US 7,580,872 B2 · Liquid insurance contracts

Abstract

A liquid insurance contract (LIC) comprises a security which is traded or tradable and which has cash flows to the issuer based upon a liability whose exact value is unknown at the time of issuance. A method for creating and trading these LICs, as well as other financial products derived from LICs, may include any of the following steps: writing at least one LIC; preparing regulatory filings for at least two LICs; issuing the two LICs; preparing regulatory filings for a financial product which includes at least one detachable LIC provision; issuing the financial product; creating at least one underwriter as a closed end fund owned by a parent company; placing ownership of at least a portion of an issue of the financial product in an underwriter owned by a parent company; spinning off the underwriter from the parent company using at least one stock dividend; trading shares of the underwriter; reporting information on trades and positions of the underwriter; and valuing the underwriter using analytic modeling, sensitivity testing, portfolio analysis, and/or investment analysis.

Claims48

Dependent claims

A business method for unbundling the sale, administration, risk transfer and suretyship of an insurance policy, comprising the steps of:

selling the insurance policy by an insuring company to an insured;
contracting with a service provider to service the insurance policy;
issuing a security using a computer or computer network by a security issuing company other than the insuring company that obtains future cash payments in consideration for payments under the insurance policy;
and
providing a surety guarantee by other than the issuing company and the insuring company, for the payment by the issuing company of the cash payments of the security.

2 more elements

Dependencies are inferred from the claim text.

Liquid insurance contracts

Life of this patent

Liquid insurance contracts

Life of this patent

Abstract

Claims48