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Insurance Abstract
A method for insuring a security comprises the steps of obtaining
a security and purchasing an insurance policy for insuring against
a change in the value of the security. A system for insuring a security
is also disclosed.
Insurance Claims
What is claimed is:
1. A method for purchasing insurance for a security over a computer
network comprising the steps of: accessing a web site for purchasing
insurance for a security; entering information relating to a security
to be insured; reviewing information relating to a premium to be
paid for the insurance for a security; and paying for the premium.
2. The method of claim 1 wherein the step of entering information
comprises the step of entering the name of the security to be insured.
3. The method of claim 1 wherein the step of entering information
comprises the step of entering a value of the security to be insured.
4. The method of claim 1 wherein the step of entering information
comprises the step of entering an amount of coverage.
5. The method of claim 1 wherein the step of entering information
comprises the step of entering a deductible amount.
6. The method of claim 1 wherein the step of entering information
comprises the step of entering a term.
7. The method of claim 1 wherein the step of entering information
comprises the step of calculating a premium.
8. The method of claim 1 wherein the step of reviewing information
comprises the step of determining whether the premium should be
accepted, rejected, or recalculated.
9. The method of claim 1 further comprising the steps of entering
information relating to a second security to be insured, reviewing
information relating to a second premium to be paid for the insurance
for a second security to be insured, and paying the second premium.
10. A system for purchasing insurance for a security comprising
a computer system capable of being assessed over an Internet, the
computer system capable of providing various screens and for receiving
entered information relating to a security to be insured, determining
a premium to be paid for the insurance for a security, and for receiving
entered information relating to payment for the premium.
11. The system of claim 10 wherein the computer system is further
capable of receiving entered information relating to a term for
the insurance for a security.
12. The system of claim 10 wherein the computer system is further
capable of receiving entered information relating to a deductible
amount for the insurance for a security.
13. The system of claim 10 wherein the computer system is further
capable of receiving entered information relating to an amount of
coverage for the insurance for a security.
14. The system of claim 10 wherein the computer system is further
capable of receiving entered information related to insuring a second
security.
15. The system of claim 10 wherein the computer system is further
capable of recalculating the premium based upon revised information
entered in the computer system.
16. A method for purchasing insurance for a portfolio of securities
over a computer network comprising the steps of: accessing a web
site for purchasing insurance for a portfolio of securities; entering
information relating to portfolio of securities to be insured; reviewing
information relating to a premium to be paid for the insurance for
the portfolio; and paying for the premium.
17. The method of claim 16 wherein the step of entering information
comprises the step of entering the names of the securities to be
insured.
18. The method of claim 16 wherein the step of entering information
comprises the step of calculating a premium.
19. The method of claim 16 wherein the step of reviewing information
comprises the step of determining whether the premium should be
accepted, rejected, or recalculated.
20. The method of claim 16 wherein the step of paying comprises
the step of entering information relating to a payment method.
21. A method for providing insurance for a security over a computer
network comprising the steps of: providing a web site for purchasing
insurance for a security; receiving information relating to a security
to be insured; determining a premium to be paid for the insurance
for a security; and receiving payment for the premium.
22. The method of claim 21 wherein the step of receiving information
comprises the step of receiving the name of the security to be insured.
23. The method of claim 21 wherein the step of receiving information
comprises the step of receiving a value of the security to be insured.
24. The method of claim 21 wherein the step of receiving information
comprises the step of receiving an amount of coverage.
25. The method of claim 21 wherein the step of receiving information
comprises the step of receiving a deductible amount.
26. The method of claim 21 wherein the step of receiving information
comprises the step of receiving a term.
27. The method of claim 21 further comprising the steps of receiving
information relating to a second security to be insured, determining
a second premium to be paid for the insurance for a second security
to be insured, and receiving payment of the second premium.
28. A method for providing insurance for a portfolio of securities
over a computer network comprising the steps of: providing a web
site for purchasing insurance for a portfolio of securities; receiving
information relating to a portfolio of securities to be insured;
determining a premium to be paid for the insurance for a portfolio
of securities to be insured; and receiving payment for the premium.
29. The method of claim 28 wherein the step of receiving information
comprises the step of receiving a name of each of the securities
within a portfolio to be insured.
30. The method of claim 28 wherein the step of receiving information
comprises the step of receiving a value of each of the securities
within a portfolio to be insured.
31. The method of claim 28 wherein the step of receiving information
comprises the step of receiving an amount of coverage of each of
the securities within a portfolio to be insured.
32. The method of claim 28 wherein the step of receiving information
comprises the step of receiving a deductible amount for each of
the securities within a portfolio to be insured.
33. The method of claim 28 wherein the step of receiving information
comprises the step of receiving a term for each of the securities
within a portfolio to be insured.
34. A method for purchasing insurance for a portion of a portfolio
of securities over a computer network comprising the steps of: accessing
a web site for purchasing insurance for a portion of a portfolio
of securities; entering information relating to the portfolio of
securities to be insured; reviewing information relating to a premium
to be paid for the insurance for the portion of the portfolio of
securities; and paying for the premium.
35. The method of claim 34 wherein the step of entering information
comprises the step of entering the names of the securities in the
portfolio to be insured.
36. The method of claim 34 wherein the step of entering information
comprises the step of entering a value of the portfolio to be insured.
37. The method of claim 34 wherein the step of entering information
comprises the step of entering an amount of coverage.
38. The method of claim 34 wherein the step of entering information
comprises the step of entering a deductible amount.
39. The method of claim 34 wherein the step of entering information
comprises the step of entering a term.
40. The method of claim 34 wherein the step of entering information
comprises the step of calculating a premium.
41. The method of claim 34 wherein the step of reviewing information
comprises the step of determining whether the premium should be
accepted, rejected, or recalculated.
42. A system for purchasing insurance for a portfolio of securities
comprising a computer system capable of being assessed over an Internet,
the computer system capable of providing various screens and for
receiving entered information relating to a portfolio of securities
to be insured, determining a premium to be paid for the insurance
for the portfolio, and for receiving entered information relating
to payment for the premium.
43. The system of claim 42 wherein the computer system is further
capable of receiving entered information relating to a term for
the insurance for the portfolio.
44. The system of claim 42 wherein the computer system is further
capable of receiving entered information relating to a deductible
amount for the insurance for the portfolio.
45. The system of claim 42 wherein the computer system is further
capable of receiving entered information relating to an amount of
coverage for the insurance for the portfolio.
46. The system of claim 42 wherein the computer system is further
capable of receiving entered information related to insuring a portion
of the portfolio.
47. The system of claim 42 wherein the computer system is further
capable of recalculating the premium based upon revised information
being entered in the computer system.
48. A system for purchasing insurance for a portion of a portfolio
of securities comprising a computer system capable of being assessed
over an Internet, the computer system capable of providing various
screens and for receiving entered information relating to a portion
of a portfolio of securities to be insured, determining a premium
to be paid for the insurance for a portion of a portfolio of securities,
and for receiving entered information relating to payment for the
premium.
49. The system of claim 48 wherein the computer system is further
capable of receiving entered information relating to a term for
insurance for a portion of a portfolio of securities.
50. The system of claim 48 wherein the computer system is further
capable of receiving entered information relating to a deductible
amount for insurance for a portion of a portfolio of securities.
51. The system of claim 48 wherein the computer system is further
capable of receiving entered information relating to an amount of
coverage for insurance for a portion of a portfolio of securities.
52. The system of claim 48 wherein the computer system is further
capable of recalculating the premium based upon revised information
being entered in the computer system.
Insurance Description
CROSS REFERENCE TO RELATED APPLICATIONS
[0001] This application is a continuation of U.S. patent application
Ser. No. 10/875,704 filed on Jun. 24, 2004.
BACKGROUND OF THE INVENTION
[0002] This invention relates to protecting a security and more
particularly to a system and method for insuring the value of a
security.
[0003] Investors may invest in numerous types of securities in
an attempt to achieve short-term or long-term appreciation in the
price or value of the security. In particular, an investor among
other things may invest in stocks, mutual funds, options, commodities,
futures, derivatives, stock index futures, certificates of deposit,
exchange traded funds, or bonds by purchasing such securities. Initially,
such securities or assets have a purchase price or basis. The investor
attempts to maximize the return on investment by selecting assets
or securities that either increase in value or do not allow their
principal to erode or decline in value. Due to the unpredictable
and volatile nature of securities, investors may find it advantageous
to protect the principal by preventing any loss that may occur in
the purchase price or basis of the security. One way to try to protect
against such an occurrence is to purchase an option contract. For
example, an option contract gives an investor the right, but not
the obligation, to purchase or sell a certain number of shares of
stocks at a specific price at a specific future time. An investor
pays a price for the right to purchase or sell the certain number
of shares at the specific price at a future date. If the investor
does not purchase or sell the stock, the investor is out the money
paid to purchase the option contract. However, such option contracts
are complex, difficult to understand, date limited, risky, and expensive.
Further, such option contracts are only available for a limited
number of stocks and cannot be purchased for other securities such
as mutual funds or bonds. Accordingly and unfortunately, options
contracts do not offer the protection sought or needed.
[0004] Some investors have bought government bonds or debt obligations
that are backed or guaranteed by a government in an attempt to protect
against a decrease in value in a security. However, such bonds pay
an interest rate that is below the market interest rate making it
a less attractive security. Additionally, some government-backed
bonds require a large amount of money to purchase these bonds. Thus,
the purchases of such bonds are only practical for large institutions,
banks, or companies. Again, such bonds do not allow an individual
investor the opportunity to hedge their risks.
[0005] Therefore, it would be desirable to protect an asset or
a security from declining in value. It is also desirable to protect
an individual's portfolio that may be comprised of combinations
of various securities. It would also be advantageous to offer a
product, such as an insurance policy, for protecting against a change
in the value of a security.
[0006] The present invention is designed to obviate and overcome
many of the disadvantages and shortcomings associated with attempting
to protect a security. In particular, the present invention is a
system and method that insures a security. Moreover, the system
and method of the present invention can be employed to insure against
a decrease or an increase in the price of a security.
SUMMARY OF THE INVENTION
[0007] In one form of the present invention, a method for insuring
a security comprises the steps of obtaining a security and purchasing
an insurance policy for insuring against a change in the value of
the security.
[0008] In another form of the present invention, a system for insuring
a security comprises a computer system for entering information
related to insuring a security and a server system for receiving
the entered information and for calculating a premium for an insurance
policy for insuring a security and the server system for transmitting
the premium to the computer system.
[0009] In still another form of the present invention, a method
for insuring a security comprises obtaining an interest in a security
and purchasing an insurance policy for insuring against a change
in the value of the security.
[0010] In light of the foregoing comments, it will be recognized
that a principal object of the present invention is to provide a
system and method for insuring against a loss or decline in the
purchase price or the value of a security.
[0011] A further object of the present invention is to provide
a system and method for providing insurance for an asset or a security.
[0012] Another object of the present invention is to provide a
system and method for insuring against an increase in a price of
a security.
[0013] A still further object of the present invention is to provide
a system and method for insuring a security that is easy to use
and understand.
[0014] Another object of the present invention is to provide a
system and method for insuring a portfolio of securities.
[0015] A further object of the present invention is to provide
a system and method for insuring a security that provides for the
selection of various parameters of an insurance policy.
[0016] These and other objects and advantages of the present invention
will become apparent after considering the following detailed specification
in conjunction with the accompanying drawings, wherein:
BRIEF DESCRIPTION OF THE DRAWINGS
[0017] FIG. 1 is a flow chart diagram illustrating a preferred
operation of the method for insuring a security according to the
present invention;
[0018] FIG. 2 is a flow chart diagram illustrating a method for
selecting insurance policy requirements;
[0019] FIG. 3 is a flow chart diagram illustrating a method for
calculating a premium amount;
[0020] FIG. 4 is a flow chart diagram illustrating a method for
preparation of an insurance policy;
[0021] FIG. 5 is a flow chart diagram illustrating a method for
determining whether a claim may be made against an insurance policy
for insuring a security;
[0022] FIG. 6 is a flow chart diagram illustrating a method for
renewing an insurance policy;
[0023] FIG. 7 is a block diagram of a system for insuring a security
constructed according to the present invention;
[0024] FIG. 8 is an illustration of a screen which may be presented
during use of the system for insuring a security to enter insurance
parameters;
[0025] FIG. 9 is an illustration of a screen that may be presented
during use of the system for insuring a security to accept a premium;
and
[0026] FIG. 10 is an illustration of a screen that may be presented
during use of the system for insuring a security to enter insurance
parameters for a portfolio of securities.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS
[0027] Referring now to the drawings, wherein like numbers refer
to like items, number 10 identifies a preferred method for insuring
a security according to the present invention. With reference now
to FIG. 1, the method 10 is shown to comprise a first step 12 in
which a user obtains, acquires, or purchases a security. Examples
of securities that may be obtained, acquired, or purchased are stocks,
bonds, mutual funds, options, commodities, futures, derivatives,
stock index futures, certificates of deposit, and exchange traded
funds. A second step 14 of the method 10 comprises a user purchasing
an insurance policy to protect against a change in the value of
the security obtained in the step 12. Proof of ownership or interest
in the security may be required in order to purchase or issue the
insurance policy. In this manner, if the value or the price of the
security decreases over time, the user will be insured against any
decrease in the value or price of the security. In particular, if
at the end of the insurance policy term the price of the security
is below the value or insured price, the insurance policy will pay
the difference between the insured price of the security and the
value or the price of the security on the day that the insurance
policy terminates. It is contemplated that a claim may be made against
the policy within a term of days as defined by the insurance policy.
Further, it is possible and contemplated that a user may purchase
the insurance policy at any time the user owns or has an interest
in the security. In other words, it is not necessary that the user
purchase the insurance policy when a security is initially purchased
or obtained. For example, if the user purchases a share of stock
on January 1 for $10 and the price of the stock increases to $15
by July 1 then the user may purchase an insurance policy on July
1 to protect against a decrease in the price of the stock as of
July 1. In essence, the user may lock in the price paid for obtaining
the security plus the gain in the price of the stock. It is also
possible that the user may purchase the insurance policy when the
security is initially purchased or obtained and later on purchase
another insurance policy if the security increases in price or value.
Further, it is possible that the insurance policy may protect against
a gain in the price or value of a security in the case of a short
sale. A security may be obtained in several ways as by gift, inheritance,
purchase, settlement, wager, theft, discovery or treasure, contract,
or by agreement.
[0028] FIG. 2 shows a process for the user to use in selecting
policy requirements for purchasing the insurance policy. The policy
requirements include various parameters that may be selected prior
to purchasing an insurance policy. In a first step 22, a user selects
the length or term of the insurance policy. For example, the user
may want to insure against a loss in the purchase price or the value
of a security for a term of one year. Further, any decrease occurring
after the end of the term selected is not covered by the insurance
policy. As another example, the user may want to insure against
an increase in the value or price of a security. Once the length
is selected, the user selects the amount of coverage as shown in
a second step 24. The user may decide that only insuring a portion
of the value or the price of the security is required or desired.
For example, if a security having a value of $100 is purchased,
the user may decide that only half of this amount or $50 needs to
be insured. After selecting the amount of coverage, the user needs
to decide if the user is willing to pay a deductible. In this step,
step 26, the user is required to determine whether the user will
pay a deductible prior to the insurance policy paying out some amount
of coverage. In a next step, step 28, a premium amount is calculated
based upon the parameters of policy length, policy amount, and policy
deductible.
[0029] With reference now to FIG. 3, a flowchart illustrates a
process 30 for calculating a premium amount. First, in a step 32,
the user selects policy requirements that may include identification
of the security, policy term, policy amount, and policy deductible.
Once the policy requirements are selected a premium amount is calculated
based on the policy requirements. This is accomplished in a step
34. Some parameters used to calculate or compute the premium amount
may include whether the security is volatile. If the security is
volatile then this may require a higher premium. Also, a coverage
period of a long term may impact the price of the premium. The amount
of coverage, the term, and the deductible amount, if any, may impact
the calculated premium amount. Once calculated, the premium amount
is provided to the user in a step 36.
[0030] FIG. 4 is a flowchart that illustrates a process 40 for
creating an insurance policy for a security. The user reviews or
evaluates the premium amount that has been calculated based on various
policy requirements in a step 42. Once the evaluation is completed,
the user determines, in a step 44, whether the amount is acceptable.
If the premium is not acceptable then the user enters new policy
requirements in a step 46. In a next step 48, a new premium amount
is calculated based upon the new policy requirements entered in
the step 46. The new premium amount is provided to the user in the
step 42 where the user again reviews the premium amount.
[0031] If in the step 44 the user determines that the premium amount
is acceptable, a next step 50 is encountered where the insurance
policy is accepted. Next, in a step 52, the premium amount is paid
by the user. Finally, in a step 54, the insurance policy is written
or printed and provided to the user. It is also possible that steps
52 and 54 may be reversed. In particular, the insurance policy may
be printed and provided to the user with a bill or invoice to pay
the premium amount.
[0032] Referring now to FIG. 5, a flow chart illustrates a method
60 for determining whether a claim may be made against an insurance
policy for insuring a security. The method 60 commences with a first
step 62 in which it is determined whether the term of the insurance
policy has expired. If it is determined that the term of the policy
has not expired then no claim may be made as is shown in a step
64. If on the other hand it is determined that the term of the policy
has expired then the price of the security on the last day of the
term is reviewed in a step 66. In a next step 68, it is determined
whether the price of the security on the last day of the term of
the policy is below the insured price. If it is not then no claim
may be made against the policy, as is shown in a step 70. In this
particular situation the user would be out the amount of the premium
paid for the insurance policy. However, as depicted in a step 72,
if the price is below the insured price then a claim may be made
within the terms of the policy. Although it has been described that
a claim may be made if the price of the security is below the insured
price on the last day of the term of the policy, it is possible
that the terms of the insurance policy will allow for a claim to
be made during a window period. An example of a window period may
be seven days prior to the last day of the term of the policy. Prior
to a payment being made under the insurance policy, it may be required
to review the insurance policy, as illustrated in a step 74, to
determine if there was a deductible amount, a limit on coverage,
or both. If it is determined that the policy does not contain a
deductible amount, a limit on coverage, or both, then the full policy
amount is paid to the user. This is depicted in a step 76. In particular
by way of example only, if the security to be insured was one share
of stock that had a purchase price of $100 and at the expiration
of the term of the insurance policy the price of the stock was $90
then the policy would pay $10 to the user. If in the step 74 it
is determined that there were limitations in the policy then a reduced
amount is paid to the user as is shown in a step 78. For example,
using the same numerical amounts as above, and assuming a $5 deductible,
then the policy would pay to the user $5. If the policy had a limit
that it would pay for 95% coverage then the insurance policy would
pay $5 to the user. In case of a short sale, if there is an increase
in the value or price of the share or shares shorted then the policy
would make a payout to the user.
[0033] FIG. 6 shows a flow chart of a process 100 for renewing
an insurance policy for insuring a security. In a first step 102
the user is notified of the expiration of the insurance policy.
In a next step 104 the user is able to select new policy requirements
for a renewed insurance policy for insuring a security. In the step
104 the user may select such parameters as a new policy term, a
new amount of coverage, a new deductible amount, and a new price
for the security or the parameters may remain the same as in the
original policy. After the user selects the policy requirements
a premium amount is calculated in a step 106. Once the premium has
been calculated the premium amount is submitted to the user in a
step 108. The user reviews the premium amount in a step 110. A determination
is made in a step 112 as to whether the premium amount is acceptable.
If the amount is not acceptable then the user may select new policy
requirements in an attempt to lower the premium amount. This is
indicated in a step 114. Upon selection of new policy requirements
another premium is calculated in a step 116. Once the new premium
is calculated the new premium is submitted to the user in the step
108. If in the step 112 it is decided by the user to accept the
premium amount the policy is accepted by the user in a step 118.
Further, the user in a step 120 pays the premium and the policy
is printed or written in a step 122. Steps 120 and 122 may be reversed.
For example, it is possible that the policy is printed and a bill
is then submitted for payment of the premium.
[0034] A system for insuring a security 150 is illustrated in FIG.
7. The system 150 is shown comprising a user computer system 152
that is capable of being connected to the Internet 154 by a communications
connection 156 such as a telephone line, cable, ISDN lines, fiber
optic lines, wireless connections, satellites, or other suitable
means of connection. Through use of the connection 156 to the Internet
154, the computer 152 is capable of accessing a website 158 on a
computer system or a server 160 over a connection 162. The website
158 may be a website of a brokerage, a bank, an insurance company,
or any other entity that a user may purchase a security. As described
for the connection 156, the connection 162 may include a telephone
line, cable, ISDN lines, fiber optic lines, wireless connections,
satellites, or other means of connection. The server 160 is capable
of transmitting to the user computer 152 one or more web pages 164
for viewing by a user of the user computer 152.
[0035] The user computer 152 is allowed access to the server 160
through use of a commonly available web browser or similar software
package or application. The server 160 is capable of hosting the
website 158 which presents various screens or web pages 164 to the
user computer 152. A user operating the user computer 152 is able
to interact with the website 158 being hosted by the server 160.
In particular, a user may be presented with various screens or web
pages 164 with such web pages 164 presenting information concerning
the purchasing of a security and the purchasing of insurance for
a security. Further, the web pages 164 may have other information
such as selecting a length of a policy term, an amount of coverage,
a deductible amount, and entering of information concerning a security
already owned.
[0036] The user may be presented with a web page or screen 170
as illustrated in FIG. 8. As shown, underwriting information or
insurance parameters 172 are presented for selection or entry by
the user. The user is requested to enter information concerning
the name or symbol of the security to be insured in a box 174 and
the number of shares to be insured in a box 176. The amount of coverage
desired is entered in a box 178. For example, the user may determine
that only half of the value of the security to be insured needs
to be covered and this amount is placed in the box 178. The term
of the policy is selected and entered in a box 180. The user can
determine the length of the term of the policy. Also, if a deductible
amount is to be factored into the calculation of the premium, the
user may enter a deductible amount in a box 182. Once the user has
entered the insurance parameters 172, a button 184 may be selected
to transmit the insurance parameters 172 to the server 160 in order
to determine or calculate a premium for insuring the security presented
in the box 174.
[0037] Once the server 160 receives the insurance parameters 172,
a premium is calculated. The premium amount is then sent to the
user computer 152 to be displayed as a screen or a web page 164.
FIG. 9 depicts a web page 200 that may be presented on a display
associated with the user computer 152. The web page 200 has a box
202 in which the premium amount is displayed for review by the user.
The user may accept the premium amount by selecting a button 204,
reject the premium amount by selecting a button 206, or recalculate
a premium amount by selecting a button 208. If the button 204 is
selected, the user may be requested to indicate a payment method
for the premium amount. If the premium is to be paid by a credit
card then a box 210 is selected and the user is taken to a new web
page to enter further information concerning the credit card. If
the premium is to be paid by a bank account then a box 212 is selected
and a new web page is presented for entry of bank account information.
Other methods of payment, such as cash, check, invoice, or being
billed are contemplated and possible and such methods may be incorporated
into the web page 200. If the user decides that the premium amount
is too high and insuring the security is to be foregone then the
box 206 is selected and the user may be taken to a home page of
the server 160. On the other hand, if the user selects the box 208,
the user will be presented the web page 170 again to enter insurance
parameters 172 in an attempt to recalculate the premium amount.
For example, the premium amount presented in the box 202 may be
more than the user wants to pay. In order to reduce the premium
amount the user selects the box 208 and the web page 170 is presented
for entry of other amounts. The user, in an attempt to lower the
premium, may enter into the box 182 a higher deductible amount.
In this manner, the premium amount is recalculated and the recalculated
amount for the premium may be low enough that the user selects the
accept box 204. As can be appreciated, several other web pages may
be presented to the user. By way of example, web pages may be presented
that include the conditions and terms of the insurance policy and
payment confirmation.
[0038] Although not shown, the computer system 152 may include
peripheral devices such as a keyboard, a speaker, a display, a printer,
a modem, a network card, and any other suitable device. The computer
system 152 may be a personal computer having a microprocessor, memory,
a hard drive having stored thereon an operating system and other
software, and input devices such as a mouse, a keyboard, a CD-ROM
drive, or a floppy disk drive. The computer system 152 may also
be a PDA type device, a cell phone, or other hand held type computer
device that allows for receiving and transmitting information or
data. Further, the server 160 may take on various known forms for
a server including a personal computer, a computer system, or a
network. Also, although the Internet 154 is disclosed, it is also
possible that the system 150 be located on a LAN or other closed
network system.
[0039] It is also possible to insure a number of securities or
a portfolio through use of the present invention. With reference
now to FIG. 10, a web page 220 is illustrated that provides for
entry of more than one security for calculating one premium to insure
the securities or the portfolio. The web page 220 requests the user
to enter various insurance parameters 220. In a box 224, the name
of the first security is entered. Below the box 224 is a box 226
in which the amount of coverage for the first security is entered.
Once the information for the first security has been entered, information
relating to a second security and a third security may be entered
in boxes 228, 230, 232, and 234. After the security information
has been entered the term for the insurance policy is entered into
in a box 236. A deductible amount, if any, is entered in a box 238.
After all of the insurance parameters 222 have been entered then
a button 240 may be selected to calculate a premium amount. The
information relating to the insurance parameters 222 are transmitted
to the server 160 in order to determine or calculate a premium for
insuring the securities presented in the boxes 224, 228, and 232.
It is also possible that there are more boxes for entering other
securities or other web pages similar to the web page 220. It is
also contemplated that the term and the deductible may be individually
selected for each security. Further, a listing of individual premiums
per security may be provided in which a user may select which security
will be insured. It may be that the premium for one of the securities
to be insured is determined to be too high and the user may select
not to insure the particular security.
[0040] Although the present system and method have been described
by use of electronic means, it is also possible that an agent, a
broker, or other salesperson may provide the policy to a user. For
example, an agent may discuss the various securities to be insured
and provide a quote for coverage to a user. The user may review
the quote and then determine whether to insure the security or securities.
In this manner, the user does not directly interact with the system
and relies on the agent for information and the premium quote. Also,
the agent or the system may already have predetermined premiums
or policies for any type security, for any amount of coverage, for
any length or term, and for any deductible amount. The user may
select the insurance policy and premium from a listing of the predetermined
premiums or polices.
[0041] From all that has been said, it will be clear that there
has thus been shown and described herein a system and method for
insuring a security which fulfills the various objects and advantages
sought therefore. It will become apparent to those skilled in the
art, however, that many changes, modifications, variations, and
other uses and applications of the subject system and method for
insuring a security are possible and contemplated. All changes,
modifications, variations, and other uses and applications which
do not depart from the spirit and scope of the invention are deemed
to be covered by the invention, which is limited only by the claims
which follow.
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