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Insurance Abstract
A method for writing an insurance policy and algorithm for providing
a final premium amount to pay for the coverage contracted with an
insurer. Discrete dollar amounts for pre-selected moving and pre-selected
storage service expenses are comprised into a unit loss value amount.
Data retrieved from census records and other sources comprising
the number of rented (homogenous) units for a specified geographical
area, and data from courthouse records comprising the number of
evictions for the same specified geographical area, profit margin
data and the unit loss value amount are transformed by entering
the data into a spreadsheet or other data processing apparatus,
comprising software used to manipulate the numerical data through
a series of mathematical calculations in an algorithm, into the
final premium amount utilized by the method for writing an insurance
policy, enabling coverage in an insurance contract for tenant's
exposure to property (possessions) losses during the eviction.
Insurance Claims
1. A method for writing an insurance policy entitled Insured Tenant
Leasing and algorithm for providing a final premium amount to pay
for the coverage contracted in the policy comprising: a) means for
calculating a unit loss value amount, wherein the unit loss value
amount comprises discrete dollar amounts for pre-selected moving
and pre-selected storage service expenses comprised in an algorithm;
b) a means for calculating a final premium amount comprising the
data retrieved from census records and other sources comprising
the number of rented units in a specified geographical area; c)
a means for calculating a final premium amount comprising the data
retrieved from courthouse records and other sources comprising the
number of evictions in a specified geographical area; d.) a means
for calculating a final premium amount comprising profit margin
data comprising a percentage over cost of insurance to cover claims,
operating expenses, business costs, profits and to fulfill other
actuarial requirements and; e) the transformation of the data comprised
in a, b, c and d above, by means when entered into a software application
spreadsheet or other data processing apparatus comprising software
used to manipulate numerical data through a series of mathematical
calculations, into the final premium amount utilized by the Insured
Tenant Leasing method for writing an insurance policy to enable
coverage in an insurance contract for tenant's exposure to property
(possessions) losses during the eviction process.
2. The method for writing an insurance policy as recited in claim
1 entitled Insured Tenant Leasing, wherein the means for transforming
data into a final premium amount comprises entering data into a
software application spreadsheet or other data processing apparatus
comprising software used to manipulate numerical data through a
series of mathematical calculations in an algorithm or manipulation
of the data manually into the final premium amount utilized by the
Insured Tenant Leasing method for writing an insurance policy to
enable coverage in an insurance contract for tenant's exposure to
property (possessions) losses during the eviction process.
3. The unit loss value amount of the method recited in claim 1
wherein the unit loss value amount is comprised of discrete dollar
amounts for moving services and storage services charges and is
used to in the algorithm to calculate a final premium amount that
enables coverage in an insurance contract for tenant's exposure
to property (possession losses during the eviction process.
4. The final premium amount of the method recited in claim 1 wherein
the final premium amount comprises manipulated numerical data and
is arrived at by a series of mathematical calculations in an algorithm
comprising the unit loss value amount recited in claim 3 and is
used to enable coverage in an insurance contract for tenant's exposure
to property (possession losses during the eviction process.
5. The method of claim 1 wherein the method for writing an insurance
policy providing coverage for tenant's exposure to property losses
during the eviction process comprises the unit loss value amount
recited in claim 3.
6. The method of claim 1 wherein the method for writing an insurance
policy providing coverage for tenant's exposure to property losses
during the eviction process comprises the final premium amount cited
in claim 4.
7. The method of claim 1 wherein the final premium amount used
to enable coverage in an insurance contract for tenant's exposure
to property (possessions) losses during the eviction process comprises
entering the number of rented units for a specific geographical
area into the algorithm that calculates the final premium amount.
8. The method of claim 1 wherein the final premium amount used
to enable coverage in an insurance contract for tenant's exposure
to property (possessions) losses during the eviction process comprises
entering the number of evictions for a specific geographical area
into the algorithm that calculates the final premium amount.
9. The method of claim 1 wherein a machine through a series of
mathematical calculations (algorithm) transforms data comprising,
a unit loss value amount, a number of rented units comprising the
rented units for a specified geographical area, a number of evictions
comprising the number of evictions for a specified geographical
area, a profit margin amount comprising a percentage over cost of
insurance to cover claims and required for operating expenses, business
costs, profits and to fulfill other actuarial requirements by means
of entering the data into a software application spreadsheet or
other data processing apparatus comprising software used to manipulate
numerical data through a series of mathematical calculations, into
a final premium amount utilized by an insurance product as a fee
or premium to enable coverage by an insurance product for tenant's
exposure to property (possessions) losses during the eviction process.
10. The method of claim 1 wherein a machine through a series of
mathematical calculations (algorithm) transforms data comprising,
a unit loss value amount, a number of rented units comprising the
rented units for a specified geographical area, a number of evictions
comprising the number of evictions for a specified geographical.,
a profit margin amount comprising a percentage over cost of insurance
to cover claims and required for operating expenses, business costs,
profits and to fulfill other actuarial requirements by means of
a software application spreadsheet or other data processing apparatus
comprising software used to manipulate numerical data through a
series of mathematical calculations, into the final premium amount
utilized by the Insured Tenant Leasing method for writing an insurance
policy to enable coverage in an insurance contract for tenant's
exposure to property (possessions) losses during the eviction process.
Insurance Description
CROSS-REFERENCE RELATED APPLICATION
[0001] (Not Applicable)
FEDERALLY SPONSORED RESEARCH
[0002] (Not Applicable)
SEQUENCE LISTING REFERENCE
[0003] (Not Applicable)
BACKGROUND OF THE INVENTION
[0004] 1. Field of Invention
[0005] Insured Tenant Leasing pertains to the property and casualty
personal line insurance industry and facilitates the transformation
of data, representing discrete dollar amounts, by a machine through
a series of mathematical calculations into a final premium amount
paid to an insurer for an insurance policy contract that provides
coverage for the tenants' exposure to property losses during the
eviction process in the apartment housing, single family residential
and multi-family dwelling leasing industries. This method of personal
line property insurance facilitate calculation of the premium needed
to provide coverage for tenants' exposure to property losses during
an eviction whether the tenant is absence or present at the time
of the eviction. A combination of a unit loss value calculation
and premium calculations are utilized to calculate a tenant paid
final premium amount needed to contract with an insurer an insurance
policy providing coverage for property loss exposure in the event
of a tenant's breach in the leasing agreement between the tenant
and landlord resulting in an order for execution of a writ of possession
against the tenant and eviction. This coverage applies to the apartment
housing, single family residential or multi-family dwelling leasing
industries and allows tenants to share the risk of losses and related
expenses during an eviction through the payment of the calculated
final premium amount to protect the tenants from property (possessions)
losses by covering expenses to relocate and store the tenant's property
utilizing a pre-selected moving and storage service when an eviction
occurs.
[0006] The tenant paid premium for the insurance contract comprise
the final premium amount that is transformed from data representing
discrete dollar amounts which primarily comprise pre-selected moving
charges expenses, pre-selected storage charges expenses, courthouse
records statistical data pertaining to evictions for a specific
geographical area, data pertaining to rented units in the same specific
geographical area, and profit margin data, by means of a software
application spreadsheet or other data processing apparatus comprising
software used to manipulate numerical data through a series of mathematical
calculations, into the final premium amount utilized by the Insured
Tenant Leasing method for writing an insurance policy to enable
coverage in an insurance contract for tenant's exposure to property
(possessions) losses during the eviction process. The premium is
paid to the insurer to enable coverage for the tenant's exposure
to loss of possessions (property) that are in the tenant's rented
apartment, single family resident or multi-family dwelling during
the eviction process as the result of a breach in the lease agreement
between the tenant and landlord. The breach may be due to the diminishing
of, or decrease in the tenant's level of income to a level below
the level required to qualify for the rental unit during the rental
application process. Coverage is triggered when the diminishing
of, or decrease in the tenant's level of income is caused by some
fortuitous events comprising involuntary termination of employment,
injury, medical emergency, hospitalization, death of a domestic
partner, death of a spouse, hardship, and other uncontrollable or
unavoidable circumstances that is eligible for coverage and acceptable
by the insurer, that results in a breach in the lease agreement
between the landlord and tenant and subsequently followed by a tenant
holding over filing and/or a tenant fail to pay rent that is due
filing and the ordering and execution of a writ of possession against
the tenant and eviction.
A. Classification definitions of the Claimed Invention:
[0007] Insured Tenant Leasing is a method for writing an insurance
policy categorized in
[0008] US PATENT SUBCLASS 705/4.about.Insurance (e.g., computer
implemented system or method for writing insurance policy, processing
insurance claim, etc.)
B. Specific Documents Related to the Invention:
[0009] 1.) USPTO Disclosure Document No. 557867--Dated--Jul. 28,
2004; [0010] 2.) Provisional Application for Patent Cover Sheet--Express
Mail Label ED569747900US--Dated--Nov. 18, 2004 [0011] 3.) State
Street V. Signature, 1996 ". . . in Arrythmia . . . , we held
that the transformation of electrocardiograph signals from a patient's
heartbeat by a machine through a series of mathematical calculations
constituted a practical application of an abstract idea . . . Today,
we hold that the transformation of data, representing discrete dollar
amounts, by a machine through a series of mathematical calculations
into a final share price, constitutes a practical application of
a mathematical algorithm, formula, of calculation, because it produces
`a useful, concrete and tangible result`--a final share price .
. . " [0012] 4.) U.S. Provisional Application No. 60/630,088
[0013] Filing Date Nov. 22, 2004 [0014] Name of Applicant: James
L. Coleman Jr., College Park, Ga. [0015] Title of Invention: Insured
Tenant Leasing
[0016] 2. Related Art
[0017] A. Problems in Related Art
[0018] Reference to the following Georgia House Bill 762 Entitled
an Act in the State of Georgia in June 2004 illustrate the problems
that are currently unaddressed by the state of technology and prior
art as they relate to protection of tenant's property when a writ
of possession is executed and eviction. ". . . the placement
of such personal property on some portion of the landlord's property
or on other property as may be designated by the landlord and as
may be approved by the executing officer; provided, however, that
the landlord shall not be a bailee of such personal property and
shall owe no duty to the tenant regarding such personal property.
After execution of the writ, such property shall be regarded as
abandoned . . . " H.B. 762
[0019] HOUSE BILL 762:
[0020] 04 HB 762/AP
[0021] HOUSE BILL 762 (AS PASSED HOUSE AND SENATE)
[0022] By: Representatives Floyd of the 69.sup.th, Post 2, Marin
of the 66.sup.th, Thomas Morgan of the 33.sup.rd, Post 2, and Thompson
of the 69.sup.th, Post 1
A BILL TO BE ENTITLED AN ACT
[0023] To amend Chapter 7 of Title 44 of the Official Code of Georgia
Annotated, relating to landlord and tenant, so as to change certain
provisions relating to judgment, writ of possession, landlord's
liability for wrongful conduct, and distribution of funds paid into
court; to provide for removal of a tenant or the tenant's personal
property under certain circumstances; to repeal conflicting laws;
and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
[0024] Chapter 7 of Title 44 of the Official Code of Georgia Annotated,
relating to landlord and tenant, is amended in Code Section 44-7-55,
relating to judgment, writ of possession, landlord's liability for
wrongful conduct, and distribution of funds paid into court, by
inserting at the end thereof a new subsection (c) to read as follows:
"(c) Any writ of possession issued pursuant to this article
shall authorize the removal of the tenant or his or her personal
property or both from the premises and permit the placement of such
personal property on some portion of the landlord's property or
on other property as may be designated by the landlord and as may
be approved by the executing officer; provided, however, that the
landlord shall not be a bailee of such personal property and shall
owe no duty to the tenant regarding such personal property. After
execution of the writ, such property shall be regarded as abandoned."
SECTION 2.
[0025] All laws and parts of laws in conflict with this Act are
repealed.
[0026] The property and casualty personal line insurance industry
currently does not offer tenants coverage for exposure to property
(possessions) losses through paid premiums during an eviction. Writ
of possessions are ordered for execution and executed against the
tenants in their presence or absence and thereby the tenants are
exposed to property (possession) losses and particularly when the
tenant is absent during the execution of the order and an eviction.
The tenant currently has no recourse during his absence and the
execution of the order, regardless of the circumstances or fortuitous
events triggering the decrease in the tenant's income level resulting
in the breach of the rental agreement and subsequently a writ of
possession and eviction. Laws in other states and provinces similar
to Georgia's House Bill 762 passed by the Georgia House and Senate
in June 2004 give landlords rights within the Landlord and Tenant
Law of states pertaining to writ of possessions and evictions but
does not prescribe an option for tenant selected protection for
the tenants' property during some fortuitous event and breach in
the rental agreement between the tenant and landlord resulting in
an eviction. Nor do the statutes consider why the breach in the
agreement occurred. Insured Tenant Leasing considers protection
for the tenant's property through pre-arranged coverage contracted
in an insurance policy by payment of a final premium amount transformed
from data representing discrete dollar amounts which primarily comprise
pre-selected moving and pre-selected storage expenses, court house
records statistical data pertaining to evictions for a specific
geographical area, data pertaining to rented units in the same specific
geographical area, and profit margin data by a machine through a
series of mathematical calculations into a final premium amount
to cover the exposure to loss of the tenant's possessions that are
declared abandoned, and possessions that are being dispossessed
by the landlord granted the writ of possession and eviction.
[0027] Economic conditions resulting in vacillating unemployment
rates and other adversity in the economy create unexpected losses
in tenant's income levels. Likewise, decreases in the tenant's income
level can be caused by unexpected legitimate fortuitous events such
as injuries, medical emergencies, hospitalization, death of a spouse,
death of a domestic partner or hardships that can occur at unexpected
times. These specific adverse fortuitous events can affect the tenants'
abilities to maintain their contractual lease agreements and obligation
with the landlord as they did prior to the occurrence of the decrease
or diminishing of the tenant's income due to these fortuitous events.
Related art does not consider the transformation of data, representing
discrete dollar amounts, by a machine through a series of mathematical
calculations into a final premium amount to provide coverage for
the exposure to property losses that tenants are exposed to during
evictions due to those fortuitous events mentioned herein or other
similar fortuitous events.
[0028] Insured Tenant Leasing facilitate calculation of a final
premium amount needed in order to pay the cost of coverage to protect
tenant's property exposure to loss during an eviction by means of
a common pool of tenants sharing the risk through payment of premiums
to cover the cost of pre-selected moving and storage expenses to
protect the tenant's property from loss in the event of an unavoidable
fortuitous events resulting in a breach in the rental agreement
and a writ of possession and eviction. Related art does not provide
for this sharing of risk through payment of premiums. Insured Tenant
Leasing provide for this sharing of risk through payment of premiums
by a common pool of tenants sharing the cost of coverage in the
form of tenant paid premiums transformed from data representing
discrete dollar amounts which primarily comprise pre-selected moving
and pre-selected storage expenses, court house records statistical
data pertaining to evictions for a specific geographical area, data
pertaining to rented units in the same specific geographical area,
and other profit margin data by a machine through a series of mathematical
calculations into a final premium amount.
[0029] Related art that protect landlords' interests are not geared
toward a common pool of tenants sharing the risk of tenants' property
(possessions) loss during an eviction through payment of a premium
amount to cover the tenants' exposure to property losses as does
Insured Tenant Leasing, but more so toward providing coverages for
landlords.
[0030] B. Description of the Related Art
[0031] Tenant Security Deposit
[0032] Money furnished by a tenant to a landlord to secure the
performance of the terms and condition of a rental agreement, as
a security for damages to the leased premises. Most landlords require
the tenant to put down an amount of money, separate from rent, to
protect the landlord from losses due to tenant-caused damages, appropriate
cleaning not performed by the tenant, and unpaid rent and utilities
owed by the tenant after the rental agreement is terminated. This
is usually called the "cleaning" or "security"
deposit. Any money (or its equivalent) collected by the landlord
to ensure the premises are left clean, no damages have occurred,
and that all rent and utilities are paid is considered to be a security
deposit. The tenant's unavoidable circumstances are not considered
with the security deposit and the tenants are not given protection
or coverage for their exposure to property losses in uncontrollable
or unavoidable fortuitous events when the breach of the rental agreement
results in a writ of possession and eviction. There is no insurance
contract or calculation of a tenant paid premium.
[0033] Rent Loss Insurance
[0034] Insurance that protects a landlord against loss of rent
or rental value due to fire or other casualty that renders the leased
premises unavailable for use and as a result of which the tenant
is excused from paying rent. Coverage is negotiated between the
landlord and insurer for the landlord to pay premiums for coverage.
Whenever rental income is to be used in qualifying for a mortgage
loan, the borrower must have rent loss insurance coverage on the
investment property providing the insurer's liability in an amount
equal to the gross monthly rent for at least six months. The tenant's
unavoidable circumstances are not considered with rent loss insurance
and the tenants are not given protection or coverage for their exposure
to property losses in uncontrollable or unavoidable fortuitous events
when the breach of the rental agreement results in a writ of possession
and eviction. There are no calculations for tenant premiums and
the landlord is responsible for payment of premiums to the insurer.
[0035] Rent Insurance
[0036] Rent Insurance is a form of business interruption insurance
for the landlord. It protects building owners against loss of income
when the building cannot be rented because of damage from any of
its insured perils or when a building has been leased and a projected
rent loss is expected when a building is leasable but is not yet
fully leased. It provides income while an insured's building is
untenantable. The tenant's unavoidable circumstances are not considered
with rent insurance and the tenants are not given protection or
coverage for their exposure to property losses in uncontrollable
or unavoidable fortuitous events when the breach of the rental agreement
results in a writ of possession and eviction.
[0037] There are no calculations for tenant premiums.
[0038] Renters Insurance
[0039] Renters insurance pays the tenant if the tenant's personal
property is damaged or stolen from a rental unit that the tenant
has a right to under a binding lease agreement. Renters insurance
covers fire and smoke damage, theft, vandalism, damage from windstorms
and hail, damage from explosions, water damage from plumbing problems,
and many other hazards. It also protects the tenant from liability
if an accident happens in the rented unit and may pay the tenant
temporary living expenses if an emergency forces the tenant to leave
the dwelling unit. The landlord may require that a tenant pay for
the cost of premiums for property coverage for the tenant's personal
property in the dwelling unit. Renters insurance is a term for the
non-owner occupant of a dwelling or apartment. Renters Insurance
does not give the tenant protection or coverage for their exposure
to property losses in uncontrollable or unavoidable fortuitous events
associated with an eviction and there are no premiums calculated
to share this risk.
[0040] Tenant Insurance
[0041] The landlord is not normally able to insure a tenant's personal
property through their rental property insurance policy. There are
a number of reasons why, including the fact that neither the landlord,
nor the insurer, has any knowledge or control of the extent or value
of the contents that may be brought into the property. Tenant must
have "Renters Insurance". (See related art entitled Renter's
Insurance above). Tenant Insurance does not give the tenant protection
or coverage for their exposure to property losses associated with
an eviction and there are no premiums calculated to share this risk.
[0042] Damage Insurance
[0043] The landlord may require that a tenant pay for the cost
of premiums for commercial insurance coverage obtained by the landlord
to secure the performance by the tenant of the terms and conditions
of the rental agreement, generally known as damage insurance. This
insurance provides protection against liability for damage to the
landlord's property, as distinguished from liability for bodily
injury. In the majority of cases, property damage insurance is written
in connection with the bodily injury protection, the premiums and
limits of insurance being distinct. Damage Insurance does not give
the tenant protection or coverage for their exposure to property
losses associated with an eviction and there are no premiums calculated
to share this risk.
[0044] Landlord 's Insurance
[0045] Landlord's Insurance helps to protect the landlord's investment
by providing cover for buildings, contents, limited contents for
part-furnished properties and legal expenses and unpaid rent should
the tenant default on the tenancy agreement. Coverage is negotiated
between the landlord and insurer for the landlord to pay premiums
for coverage. There are no calculations for tenant premiums and
the landlord is responsible for payment of premiums to the insurer.
Landlord's Insurance does not give the tenant protection or coverage
for their exposure to property losses associated with an eviction
and there are no premiums calculated to share this risk
[0046] Commercial Insurance
[0047] Purchased by landlord to provide property and casualty insurance
coverage for a tenant, generally known as renter's insurance. Commercial
Insurance is typically issued to corporations or organizations,
or to the individual who owns a business operation, and includes
coverage like Commercial Property, Commercial Auto, and Commercial
General Liability. When applicable to Commercial Property there
are no calculations for tenant premiums and the landlord is responsible
for payment of premiums to the insurer. Commercial Insurance does
not give the tenant protection or coverage for their exposure to
property losses associated with an eviction and there are no premiums
calculated to share this risk
[0048] Builder 's Risk Insurance--Rent Loss Insurance
[0049] Builder's risk insurance covers improvements pursuant to
standard industry custom and practice. Since the lease always address
indemnity issues, the work letter incorporates them by reference.
The representatives of both the landlord and the builder ensures
that the language of the work letter includes liability insurance
coverage, either by specific provision for it or by incorporating
by reference the insurance provisions in the lease. Builder's risk
Insurance does not give the tenant protection or coverage for their
exposure to property losses associated with an eviction and there
are no premiums calculated to share this risk
[0050] Rent Bonds--Surety, Financial, Performance Bonds
[0051] A Rent bond is a three-party agreement between a surety
company, a landlord and a tenant. The third party (Surety Company)
guarantees to the second party (landlord) the successful performance
of the first party (tenant). The surety company guarantees that
the obligations of the tenant to the landlord will be performed
in accordance with a contract, statute or regulations. Bonds are
used to protect public and private funds from financial loss. A
bond and an insurance policy are not the same. The costs of assumed
losses are calculated into the price of an insurance policy premium.
Relative frequency of expectation of losses in a common pool of
homogeneous units is not included in the cost of bond premiums,
only underwriting expenses are factored into the rates. Just as
a bank evaluates loan applications, surety company underwriters
evaluate risks in a similar way by considering business and personal
financial statements, credit reports, credit references and other
factors. A surety company's fiscal results are severely impacted
when losses on bonds do occur. There are no calculations for tenant
premiums based on a common pool of tenants sharing risks and the
bond functions similar to a security deposit and must be collateralized.
Rent, surety, financial, and performance bonds, do not give the
tenant protection or coverage for their exposure to property losses
associated with an eviction and there are no premiums calculated
to share this risk.
[0052] Security Bond
[0053] A security bond in lieu of a security deposit provides a
financial guarantee for the property owner that the property will
be returned to its move-in condition after a tenant moves out before
the term of the lease has expired or the tenant skips out on the
lease. The bond must be paid when the tenant's first month's rent
is paid. The non-refundable bond cost is calculated as a percentage
of the ongoing security deposit. The security bond and an insurance
policy are not the same. The relative frequency of expectation of
losses in a common pool of homogeneous units is not included in
the cost of the security bond premiums, only underwriting expenses
are factored into the rates. Just as a bank evaluates loan applications,
surety company underwriters evaluate risks in a similar way by considering
business and personal financial statements, credit reports, credit
references and other factors. There are no calculations for tenant
premiums based on a common pool of tenants sharing risks and the
security bond functions similar to a security deposit. Security
bonds, do not give the tenant protection or coverage for their exposure
to property losses associated with an eviction and there are no
premiums calculated to share this risk.
[0054] Security Deposit Insurance
[0055] Deposit insurance is a revolutionary new concept that allows
tenants to pay a small monthly insurance fee instead of coming up
with a large cash security deposit in addition to the first (and
sometimes last) month's rent when signing a new lease. To participate
in the program, the property manager completes a master application
which lists the number of properties, typical rent and security
deposit requirements. The property owner buys the insurance policy
to protect against damage and other losses. The owner then passes
that cost onto tenants for a monthly fee. The insurer issues a policy,
and provides a starter kit that contains all the necessary forms
and renter marketing materials. In the event of a tenant default
in rent or a claim for damages, the insurance company pays the landlord.
This coverage is geared more toward the covering the financial obligations
to the landlord.
[0056] If a tenant defaults on the fee payment and the rent payment,
a tenant holding over filing/ or tenant fail to pay rent that is
due is subsequently applied for by the landlord and a writ of possession
and eviction still may occur, exposing the tenant to property (possession)
losses in an eviction that is not covered by the security deposit
insurance. On the other hand Insured Tenant Leasing provides a unique
and economical means for protecting tenant's exposure to property
losses during an eviction by facilitating the payment of a premium
transformed from data representing discrete dollar amounts which
primarily comprise pre-selected moving and storage services expenses
and court house statistical data pertaining to evictions for a specific
geographical area and data pertaining to rented units in the same
specific geographical area, by a machine through a series of mathematical
calculations into a final premium amount paid to cover the tenant's
risk of exposure to property losses during an eviction.
[0057] SureDeposit Bond
[0058] SureDeposit replaces security deposits with a surety bond.
The SureDeposit bond does not provide coverage for tenant's property
(possessions) exposed to loss during an eviction. The bond provides
the tenants with the short-term benefit of being able to move into
an apartment for less cash than a security deposit would require.
The tenant completes a Bond Acknowledgment Form when the tenant's
new lease is approved and pay the one-time nonrefundable premium.
SureDeposit coverage will begin immediately. Depending on the tenant's
personal financial situation, and spending habits, SureDeposit may
also save the tenant in the long-term. The major benefit of SureDeposit
is geared toward the landlord. Renters can use the bond to cover
their security deposit at another property owned by the same company
only if they meet all the obligations under their lease, including
paying for any damages. Even with the bond, tenants are responsible
for paying for any damages they've done to their apartment. SureDeposit
only pays for damages if the renter does not, and will then go after
the renter to collect the money back. If the security deposit at
their new apartment is higher the tenant will need to buy additional
bond coverage. When the tenant is unable to fulfill the lease agreement
in any case due to a fortuitous event then SureDeposit Bond does
not provide protection for the tenant nor for the tenant's property.
If the tenant is not able to fulfill the commitments under the lease,
the tenant will be required to reimburse the surety company for
damages, loss of rent and related expenses and the tenant may still
end up with the landlord applying for a tenant holding over filing/
or tenant fail to pay rent filing, a writ of execution and subsequently
an eviction. On the other hand Insured Tenant Leasing provides a
unique and economical means for protecting tenant's exposure to
property losses during an eviction by facilitating the payment of
a premium transformed from data representing discrete dollar amounts
which primarily comprise pre-selected moving and storage services
expenses and court house statistical data pertaining to evictions
for a specific geographical area and data pertaining to rented units
in the same specific geographical area, by a machine through a series
of mathematical calculations into a final premium amount paid to
cover the tenant's risk of exposure to property losses during an
eviction.
[0059] Imposition Deposits
[0060] Deposits held by the Lender to pay when due (1) any water
and sewer charges which, if not paid, may result in a lien on all
or any part of the Collateral Property, (2) the premiums for fire
and other hazard insurance, rent loss insurance and such other insurance
as Lender may require, (3) taxes, assessments, vault rentals and
other charges, if any, general, special or otherwise, including
all assessments for schools, public betterments and general or local
improvements, which are levied, assessed or imposed by any public
authority or quasi-public authority, and which, if not paid, will
become a lien, on the Land or the Improvements, and (4) amounts
for other charges and expenses which Lender at any time reasonably
deems necessary to protect the Collateral Property, to prevent the
imposition of liens on the Collateral Property, or otherwise to
protect Lender's interests, all as reasonably estimated from time
to time by Lender (the "Imposition Deposits"). The tenant's
unavoidable circumstances are not considered in this type of insurance
nor are tenants given protection coverage for their possessions
in the event of an eviction.
F. BRIEF SUMMARY OF THE INVENTION
[0061] The general idea of Insured Tenant Leasing is a method for
writing an insurance policy where the combination of a unit loss
value calculation and a final premium amount calculation in a mathematical
algorithm are utilized to calculate a tenant paid final premium
amount needed to contract with an insurer an insurance policy providing
coverage for property loss exposure when an eviction occurs and
the exposure to the related expense in the form of expenses paid
for pre-selected moving and pre-selected storage service as stipulated
in the insurance policy to protect the tenant's property from loss
by relocating and storing the tenant's property to safety during
an eviction process. The method makes use of a tangible, concrete
and useful final premium amount transformed from data representing
discrete dollar amounts which primarily comprise pre-selected moving
and pre-selected storage expenses and court house statistical data
pertaining to evictions for a specific geographical area and data
pertaining to rented units in the same specific geographical area,
by a machine through a series of mathematical calculations, comprising
a unit loss value algorithm and a premium calculation algorithm,
that is paid by the tenant to the insurer.
[0062] The Insured Tenant Leasing method for writing an insurance
policy is advantageous to tenants and offer tenants assistance with
currently unavailable options when recuperating from the adverse
circumstances inherent in the eviction process. Tenants can selected
and decide where their property will be delivered in the case of
an eviction and how long stored at a pre-selected storage location.
The tenant can experience a degree of security and comfort in knowing
that losses will not occur in the disposition of there property
whether they or present or absent if a fortuitous event takes place
causing an eviction. Alternative means for disposition of property
during an eviction by pre-selecting the moving service and storage
location and informing the landlord of the coverage during the application
process are available with the Insured Tenant Leasing Method for
writing an insurance policy.
[0063] The Insured Tenant Leasing Method of insurance solves the
problem of tenants losing their property that may be setout during
an eviction. It eliminates the removal of tenants' possession to
roadsides and to locations other than the location desired by the
insured tenant if the tenant's property (possessions) is declared
abandoned when a writ of execution is granted to the landlord according
to landlord and tenant laws.
[0064] The object of the invention is to give tenants an alternative
method of handling the potential for loss of property during an
eviction. Insured Tenant Leasing is design to give tenants options
and protection that currently are not available. When unfortunate
circumstances result in an eviction, the object of Insured Tenant
Leasing becomes to protect the tenant's property and to provide
a means of assistance in the tenant's recuperation from the circumstances.
G. DETAILED DESCRIPTION OF THE VIEWS OF DRAWINGS
[0065] FIG. 1.--Depicts the Insured Tenant Leasing System Flowchart
for the Unit Loss Value (Algorithm) and Premium Calculator (Algorithm)
showing the system flow comprising the pre-selected moving and storage
expenses representing discrete dollar amounts feeding into the Unit
Loss Value algorithm giving a resulting UNITLOSS VALUE final amount
and the continuation of the system flow comprising the discrete
amounts representing the number of evictions in a specific geographical
area from Courthouse Records Statistical Data, the discrete amounts
representing the number of rented units in a specific area from
Rented Units Statistical Data, and Profit Margin Data feeding into
the Final Premium algorithm giving the FINAL PREMIUM amount necessary
for business operations and cost for insurance claims coverage.
H. DETAILED DESCRIPTION OF THE INVENTION
[0066] 1. Description of the Preferred Embodiment
[0067] The Insured Tenant Leasing method for writing an insurance
policy is simply designed to give the tenant an alternative means
for protecting their property from loss during the process of an
eviction in the presence or absence of the tenant. This is accomplished
by calculating the final premium amount that is herein disclosed
as the preferred embodiment and invention. The final premium amount
is arrived at through a series of mathematical calculations. The
tenant pays the final premium amount to an insurer for an insurance
contract to cover the tenant's exposure to property (possessions)
loss during an eviction process.
[0068] Input data comprising discrete amounts from three categories
of data described in this disclosure is entered into a software
application spreadsheet or other data processing apparatus comprising
software and mathematical algorithms used to manipulate numerical
data through a series of mathematical calculations. The data is
transformed by means of the mathematical calculations into a final
premium amount utilized by the Insured Tenant Leasing method for
writing an insurance policy to enable coverage for the tenant's
exposure to property (possessions) loss during an eviction.
[0069] The input data transformed by means of the mathematical
calculations into a final premium amount for the Insured Tenant
Leasing method for writing an insurance policy comprises discrete
amounts from three categories of data. This data is entered into
a computer software application spreadsheet or other data processing
apparatus comprising software used to manipulate numerical data
through a series of mathematical calculations. The first (1.sup.st)
category of data is the unit loss value amount comprising pre-selected
moving and pre-selected storage expenses. The second (2.sup.nd)
category is database information comprising the number of rented
units in a specific area and the number of evictions in the same
area. The third (3.sup.rd) category is other data and comprises
profit margin factoring information and profit margin data that
may be required by an insurer to meet underwriting and actuarial
requirements, the costs of doing business and operating expenses.
[0070] The transformation of data and resulting final premium amount
is arrived at by first determining the unit loss value amount that
is to be insured. In this preferred embodiment and invention the
unit loss value amount is the sum of charges agreed to by the insurer
and the insured tenant in an insurance contract for the tenant's
pre-selected moving and storage service expenses in the event of
an eviction. The tenant's incurrence of these expenses to protect
the tenant's property (possessions) from loss is covered. The tenant's
exposure to these expenses to protect the tenant's property are
covered by the payment of the final premium to protect the insured's
property (possessions) from loss during the eviction process and
used as a controlled amount in calculating the premium for the coverage.
[0071] The transformation of data and resulting final premium amount
is arrived at by first determining the unit loss value amount that
is to be insured.
[0072] *Calculated: [PRE-SELECTED MOVING SERVICE EXPENSE +PRE-SELECTED
STORAGE SERVICE EXPENSE]
[0073] The number of rented units (homogenous units) in a specific
geographical area is retrieved, once the unit loss value is determined,
from dwelling rented unit statistical data comprising census statistics
or other rented units informational data.
[0074] *Retrieved: [FROM DWELLING RENTED UNITS STATISTICAL DATA]
[0075] Similarly the number of evictions per month in the same
geographical as the number of rented units is retrieved from courthouse
records statistical data comprising courthouse statistics pertaining
to dispossessory and evictions.
[0076] *Retrieved: [FROM COURTHOUSE RECORDS STATISTICAL DATA]
[0077] The relative frequency of evictions per month in the specific
geographical of consideration is needed for the final premium calculation.
The relative frequency comprises dividing the number of evictions
in the specified geographical area under consideration by the number
of rented units in the same specified geographical area. The resulting
quotient is an aggregate loss frequency due to evictions expected
for the specified geographical area under consideration.
[0078] *Calculated: [TOTAL NUMBER OF EVICTIONS/TOTAL NUMBER OF
RENTED UNITS]
[0079] The total value exposed to loss in the specified geographical
area is also needed in order to calculate the final premium amount.
The total value exposed to loss comprises multiplying the number
of rented units in the specified geographical area under consideration
by the unit loss value amount. The resulting product is total value
exposed to loss.
[0080] *Calculated: [TOTAL NUMBER OF RENTED UNITS*UNIT LOSS VALUE]
[0081] The expectation of losses for the specified geographical
area of consideration in the preferred embodiment is needed in the
series of mathematical calculations that transform the data in into
a final premium amount. The expectation of losses comprises multiplying
the relative frequency of evictions by the total value exposed.
The resulting product is the expectation of losses for the specified
geographical area.
[0082] *Calculated: [RELATIVE FREQUENCY OF EVICTIONS*TOTAL VALUE
EXPOSED]
[0083] The profit margin amount in the calculation comprises a
percentage over cost of insurance to cover claims, operating expenses,
business costs, profits and to fulfill other actuarial requirements.
[0084] *Calculated: [PROFIT MARGIN PERCENTAGE*EXPECTATION OF LOSSES]
[0085] The final premium amount per month comprises the resulting
amount received by dividing the expectation of losses plus profit
margin amount for the specific geographical area by the total number
of rented units in the same specified geographical area.
[0086] *Calculated: [(EXPECTATION OF LOSSES+PROFIT MARGIN AMOUNT)/TOTAL
NUMBER OF RENTED UNITS]
[0087] The final premium amount or fee amount per annum is equal
to the final premium amount per month multiplied by 12.
[0088] *Calculated: [FINAL PREMIUM AMOUNT*12]
[0089] This tangible, concrete and useful final premium amount
transformed from data representing discrete dollar amounts which
is primarily comprised of pre-selected moving and pre-selected storage
expenses and court house statistical data pertaining to evictions
for a specific geographical area and data pertaining to rented units
in the same specific geographical area, by a machine through a series
of mathematical calculations, comprising a unit loss value algorithm
and a premium calculator algorithm, is paid by the tenant to the
insurer through a method for writing an insurance policy as follows:
[0090] The tenant contracts with the insurer authorized to market
the product and that has met all statutory forms, program submissions
and filing requirements by the state jurisdiction for the specified
geographical area under consideration. The product is offered through
an authorized landlord or an authorized insurance agency in compliance
with the regulatory division of the State Department of Insurance
or the state's Insurance Commissioner's Office.
[0091] The point of sale marketing strategy to integrate this embodiment,
comprised in an insurance contract or policy of a property and casualty
(liability) personal line insurance product, into the market place
is determine by the authorized marketing entity. The first and highly
recommended preferred method is for the product to be integrated
into the market place by an offering of the coverage coming from
the limited licensee landlord authorized by the state insurance
commissioner or the authorized landlord's management staff to the
tenant during time of the rental application process. A second method
and less preferred method of integration is for the authorized or
unauthorized landlord to refer the tenant desiring the coverage
to a third party such as a licensed insurance agency authorized
to offer the product to the general public. The embodiment will
be made available through the policy, forms, and contracts of the
personal line insurance product submitted to the insurance commissioners
as filings and approved by the insurance commissioner prior to marketing
the product in the governing insurance commissioner's jurisdiction.
[0092] The landlord if not the offering limited licensee is provided
with the specifics of the insurance contract and the information
pertaining to the pre-selected moving and pre-selected storage services
chosen by the tenant after the tenant contracts with the insurance
company for coverage. When a breach in the lease agreement occurs
and the landlord must apply for a tenant holding over filing or
a tenant failure to pay rent that is due filing and subsequently
a writ of possession is granted and an order for execution and eviction
follows the landlord must contact the insured tenant's pre-selected
moving and storage service instead of calling an eviction service.
The landlord must call the moving and storage service provided using
the pre-selected moving and storage service information provided
from the tenant's insurance contract with the insurer.
[0093] The invention comprises the following series of mathematical
calculations: [0094] Unit Loss Value Amount=[Pre-Selected Moving
Service Expense+Pre-Selected Storage Service Expense] [0095] Number
of Rented Units=[From Dwelling Rented Units Statistical Data] [0096]
Number of Evictions Monthly=[From Courthouse Records Statistical
Data] [0097] Relative Frequency of Evictions=[Total Number Of Evictions/Total
Number Of Rented Units] [0098] Total Value Exposed =[Total Number
Of Rented Units*Unit Loss Value] [0099] Expectation of Losses =[Relative
Frequency Of Evictions*Total Value Exposed] [0100] Profit Margin
Amount =[Profit Margin Percentage*Expectation Of Losses] [0101]
Final Premium Amount Monthly =[(Expectation Of Losses+Profit Margin
Amount)/Total Number Of Rented Units] [0102] Final Premium Amount
or Fee annually=[Final Premium Amount Monthly*12]
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