Securitized insurance or insurance-like protection
OwnerStephen Chapin, Michael Hadden +1inventors
InventorsStephen Chapin, Michael Hadden, Caitlin Long
Life of this patent
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Abstract
A method of securitized insurance or insurance like protection is provided that eliminates accounting mismatches created when an institution such as a bank, insurance company or corporation wishes to gain protection for an outstanding obligation of payment. An insurance or insurance like protection is purchasable by the institution that protects the institution's outstanding obligation with a structure that can be accounted for on an accrual basis. The accrual basis protection creates accounting conformity for the institution when matched with the accrual accounting basis of the obligation.
Claims22
A method of securitized protection providing a conformity of accrual based accounting structures, comprising the steps of:
- assuming an obligation in one or a multiplicity of single name credit exposures, wherein the obligation is assumed by an institution,
- accounting for the obligation on an accrual basis,
- purchasing an insurance policy for the institution from an insurance company in exchange for insurance premiums such that the institution is also a policy holder and
- accounting for the insurance policy on an accrual basis,
- wherein the insurance policy provides single name credit protection for the obligation.
A method of providing insurance or insurance like protection on corporate loan portfolios, comprising the steps of:
- drafting a policy such that the policy qualifies for accrual accounting treatment afforded to a financial guaranty contract sunder FAS 133,
- issuing the policy to an institution in exchange for insurance premiums such that the institution is also a policyholder,
- designating at least one single name credit protection under the policy for an at least one obligation assumed by the institution,
- wherein the at least one single name obligation is accounted on an accrual basis.
Dependencies are inferred from the claim text.