Patent Software Titled “Programs And Strategies For Coordinating Evaluation Of Information Streams For Constructing A Personalised Everlasting Life Insurance coverage Product” Revealed On-line (USPTO 20220237705): Safti4u Inc. – Insurance coverage Information Internet

August 18, 2022 By admin

2022 AUG 17 (NewsRx) — By a Information Reporter-Employees Information Editor at Insurance coverage Every day Information — In line with information reporting originating from Washington, D.C., by NewsRx journalists, a patent software by the inventor Clark, Brian J. (Clive, IA, US), filed on January 28, 2022, was made obtainable on-line on July 28, 2022.
The assignee for this patent software is Safti4u Inc. (Clive, Iowa, United States).
Reporters obtained the next quote from the background data equipped by the inventors: “The life insurance coverage business consists of everlasting life insurance coverage, time period insurance coverage, annuities and different certified further advantages equivalent to incapacity revenue. Product designs developed over time to offer coverage homeowners extra decisions on features equivalent to premium flexibility, adjustable dying advantages, crediting methods linked to exterior indices, and ensures on premiums and periodic withdrawals. A historic evaluation of some necessary improvements will present context for the importance of this invention.
“Till the early Eighties, life insurance coverage merchandise principally consisted of entire life (herein referred as “WL”) and time period insurance coverage. WL merchandise are sometimes seen as complicated and rigid since they impose excessive penalties for surrendering the coverage for money. Premiums and dying advantages are sometimes mounted whereas money values and dividends are communicated with little transparency how these advantages are derived. WL appeals to coverage homeowners searching for a mixture of lifetime ensures on the dying profit and money worth for a assured stage premium.
“Within the early Eighties the business responded to the demand for extra transparency and adaptability with the creation of a everlasting life insurance coverage product generally known as common life (herein known as “UL”). UL coverage values are extra clear on contributions and expense deductions that create the account that earns curiosity (for mounted merchandise) or is invested in market-based sub-accounts (for variable merchandise). Coverage homeowners have flexibility on the timing and quantity of premium deposits, topic solely to coverage minimums and IRS most limits to protect favorable tax therapy. The coverage face quantity could be elevated (with proof of insurability) or decreased as coverage proprietor wants change. The unique imaginative and prescient of UL mixed decrease price time period insurance coverage with money worth development in a everlasting life product for higher transparency, extra flexibility, decrease price and tax effectivity.
“Innovation quickly emerged within the UL product’s credited price mechanism. Mounted merchandise started providing credited charges linked to a inventory market index whereas offering draw back safety (e.g., credited price can solely be zero or optimistic). Variable UL merchandise enable the coverage proprietor to take part immediately in markets with fairness and bond sub-accounts, offering the potential for higher returns together with the chance of a market-based loss. Related improvements had been creating with annuity merchandise.
“Improvements on different ensures emerged. UL merchandise started providing stage assured premium options that mirrored WL’s central good thing about a assured stage premium however at a considerably decrease premium stage. This was an necessary characteristic for coverage homeowners since UL insurance policies provide premium flexibility but additionally convey the chance of coverage lapse if the money worth goes to zero. This “no lapse assure” premium provision supplied the coverage proprietor assurance the coverage wouldn’t lapse supplied they paid no less than the stipulated premium stage.
“UL innovation on the “no lapse assure” developed to permit customization. A UL coverage might be designed by the coverage proprietor to perform like a stage assured time period coverage for a specified variety of years (e.g., like a 30-year time period coverage, or “30YT”) or a lifetime assure premium like a WL coverage. Innovation was blurring the excellence between insurance coverage product classes with respect to premium ensures to make sure protection.
“Annuity suppliers started offering assured lifetime distribution advantages. Often called a assured minimal withdrawal profit (“GMWB”), these annuities met the buyer want of lifetime revenue funds they may not outlive whereas nonetheless offering a dying profit and money worth. Mounted listed deferred annuity suppliers innovated with the creation of “Revenue Accounts” whose sole objective was to find out the obtainable GMWB impartial of the annuity’s credited price efficiency. Variable annuities provided variations of GMWBs that “stepped up” if the underlying efficiency of the money worth met specified efficiency targets.
“Extra lately innovation on UL and annuity listed crediting methods has shifted from customary inventory market indices just like the S&P 500 to different indices, equivalent to hybrid inventory and bond indices or custom-built “volatility managed” indices.
“Whereas the annuity market created revolutionary options on GMWBs, everlasting life insurance coverage has not saved tempo with revolutionary options concerning systematic distributions of money worth on a assured foundation. Resulting from a wide range of hurdles, money worth distribution choices from a everlasting life insurance coverage coverage are often provided on a non-guaranteed foundation. Coverage homeowners can take money withdrawals or coverage loans however such distributions are solely obtainable to the extent the coverage has money worth.
“Evaluating Common Life Vs. Mixture Time period and Annuity
“The trendy-day model of UL has developed to an costly model of non-guaranteed yearly renewable time period insurance coverage (“YRT”) with a money worth account. FIG. 1 offers element on a typical listed UL coverage issued to a male aged 45 for $1 million face quantity. On this instance, the dying profit is the $1 million face quantity plus the coverage’s account worth (identified within the business as choice B dying profit).
“The pattern listed UL coverage in FIG. 1 has 5 several types of expense expenses. The price of insurance coverage deduction will not be assured on the illustrated stage. Some bills are a hard and fast quantity whereas others are linked to the premium paid and the account worth. Combining all 5 expense expenses, this coverage is pricey time period insurance coverage when in comparison with a typical 30YT coverage that has a stage assured premium for all 30 years (far proper aspect of FIG. 1). Over the primary 30 years, the UL’s bills are $206,303 vs. $65,400 for the 30YT coverage for a similar $1 million of life insurance coverage protection. In each examples in FIG. 1 the full dying profit is $1 million plus the account worth.
“In FIG. 1, the UL’s account worth is illustrated or “projected” at 5.73% for 5 years, then 6.3% thereafter as a consequence of a bonus. In distinction, the coverage proprietor shopping for the 30YT coverage and placing the surplus premium into a hard and fast listed annuity credited price is illustrated to earn 3.65%. The distinction in illustrated credited charges pertains to firm and business practices on index cap administration practices between life insurance coverage and annuities. Annuity charges are based mostly on present funding situations whereas UL insurance policies are often based mostly on firm portfolio yields (e.g., the corporate’s yield on belongings backing the product; in different phrases, bond yields obtainable up to now 10-15 years). Over time the variations will probably converge as each merchandise are investing new premium at related yields. Many coverage homeowners could not perceive this apply. Consumers could evaluate the illustrated charges and assume the differential will at all times exist.
“In different phrases, the UL coverage’s projected efficiency depends on the upper credited price to cowl the upper bills. Even when the upper credited price materializes, the illustration assumes the coverage proprietor constantly pays the excessive premiums. A UL coverage proprietor experiencing monetary hardship and needing to decrease the premium funding will find yourself with comparatively expensive insurance coverage. In distinction, the coverage proprietor buying the 30YT might put the surplus premium into an annuity as they’re financially in a position to take action. FIG. 1 reveals that the time period and annuity mixture can outperform the common life coverage for nearly 20 years regardless of crediting a considerably decrease earned price on the account.
“Larger agent fee is one purpose for the upper prices within the UL coverage vs. the 30YT. FIG. 2 compares the standard gross sales prices for UL versus the 30YT and annuity mixture. Life insurance coverage firms sometimes pay the identical or related fee price on a WL or UL product as they do on time period merchandise. In impact, the surplus premium that builds money worth pays out considerably increased commissions on UL than premium paid to an annuity. The coverage proprietor in the end pays for these increased commissions as demonstrated by the UL coverage bills vs. the 30YT premiums in FIG. 1.
“Different Coverage Proprietor Advantages from Constructing Your Personal Everlasting Life Insurance coverage Product
“A coverage proprietor utilizing a decrease price time period coverage and annuity for money worth development has a number of different benefits by unbundling the life insurance coverage safety and money worth autos. The primary benefit is life insurance coverage optimization. The coverage proprietor should buy one of the best obtainable time period coverage in the marketplace that meets their wants, in addition to one of the best obtainable annuity product. Second, unbundling permits for diversification of provider and/or product danger by spreading their purchases amongst a number of annuities and/or life insurance coverage firms. Lastly, unbundling permits for personalization. The coverage proprietor can construct a portfolio of low-cost time period life insurance coverage and annuities that create the mix of premium and advantages, long run ensures vs. present charges, and credited price methods that match the coverage proprietor’s wants and goals.
“These benefits exist for the lifetime of the coverage. With no transaction price to trade time period insurance policies and considerably smaller give up expenses on annuities vs. UL merchandise, coverage homeowners have the pliability to exchange older insurance policies for “new and improved” ones. Equally, coverage proprietor wants change in addition to their capability to pay the premiums. By buying the time period coverage separate from the annuity, the coverage proprietor can handle the money worth part of the plan impartial of their well being scenario. However all some great benefits of constructing a personalized life insurance coverage plan with time period merchandise and annuities, many coverage homeowners nonetheless want the bundled UL and WL merchandise. The favorable tax therapy granted UL or WL is a major purpose.”
There’s further background data. Please go to full patent to learn additional.”
Along with acquiring background data on this patent software, NewsRx editors additionally obtained the inventor’s abstract data for this patent software: “Embodiments disclosed herein are directed to a pc system and methodology for managing and offering a portfolio of particular person time period life insurance coverage and annuity insurance policies to create a brand new overarching life insurance coverage product on the identical insured which mixes the phrases and advantages of all of the included merchandise and achieves the tax effectivity of a everlasting life insurance coverage product. This new, overarching life insurance coverage product shall be referred to herein because the “grasp product.” Strategies for figuring out compliance with federal tax regulation for all times insurance coverage and annuities as described in IRC part 7702 and 7702A are at present utilized particular person insurance policies. Particular person everlasting life merchandise are economically bundled variations of time period insurance coverage and annuities but are extra expensive, extra complicated, and fewer versatile to accommodate modifications in coverage proprietor’s wants after they buy the product. Some embodiments embody making use of guidelines and congressional intent of IRC part 7702 and 7702A to make sure the grasp product qualifies as a everlasting life insurance coverage product whatever the sort and variety of insurance policies throughout the grasp product.
“In a single embodiment the coverage proprietor establishes a grasp product that may be capable of personal a number of particular person time period life insurance coverage insurance policies, annuity insurance policies, and certified further profit merchandise. The coverage proprietor selects which compliance methodology shall be utilized to the grasp product for compliance with IRC part 7702 and 7702A. The pc system shops the election and applies the chosen methodology in all compliance check calculations.
“In a single embodiment a number of insurance policies are bought from the identical or totally different insurance coverage firms by the coverage proprietor. Such insurance policies could embody particular person time period life insurance coverage, particular person annuities, or certified further advantages equivalent to incapacity revenue. The bought insurance policies are assigned to the grasp product, directions and required information information are despatched to the insurance coverage firms administering these insurance policies. The pc system registers the insurance policies and performs compliance calculation assessments to find out whether or not the portfolio of particular person insurance policies within the grasp product adjust to IRC part 7702 and 7702A, shops the compliance limits, and manages the compliance course of by reporting the definitional limits on premium and money worth, notifying when a compliance check has failed and figuring out attainable remediation options.
“In a single embodiment a coverage proprietor could add to or delete insurance policies from the portfolio at any time. The pc system registers the change in advantages, premiums and/or money worth, performs up to date compliance calculation assessments to find out whether or not the portfolio of particular person insurance policies within the grasp product adjust to IRC part 7702 and 7702A, shops the brand new compliance limits, and manages the compliance course of by reporting the definitional limits on premium and money worth, notifying when a compliance check has failed and figuring out attainable remediation options.
“In a single embodiment the pc system applies the CVAT methodology to the grasp product that’s broadly outlined to incorporate a portfolio of time period life insurance coverage insurance policies, annuities, and/or certified further profit insurance policies. The pc system receives periodic information feeds from the insurance coverage firms administering the person insurance policies within the portfolio, applies the formulation to that portfolio of insurance policies to course of the compliance assessments.
“In a single embodiment the pc system applies the GPT and hall check to the grasp product that’s broadly outlined to incorporate a portfolio of time period life insurance coverage, annuities, and certified further profit insurance policies. The pc system receives periodic information feeds from all of the insurance coverage firms administering the person insurance policies within the portfolio, applies the formulation to that portfolio of insurance policies to course of the compliance assessments.
“In a single embodiment the pc system applies the MEC check to the grasp product that’s broadly outlined to incorporate a portfolio of time period life insurance coverage insurance policies, annuities and certified further profit insurance policies. The pc system additionally applies the NPT methodology to find out if the coverage qualifies for deferring the restart of the 7-pay MEC interval on account of the change in advantages or restarting the 7-pay MEC interval on account of a premium cost exceeding the NPT definitional restrict. The pc system receives periodic information feeds from the insurance coverage firms administering the person insurance policies within the portfolio, applies the formulation to that portfolio of insurance policies to course of the compliance assessments.
“In a single embodiment the pc system applies the brand new challenge therapy check to the grasp product that’s broadly outlined to incorporate a portfolio of particular person time period life insurance coverage insurance policies, particular person annuities and certified further profit insurance policies. The pc system receives periodic information feeds from the insurance coverage firms administering the person insurance policies within the portfolio, applies the strategies and formulation to that portfolio of insurance policies to find out if the grasp product meets the factors for brand new challenge therapy of the grasp product. If new challenge therapy is required, the pc system resets all compliance assessments and assumptions as if the grasp product has been newly issued within the present 12 months and processes new definitional limits.
“In a single embodiment the pc system makes use of the chosen protected harbor IIR methodology and rate of interest assure within the particular person annuity insurance policies to find out the rates of interest for use within the respective compliance methodology calculations. For the static IIR methodology the pc system compares every annuity’s rate of interest ensures to the IIR price for the grasp coverage (based mostly on its 12 months of challenge) to find out the low cost charges and performs the assorted calculations. For the dynamic IIR methodology the pc system segregates the annuity money values by the coverage’s respective buy 12 months and every year’s IIR price, applies the protected harbor charges to every annuity to find out every annuity’s low cost price after which calculates a weighted common low cost price to make use of within the definitional restrict calculations.
“In a single embodiment the pc system sends studies to inform the coverage proprietor of a failed compliance check. Administration of the grasp product contains steady or no less than periodic compliance testing to find out whether or not the portfolio of insurance policies within the grasp product adjust to IRC part 7702 and 7702A. Particular person circumstances will decide whether or not the coverage proprietor can treatment the scenario (e.g., request a premium be refunded on one of many particular person insurance policies within the portfolio or train the “free look” proper to say no a brand new coverage software), or whether or not the grasp product will lose its everlasting life insurance coverage tax advantages or be taxed as an annuity. For a compliant coverage, the pc system applies the suitable methodology(s) and performs calculations to inform the coverage proprietor of the grasp product’s definitional limits on premium and money worth capability to remain compliant with part 7702 and 7702A compliance limits.
“In a single embodiment the pc system determines the current worth of future dying claims for every particular person time period life insurance coverage coverage, incorporating the stipulated guidelines and strategies for every check together with the affect of any assured time period premiums which might be lower than the protected harbor CSO mortality charges. The pc system shall make the most of the low cost charges calculated from the portfolio of particular person annuity coverage’s rate of interest ensures, money values, and relevant IIR protected harbor limits. The pc system processes this calculation for every particular person time period coverage within the portfolio every time the definitional limits are up to date and every time there’s a change in advantages equivalent to a coverage being added, modified or deleted.
“In a single embodiment the pc system makes use of the current worth of future dying claims for every particular person time period life insurance coverage coverage to find out a weighted common current worth of future advantages unit issue (e.g., NSP). The weighted common NSP is utilized to the annuity coverage dying advantages within the definitional restrict calculations when the coverage proprietor has chosen an rising dying profit choice (e.g., the full dying profit is the sum of the time period coverage dying advantages and the annuity money worth). The pc system processes this calculation for the portfolio of insurance policies periodically and every time there’s a materials change in advantages equivalent to a coverage being added, modified or deleted.
“In a single embodiment the pc system applies a stage dying profit methodology to the mix of a yearly renewable time period (e.g., “YRT”) coverage and a portfolio of particular person annuity insurance policies. The coverage proprietor specifies a complete dying profit and the pc system determines the face quantity of the YRT coverage based mostly on the full dying profit and the combination money worth of the person time period insurance policies. The pc system processes this calculation for the portfolio of insurance policies periodically and every time there may be an annuity coverage being added, modified or deleted.
“In a single embodiment the pc system determines the actuarial current worth of future eligible bills for the GPT. Such calculation is finished for all particular person time period life insurance coverage, annuity, certified further profit insurance policies, and the administration of the grasp product, incorporating the stipulated guidelines and strategies. The pc system shall apply the relevant rates of interest and mortality expenses based mostly on the chosen IIR methodology, protected harbor rates of interest and mortality tables, and every particular person product ensures. The pc system processes this calculation for the portfolio of insurance policies periodically and every time there’s a materials change in advantages equivalent to a coverage being added, modified or deleted.”
There’s further abstract data. Please go to full patent to learn additional.”
The claims equipped by the inventors are:
“1. A system comprising: a number of processors; and a number of non-transitory computer-readable media storing computing directions that, when executed on the a number of processors, carry out: receiving a fabric change threshold to find out subsequent evaluation for a grasp product; receiving a compliance evaluation methodology similar to the grasp product; receiving an insurance coverage rate of interest (IIR) evaluation methodology for the grasp product; making ready the grasp product based mostly on (i) the fabric change threshold, (ii) the compliance evaluation methodology, and (iii) the IIR evaluation methodology; and analyzing the grasp product by coordinating evaluation of information streams from separate computing methods communicatively coupled to totally different computing networks to find out compliance thresholds, the compliance thresholds similar to a stage of compliance of the grasp product.
“2. The system of declare 1, whereby the fabric change threshold and a way for figuring out the fabric change threshold comprise no less than one in every of: a regulation established by a regulator, or an interpretation of the regulator’s intent to determine a regulation.
“3. The system of declare 1, whereby figuring out the compliance evaluation methodology similar to the grasp product additional contains figuring out whether or not a suggestion premium check (GPT) methodology or a money worth accumulation check (CVAT) methodology was chosen by an proprietor of the grasp product.
“4. The system of declare 1, whereby figuring out an insurance coverage rate of interest (IIR) evaluation methodology for the grasp product additional contains choosing a dynamic methodology or a static methodology based mostly on a range by an proprietor of the grasp product or a way established by a regulator.
“5. The system of declare 1, whereby making ready the grasp product additional contains receiving coverage information and contract data on a number of time period insurance policies and a number of annuity insurance policies obtained by an proprietor of the grasp product.
“6. The system of declare 1, whereby analyzing the grasp product to find out the compliance thresholds additional contains figuring out assumption data, the belief data to find out definitional limits for compliance testing.
“7. The system of declare 1, whereby analyzing the grasp product additional contains receiving evaluation data similar to coverage data and definitional restrict data similar to a number of compliance assessments.
“8. The system of declare 1, whereby analyzing the grasp product additional contains: figuring out if the grasp product has happy the fabric change threshold; and in response to figuring out the fabric change threshold has not been happy: resetting a number of variables; figuring out new assumption data; and restarting compliance evaluation.
“9. The system of declare 8, whereby analyzing the grasp product additional contains: figuring out if the grasp product has happy the fabric change threshold; and in response to figuring out the fabric change threshold has been happy, carry out compliance evaluation on the grasp product for a primary time frame.
“10. The system of declare 9, whereby the primary time frame is 24 hours.
“11. The system of declare 9, whereby the compliance evaluation additional contains: performing a modified endowment contract (MEC) operation, and a 7702 operation and acquiring outputs from the MEC operation and the 7702 operation.
“12. The system of declare 11, whereby the compliance metric is predicated on the outputs from the MEC operation and the 7702 operation.
“13. The system of declare 1, additional comprising establishing information feeds with the separate computing methods throughout the totally different networks, the info feeds comprising particular person time period coverage data and particular person annuity coverage data, the person time period coverage data similar to a primary community of a primary firm and the person annuity coverage data similar to a second community of a second firm.
“14. The system of declare 1, whereby the compliance thresholds correspond to definitional limits, the compliance thresholds to take care of satisfaction with tax laws.
“15. A way carried out through execution of computing directions configured to run at a number of processors and configured to be saved at non-transitory computer-readable media, the strategy comprising: receiving a fabric change threshold to find out subsequent evaluation for a grasp product; receiving a compliance evaluation methodology similar to the grasp product; receiving an insurance coverage rate of interest (IIR) evaluation methodology for the grasp product; making ready the grasp product based mostly on (i) the fabric change threshold, (ii) the compliance evaluation methodology, and (iii) the IIR evaluation methodology; and analyzing the grasp product by coordinating evaluation of information streams from separate computing methods communicatively coupled to totally different computing networks to find out compliance thresholds, the compliance thresholds similar to a stage of compliance of the grasp product.
“16. The tactic of declare 15, whereby the fabric change threshold and a way for figuring out the fabric change threshold comprise no less than one in every of: a regulation established by a regulator, or an interpretation of the regulator’s intent to determine a regulation.
“17. The tactic of declare 15, whereby figuring out the compliance evaluation methodology similar to the grasp product additional contains figuring out whether or not a suggestion premium check (GPT) methodology or a money worth accumulation check (CVAT) methodology was chosen by an proprietor of the grasp product.
“18. The tactic of declare 15, whereby figuring out an insurance coverage rate of interest (IIR) evaluation methodology for the grasp product additional contains choosing a dynamic methodology or a static methodology based mostly on a range by an proprietor of the grasp product or a way established by a regulator.
“19. The tactic of declare 15, whereby making ready the grasp product additional contains receiving coverage information and contract data on a number of time period insurance policies and a number of annuity insurance policies obtained by an proprietor of the grasp product.
“20. The tactic of declare 15, whereby analyzing the grasp product to find out the compliance thresholds additional contains figuring out assumption data, the belief data to find out definitional limits for compliance testing.
“21. The tactic of declare 15, whereby analyzing the grasp product additional contains receiving evaluation data similar to coverage data and definitional restrict data similar to a number of compliance assessments.
“22. The tactic of declare 15, whereby analyzing the grasp product additional contains: figuring out if the grasp product has happy the fabric change threshold; and in response to figuring out the fabric change threshold has not been happy: resetting a number of variables; figuring out new assumption data; and restarting compliance evaluation.
“23. The tactic of declare 22, whereby analyzing the grasp product additional contains: figuring out if the grasp product has happy the fabric change threshold; and in response to figuring out the fabric change threshold has been happy, carry out compliance evaluation on the grasp product for a primary time frame.
“24. The tactic of declare 23, whereby the compliance evaluation additional contains: performing a modified endowment contract (MEC) operation, and a 7702 operation and acquiring outputs from the MEC operation and the 7702 operation.
“25. The tactic of declare 24, whereby the compliance metric is predicated on the outputs from the MEC operation and the 7702 operation.
“26. The tactic of declare 15, additional comprising establishing information feeds with the separate computing methods throughout the totally different networks, the info feeds comprising particular person time period coverage data and particular person annuity coverage data, the person time period coverage data similar to a primary community of a primary firm and the person annuity coverage data similar to a second community of a second firm.
“27. The tactic of declare 15, whereby the compliance thresholds correspond to definitional limits, the compliance thresholds to take care of satisfaction with tax laws.”
For extra data, see this patent software: Clark, Brian J. Programs And Strategies For Coordinating Evaluation Of Information Streams For Constructing A Personalised Everlasting Life Insurance coverage Product. Filed January 28, 2022 and posted July 28, 2022. Patent URL: https://appft.uspto.gov/netacgi/nph-Parser?Sect1=PTO1&Sect2=HITOFF&d=PG01&p=1&u=%2Fnetahtmlpercent2FPTOpercent2Fsrchnum.html&r=1&f=G&l=50&s1=%2220220237705percent22.PGNR.&OS=DN/20220237705&RS=DN/20220237705
(Our studies ship fact-based information of analysis and discoveries from world wide.)
Researchers Submit Patent Software, “Backend Bundled Healthcare Providers Fee Programs And Strategies”, for Approval (USPTO 20220237677): Mdsave Shared Providers Inc.
Lengthy Time period Care Insurance coverage Market Is Booming Worldwide : Humana, State Farm Insurance coverage, Transamerica
– Introduced By –
Discover out how one can submit content material for publishing on our web site.
View Tips
Get breaking information, unique tales, and money- making insights straight into your inbox.



<!– –>

supply