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US6182048B1 Expired / Lapsed US ⏱️ 0.0 years remaining

System and method for automated risk-based pricing of a vehicle warranty insurance policy

Assignee: General Electric Co
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Filing: 1998-11-23
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Granted: 2001-01-30
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Expires: 2018-11-23
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Abstract

Abstract A system and method for automated risk-based pricing of a vehicle-warranty insurance policy. A vehicle warranty policy request input source receives a request for a vehicle warranty policy. A processor receives the request and uses analytical tools in conjunction with an environmental database, a vehicle database, and a historical database, to service the request. The processor generates a price, conditions and terms for the request using a risk-based pricing algorithm. A system operator reviews the price, conditions and terms and either accepts or rejects the policy request. The system operator also has the option to adjust the price, conditions and terms derived from the processor.

Inventors

  • 👤 Brock Estel Osborn
  • 👤 John Erik Hershey

Bibliographic Details

Application Number —
Jurisdiction US
Data Source google_patents
Last Synchronized 2026-11-09 15:35
CPC Classifications
G; G06; G06Q; G06Q40/00; G06Q40/08

Claims Analysis

Total Claims: 68
Claim 1
Independent Claim 198 words
A system for performing risk-based pricing of a vehicle warranty insurance policy, comprising: a vehicle warranty policy request input source for receiving a request for a vehicle warranty policy; a historical database containing a plurality of historical vehicle warranty policies; a plurality of databases each containing vehicle warranty related information; a processor, coupled to the vehicle warranty policy request input source, the historical database, and the plurality of databases, for servicing the request for a vehicle warranty policy, the processor comprising means for risk-based pricing the request and means for suggesting terms and conditions for the risk-based policy, wherein the risk-based pricing means partitions the vehicle listed in the request into a plurality of components, determines a correlation between failure rates of each of the plurality of components and costs to effect repair of the failed component with the vehicle warranty related information contained in the plurality of databases, derives an expected cost of policy claims from the correlations and sets a policy proffer price covering the expected cost of policy claims plus a predetermined profit margin; and a vehicle warranty policy output source, coupled to the processor, for outputting the serviced request for a vehicle warranty policy.
Claim 2
Dependent Claim 23 words
The system according to claim 1 , wherein the vehicle warranty policy request input source comprises an electronic channel connected to the Internet.
Claim 3
Dependent Claim 38 words
The system according to claim 1 , wherein the vehicle warranty policy request input source comprises an electronic channel connected to a public switched telephone network, wherein the vehicle warranty policy request is handled by a telephone operator.
Claim 4
Dependent Claim 53 words
The system according to claim 1 , wherein the vehicle warranty policy request input source comprises an electronic channel connected to a voice activated network, wherein a voice synthesizer generates a facsimile of speech guiding a customer to prepare the request and a speech recognition system recognizes aural responses generated from the customer.
Claim 5
Dependent Claim 62 words
The system according to claim 1 , wherein the vehicle warranty policy request input source comprises an electronic channel connected to a dual tone multi-frequency telephone network, wherein a voice synthesizer generates a facsimile of speech guiding a customer to prepare the request and a recognition system recognizes responses entered by a customer through key buttons on a dual tone multi-frequency telephone.
Claim 6
Dependent Claim 33 words
The system according to claim 1 , wherein the plurality of databases comprise an environmental database containing a plurality of environmental information for geographic regions and a vehicle database containing vehicle related information.
Claim 7
Dependent Claim 18 words
The system according to claim 1 , wherein the plurality of databases comprise a plurality of analytical tools.
Claim 8
Dependent Claim 57 words
The system according to claim 1 , wherein the vehicle warranty related information comprises a plurality of environmental variables of a region within which the vehicle is likely to be operated over a term of the policy, make, model and year of the vehicle and the mileage of the vehicle at the time of starting the policy.
Claim 9
Dependent Claim 51 words
The system according to claim 1 , wherein the pricing means searches the historical database for historical vehicle warranty policies that are substantially similar to the policy request and compares the derived expected cost of the policy request to the actual incurred costs set forth in the historical vehicle warranty policies.
Claim 10
Dependent Claim 35 words
The system according to claim 9 , wherein the pricing means adjusts the derived expected cost of the policy request to conform to the actual incurred costs set forth in the historical vehicle warranty policies.
Claim 11
Dependent Claim 35 words
The system according to claim 1 , wherein the vehicle warranty policy output source comprises a system operator input/output enabling a system operator to review the price, terms and conditions of the serviced policy request.
Claim 12
Dependent Claim 43 words
The system according to claim 11 , wherein the system operator input/output comprises means for accepting or rejecting the price, terms and conditions of the serviced policy request and means for manually entering a modified price, terms and conditions for the policy request.
Claim 13
Dependent Claim 50 words
The system according to claim 12 , wherein the vehicle warranty policy output source further comprises means for communicating to the customer of the vehicle warranty policy request whether the request has been accepted and the price, terms and conditions of the policy or whether the request has been rejected.
Claim 14
Dependent Claim 22 words
The system according to claim 1 , wherein the vehicle warranty policy output source comprises an electronic channel connected to the Internet.
Claim 15
Dependent Claim 38 words
The system according to claim 1 , wherein the vehicle warranty policy output source comprises an electronic channel connected to a public switched telephone network, wherein the serviced request is communicated to a customer by a telephone operator.
Claim 16
Dependent Claim 43 words
The system according to claim 1 , wherein the vehicle warranty policy output source comprises an electronic channel connected to a voice activated network, wherein a voice synthesizer generates a facsimile of speech communicating the results of the serviced request to a customer.
Claim 17
Independent Claim 143 words
A method for performing risk-based pricing of a vehicle warranty insurance policy, comprising: receiving a request for a vehicle warranty policy; storing a plurality of historical vehicle warranty policies; storing a plurality of vehicle warranty related information; risk-based pricing the vehicle warranty policy request, wherein the risk-based pricing comprises partitioning the vehicle listed in the request into a plurality of components, determining a correlation between failure rates of each of the plurality of components and costs to effect repair of the failed component with the stored vehicle warranty related information, deriving an expected cost of policy claims from the correlations and setting a policy proffer price covering the expected cost of policy claims plus a predetermined profit margin; suggesting terms and conditions for the risk-based priced policy; and outputting the price and the suggested terms and conditions for the vehicle warranty policy request.
Claim 18
Dependent Claim 25 words
The method according to claim 17 , wherein receiving a request for a vehicle warranty policy comprises using an electronic channel connected to the Internet.
Claim 19
Dependent Claim 40 words
The method according to claim 17 , wherein receiving a request for a vehicle warranty policy comprises using an electronic channel connected to a public switched telephone network, wherein the vehicle warranty policy request is handled by a telephone operator.
Claim 20
Dependent Claim 55 words
The method according to claim 17 , wherein receiving a request for a vehicle warranty policy comprises using an electronic channel connected to a voice activated network, wherein a voice synthesizer generates a facsimile of speech guiding a customer to prepare the request and a speech recognition system recognizes aural responses generated from the customer.
Claim 21
Dependent Claim 64 words
The method according to claim 17 , wherein receiving a request for a vehicle warranty policy comprises using an electronic channel connected to a dual tone multi-frequency telephone network, wherein a voice synthesizer generates a facsimile of speech guiding a customer to prepare the request and a recognition system recognizes responses entered by a customer through key buttons on a dual tone multi-frequency telephone.
Claim 22
Dependent Claim 32 words
The method according to claim 17 , wherein the stored plurality of vehicle warranty related information comprises a plurality of environmental information for geographic regions and a plurality of vehicle related information.
Claim 23
Dependent Claim 15 words
The method according to claim 17 , further comprising storing a plurality of analytical tools.
Claim 24
Dependent Claim 57 words
The method according to claim 17 , wherein the vehicle warranty related information comprises a plurality of environmental variables of a region within which the vehicle is likely to be operated over a term of the policy, make, model and year of the vehicle and the mileage of the vehicle at the time of starting the policy.
Claim 25
Dependent Claim 58 words
The method according to claim 17 , wherein risk-based pricing the vehicle warranty policy request further comprises searching the stored historical vehicle warranty policies to find policies that are substantially similar to the policy request and comparing the derived expected cost of the policy request to the actual incurred costs set forth in the historical vehicle warranty policies.
Claim 26
Dependent Claim 41 words
The method according to claim 25 , wherein risk-based pricing the vehicle warranty policy request further comprises adjusting the derived expected cost of the policy request to conform to the actual incurred costs set forth in the historical vehicle warranty policies.
Claim 27
Dependent Claim 32 words
The method according to claim 17 , wherein the outputting comprises sending the price and the suggested terms and conditions for the vehicle warranty policy request to a system operator for review.
Claim 28
Dependent Claim 40 words
The method according to claim 27 , further comprising enabling the system operator to accept or reject the price, terms and conditions of the serviced policy request and manually enter a modified price, terms and conditions for the policy request.
Claim 29
Dependent Claim 41 words
The method according to claim 28 , further comprising communicating to the customer of the vehicle warranty policy request whether the request has been accepted and the price, terms and conditions of the policy or whether the request has been rejected.
Claim 30
Dependent Claim 19 words
The method according to claim 17 , wherein the outputting comprises using an electronic channel connected to the Internet.
Claim 31
Dependent Claim 35 words
The method according to claim 17 , wherein the outputting comprises using an electronic channel connected to a public switched telephone network, wherein the serviced request is communicated to a customer by a telephone operator.
Claim 32
Dependent Claim 40 words
The method according to claim 17 , wherein the outputting comprises using an electronic channel connected to a voice activated network, wherein a voice synthesizer generates a facsimile of speech communicating the results of the serviced request to a customer.
Claim 33
Independent Claim 171 words
A system for performing risk-based pricing of a vehicle warranty insurance policy, comprising: a vehicle warranty policy request input source for receiving a request for a vehicle warranty policy; a historical database containing a plurality of historical vehicle warranty policies; a plurality of databases each containing vehicle warranty related information; a processor, coupled to the vehicle warranty policy request input source, the historical database, and the plurality of databases, for servicing the request for a vehicle warranty policy, the processor comprising means for risk-based pricing the request and means for suggesting terms and conditions for the risk-based policy, wherein the risk-based pricing means partitions the vehicle listed in the request into a plurality of components and determines a correlation between failure rates of each of the plurality of components and costs to effect repair of the failed component with the vehicle warranty related information contained in the plurality of databases; and a vehicle warranty policy output source, coupled to the processor, for outputting the serviced request for a vehicle warranty policy.
Claim 34
Independent Claim 171 words
A system for performing risk-based pricing of a vehicle warranty insurance policy, comprising: a vehicle warranty policy request input source for receiving a request for a vehicle warranty policy; a historical database containing a plurality of historical vehicle warranty policies; a plurality of databases each containing vehicle warranty related information; a processor, coupled to the vehicle warranty policy request input source, the historical database, and the plurality of databases, for servicing the request for a vehicle warranty policy, the processor comprising means for risk-based pricing the request and means for suggesting terms and conditions for the risk-based policy, wherein the risk-based pricing means partitions the vehicle listed in the request into a plurality of components and determines a correlation between failure rates of each of the plurality of components and costs to effect repair of the failed component with the vehicle warranty related information contained in the plurality of databases; and a vehicle warranty policy output source, coupled to the processor, for outputting the serviced request for a vehicle warranty policy.
Claim 35
Dependent Claim 23 words
The system according to claim 33 , wherein the vehicle warranty policy request input source comprises an electronic channel connected to the Internet.
Claim 36
Dependent Claim 38 words
The system according to claim 33 , wherein the vehicle warranty policy request input source comprises an electronic channel connected to a public switched telephone network, wherein the vehicle warranty policy request is handled by a telephone operator.
Claim 37
Dependent Claim 53 words
The system according to claim 33 , wherein the vehicle warranty policy request input source comprises an electronic channel connected to a voice activated network, wherein a voice synthesizer generates a facsimile of speech guiding a customer to prepare the request and a speech recognition system recognizes aural responses generated from the customer.
Claim 38
Dependent Claim 62 words
The system according to claim 33 , wherein the vehicle warranty policy request input source comprises an electronic channel connected to a dual tone multi-frequency telephone network, wherein a voice synthesizer generates a facsimile of speech guiding a customer to prepare the request and a recognition system recognizes responses entered by a customer through key buttons on a dual tone multi-frequency telephone.
Claim 39
Dependent Claim 33 words
The system according to claim 33 , wherein the plurality of databases comprise an environmental database containing a plurality of environmental information for geographic regions and a vehicle database containing vehicle related information.
Claim 40
Dependent Claim 18 words
The system according to claim 33 , wherein the plurality of databases comprise a plurality of analytical tools.
Claim 41
Dependent Claim 40 words
The system according to claim 33 , wherein the risk-based pricing means derives an expected cost of policy claims from the correlations and sets a policy proffer price covering the expected cost of policy claims plus a predetermined profit margin.
Claim 42
Dependent Claim 57 words
The system according to claim 40 , wherein the vehicle warranty related information comprises a plurality of environmental variables of a region within which the vehicle is likely to be operated over a term of the policy, make, model and year of the vehicle and the mileage of the vehicle at the time of starting the policy.
Claim 43
Dependent Claim 52 words
The system according to claim 40 , wherein the risk-based pricing means searches the historical database for historical vehicle warranty policies that are substantially similar to the policy request and compares the derived expected cost of the policy request to the actual incurred costs set forth in the historical vehicle warranty policies.
Claim 44
Dependent Claim 36 words
The system according to claim 42 , wherein the risk-based pricing means adjusts the derived expected cost of the policy request to conform to the actual incurred costs set forth in the historical vehicle warranty policies.
Claim 45
Dependent Claim 35 words
The system according to claim 33 , wherein the vehicle warranty policy output source comprises a system operator input/output enabling a system operator to review the price, terms and conditions of the serviced policy request.
Claim 46
Dependent Claim 43 words
The system according to claim 44 , wherein the system operator input/output comprises means for accepting or rejecting the price, terms and conditions of the serviced policy request and means for manually entering a modified price, terms and conditions for the policy request.
Claim 47
Dependent Claim 50 words
The system according to claim 45 , wherein the vehicle warranty policy output source further comprises means for communicating to the customer of the vehicle warranty policy request whether the request has been accepted and the price, terms and conditions of the policy or whether the request has been rejected.
Claim 48
Dependent Claim 22 words
The system according to claim 33 , wherein the vehicle warranty policy output source comprises an electronic channel connected to the Internet.
Claim 49
Dependent Claim 38 words
The system according to claim 33 , wherein the vehicle warranty policy output source comprises an electronic channel connected to a public switched telephone network, wherein the serviced request is communicated to a customer by a telephone operator.
Claim 50
Dependent Claim 43 words
The system according to claim 33 , wherein the vehicle warranty policy output source comprises an electronic channel connected to a voice activated network, wherein a voice synthesizer generates a facsimile of speech communicating the results of the serviced request to a customer.
Claim 51
Independent Claim 121 words
A method for performing risk-based pricing of a vehicle warranty insurance policy, comprising: receiving a request for a vehicle warranty policy; storing a plurality of historical vehicle warranty policies; storing a plurality of vehicle warranty related information; risk-based pricing the vehicle warranty policy request, wherein the risk-based pricing comprises partitioning the vehicle listed in the request into a plurality of components and determining a correlation between failure rates of each of the plurality of components and costs to effect repair of the failed component with the stored vehicle warranty related information; suggesting terms and conditions for the risk-based priced policy according to the risk-based pricing; and outputting the price and the suggested terms and conditions for the vehicle warranty policy request.
Claim 52
Independent Claim 121 words
A method for performing risk-based pricing of a vehicle warranty insurance policy, comprising: receiving a request for a vehicle warranty policy; storing a plurality of historical vehicle warranty policies; storing a plurality of vehicle warranty related information; risk-based pricing the vehicle warranty policy request, wherein the risk-based pricing comprises partitioning the vehicle listed in the request into a plurality of components and determining a correlation between failure rates of each of the plurality of components and costs to effect repair of the failed component with the stored vehicle warranty related information; suggesting terms and conditions for the risk-based priced policy according to the risk-based pricing; and outputting the price and the suggested terms and conditions for the vehicle warranty policy request.
Claim 53
Dependent Claim 25 words
The method according to claim 50 , wherein receiving a request for a vehicle warranty policy comprises using an electronic channel connected to the Internet.
Claim 54
Dependent Claim 40 words
The method according to claim 50 , wherein receiving a request for a vehicle warranty policy comprises using an electronic channel connected to a public switched telephone network, wherein the vehicle warranty policy request is handled by a telephone operator.
Claim 55
Dependent Claim 55 words
The method according to claim 50 , wherein receiving a request for a vehicle warranty policy comprises using an electronic channel connected to a voice activated network, wherein a voice synthesizer generates a facsimile of speech guiding a customer to prepare the request and a speech recognition system recognizes aural responses generated from the customer.
Claim 56
Dependent Claim 64 words
The method according to claim 50 , wherein receiving a request for a vehicle warranty policy comprises using an electronic channel connected to a dual tone multi-frequency telephone network, wherein a voice synthesizer generates a facsimile of speech guiding a customer to prepare the request and a recognition system recognizes responses entered by a customer through key buttons on a dual tone multi-frequency telephone.
Claim 57
Dependent Claim 32 words
The method according to claim 50 , wherein the stored plurality of vehicle warranty related information comprises a plurality of environmental information for geographic regions and a plurality of vehicle related information.
Claim 58
Dependent Claim 15 words
The method according to claim 50 , further comprising storing a plurality of analytical tools.
Claim 59
Dependent Claim 45 words
The method according to claim 50 , wherein risk-based pricing the vehicle warranty policy request further comprises deriving an expected cost of policy claims from the correlations and setting a policy proffer price covering the expected cost of policy claims plus a predetermined profit margin.
Claim 60
Dependent Claim 57 words
The method according to claim 57 , wherein the vehicle warranty related information comprises a plurality of environmental variables of a region within which the vehicle is likely to be operated over a term of the policy, make, model and year of the vehicle and the mileage of the vehicle at the time of starting the policy.
Claim 61
Dependent Claim 58 words
The method according to claim 57 , wherein risk-based pricing the vehicle warranty policy request further comprises searching the stored historical vehicle warranty policies to find policies that are substantially similar to the policy request and comparing the derived expected cost of the policy request to the actual incurred costs set forth in the historical vehicle warranty policies.
Claim 62
Dependent Claim 41 words
The method according to claim 59 , wherein risk-based pricing the vehicle warranty policy request further comprises adjusting the derived expected cost of the policy request to conform to the actual incurred costs set forth in the historical vehicle warranty policies.
Claim 63
Dependent Claim 32 words
The method according to claim 50 , wherein the outputting comprises sending the price and the suggested terms and conditions for the vehicle warranty policy request to a system operator for review.
Claim 64
Dependent Claim 40 words
The method according to claim 61 , further comprising enabling the system operator to accept or reject the price, terms and conditions of the serviced policy request and manually enter a modified price, terms and conditions for the policy request.
Claim 65
Dependent Claim 41 words
The method according to claim 62 , further comprising communicating to the customer of the vehicle warranty policy request whether the request has been accepted and the price, terms and conditions of the policy or whether the request has been rejected.
Claim 66
Dependent Claim 19 words
The method according to claim 50 , wherein the outputting comprises using an electronic channel connected to the Internet.
Claim 67
Dependent Claim 35 words
The method according to claim 64 , wherein the outputting comprises using an electronic channel connected to a public switched telephone network, wherein the serviced request is communicated to a customer by a telephone operator.
Claim 68
Dependent Claim 40 words
The method according to claim 50 , wherein the outputting comprises using an electronic channel connected to a voice activated network, wherein a voice synthesizer generates a facsimile of speech communicating the results of the serviced request to a customer.

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Annuity Stage Window Opens Payment Deadline Surcharge Period Until Estimated Fee Status
3.5 Years (Year 4) 2004-01-30 2004-07-31 2005-01-30 $2000.00 Window Closed / Lapsed
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