent Claim
54 words
The system for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 61 wherein: said plurality of payout patterns comprise: a level payout pattern; an upfront savings payout pattern; an arbitrary payout pattern; a fixed amount of savings payout pattern; and a fixed percentage savings payout pattern.
Claim 67
Dependent Claim
72 words
The system for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 55 wherein: said computer executable program is further adapted to: generate, for a plurality of costs, data corresponding to a graphical representation of components of said costs expected to be paid during a plurality of contiguous time intervals and of a total cost expected to be paid during each of said time intervals.
Claim 68
Dependent Claim
27 words
The system for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 63 wherein: said time intervals comprise fiscal years.
Claim 69
Dependent Claim
49 words
The system for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 63 wherein: said computer executable program is further adapted to: provide said data corresponding to a graphical representation to the video monitor in a format usable by the video monitor.
Claim 70
Dependent Claim
47 words
The system for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 63 wherein: said computer executable program is further adapted to: provide said data corresponding to a graphical representation to the printer in a format usable by the printer.
Claim 71
Dependent Claim
46 words
The system for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 63 wherein: said computer executable program is further adapted to: receive said self insurance information directly from a data file containing information within a self insurer's report.
Claim 72
Dependent Claim
41 words
The system for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 63 wherein: said computer executable program is further adapted to: receive said insurance information from data entered into a preliminary evaluation questionnaire.
Claim 73
Dependent Claim
81 words
The system for predicting, comparing, and presenting a cost of self insurance versus a cost of insurance of claim 68 wherein: said computer executable program is further adapted to: generate and provide, to the video monitor, data usable by the video monitor to generate at least one visual display representing said preliminary evaluation questionnaire; and prompt a user of the computer to input said insurance information with the user input mechanism at said preliminary evaluation questionnaire generated by the video monitor.
References Cited (Backward Citations)
USPTO Annuity & Maintenance Windows
| Annuity Stage | Window Opens | Payment Deadline | Surcharge Period Until | Estimated Fee | Status |
|---|---|---|---|---|---|
| 3.5 Years (Year 4) | 2002-12-27 | 2003-06-28 | 2003-12-28 | $2000.00 | Window Closed / Lapsed |
| 7.5 Years (Year 8) | 2006-12-27 | 2007-06-28 | 2007-12-28 | $3760.00 | Window Closed / Lapsed |
| 11.5 Years (Year 12) | 2010-12-27 | 2011-06-28 | 2011-12-28 | $7700.00 | Window Closed / Lapsed |