# US 2019/0244305 A1 · Systems and methods for automated matching and conversion of term life insurance policies > Agents: this data is available as JSON from the patentgrep API and MCP server — see https://patentgrep.com/llms.txt - Number: US 2019/0244305 A1 - Document ID: US20190244305A1 - Status: Published application - Kind: A1 - Application number: 16/388,317 - Filed: 2019-04-18 - Published: 2019-08-08 - Earliest claimed: 2013-09-03 - Assignees: Integrated Plan Design LLC. - Applicants: Integrated Plan Design LLC - Inventors: Andrew Alan Hyman; Jon Franklin Davis; Jeffrey Young - Web page: https://patentgrep.com/patent/US20190244305A1 ## CPC - G06Q 40/08: Insurance - G06Q 40/0822: {by determining insurance risk or fault} - G06Q: INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR ## Abstract An exemplary aspect comprises a computer system with a receiving component that receives application information for an insurance policy that extends the term of an existing life insurance product, and is pre-paid for by a third party, the third party to be paid fees based on the customer's selection of one of a first option providing the customer with the right of first refusal to continue the insurance policy, and a second option providing the third party with the right of first refusal to continue the insurance policy; an underwriting component that determines whether the customer qualifies for the insurance policy; a pricing component that calculates the fees to be paid by the customer to the third party; and a closing component that provides relevant closing documentation for the insurance policy to at least the customer, the insurance company, and the third party. ## Claims ### Claim 1 An automated computer system comprising: at least one processor, and at least one non-transitory memory storing a computer executable instructions, which when executed by the at least one processor, causes said processor to operate as: a receiving component, configured to receive electronic application data for converting a convertible term life insurance policy of a policy owner into a permanent life insurance policy with an insurance company; an underwriting component and a pricing component, configured to automatically analyze the received electronic application data and determine whether the owner is a qualified customer for the conversion, and also to perform an iterative computerized selection of a permanent life insurance policy, financed at least in part by a third party, that best fits a plurality of the determined customer qualifications and one or more pricing and cost requirements of the pricing component, wherein the determination by the underwriting component comprises an identification of conversion rights in the owner's convertible term life insurance and a determination of the permanent life insurance policy into which the convertible term life insurance may be convertible; wherein the determination by the pricing component comprises an automated iterative analysis of a mortality assumptions and the one or more pricing and costs requirements; a processing component, configured to facilitate conversion of the owner's convertible term life insurance policy into the permanent life insurance policy with the insurance company upon determination that the policy owner is the qualified customer for the conversion into at least one permanent insurance policy of the third party; a selection component, configured to select the permanent life insurance policy of the third party that best fits the determined customer qualifications and the determined one or more pricing and cost requirements of the pricing component; and a generating component, configured to automatically generate an agreement to be executed between a third party and the policy owner, wherein the generated agreement comprises a plurality of contractual obligations between the third party and the owner for a specified period of time, the obligations including: a first obligation in which the third party is obligated to pay premiums for the permanent life insurance policy to the insurance company that the owner is otherwise obligated to pay; a second obligation in which the owner is obligated to pay one or more fees to the third party; an assignment to one of the owner or the third party a first right to retain the permanent life insurance policy upon expiration of the specified period of time, and a calculation of fees that the owner is obligated to pay to the third party. ### Claim 2 (depends on 1) The computer system of claim 1, wherein the determination by the underwriting component also comprises a comparison of a past and current underwriter issue or risk class for the owner policy and a determination whether there has been a shift in the issue or risk class for the policy owner. ### Claim 3 (depends on 1) The computer system of claim 1, wherein the determination by the underwriting component also comprises an analysis of a past and present health status of the owner. ### Claim 4 (depends on 1) The computer system of claim 1, wherein the determination by the pricing component also comprises an automated iterative analysis of an expected rate of return for each permanent life insurance policy that fits a plurality of the determined customer qualifications and one or more pricing and cost requirements. ### Claim 5 (depends on 1) The computer system of claim 1, wherein the one or more pricing and costs requirements comprise a calculation of an issue expense, a calculation of a policy conversion costs, and a determination of a maintenance fees amount that the policy owner agrees to pay. ### Claim 6 (depends on 1) The computer system of claim 1, wherein the fees that the owner is obligated to pay to the third party are calculated at least partially as a sum of (a) a cash flow value, the cash flow value being a lower numeric value in a case where the first right is assigned to the third party than in a case where the first right is assigned to the owner, (b) expected premiums to be paid by the third party, and (c) expenses to be occurred by the third party in relation to the permanent life insurance policy, less (d) death benefits of the permanent life insurance policy. ### Claim 7 (depends on 1) The computer system of claim 1, wherein the contractual obligations between the third party and the owner for a specified period of time include a right of first refusal, exercisable by either the policy owner or the third party. ### Claim 8 (depends on 7) The computer system of claim 7, wherein in order to exercise said right of first refusal, the policy owner is required to repay premiums paid by the third party, and the assignment of the first right to retain the permanent life insurance policy is executed for the benefit of the policy owner upon repayment of the premiums. ### Claim 9 (depends on 8) The computer system of claim 8, wherein the repayment of the premiums is secured by a collateral assignment recorded with said insurance company, and payment of the fees to the third party is collateralized by a death benefit of the insurance policy. ### Claim 10 (depends on 7) The computer system of claim 7, wherein when the third party exercises the first refusal right, then the assignment is executed for the benefit of the third party and the premiums paid by the third party for the policy owner are deemed repaid. ### Claim 11 (depends on 1) The computer system as in claim 1, wherein if the policy owner dies during a term or an extension period of the insurance policy, while the required premiums are paid by the third party, the third party is repaid the amount of the premiums paid from a death benefit of the insurance policy, and the owner's designated beneficiaries receive at least a portion of the balance of the death benefit. ### Claim 12 (depends on 1) A computer system as in claim 1, wherein the permanent life insurance policy is issued through a split dollar program. ### Claim 13 A computerized method for automatically facilitating a conversion of an insurance policy, said method comprising: (1) automatically receiving an electronic application data for converting a convertible term life insurance policy of a policy owner into a permanent life insurance policy with an insurance company; (2) performing underwriting and pricing processing, to automatically analyze the received electronic data and determine whether the owner is a qualified customer for the conversion, and performing an iterative computerized selection of a permanent life insurance policy, financed at least in part by a third party, that is determined to best fit the determined customer qualifications and one or more pricing and cost requirements, wherein the underwriting processing comprises an identification of conversion rights in the owner's convertible term life insurance and a determination of the permanent life insurance policy into which the convertible term life insurance may be convertible; wherein the determination by the pricing component comprises an automated iterative analysis of a mortality assumptions and the one or more pricing and costs requirements; (3) facilitating conversion of the owner's convertible term life insurance policy into a permanent life insurance policy with the insurance company upon determination of the owner as the qualified customer for the conversion; (4) selecting the permanent life insurance policy of the third party that best fits the determined customer qualifications and the determined one or more pricing and cost requirements of the pricing component; and (5) automatically generate an agreement to be executed between a third party and the policy owner, wherein the generated agreement comprises a plurality of contractual obligations between the third party and the owner for a specified period of time, the obligations including: a first obligation in which the third party is obligated to pay premiums for the permanent life insurance policy to the insurance company that the owner is otherwise obligated to pay; a second obligation in which the owner is obligated to pay one or more fees to the third party; an assignment to one of the owner or the third party a first right to retain the permanent life insurance policy upon expiration of the specified period of time, and a calculation of fees that the owner is obligated to pay to the third party. ### Claim 14 (depends on 13) The method of claim 13, wherein the calculation of fees that the owner is obligated to pay to the third party comprises automatically calculating the one or more fees the owner is obligated to pay to the third party, in part, as a sum of (a) a cash flow value, the cash flow value being a lower numeric value in a case where the first right is assigned to the third party than in a case where the first right is assigned to the owner, (b) expected premiums to be paid by the third party, and (c) expenses to be occurred by the third party in relation to the permanent life insurance policy, less (d) death benefits of the permanent life insurance policy. ### Claim 15 (depends on 13) The method of claim 13, wherein the underwriting processing step comprises performing a comparison of a past and current underwriter issue or risk class for the owner policy and determining whether there has been a shift in the issue or risk class for the policy owner. ### Claim 16 (depends on 13) The method of claim 13, wherein the underwriting processing step comprises an analysis of a past and present health status of the owner. ### Claim 17 (depends on 13) The method of claim 13, wherein the pricing processing comprises an automated iterative analysis of an expected rate of return for each permanent life insurance policy that fits a plurality of the determined customer qualifications and one or more pricing and cost requirements. ### Claim 18 (depends on 13) The method of claim 13, wherein the one or more pricing and costs requirements comprise a calculation of an issue expense, a calculation of a policy conversion costs, and a determination of a maintenance fees amount that the policy owner agrees to pay. ### Claim 19 (depends on 13) The method of claim 13, wherein the contractual obligations between the third party and the owner for a specified period of time include a right of first refusal, exercisable by either the policy owner or the third party. ### Claim 20 (depends on 19) The method of claim 19, wherein in order to exercise said right of first refusal, the policy owner is required to repay premiums paid by the third party, and the assignment of the first right to retain the permanent life insurance policy is executed for the benefit of the policy owner upon repayment of the premiums. ### Claim 21 (depends on 20) The method of claim 20, wherein the repayment of the premiums is secured by a collateral assignment recorded with said insurance company, and payment of the fees to the third party is collateralized by a death benefit of the insurance policy. ### Claim 22 (depends on 19) The method of claim 19, wherein when the third party exercises the first refusal right, the assignment is executed for the benefit of the third party and the premiums paid by the third party for the policy owner are deemed repaid. ### Claim 23 (depends on 13) The method of claim 13, wherein if the policy owner dies during a term or an extension period of the insurance policy, while the required premiums are paid by the third party, the third party is repaid the amount of the premiums paid from a death benefit of the insurance policy, and the owner's designated beneficiaries receive at least a portion of the balance of the death benefit. ### Claim 24 (depends on 13) The method of claim 13, wherein the permanent life insurance policy is issued through a split dollar program.