Method and system for providing an insurance policy having dormancy features

A computer-implemented method for providing an underwritten insurance policy comprising:

• receive underwriting data related to an entity to be insured using a computer processor;
• using the computer processor to issue the underwritten insurance policy to the entity based on the underwriting data, wherein the insurance policy defines an active coverage state and coverage and benefits to be provided to the entity during the active coverage state, and wherein the insurance policy further defines a dormant state during which no coverage or benefits are to be provided to the entity, terms under which the dormant state can be commenced, and terms under which the active coverage state can be commenced to terminate the dormant state;
• using the computer processor to place the insurance policy in the active coverage state;
• using the computer processor to verify receipt of an active coverage premium and a first dormancy premium when the insurance policy is in the active coverage state, wherein verifying receipt of the first dormancy premium maintains an option of placing the insurance policy in the active coverage state into the dormant state;
• using the computer processor to place the insurance policy in the dormant state;
• and
• using the computer processor to verify receipt of a second dormancy premium when the insurance policy is in the dormant state, wherein verifying receipt of the second dormancy premium maintains an option of placing the insurance policy in the dormant state into the active coverage state;
• and
• storing the active coverage premium, and the first and second dormancy premium using an electronic database.