Method and apparatus for providing professional liability coverage

Apparatus for providing professional liability coverage to a plurality of professionals, each professional being covered during a respective coverage period having a starting date and an ending date, each professional having clients including a substantial number of publicly traded corporations each having a respective securities price at a respective starting price on said starting date, and with respect to whom a professional liability triggering event could cause a decline in said respective securities price, said apparatus comprising:

• correlation logic for determining, for each said professional, a respective number of positions in securities of each of said publicly traded corporations needed to provide said professional liability coverage, based on market correlation between prices of securities of said publicly traded corporations, and on at least one of (a) probability that a professional liability triggering event will occur relative to any one or more of said publicly traded corporations, and (b) likely effect of said professional liability triggering event on said price of securities of said one or more publicly traded corporations;
• a first trading system for securing, as to each said professional, at a respective cost, the right to deliver at a respective delivery price, at any time at least as late as said ending date, said respective number of positions in securities of each of said publicly traded corporations;
• an arithmetic unit for determining from said respective costs, for each said professional, a payment to be charged in exchange for said coverage;
• a second trading system for conferring, as to each said professional, in exchange for said payment, a right to sell, at a respective claim price, at any time during said coverage period, up to said respective number of positions in securities of any one of said publicly traded corporations when there is a professional liability triggering event with respect to any of said publicly traded corporations;
• and
• a printer for generating a coverage document for each said professional, setting forth said payment and evidencing said right to sell.

Apparatus for financing professional liability insurance for a plurality of professionals, each professional being covered by an insurer during a respective coverage period having a starting date and an ending date, each professional having clients including a substantial number of publicly traded corporations each having a respective securities price at a respective starting price on said starting date, and with respect to whom a professional liability triggering event could cause a decline in said respective securities price, said apparatus comprising:

• correlation logic for determining, for each said professional, a respective number of positions in securities of each of said publicly traded corporations needed to provide said professional liability coverage, based on market correlation between prices of securities of said publicly traded corporations, and on at least one of (a) probability that a professional liability triggering event will occur relative to any one or more of said publicly traded corporations, and (b) likely effect of said professional liability triggering event on said price of securities of said one or more publicly traded corporations;
• a first trading system for securing, as to each said professional, at a respective cost the right to deliver at a respective delivery price, at any time as least as late as said ending date, said respective number of positions in securities of each of said publicly traded corporations;
• an arithmetic unit for determining from said respective costs, for each said professional, a payment to be charged to said insurer in exchange for financing said coverage for said professional;
• a second trading system for conferring on said insurer, for each said professional, in exchange for said payment, a right to sell, at a respective claim price, at any time during said coverage period, up to said respective number of positions in securities of any one of said publicly traded corporations when there is a professional liability triggering event with respect to said professional and a respective one of said publicly traded corporations;
• and
• a printer for generating, for delivery to said insurer, a coverage document as to each said professional, setting forth said payment and evidencing said right to sell.

Apparatus for providing professional liability coverage to a professional, during a coverage period having a starting date and an ending date, said professional having clients including a substantial number of publicly traded corporations each having a respective securities price at a respective starting price on said starting date, and with respect to whom a professional liability triggering event could cause a decline in said respective securities price, said apparatus comprising:

• means for determining a respective number of positions in securities of each of said publicly traded corporations needed to provide said professional liability coverage, based on market correlation between prices of securities of said publicly traded corporations, and on at least one of (a) probability that a professional liability triggering event will occur relative to any one or more of said publicly traded corporations, and (b) likely effect of said professional liability triggering event on said price of securities of said one or more publicly traded corporations;
• means for securing at a respective cost a right to deliver at a respective delivery price, at any time at least as late as said ending date, said respective number of positions in securities of each of said publicly traded corporations;
• means for determining from said respective costs a payment to be charged to said professional in exchange for said coverage;
• means for conferring, in exchange for said payment, a right to sell, at a respective claim price, at any time during said coverage period, up to said respective number of positions in securities of any one of said publicly traded corporations when there is a professional liability triggering event with respect to any of said publicly traded corporations;
• and
• a printer for generating a coverage document setting forth said payment and evidencing said right to sell.

Apparatus for providing professional liability coverage to a plurality of professionals, each professional being covered during a respective coverage period having a starting date and an ending date, each professional having clients including a substantial number of publicly traded corporations each having a respective securities price at a respective starting price on said starting date, and with respect to whom a professional liability triggering event could cause a decline in said respective securities price, said apparatus comprising:

• means for determining, for each said professional, a respective number of positions in securities of each of said publicly traded corporations needed to provide said professional liability coverage, based on market correlation between prices of securities of said publicly traded corporations, and on at least one of (a) probability that a professional liability triggering event will occur relative to any one or more of said publicly traded corporations, and (b) likely effect of said professional liability triggering event on said price of securities of said one or more publicly traded corporations;
• means for securing, as to each said professional, at a respective cost, the right to deliver at a respective delivery price, at any time at least as late as said ending date, said respective number of positions in securities of each of said publicly traded corporations;
• means for determining from said respective costs, for each said professional, a payment to be charged in exchange for said coverage;
• means for conferring, as to each said professional, in exchange for said payment, a right to sell, at a respective claim price, at any time during said coverage period, up to said respective number of positions in securities of any one of said publicly traded corporations when there is a professional liability triggering event with respect to any of said publicly traded corporations;
• and
• a printer for generating a coverage document for each said professional, setting forth said payment and evidencing said right to sell.

Apparatus for financing professional liability insurance for a plurality of professionals, each professional being covered by an insurer during a respective coverage period having a starting date and an ending date, each professional having clients including a substantial number of publicly traded corporations each having a respective securities price at a respective starting price on said starting date, and with respect to whom a professional liability triggering event could cause a decline in said respective securities price, said apparatus comprising:

• means for determining, for each said professional, a respective number of positions in securities of each of said publicly traded corporations needed to provide said professional liability coverage, based on market correlation between prices of securities of said publicly traded corporations, and on at least one of (a) probability that a professional liability triggering event will occur relative to any one or more of said publicly traded corporations, and (b) likely effect of said professional liability triggering event on said price of securities of said one or more publicly traded corporations;
• means for securing, as to each said professional, at a respective cost the right to deliver at a respective delivery price, at any time at least as late as said ending date, said respective number of positions in securities of each of said publicly traded corporations;
• means for determining from said respective costs, for each said professional, a payment to be charged to said insurer in exchange for financing said coverage for said professional;
• means for conferring on said insurer, for each said professional, in exchange for said payment, a right to sell, at a respective claim price, at any time during said coverage period, up to said respective number of positions in securities of any one of said publicly traded corporations when there is a professional liability triggering event with respect to said professional and a respective one of said publicly traded corporations;
• and
• a printer for generating, for delivery to said insurer, a coverage document as to each said professional, setting forth said payment and evidencing said right to sell.

A method of using a data processing system including a printer to provide professional liability coverage to a professional, during a coverage period having a starting date and an ending date, said professional having clients including a substantial number of publicly traded corporations each having a respective securities price at a respective starting price on said starting date, and with respect to whom a professional liability triggering event could cause a decline in said respective securities price, said method comprising the steps of:

• using said data processing system, determining a respective number of positions in securities of each of said publicly traded corporations needed to provide said professional liability coverage, based on market correlation between prices of securities of said publicly traded corporations, and on at least one of (a) probability that a professional liability triggering event will occur relative to any one or more of said publicly traded corporations, and (b) likely effect of said professional liability triggering event on said price of securities of said one or more publicly traded corporations;
• using said data processing system to buy and/or sell financial instruments for securing at a respective cost a right to deliver at a respective delivery price, at any time at least as late as said ending date, said respective number of positions in securities of each of said publicly traded corporations;
• using said data processing system, determining from said respective costs a payment to be charged to said professional in exchange for said coverage;
• and
• using said printer of said data processing system, generating a coverage document conferring, in exchange for said payment, a right to sell, at a respective claim price, at any time during said coverage period, up to said respective number of positions in securities of any one of said publicly traded corporations when there is a professional liability triggering event with respect to any of said publicly traded corporations, said coverage document setting forth said payment and evidencing said right to sell.

A method for using a data processing system to provide professional liability coverage to a plurality of professionals, each professional being covered during a respective coverage period having a starting date and an ending date, each professional having clients including a substantial number of publicly traded corporations each having a respective securities price at a respective starting price on said starting date, and with respect to whom a professional liability triggering event could cause a decline in said respective securities price, said process comprising the steps of:

• for each said professional:
• using said data processing system, determining a respective number of positions in securities of each of said publicly traded corporations needed to provide said professional liability coverage, based on market correlation between prices of securities of said publicly traded corporations, and on at least one of (a) probability that a professional liability triggering event will occur relative to any one or more of said publicly traded corporations, and (b) likely effect of said professional liability triggering event on said price of securities of said one or more publicly traded corporations,
• using said data processing system to buy and/or sell financial instruments for securing at a respective cost a right to deliver at said respective starting price, at any time at least as late as said ending date, said respective number of positions in securities of each of said publicly traded corporations,
• using said data processing system, determining from said respective costs a payment to be charged in exchange for said coverage, and
• using said printer of said data processing system, generating a coverage document conferring, in exchange for said payment, a right to sell, at a respective claim price, at any time during said coverage period, up to said respective number of positions in securities of any one of said publicly traded corporations when there is a professional liability triggering event with respect to any of said publicly traded corporations, said coverage document setting forth said payment and evidencing said right to sell;
• using said data processing system, establishing an account for each of said professionals;
• using said data processing system to process collection of said payment and to credit a respective one of said accounts;
• using said data processing system, monitoring for occurrence of a professional liability triggering event with respect to any of said professionals and a respective one of said publicly traded corporations;
• and
• on occurrence of a professional liability triggering event with respect to any one of said professionals:
• using said data processing system, evaluating effect of said professional liability triggering event on price of securities of said respective one of said publicly traded corporations and deriving an exposure therefrom based on a post-event price of said securities,
• honoring said conferred right to sell, as to said one of said professionals, at least up to said exposure, using said data processing system to acquire securities of at least said one of said publicly traded corporations at said post-event price, and
• using said data processing system, exercising said right to deliver said securities of at least said one of said publicly traded corporations at said delivery price.

A method for using a data processing system to finance professional liability insurance for a plurality of professionals, each professional being covered by an insurer during a respective coverage period having a starting date and an ending date, each professional having clients including a substantial number of publicly traded corporations each having a respective securities price at a respective starting price on said starting date, and with respect to whom a professional liability triggering event could cause a decline in said respective securities price, said process comprising the steps of:

• for each said professional:
• using said data processing system, determining a respective number of positions in securities of each of said publicly traded corporations needed to provide said professional liability coverage, based on market correlation between prices of securities of said publicly traded corporations, and on at least one of (a) probability that a professional liability triggering event will occur relative to any one or more of said publicly traded corporations, and (b) likely effect of said professional liability triggering event on said price of securities of said one or more publicly traded corporations,
• using said data processing system to buy and/or sell financial instruments for securing at a respective cost a right to deliver at a respective delivery price, at any time at least as late as said ending date, said respective number of positions in securities of each of said publicly traded corporations,
• using data processing system, determining from said respective costs a payment to be charged to said insurer in exchange for financing said coverage for said professional, and
• using said printer of said data processing system, generating a coverage document for delivery to said insurer conferring on said insurer, in exchange for said payment, a right to sell, at a respective claim price, at any time during said coverage period, up to said respective number of positions in securities of any one of said publicly traded corporations where there is a professional liability triggering event with respect to said professional and a respective one of said publicly traded corporations, said coverage document setting forth said payment and evidencing said right to sell.