US20100228572A1 - System and Method for Managing a Group Insurance Policy - Google Patents
System and Method for Managing a Group Insurance Policy Download PDFInfo
- Publication number
- US20100228572A1 US20100228572A1 US12/718,556 US71855610A US2010228572A1 US 20100228572 A1 US20100228572 A1 US 20100228572A1 US 71855610 A US71855610 A US 71855610A US 2010228572 A1 US2010228572 A1 US 2010228572A1
- Authority
- US
- United States
- Prior art keywords
- certificate
- certificates
- life insurance
- insurance policy
- initial payment
- Prior art date
- Legal status (The legal status is an assumption and is not a legal conclusion. Google has not performed a legal analysis and makes no representation as to the accuracy of the status listed.)
- Abandoned
Links
Images
Classifications
-
- G—PHYSICS
- G06—COMPUTING; CALCULATING OR COUNTING
- 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
- G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
- G06Q40/08—Insurance
-
- G—PHYSICS
- G06—COMPUTING; CALCULATING OR COUNTING
- 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
- G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
-
- G—PHYSICS
- G06—COMPUTING; CALCULATING OR COUNTING
- 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
- G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
- G06Q40/10—Tax strategies
Definitions
- This disclosure relates in general to the field of financial systems, and more particularly to a system and method for managing a group insurance policy.
- Insurance in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is sometimes defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium.
- An insurer typically is a company selling the insurance; and an insured typically is the person or entity buying the insurance. The insurance rate is often a factor used to determine the amount, called the premium, to be charged for a certain amount of insurance coverage.
- Life insurance typically provides a monetary benefit to a designated beneficiary, which typically is payable upon the death of an insured person. Life insurance policies often allow the option of having the proceeds paid to the beneficiary either in a lump sum cash payment or an annuity.
- Group life policies are typically insurance policies offered to a group of people who share a qualifying characteristic or membership. Most often they are offered to employees, though they may also be offered through organizations or even commercial outlets, such as credit cards or magazines and newspapers.
- a method for providing a group life insurance policy with a plurality of certificates funded by a sponsor is provided.
- Each certificate provides a death benefit to at least one beneficiary designated by a person insured under the certificate.
- An initial payment is determined, which is to be paid by the sponsor in exchange for the certificates. At least a respective portion of the initial payment is allocated to each certificate of the plurality of certificates.
- the method may further include monitoring for a non-death-related event that terminates a death benefit provided by a certificate.
- a certificate is exchanged for a new certificate.
- the new certificate may provide a death benefit to at least one beneficiary designated by a person insured under the new certificate.
- the exchanging of certificates may include reallocating to the new certificate at least a portion of the initial payment allocated to the one of the plurality of certificates.
- Certain embodiments may provide various technical advantages. In some embodiments, for example, at least some administrative costs associated with particular embodiments may be reduced. In addition, some embodiments may enable tax-preferred growth of various investments. In various embodiments, portions of a financial account may be automatically and/or semi-automatically reallocated among multiple certificates issued pursuant to a group life insurance policy. Such reallocation may, for example, be configured to increase the likelihood that investments associated with a group life insurance policy may have tax-preferred investment growth.
- FIG. 1A illustrates a system for providing a group life insurance policy according to a particular embodiment
- FIG. 1B illustrates a particular embodiment of a group life insurance policy
- FIG. 2 is a table illustrating an example of the change in value of a financial account associated with a particular embodiment of a group life insurance policy
- FIG. 3 is a high level diagram of an example system that may be used to provide services pursuant to a particular embodiment of a group life insurance policy;
- FIG. 4 is a flowchart illustrating example steps for providing a plurality of exchangeable certificates pursuant to a particular embodiment of a group life insurance policy
- FIGS. 5A-5C illustrate example contents of respective data files that may be used to manage various certificates issued pursuant to a group life insurance policy according to a particular embodiment
- FIG. 6 is a flowchart illustrating example steps for managing the exchanges of a plurality of certificates pursuant to a particular embodiment of a group life insurance policy.
- FIGS. 1A through 6 of the drawings like numerals being used for like and corresponding parts of the various drawings. It should be understood at the outset that although example implementations of embodiments of the disclosure are described below, the present disclosure may be implemented using any number of techniques, whether currently known or not. The present disclosure should in no way be limited to the example implementations, drawings, and techniques illustrated below.
- FIG. 1A is a block diagram illustrating a portion of a system 100 for providing a group life insurance policy 102 according to a particular embodiment.
- the illustrated portion of system 100 generally includes an issuer 104 capable of providing any of a variety of group life insurance policies 102 to one or more sponsors 106 .
- Group life insurance policies 102 generally provide a benefit for multiple beneficiaries, generally designated by one or more designators 108 .
- Some group life insurance policies 102 may include certain provisions as described below with reference to FIG. 1B .
- Group life insurance policy 102 may be a group life insurance policy for the employees of sponsor 106 . More specifically, group life insurance policy 102 may be a sponsor-owned group life contract that may be substantially funded for a multi-year time period using an account established at the inception of group life insurance policy 102 . Various embodiments may provide that the time period group life insurance policy 102 is initially intended to endure may be predetermined, subject to modifications, and/or extendable; however, some other group life insurance policies 102 may not contractually endure for a predetermined time period but instead may endure, for example, for so long as the group life insurance policy 102 is sufficiently funded by initial aggregate payment 158 and/or any other subsequent cash outlays paid by sponsor 106 to issuer 104 .
- Group life insurance policy 102 may be structured to provide basic life insurance benefits for multiple designators 108 , including future designators 108 , who in some embodiments may have an ongoing or prior relationship with sponsor 106 (e.g., an employer-employee relationship, a partner relationship, etc.).
- group life insurance policy 102 may be a variable life insurance policy, a universal life insurance policy, and/or a flexible premium life insurance policy. Other forms of life insurance policies may be used without departing from the scope of the present invention.
- the value and/or services provided by issuer 104 to sponsor 106 pursuant to group life insurance policy 102 may be at least partially implemented using logic embodied in computer-readable media.
- Issuer 104 generally refers to any entity capable of offering and/or managing group life insurance policy 102 .
- issuer 104 may represent a bank, an insurance company, a partnership, some other business entity, a licensed individual, and/or a system engaged in the sale and/or management of one or more group life insurance policies 102 .
- Issuer 104 may also represent multiple entities that operate together to provide, sell, and/or manage group life insurance policy 102 .
- issuer 104 may be wholly or partially owned by a parent company and may join in the filing of a consolidated federal income tax return with the parent company on a calendar year basis, using an accrual method of accounting.
- issuer 104 may own at least a portion of one or more subsidiary companies capable of offering a group life insurance policy 102 to sponsor 106 .
- Sponsor 106 generally refers to any entity or entities capable of sponsoring or purchasing group life insurance policy 102 .
- sponsor 106 may be one or more persons, companies, partnerships, associations, any combination of the preceding, or any other entity capable of sponsoring or purchasing group life insurance policy 102 .
- sponsor 106 is an employer who provides consideration in exchange for a group life insurance policy 102 pursuant to which multiple designators 108 employed by sponsor 106 may each be entitled to designate a recipient of a benefit.
- various conditions and/or events may affect whether the intended recipient is ultimately entitled to the benefit.
- a designated recipient may be entitled to a death benefit pursuant to group life insurance policy 102 if a corresponding designator 108 dies while employed by sponsor 106 , or within a time period set with reference to, a particular event satisfying certain conditions.
- Each designator 108 generally refers to any entity entitled to designate at least one beneficiary as recipient of a benefit pursuant to group life insurance policy 102 .
- designator 108 may represent an individual, group of individuals, an employee of an employer sponsor 106 , an associate or partner of a partnership sponsor 106 , a member of an association sponsor 106 , any combination of the preceding, and/or some other entity that may be referred to for purposes of determining benefits, fees, guaranteed rates, expected liabilities, and/or other features of group life insurance policy 102 , as described further with reference to FIG. 1B .
- FIG. 1B is a block diagram illustrating a portion of group life insurance policy 102 according to a particular embodiment.
- group life insurance policy 102 generally includes provisions related to: a group policy contract 150 , the issuance of certificates 152 , death benefits 154 , interest rates 156 , an initial aggregate payment 158 , a financial account 160 , investments 162 , and/or asset transfer agreements 164 .
- a group policy contract 150 the issuance of certificates 152 , death benefits 154 , interest rates 156 , an initial aggregate payment 158 , a financial account 160 , investments 162 , and/or asset transfer agreements 164 .
- group life insurance policy 102 may include multiples of these elements, each of these elements may also include numerous subcomponents, and/or various embodiments may include provisions related to some, none, or all of the illustrated elements.
- group policy contract 150 is a variable group life contract structured to provide basic life insurance benefits for designators 108 .
- group policy contract 150 may include provisions concerning the issuance of a plurality of certificates 152 .
- each certificate 152 issued pursuant to group policy contract 150 and/or group life insurance policy 102 may represent a variable contract and/or may be designed to qualify as a separate account life insurance contract for tax purposes.
- each certificate 152 may be related or assigned to a respective designator 108 and may represent a respective death benefit 154 and/or the beneficiary designation(s) of the respective designator 108 .
- each certificate 152 may insure the life of a covered designator 108 while the designator 108 remains employed by sponsor 106 ; and the covered designator 108 may have the right to designate one or more recipients of death benefit 154 , which is payable under the certificate 152 upon the designator's 108 death.
- the employer sponsor 106 may retain the remainder of rights with respect to each certificate 152 , including, for example, the right to access the cash value of the certificate 152 at any time through a partial withdrawal, surrender, and/or exchange of the certificate 152 .
- group life insurance policy 102 may be structured such that, rather than continuing coverage after a covered designator 108 is no longer employed by sponsor 106 , the sponsor 106 may seek to exchange the corresponding certificate 152 for a new certificate 152 insuring the life of a different designator 108 who is a current or prospective employee of sponsor 106 .
- coverage under certificates 152 may not extend beyond the normal retirement age of designator 108 employees (e.g., age 65) and in many cases may terminate sooner due to employee turnover. However, in some embodiments coverage under at least some of certificates 152 may continue into the retirement of respective designators 108 .
- the costs associated with some certificates 152 may vary depending, for example, on the age, gender, salary, job grade, lifestyle and/or health of the corresponding designator 108 and/or the value of the associated death benefit 154 . In particular embodiments, at least some of these costs may be calculated using values retrieved from a digitally-stored lookup table. As explained further below, some certificates 152 may be represented, stored, modified, deleted, created, exchanged, and/or otherwise managed in accordance with logic embodied in computer-readable media. Thus, certificates 154 may exist in any suitable form, such as, for example, paper documents, a virtual form represented by data embodied in computer-readable media, and/or some other suitable form.
- each death benefit 154 may provide that payment(s) are to be made to one or more beneficiaries designated by a respective designator 108 .
- entitlement to the death benefit 154 payment(s) may be contingent upon certain conditions, such as, for example, the death of the respective designator 108 ; however, entitlement to death benefit 154 payment(s) may be contingent upon any of a variety of additional and/or alternative conditions and/or events.
- sponsor 106 employs designators 108
- entitlement to payment(s) pursuant to a particular death benefit 154 may be contingent upon whether the corresponding designator 108 dies while employed by the employer sponsor 106 .
- the death benefit 154 may still be payable to a designated beneficiary upon the death of the particular designator 108 provided that the designator 108 has not changed the beneficiary.
- death benefit 154 may provide that payment(s) be made in the amount of the highest value resulting from multiple calculation methods. For example, death benefit 154 may provide for payment of an amount substantially equal to the greater of (i) the “face amount” coverage under a corresponding certificate 152 , and (ii) the amount obtained by dividing a cash value associated with the certificate 152 (referred to herein as the “certificate fund” allocable to the certificate 152 ) by a net single premium factor.
- the face amount coverage of each certificate 152 may be at least partially determined, for example, with reference to the base salary of a respective designator 108 and/or with reference to one or more other values related to a respective designator 108 .
- a net single premium factor per $1 of a death benefit 154 may be determined, at least in part, in accordance with the one or more of the following: (i) on the basis of interest at the greater of an annual effective rate of 4% or in accordance with one or more interest rates 156 and/or interest rate 156 formulas that may be specified in group life insurance policy 102 ; (ii) using mortality charges based on factors that may include, for example, the age, gender, lifestyle, and/or health of a corresponding designator 108 , and/or (iii) by taking into account a level of death benefit 154 per $1 that may be provided at least until a particular event occurs.
- Some example events may include the termination of a corresponding designator's 108 employment by sponsor 106 , the attainment of the age 100 by the corresponding designator 108 , and/or any other of a variety of events.
- at least some of the mortality charges may be retrieved and/or derived at least partially from one or more digitally-stored lookup tables.
- death benefit 154 is illustrated as a separate element of group life insurance policy 102
- death benefit 154 may be formed from multiple components and/or may be included as part of another element of group life insurance policy 102 .
- each death benefit 154 may be represented by, and/or payable under, a respective certificate 152 that may be issued pursuant to, and/or sometime after the formal execution of, group life insurance policy 102 .
- interest and elements of interest generally refer to any gain that may accrue on an investment.
- interest rates 156 generally refer to fixed and/or variable rates of return on financial account 160 and/or investments 162 ; however, elements of interest may be at least partially based on any of a variety of other factors.
- various embodiments may include elements of interest that may be at least partially based on the market performance of investments 162 , and/or one or more market indices.
- initial aggregate payment 158 represents one or more payments exchanged for group life insurance policy 102 that are collectively expected to substantially fund the costs associated with group life insurance policy 102 for a period of time that may last multiple months or years (e.g., a time period lasting six months, one year, fifteen months, two years, five years, ten years, twenty years, twenty-five years, thirty years, fifty years, some time period in between any one of these examples, or some other duration that may or may not be calculated in terms of months and years).
- months or years e.g., a time period lasting six months, one year, fifteen months, two years, five years, ten years, twenty years, twenty-five years, thirty years, fifty years, some time period in between any one of these examples, or some other duration that may or may not be calculated in terms of months and years).
- sponsor 106 may pay initial aggregate payment 158 to issuer 104 as a single cash outlay at the inception of group life insurance policy 102 ; and issuer 104 may, for example, automatically and periodically deduct a respective portion of initial aggregate payment 158 and/or the interest accrued by initial aggregate payment 158 to satisfy costs and/or premiums associated with each certificate 152 .
- initial aggregate payment 158 may be determined in any of a variety of ways.
- initial aggregate payment 158 may have a value contractually agreed to by issuer 104 and sponsor 106 .
- the agreed upon value may or may not depend on any of a variety of sponsor-based and/or issuer-based calculations.
- some initial aggregate payments 158 may be calculated at least in part by factoring one or more of the following: the total number of designators 108 ; the amount of coverage provided under each certificate 152 ; any of a variety of tax considerations, (e.g., possible limitations related to modified endowment contracts (“MEC”), as discussed below); the interest initial aggregate payment 158 is expected to accrue over time; the anticipated duration of group life insurance policy 102 , which may last for multiple years; and/or the effect of each designator's 108 age on the cost of providing insurance.
- MEC modified endowment contracts
- initial aggregate payment 158 may be calculated with reference to a total sum of aggregate costs expected to occur for each certificate 152 (e.g., initial aggregate payment 158 may be less than, substantially equal to, or greater than the total sum of aggregate costs expected to occur for each certificate 152 ).
- financial account 160 may represent a principal balance including any amounts deposited by sponsor 106 to issuer 104 together with accrued growth due to a return on one or more investments. At least some of the value of financial account 160 may be distributed among one or more investments 162 . In some embodiments, each investment 162 may provide a fixed and/or variable return. The value of financial account 160 may be distributed among any combination of investments 162 . For example, some investments 162 may represent a municipal bond, a bond fund, a money market account, a corporate security, an index fund, a mutual fund, a real estate investment trust, hedges, swaps, derivatives, or any other appropriate type of investment. In certain embodiments, financial account 160 may include one or more investments 162 associated with multiple financial entities. In various embodiments, group life insurance policy 102 may be structured and managed such that investments 162 may grow in a tax-preferred manner, as explained further below.
- asset transfer agreement 164 may include provisions allowing for all or a portion of the value of financial account 160 to be transferred between sub-accounts or categories of investments 162 .
- the transfer may be implemented by issuer 104 at the direction of sponsor 106 . That is, in certain embodiments, the use of asset transfer agreement 164 may serve to allow sponsor 106 to exercise some direction over the distribution of assets within financial account 160 .
- issuer 104 may manage and/or maintain financial account 160 and any associated investments 162 , at least in part, using an automated or semi-automated computer system, as explained further below.
- different or additional elements of group life insurance policy 102 may be purchased, elected, or issued at different times. For example, varying certificates 152 , elements of interest, investments 162 , and/or asset transfer agreements 162 may be purchased, elected, and/or exchanged at the inception of group life insurance policy 102 or at anytime thereafter.
- group life insurance policy 102 may be structured such that sponsor 106 may make an initial aggregate payment 158 to issuer 104 in the form of a single cash outlay at the inception of group life insurance policy 102 .
- the initial aggregate payment 158 may have a value calculated to fully or partially fund the obligations of sponsor 106 to issuer 104 throughout a time period that may last multiple days, months, and/or years.
- initial aggregate payment 158 may be used in establishing financial account 160 .
- sponsor 106 may deposit or otherwise transfer additional funds into financial account 160 from time to time as needed. Issuer 104 may automatically and/or periodically withdraw from financial account 160 any premium payments, fees, taxes, etc. associated with maintaining, managing, exchanging, surrendering, etc.
- Various embodiments may automatically manage the received initial aggregate payment 158 such that a cash surrender value associated with the group life insurance policy is less than or equal to a total of a remainder of periodic costs yet to be paid for each certificate 152 .
- the use of initial aggregate payment 158 and/or financial account 160 to fund group life insurance policy 102 for multiple years may be explained further with reference to FIG. 2 .
- FIG. 2 is a table illustrating an example of the change in value of a particular financial account 160 associated with a particular embodiment of group life insurance policy 102 .
- financial account 160 initially has an approximate value of $155 million, which may be paid, for example, by sponsor 106 to issuer 104 at the inception of group life insurance policy 102 .
- financial account 160 reduces in value to approximately $153 million.
- the reduction in value of financial account 160 during the first year of its existence may be caused by any of a variety of factors including, for example, the satisfaction of one or more death benefit 154 claims; fees associated with setting up, maintaining, and/or managing financial account 160 ; and/or any premium payments, taxes, fees etc. associated with issuing, exchanging, maintaining, and/or surrendering certificates 152 .
- financial account 160 continues to decline in value until sometime during the eighth or ninth year, at which point financial account 160 begins to increase in value.
- the illustrated embodiment includes an inflection point in the changing value of financial account 160 that occurs sometime during the eighth or ninth year, various embodiments may include one or more inflection points that occur at different times or may include no inflection points at all (e.g., financial account 160 may continually decline).
- the illustrated increase in value of financial account 160 may be due to any variety of reasons. For example, the increase in value may be due to interest accrued by financial account 160 and/or due to the performance of investments 162 .
- financial account 160 has a value of approximately $153 million. In this example, therefore, financial account 160 has approximately the same value at the end of a twenty-year time period that it did at the end of the first year, though at least some of the various parties associated with group life insurance policy 102 may have derived any of a variety of various benefits from group life insurance policy 102 throughout this entire time period.
- FIG. 2 may be explained with reference to an alternative group life insurance policy 102 that is instead funded by sponsor 106 in multiple payments that cover the expenses, fees, taxes, premiums, etc. as they arise or at periodic intervals.
- Some alternative arrangements may be thought of as having no financial account 160 or one that is substantially empty.
- sponsor 106 may instead agree to pay expenses as they incur and otherwise maintain any additional cash on hand, which cash may be used by sponsor 106 at least temporarily for purposes other than funding group life insurance policy 102 .
- Such an alternative arrangement may provide substantially similar insurance coverage over time as the illustrated embodiment of FIG. 2 , at the end of a twenty year period such an alternative arrangement may ultimately consume approximately the same $155 million expenditure without necessarily rendering sponsor 106 one or more assets at the end of a twenty-year period that is equivalent to the one illustrated in FIG. 2 .
- the growth of financial account 160 may be maximized at least partially by minimizing the deductions made to its principle balance over time.
- Some deductions may arise, for example, from administrative costs, human labor, maintenance fees, premiums, taxes, etc. associated with group life insurance policy 102 . Any of a variety of techniques may be used to minimize these and other deductions made over time to financial account 160 .
- financial account 160 may be managed such that investments 162 maintain optimized and potentially tax-preferred investment 162 growth by applying a system of rules that may, for example, be configured to: allocate portions of financial account 160 among multiple certificates 152 ; optimize the issuance, exchange, surrender etc. of certificates 152 ; and/or ensure group life insurance policy 102 is adequately funded.
- Various embodiments may provide all, some, or none, of the above functions and features, and/or other functions and features, using an automated or semi-automated system, as explained further with reference to FIGS. 3 through 6 .
- FIG. 3 is a high level diagram of an example system 300 that may be used to provide services pursuant to a particular embodiment of group life insurance policy 102 .
- system 300 includes one or more clients 302 , investment systems 304 , servers 306 , and data storage 308 , all coupled together through one or more networks 303 .
- the term “couple” and/or “coupled” refers to any direct or indirect communication between two or more elements, whether or not those elements are in physical contact with one another.
- the illustrated embodiment includes various example components, in alternative embodiments one or more of clients 302 , investment systems 304 , servers 306 , and data storage 308 can be excluded from system 300 and/or one or more of these elements may be combined.
- Each client 302 may comprise any computing and/or communication device capable of enabling the communication of information to and/or from network 303 or another component in system 300 .
- the communication between a particular client 302 and one or more of the servers 306 may be performed internally, such as, for example, via a system bus, and/or the communication between a particular client 302 and one or more of the servers 306 may be through network 303 .
- clients 302 may each be capable of communicating one or more requests through network 303 , which request(s) may be received and processed, for example, by server 306 using Manager Application 310 .
- Network 303 may comprise any combination of wireless and/or wireline networks capable of supporting communication between network elements.
- network 303 may comprise a data network, a public switched telephone network (PSTN), an integrated services digital network (ISDN), a local area network (LAN), a wide area network (WAN), a metropolitan area network (MAN), all or a portion of the global computer network known as the Internet, and/or other communication systems or combination of communication systems at one or more locations.
- PSTN public switched telephone network
- ISDN integrated services digital network
- LAN local area network
- WAN wide area network
- MAN metropolitan area network
- Each investment system 304 generally refers to any system capable of enabling the provision of financial services.
- investment system 304 is capable of communicating information to server 306 and/or interpreting communications received from server 306 .
- Some interpreted communications may be used to trigger any of a variety of financial transactions.
- some financial transactions may include modifying, buying, and/or selling any of a variety of investments 162 (e.g., a municipal bond, a bond fund, a money market account, a corporate security, an index fund, a mutual fund, a real estate investment trust, hedges, swaps, derivatives, or any other appropriate type of investment).
- investment system 304 may include one or more clients substantially similar in structure and function to clients 302 and/or one or more servers substantially similar to structure and function as server 306 .
- issuer 104 may own, maintain, and/or control one or more investment systems 304 ; however, in alternative embodiments, one or more investment systems 304 may be owned, maintained, and/or controlled by an entity other than issuer 104 , such as, for example, a bank that provides services to an issuer 104 acting on behalf of sponsor 106 .
- Server(s) 306 may include any hardware, software, firmware, or combination thereof capable of receiving communication from client(s) 302 .
- servers 306 may include, for example, one or more directory servers, client servers, file servers, domain name servers, proxy servers, web servers, application servers, computer workstations, data repositories, any combination of the preceding, or any other machine(s) or apparatus capable of receiving communication from client(s) 302 .
- server 306 includes memory 312 , interface 314 , input/output device 316 , and one or more processors 318 .
- Memory 312 may comprise any suitable volatile or nonvolatile storage and retrieval device or combination of devices. In various embodiments, memory 312 may comprise any combination of storage media. Additionally, all or part of memory 312 may reside locally within server 306 or could reside remotely from and accessible to server 306 .
- Manager Application 310 resides within memory 312 of server 306 .
- Manager Application 310 may comprise software, firmware, data compilations, and/or a combination thereof.
- Interface 314 may comprise any device(s) that may be used (e.g., by a person, or by another device or system) to communicate with server 306 .
- one or more keyboards or a mouse may be considered input interfaces of server 306 while monitors and printers may be considered output interfaces of server 306 .
- Input/output device 316 may refer to one or more devices capable of implementing the communication between server 306 and one or more other devices (e.g., one or more of clients 302 , one or more investment systems 304 , a display, or another information processing system).
- Data storage 308 may represent one or more databases, computer components, devices, and/or recording media capable of retaining digital data.
- data storage 308 may be capable of retaining at least a portion of the parameters related to each certificate 152 issued pursuant to particular embodiments of group life insurance policy 102 .
- Data storage 308 may comprise a magnetic data storage device (e.g., a diskette or a hard disk drive), an optical disc storage medium (e.g., a Laserdisc), a magneto-optical device (e.g., a MiniDisc), random access memory (RAM), or any other suitable volatile or nonvolatile storage and retrieval device or combination of devices.
- a magnetic data storage device e.g., a diskette or a hard disk drive
- an optical disc storage medium e.g., a Laserdisc
- magneto-optical device e.g., a MiniDisc
- RAM random access memory
- system 300 may be used to provide services pursuant to particular embodiments of group life insurance policy 102 .
- system 300 be used to maintain and/or manage group life insurance policies that provide sponsor-owned insurance coverage for multiple designators 108 employed by respective sponsors 106 ; optimize financial account(s) 160 such that investment(s) 162 have a higher probability of maximized investment 162 growth; perform administrative functions pursuant to particular embodiments of group life insurance policy 102 ; determine values associated with the various elements 150 - 164 of particular embodiments of group life insurance policy 102 ; monitor whether financial account(s) 160 are adequately funded; generate reports; communicate reports; withdraw from financial account(s) 160 any premium payments, fees, taxes, etc.
- Manager Application 310 may be operable, when executed by processor(s) 318 , to autonomously or semi-autonomously provide all, some, or none of these services.
- FIG. 4 is a flowchart 400 illustrating example steps for providing a plurality of exchangeable certificates 152 pursuant to a particular embodiment of group life insurance policy 102 .
- group life insurance policy 102 includes a variable universal life contract that is substantially funded at the inception of group life insurance policy 102 and structured to provide basic life insurance benefits for multiple designators 108 employed by sponsor 106 .
- a certificate 152 is issued for each designator 108 that represents parameters associated with the designator's 108 basic life insurance benefits, including, for example, the portion of initial aggregate payment 158 and/or financial account 160 allocated to the certificate 152 . Any of a variety of steps may be used to determine these various parameters.
- the steps generally include calculating an allocation factor, calculating an individual allocation percentage, calculating an optimum cell value (“OCV”), and creating deposits.
- OCV optimum cell value
- Allocation factors are calculated in step 402 for each certificate 152 .
- a number may be provided for each certificate 152 indicative of a value allocated to each certificate 152 relative to other certificates 152 .
- Various factors may be used as inputs in calculating the allocation factor.
- factors may include the age, gender, health, salary, years of employment, job code, lifestyle, etc. of a respective designator 108 .
- the allocation factor may be calculated using various industry standards, rules and/or tests, such as, for example, the seven-pay limit.
- results that may be returned by the calculations performed in step 402 is illustrated in the table of FIG. 5A in the right-most column labeled “ALLOC FACTOR.”
- the cost of providing a given amount of life insurance pursuant to particular certificates 152 may be lower for younger designators 108 than it is for older designators 108 .
- the periodic premiums that may be deducted from the cash value of any given certificate 152 may be higher for an older designator 108 as compared to a comparable certificate 152 for a younger designator 108 .
- the initial premium allocated or otherwise paid for a particular certificate 152 (which may generate any cash value used to fund the insurance protection thereunder) may be lower for younger designators 108 and higher for older designators 108 , assuming, for example, at least some, if not all, of the other pertinent variables (e.g., salary, health, lifestyle, job grade, etc.) of the younger and older designators 108 are substantially comparable.
- Allocation percentages are calculated in step 404 for each certificate 152 .
- each allocation percentage may be calculated by dividing the sum total of all of the allocation factors calculated in step 402 by a respective allocation factor.
- the allocation percentages may have a collective sum of one-hundred percent.
- results that may be returned by the calculations performed in step 404 is illustrated in the table of FIG. 5A in the column labeled “ALLOC %.” More specifically, a summation of the allocation factors in FIG. 5A totals 28281.53; and the first allocation percentage may thus be calculated by dividing 1512.32 by this summation, which returns approximately 5.35% (i.e. 5.34737% rounded to the nearest hundredth).
- Each OCV is calculated in step 406 .
- the OCVs may be calculated, for example, by multiplying values associated with initial aggregate payment 150 and/or financial account 160 by the allocation percentages calculated in step 404 .
- results that may be returned by the calculations performed in step 406 is illustrated in the table of FIG. 5A in the column labeled “OCV.”
- financial account 160 has a total value of $25,000; and the first OCV may thus be calculated by multiplying this value by the allocation percentage of 5.34737%, which returns a value of approximately 1336.84.
- an OCV may represent the optimum value of an initial deposit associated with a particular certificate 152 .
- OCV may be used to optimize exchanges of certificates, as explained further below.
- Deposits are created for each certificate 152 in step 408 .
- the creation of deposits may involve allocating and/or reallocating all or a portion of the funds associated with initial aggregate payment 158 and/or financial account 160 among multiple certificates 152 .
- the allocation of financial account 160 may be initialized by creating deposits for each certificate 152 that are substantially equal to a respective OCV calculated for the certificate 152 ; however, in certain embodiments, the reallocation of financial account 160 may change the deposits and/or the OCV calculations from their initial values. In certain cases, reallocation of financial account 160 may involve issuing new certificates 152 sometime after a prior allocation of financial account 160 .
- COI cost of insurance value
- the calculation(s) used to determine each COI may indicate, for example, a minimum amount of money that may be allocated to a certificate 152 without causing the certificate 152 to lapse.
- the COI calculations may use a number representing the duration of time group life insurance policy 102 is expected to endure.
- each COI may indicate the amount of money expected to be withdrawn from the cash value allocated to a respective certificate over the life of group life insurance policy 102 ; and each COI calculation may thus involve, for example, multiplying an annual premium associated with a respective certificate 152 by the number of years group life insurance policy is expected to endure.
- results that may be returned by some COI calculations is illustrated in the table of FIG. 5A in the column labeled “COI.”
- a summary of the data associated with group life insurance policy 102 may be created using at least some of the values calculated in one or more of the above steps 402 - 406 .
- the summary may be reviewed by one or more persons and/or may be subject to further processing.
- a user may review the illustrated table and optionally decide to increase the face amount of a certificate 152 associated with Insured E while decreasing the face amount of another certificate associated with Insured C; and/or a user may, for example, choose to increase the face amount of both certificates 152 associated with Insured A and Insured B.
- Some changes may immediately or eventually incur one or more charges, which in some cases may be automatically deducted from account 160 accordingly.
- various embodiments may provide the flexibility of modifying, customizing, and/or optimizing any previously calculated parameters for financial certificate 152 . These parameters may then be reloaded into system 300 .
- steps 402 - 406 may be performed by processor(s) 318 executing logic embodied in computer-readable media.
- Manager Application 310 may be operable, when executed by processor(s) 318 , to provide group life insurance policy 102 with multiple certificates 152 .
- Manager Application 310 may be further operable, when executed by processor(s) 318 , to maintain, manage, exchange, surrender, etc. the various certificates 152 issued pursuant to group life insurance policy 102 .
- Manager Application 310 may monitor for one or more events, notices, and/or data inputs indicating one or more designated beneficiaries are entitled to proceeds from respective death benefits 154 .
- Manager Application 310 may be further operable to monitor for any of a variety of non-death-related events and reallocate financial account 160 among at least some of certificates 152 accordingly. For example, Manager Application 310 may monitor for data indicating a change in a respective relationship between one or more designators 108 and sponsor 106 . In a particular embodiment, Manager Application 310 may determine that one or more designators 108 are no longer employed by sponsor 106 .
- Manager Application 310 may reallocate financial account 160 in a manner that no longer reflects the surrendered certificate(s) 152 ; or, in alternative embodiments, Manager Application 310 may respond by maintaining at least some of the certificates 152 corresponding to the ex-employee(s) while optionally making one or more adjustments to their respective parameters (e.g., the face amount coverage, the COI, the OCV, etc.), which may ultimately affect the allocation of financial account 160 among certificates 152 .
- the respective parameters e.g., the face amount coverage, the COI, the OCV, etc.
- Manager Application 310 may determine that sponsor 106 no longer employs one or more previously employed designators 108 and that sponsor 106 has hired one or more new designators 108 . In response, Manager Application 310 may exchange the certificate(s) 152 surrendered by the employment termination(s) with one or more new certificates 152 that may be issued for the newly hired designator(s) 108 .
- Manager Application 310 may determine one or more events have occurred (e.g., the change in salary, duties, job grade, health, selectable options, etc. of one or more designators 108 ) that may affect the parameters of one or more certificates 152 . In response, Manager Application 310 may adjust financial account 160 accordingly and/or generate a report that indicates sponsor 106 needs to supplement financial account 160 with additional funds.
- one or more events e.g., the change in salary, duties, job grade, health, selectable options, etc. of one or more designators 108 .
- Manager Application 310 may adjust financial account 160 accordingly and/or generate a report that indicates sponsor 106 needs to supplement financial account 160 with additional funds.
- FIGS. 5A though 5 C illustrate example contents of respective data files that may be used to allocate financial account 160 among various certificates 152 issued pursuant to group life insurance policy 102 according to a particular embodiment.
- group life insurance policy 102 comprises a variable universal life contract that may be substantially funded at its inception and structured to provide basic life insurance benefits for multiple designators 108 while they are employed by sponsor 106 . That is, the termination of employment of one or more designators 108 may also result, at some point, in the termination of life insurance coverage for those designators 108 and the surrender of their certificates 152 .
- the management of certificates 152 by Manager Application 310 may be implemented at least partially in accordance with input received from client(s) 302 .
- sponsor 106 may use client(s) 302 to communicate one or more data files 350 to server 306 .
- the data files 350 may include, for example, information pertaining to one or more of the following: the hiring of one or employee designators 108 by sponsor 106 ; the termination of employment of one or more designators 108 previously employed by sponsor 106 ; a change in salary, health, job grade, lifestyle, selectable options etc.
- the input(s) received from client(s) 302 may be transformed, parsed, formatted, mapped, etc. into a form that may be interpreted by Manager Application 310 .
- Manager Application 310 may perform at least a portion of the data transformation, parsing, formatting, etc.
- the processes associated with receiving, interpreting, and/or responding to information communicated by sponsor(s) 106 to system 300 via client(s) 302 may occur, for example, at any suitable periodic interval(s) (e.g., weekly, bi-monthly, monthly, semi-annually, annually, etc.), and/or upon receipt of data file(s) 350 from client(s) 302 .
- any suitable periodic interval(s) e.g., weekly, bi-monthly, monthly, semi-annually, annually, etc.
- One particular example of input that may be communicated by sponsor 106 via client(s) 302 is described further with reference to FIG. 5B .
- FIG. 5B illustrates example contents of a portion of a data file 350 that may be used to allocate and/or reallocate at least a portion of financial account 160 among multiple certificates 152 .
- the illustrated portion of data file 350 includes information indicating the termination of employment of a designator 108 represented as “INS A” and the hiring of a new employee designator 108 represented as “INS F.”
- This information, and/or a modified representation thereof, may be interpreted by particular embodiments of Manager Application 310 to determine one or more optimal reallocations of financial account 160 that may be used to accommodate at least some of the changes indicated in data file 350 . More specifically, Manager Application 310 may at least partially interpret the portion of data file 350 illustrated in FIG.
- Manager Application 310 may store (e.g., in data storage 308 ) an interpretation of input received from client(s) 302 in outgoing and incoming queues.
- data related to the designator 108 represented in FIG. 5A as INSURED A may be stored in an outgoing queue; and data related to the designator 108 represented in FIG. 5C as INSURED F may be stored in an incoming queue.
- the input and output queues may be updated to populate a batch request comprised of multiple inputs that may be received serially at different times or in parallel at substantially coincident times.
- the reallocation of financial account 160 may be performed in accordance with one or more processes configured to increase the likelihood that each certificate 152 is optimally funded.
- Manager Application 310 may exchange one certificate 152 (the “surrendering” certificate 152 ) for another certificate 152 (the “pending” certificate) if Manager Application 310 determines one or more of the following rules applies: the OCV calculated for the pending certificate 152 is within a predetermined reallocation tolerance of the OCV for the surrendering certificate 152 (“Rule A”); the surrendering certificate 152 has a lower calculated OCV than the pending certificate, though the calculated COI of the surrendering certificate 152 may be greater than the calculated COI of the pending certificate 152 (“Rule B”); and/or the calculated OCV of the surrendering certificate 152 is greater than the calculated OCV of the pending certificate 152 and an optional timer associated with the pending certificate 152 has expired (“Rule C”).
- Manager Application 310 may determine a particular update comprises no surrendered certificate 152 and that an optional timer associated with a pending certificate 152 has expired (“Rule D”), and in response perform a suitable exchange or reallocation accordingly.
- Rule D an optional timer associated with a pending certificate 152 has expired
- Manager Application 310 may determine a particular update comprises no surrendered certificate 152 and that an optional timer associated with a pending certificate 152 has expired (“Rule D”), and in response perform a suitable exchange or reallocation accordingly.
- Rule D an optional timer associated with a pending certificate 152 has expired
- FIG. 6 is a flowchart 600 illustrating example steps for managing the exchanges of certificates 152 pursuant to a particular embodiment of group life insurance policy 102 .
- Manager Application 310 accesses the incoming and outgoing queues.
- a particular embodiment of Manager Application 310 may access incoming and outgoing queues and determine that a pending certificate 152 for a new designator 108 represented as INSURED F lacks one or more parameters.
- Manager Application 310 may calculate any missing parameters (e.g., OCV and COI parameters) for pending certificate(s) 152 using steps substantially similar to at least some of the example steps 402 - 406 described previously with reference to flowchart 400 of FIG. 4 .
- an allocation factor may be initialized by recalculating all the allocation factors of a hypothetical data set that includes at least some or all of the active certificates, INSURED F and any other pending entries of the incoming cue, but that omits INSURED A and any the entries of the outgoing queue.
- the allocation factors calculated for the incoming queue may then be used, for example, to calculate respective OCVs and COIs in a manner substantially similar to that described previously.
- INSURED F has a calculated OCV of 1390 while the OCVs for INSURED B-E remain unchanged.
- the sum of the illustrated OCVs in FIG. 5C is slightly greater than that of FIG. 5A .
- the value of financial account 160 may be insufficient to fund each of the optimal cell values (“OCV”); and thus at least one of the issued certificates 152 may have a corresponding deposit, or a respective allocated portion of financial account 160 , that is less than its calculated OCV.
- Manager Application 310 may, for example, generate a report prompting for an additional charge that may be applied to financial account 160 .
- Manager Application 310 may determine whether the OCV of 1390 for the pending certificate 152 of INSURED F is within a predetermined reallocation tolerance of any of the OCVs for the surrendering certificate(s) 152 in the outgoing queue.
- Any suitable predetermined tolerance level(s) may be used. For example, certain embodiments may use a tolerance level within the range of 1% to 50% or 2% to 15%, including any fractional decimal in between. In a particular embodiment, an approximately 5% tolerance level may be used.
- a lower reallocation tolerance may, for example, decrease the number of candidate OCVs in the outgoing queue that satisfy Rule A; however, in certain cases, a lower reallocation tolerance may also increase the likelihood that a particular exchange satisfies rules applicable to a tax-preferred status.
- a higher reallocation tolerance that enables the exchange of a surrendering certificate 152 with relatively high face amount coverage (i.e., a higher OCV) for a pending certificate 152 with relatively low face amount coverage may risk classification of the pending certificate 152 for tax purposes as a modified endowment contract (“MEC”), which may have consequences that are less desirable than some alternative classifications.
- MEC modified endowment contract
- Manager Application 310 may determine that an exchange of the surrendering certificate 152 of INSURED A for the pending certificate 152 of INSURED F satisfies the requirements of Rule A and is optimal in light of at least some other possible exchange scenarios that may be implemented. In response, Manager Application 310 may perform, in step 614 , a reallocation of group life insurance policy 160 that includes at least this optimized exchange; and substantially similar procedures may be performed to exchange any remaining certificates 152 in the incoming and outgoing queues that likewise satisfy Rule A.
- Manager Application 310 may determine whether the OCV of a surrendering certificate in the outgoing queue is less than an OCV of a pending certificate in the incoming queue and whether the COI of the surrendering certificate is greater than or equal to the COI of the pending certificate.
- a pending certificate 152 for a newly hired designator 108 represented as INSURED G may be placed in the incoming queue for a newly hired designator 108 aged 34.
- the pending certificate 152 may, for example, have a face amount coverage of $89,000 and calculated OCV and COI values of 750 and 1845, respectively.
- Manager Application 310 may determine that an exchange of such a pending certificate 152 with a particular surrendering certificate 152 substantially similar to that of INSURED B may comply with Rule B; and Manager Application 310 may perform an exchange accordingly in step 614 .
- Manager Application 310 may later reallocate financial account 160 in a manner that better optimizes the portion allocated to the INSURED G certificate.
- Manager Application 310 may select a particular set of processes from among multiple options in accordance with a predetermined hierarchy.
- Manager Application 310 may implement exchanges that maximize compliance with Rule A as a highest priority, Rule B as a second highest priority, and so forth.
- Various embodiments that preferentially apply exchange scenarios that maximize compliance with rules substantially similar to Rules A and B over alternative exchange scenarios having less of a compliance with such rules may have the advantage of minimizing taxes associated with such exchanges.
- some exchange scenarios that maximize compliance with Rules A and/or B may minimize the reapplication of premium taxes that may have already been paid on the surrendering certificate(s) 152 .
- Manager Application 310 may determine that the OCV of a surrendering certificate in the outgoing queue is greater than the OCV of a pending certificate in the incoming queue; and Manager Application 310 may further determine that the surrendering and pending certificates 152 could not be exchanged with each other or with other certificates 152 in accordance with more optimal rules (e.g., Rule A or Rule B) during a predetermined time period. Under such conditions, Manager Application 310 may determine the pending and surrendering certificates 152 may be exchanged in compliance with Rule C and perform the exchange accordingly in step 614 .
- more optimal rules e.g., Rule A or Rule B
- Manager Application 310 may apply the surplus in the actual deposit of the surrendered certificate 152 in a manner that better optimizes another exchange. For example, a pending certificate 152 having an OCV of 3972 and a COI of 993 may be exchanged, in compliance with Rule C, with a surrendering certificate 152 having an OCV of 4390; and the surplus of $418, in this case, may optionally be applied to one or more other exchanges and/or among some other existing certificate(s) 152 , in step 616 , in order to more fully optimize how financial account 160 is allocated among certificates 152 .
- Manager Application 310 may determine that the deposit for one or more active certificates 152 (i.e. not in the incoming or outgoing queues) is greater than the active certificate(s) 152 respective OCV; and Manager Application 310 may further determine that one or more pending and/or surrendering certificates 152 in the incoming/outgoing queues could not be exchanged in accordance with more optimal rules (e.g., Rules A, Rule B, or Rule C) during a predetermined time period.
- rules A, Rule B, or Rule C e.g., Rules A, Rule B, or Rule C
- Manager Application 310 may withdraw, in step 616 , at least some of this surplus to fund one or more of the certificates 152 that have remained in the incoming queue for at least the predetermined time period. Otherwise, in step 613 , Manager Application 310 may wait for an event (e.g., the toll of a time period, the addition of certificate 152 to the incoming queue, and/or some other event) and then loop back to step 602 to determine if any change to the incoming/outgoing queues enables more a more optimal certificate 152 exchange (e.g., an exchange per Rule A, Rule B, or Rule C).
- an event e.g., the toll of a time period, the addition of certificate 152 to the incoming queue, and/or some other event
- a group life insurance policy may be autonomously or semi-autonomously managed at least in part by providing a group life insurance policy with multiple certificates 152 funded by sponsor 106 .
- Each certificate 152 may provide a death benefit to at least one beneficiary designated by a respective designator 108 who is insured under the certificate 152 .
- Sponsor 106 may agree to pay issuer 104 an initial aggregate payment 158 as a lump sum in exchange for certificates 152 . At least a respective portion of the determined initial aggregate payment 158 may be allocated to each certificate 152 .
- Particular embodiments may monitor for events that may affect certificates 152 .
- an affected certificate 152 may be exchanged for a new certificate 152 that provides a death benefit to at least one beneficiary designated by a respective designator 108 .
- the exchange of certificates 152 may include reallocating to the new certificate 152 at least a portion of the portion of initial aggregate payment 160 initially allocated to the affected certificate 152 .
- At least a portion of initial aggregate payment 158 may be used to establish a financial account 160 .
- Financial account 160 may contains fund allocable to multiple certificates 152 issued pursuant to particular embodiments of group life insurance policy 102 .
- Manager Application 310 may optimize the allocation of financial account 160 among certificates 152 in a manner that may increase the potential for eventual growth of financial account 160 and the magnitude of such growth.
- at least some of the allocation may be performed by Manger Application 310 automatically and in response to input received from sponsor 106 via clients 302 .
- the input may be used to create incoming and outgoing queues for pending and surrendering certificates 152 , respectfully.
- Various rules may be applied to determine if one or more surrendering certificates 152 may be exchanged for one or more pending certificates in a manner that optimizes the allocation of financial account 160 among the active certificates 152 .
- certain embodiments may provide any of a variety of additional advantages. For example, some embodiments may enable tax-preferred growth of various investments 162 related to group life insurance policy 102 . In addition, some embodiments may ensure each certificate 152 is adequately funded, but not over-funded, so as to be classified for tax purposes as a life insurance contract that is not a modified endowment contract (“MEC”). In various embodiments, the value and/or services provided by issuer 104 to sponsor 106 pursuant to group life insurance policy 102 may be at least partially implemented by logic embodied in computer-readable media.
- Some logic may be operable, when executed by processor(s) 318 , to automatically and/or semi-automatically reallocate at least portions of financial account 160 among multiple certificates 152 in accordance with one or more inputs and in a manner that optimizes the allocation of financial account 160 .
- the reallocation may, for example, be configured to increase the likelihood that investments 162 associated with group life insurance policy 102 may grow in a tax-preferred manner.
- teachings of the present disclosure may apply to any of a variety of other types of financial instruments.
- at least some of the teachings of the present disclosure may be used to fund post-employment obligations, such as, for example, retirement health policies.
- logic flowchart is used to demonstrate various aspects of particular embodiments, it should not be construed to be limited to any particular logic flow or logic implementation.
- the described logic may be partitioned into different logic blocks (e.g., programs, modules, functions, or subroutines) without changing the overall results.
- logic elements may be added, modified, omitted, performed in a different order, or implemented using different logic constructs (e.g., logic gates, looping primitives, conditional logic, and other logic constructs).
- Source code may include a series of computer program instructions implemented in any of various programming languages (e.g., an object code, an assembly language, or a high-level language such as Fortran, C, C++, JAVA, or HTML) for use with various operating systems or operating environments, including future operating systems or environments.
- the source code may define and use various data structures and communication messages.
- the source code may be in a computer executable form (e.g., via an interpreter), or the source code may be converted (e.g., via a translator, assembler, or compiler) into a computer executable form.
- the computer program may be fixed in any form (e.g., source code form, computer executable form, or an intermediate form) either permanently or transitorily in a tangible storage medium, such as a semiconductor memory device (e.g, a RAM, ROM, PROM, EEPROM, or Flash-Programmable RAM), a magnetic memory device (e.g., a diskette or fixed disk), an optical memory device (e.g., a CD-ROM or DVD-ROM), a PC card (e.g., PCMCIA card), or other memory device.
- a semiconductor memory device e.g, a RAM, ROM, PROM, EEPROM, or Flash-Programmable RAM
- a magnetic memory device e.g., a diskette or fixed disk
- an optical memory device e.g., a CD-ROM or DVD-ROM
- PC card e.g., PCMCIA card
- the computer program may be fixed in any form in a signal that is transmittable to a computer using any of various communication technologies, including, but in no way limited to, analog technologies, digital technologies, optical technologies, wireless technologies (e.g., Bluetooth), networking technologies, and inter-networking technologies.
- the computer program may be distributed in any form as a removable storage medium with accompanying printed or electronic documentation (e.g., shrink wrapped software), preloaded with a computer system (e.g., on system ROM or fixed disk), or distributed from a server or electronic bulletin board over the communication system (e.g., the Internet or World Wide Web).
- all or a portion of Manager Application 310 may be embodied in any of a variety of other suitable computer-readable medium, such as, for example, removable media.
Landscapes
- Business, Economics & Management (AREA)
- Engineering & Computer Science (AREA)
- Accounting & Taxation (AREA)
- Finance (AREA)
- Development Economics (AREA)
- Marketing (AREA)
- Economics (AREA)
- Strategic Management (AREA)
- Technology Law (AREA)
- Physics & Mathematics (AREA)
- General Business, Economics & Management (AREA)
- General Physics & Mathematics (AREA)
- Theoretical Computer Science (AREA)
- Financial Or Insurance-Related Operations Such As Payment And Settlement (AREA)
Abstract
Description
- This application claims priority to U.S. Provisional Application Ser. No. 61/157,832 filed Mar. 5, 2009 and U.S. Provisional Application Serial Number 61,223,387 filed Jul. 8, 2009.
- This disclosure relates in general to the field of financial systems, and more particularly to a system and method for managing a group insurance policy.
- Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is sometimes defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium. An insurer typically is a company selling the insurance; and an insured typically is the person or entity buying the insurance. The insurance rate is often a factor used to determine the amount, called the premium, to be charged for a certain amount of insurance coverage. Life insurance typically provides a monetary benefit to a designated beneficiary, which typically is payable upon the death of an insured person. Life insurance policies often allow the option of having the proceeds paid to the beneficiary either in a lump sum cash payment or an annuity. Group life policies are typically insurance policies offered to a group of people who share a qualifying characteristic or membership. Most often they are offered to employees, though they may also be offered through organizations or even commercial outlets, such as credit cards or magazines and newspapers.
- According to one embodiment, a method for providing a group life insurance policy with a plurality of certificates funded by a sponsor is provided. Each certificate provides a death benefit to at least one beneficiary designated by a person insured under the certificate. An initial payment is determined, which is to be paid by the sponsor in exchange for the certificates. At least a respective portion of the initial payment is allocated to each certificate of the plurality of certificates. The method may further include monitoring for a non-death-related event that terminates a death benefit provided by a certificate. In response to detection of the event, a certificate is exchanged for a new certificate. The new certificate may provide a death benefit to at least one beneficiary designated by a person insured under the new certificate. The exchanging of certificates may include reallocating to the new certificate at least a portion of the initial payment allocated to the one of the plurality of certificates.
- Certain embodiments may provide various technical advantages. In some embodiments, for example, at least some administrative costs associated with particular embodiments may be reduced. In addition, some embodiments may enable tax-preferred growth of various investments. In various embodiments, portions of a financial account may be automatically and/or semi-automatically reallocated among multiple certificates issued pursuant to a group life insurance policy. Such reallocation may, for example, be configured to increase the likelihood that investments associated with a group life insurance policy may have tax-preferred investment growth.
- Other technical advantages will be readily apparent to one skilled in the art from the following figures, descriptions, and claims. Moreover, while specific advantages have been enumerated above, various embodiments may include all, some, or none of the enumerated advantages.
-
FIG. 1A illustrates a system for providing a group life insurance policy according to a particular embodiment; -
FIG. 1B illustrates a particular embodiment of a group life insurance policy; -
FIG. 2 is a table illustrating an example of the change in value of a financial account associated with a particular embodiment of a group life insurance policy; -
FIG. 3 is a high level diagram of an example system that may be used to provide services pursuant to a particular embodiment of a group life insurance policy; -
FIG. 4 is a flowchart illustrating example steps for providing a plurality of exchangeable certificates pursuant to a particular embodiment of a group life insurance policy; -
FIGS. 5A-5C illustrate example contents of respective data files that may be used to manage various certificates issued pursuant to a group life insurance policy according to a particular embodiment; and -
FIG. 6 is a flowchart illustrating example steps for managing the exchanges of a plurality of certificates pursuant to a particular embodiment of a group life insurance policy. - The example embodiments of the present disclosure are best understood by referring to
FIGS. 1A through 6 of the drawings, like numerals being used for like and corresponding parts of the various drawings. It should be understood at the outset that although example implementations of embodiments of the disclosure are described below, the present disclosure may be implemented using any number of techniques, whether currently known or not. The present disclosure should in no way be limited to the example implementations, drawings, and techniques illustrated below. -
FIG. 1A is a block diagram illustrating a portion of asystem 100 for providing a grouplife insurance policy 102 according to a particular embodiment. In this example, the illustrated portion ofsystem 100 generally includes anissuer 104 capable of providing any of a variety of grouplife insurance policies 102 to one ormore sponsors 106. Grouplife insurance policies 102 generally provide a benefit for multiple beneficiaries, generally designated by one ormore designators 108. Some grouplife insurance policies 102 may include certain provisions as described below with reference toFIG. 1B . - Group
life insurance policy 102 may be a group life insurance policy for the employees ofsponsor 106. More specifically, grouplife insurance policy 102 may be a sponsor-owned group life contract that may be substantially funded for a multi-year time period using an account established at the inception of grouplife insurance policy 102. Various embodiments may provide that the time period grouplife insurance policy 102 is initially intended to endure may be predetermined, subject to modifications, and/or extendable; however, some other grouplife insurance policies 102 may not contractually endure for a predetermined time period but instead may endure, for example, for so long as the grouplife insurance policy 102 is sufficiently funded byinitial aggregate payment 158 and/or any other subsequent cash outlays paid bysponsor 106 toissuer 104. Grouplife insurance policy 102 may be structured to provide basic life insurance benefits formultiple designators 108, includingfuture designators 108, who in some embodiments may have an ongoing or prior relationship with sponsor 106 (e.g., an employer-employee relationship, a partner relationship, etc.). In certain embodiments, grouplife insurance policy 102 may be a variable life insurance policy, a universal life insurance policy, and/or a flexible premium life insurance policy. Other forms of life insurance policies may be used without departing from the scope of the present invention. In various embodiments, the value and/or services provided byissuer 104 to sponsor 106 pursuant to grouplife insurance policy 102 may be at least partially implemented using logic embodied in computer-readable media. -
Issuer 104 generally refers to any entity capable of offering and/or managing grouplife insurance policy 102. For example,issuer 104 may represent a bank, an insurance company, a partnership, some other business entity, a licensed individual, and/or a system engaged in the sale and/or management of one or more grouplife insurance policies 102.Issuer 104 may also represent multiple entities that operate together to provide, sell, and/or manage grouplife insurance policy 102. In a particular embodiment,issuer 104 may be wholly or partially owned by a parent company and may join in the filing of a consolidated federal income tax return with the parent company on a calendar year basis, using an accrual method of accounting. In some embodiments,issuer 104 may own at least a portion of one or more subsidiary companies capable of offering a grouplife insurance policy 102 to sponsor 106. -
Sponsor 106 generally refers to any entity or entities capable of sponsoring or purchasing grouplife insurance policy 102. For example,sponsor 106 may be one or more persons, companies, partnerships, associations, any combination of the preceding, or any other entity capable of sponsoring or purchasing grouplife insurance policy 102. In a particular embodiment,sponsor 106 is an employer who provides consideration in exchange for a grouplife insurance policy 102 pursuant to whichmultiple designators 108 employed bysponsor 106 may each be entitled to designate a recipient of a benefit. In some embodiments, various conditions and/or events may affect whether the intended recipient is ultimately entitled to the benefit. For example, a designated recipient may be entitled to a death benefit pursuant to grouplife insurance policy 102 if acorresponding designator 108 dies while employed bysponsor 106, or within a time period set with reference to, a particular event satisfying certain conditions. - Each
designator 108 generally refers to any entity entitled to designate at least one beneficiary as recipient of a benefit pursuant to grouplife insurance policy 102. In certain embodiments,designator 108 may represent an individual, group of individuals, an employee of anemployer sponsor 106, an associate or partner of apartnership sponsor 106, a member of anassociation sponsor 106, any combination of the preceding, and/or some other entity that may be referred to for purposes of determining benefits, fees, guaranteed rates, expected liabilities, and/or other features of grouplife insurance policy 102, as described further with reference toFIG. 1B . -
FIG. 1B is a block diagram illustrating a portion of grouplife insurance policy 102 according to a particular embodiment. In the embodiment shown, grouplife insurance policy 102 generally includes provisions related to: agroup policy contract 150, the issuance ofcertificates 152, death benefits 154,interest rates 156, aninitial aggregate payment 158, afinancial account 160,investments 162, and/orasset transfer agreements 164. Although various elements of grouplife insurance policy 102 are illustrated as separate elements, one or more of these elements may be combined, grouplife insurance policy 102 may include multiples of these elements, each of these elements may also include numerous subcomponents, and/or various embodiments may include provisions related to some, none, or all of the illustrated elements. - In a particular embodiment,
group policy contract 150 is a variable group life contract structured to provide basic life insurance benefits fordesignators 108. In certain embodiments,group policy contract 150 may include provisions concerning the issuance of a plurality ofcertificates 152. In various embodiments, eachcertificate 152 issued pursuant togroup policy contract 150 and/or grouplife insurance policy 102 may represent a variable contract and/or may be designed to qualify as a separate account life insurance contract for tax purposes. In addition, eachcertificate 152 may be related or assigned to arespective designator 108 and may represent arespective death benefit 154 and/or the beneficiary designation(s) of therespective designator 108. - In a particular embodiment, for example, each
certificate 152 may insure the life of a covereddesignator 108 while thedesignator 108 remains employed bysponsor 106; and the covereddesignator 108 may have the right to designate one or more recipients ofdeath benefit 154, which is payable under thecertificate 152 upon the designator's 108 death. In some embodiments, theemployer sponsor 106 may retain the remainder of rights with respect to eachcertificate 152, including, for example, the right to access the cash value of thecertificate 152 at any time through a partial withdrawal, surrender, and/or exchange of thecertificate 152. In that regard, grouplife insurance policy 102 may be structured such that, rather than continuing coverage after a covereddesignator 108 is no longer employed bysponsor 106, thesponsor 106 may seek to exchange the correspondingcertificate 152 for anew certificate 152 insuring the life of adifferent designator 108 who is a current or prospective employee ofsponsor 106. Thus, in some embodiments, coverage undercertificates 152 may not extend beyond the normal retirement age ofdesignator 108 employees (e.g., age 65) and in many cases may terminate sooner due to employee turnover. However, in some embodiments coverage under at least some ofcertificates 152 may continue into the retirement ofrespective designators 108. - The costs associated with some
certificates 152 may vary depending, for example, on the age, gender, salary, job grade, lifestyle and/or health of thecorresponding designator 108 and/or the value of the associateddeath benefit 154. In particular embodiments, at least some of these costs may be calculated using values retrieved from a digitally-stored lookup table. As explained further below, somecertificates 152 may be represented, stored, modified, deleted, created, exchanged, and/or otherwise managed in accordance with logic embodied in computer-readable media. Thus,certificates 154 may exist in any suitable form, such as, for example, paper documents, a virtual form represented by data embodied in computer-readable media, and/or some other suitable form. - In a particular embodiment, each
death benefit 154 may provide that payment(s) are to be made to one or more beneficiaries designated by arespective designator 108. In some embodiments, entitlement to thedeath benefit 154 payment(s) may be contingent upon certain conditions, such as, for example, the death of therespective designator 108; however, entitlement todeath benefit 154 payment(s) may be contingent upon any of a variety of additional and/or alternative conditions and/or events. In some cases wheresponsor 106 employsdesignators 108, for example, entitlement to payment(s) pursuant to aparticular death benefit 154 may be contingent upon whether the correspondingdesignator 108 dies while employed by theemployer sponsor 106. In another example, if theemployer sponsor 106 continuesdeath benefit 154 coverage after aparticular designator 108 is no longer employed bysponsor 106, then thedeath benefit 154 may still be payable to a designated beneficiary upon the death of theparticular designator 108 provided that thedesignator 108 has not changed the beneficiary. - In certain embodiments,
death benefit 154 may provide that payment(s) be made in the amount of the highest value resulting from multiple calculation methods. For example,death benefit 154 may provide for payment of an amount substantially equal to the greater of (i) the “face amount” coverage under a correspondingcertificate 152, and (ii) the amount obtained by dividing a cash value associated with the certificate 152 (referred to herein as the “certificate fund” allocable to the certificate 152) by a net single premium factor. In some embodiments, the face amount coverage of eachcertificate 152 may be at least partially determined, for example, with reference to the base salary of arespective designator 108 and/or with reference to one or more other values related to arespective designator 108. In various embodiments, a net single premium factor per $1 of adeath benefit 154 may be determined, at least in part, in accordance with the one or more of the following: (i) on the basis of interest at the greater of an annual effective rate of 4% or in accordance with one ormore interest rates 156 and/orinterest rate 156 formulas that may be specified in grouplife insurance policy 102; (ii) using mortality charges based on factors that may include, for example, the age, gender, lifestyle, and/or health of acorresponding designator 108, and/or (iii) by taking into account a level ofdeath benefit 154 per $1 that may be provided at least until a particular event occurs. Some example events may include the termination of a corresponding designator's 108 employment bysponsor 106, the attainment of theage 100 by the correspondingdesignator 108, and/or any other of a variety of events. In a particular embodiment, at least some of the mortality charges may be retrieved and/or derived at least partially from one or more digitally-stored lookup tables. - Although
death benefit 154 is illustrated as a separate element of grouplife insurance policy 102,death benefit 154 may be formed from multiple components and/or may be included as part of another element of grouplife insurance policy 102. In some embodiments, for example, eachdeath benefit 154 may be represented by, and/or payable under, arespective certificate 152 that may be issued pursuant to, and/or sometime after the formal execution of, grouplife insurance policy 102. - The terms interest and elements of interest as used herein generally refer to any gain that may accrue on an investment. For example, in the embodiment shown in
FIG. 1B interest rates 156 generally refer to fixed and/or variable rates of return onfinancial account 160 and/orinvestments 162; however, elements of interest may be at least partially based on any of a variety of other factors. For example, various embodiments may include elements of interest that may be at least partially based on the market performance ofinvestments 162, and/or one or more market indices. - In a particular embodiment,
initial aggregate payment 158 represents one or more payments exchanged for grouplife insurance policy 102 that are collectively expected to substantially fund the costs associated with grouplife insurance policy 102 for a period of time that may last multiple months or years (e.g., a time period lasting six months, one year, fifteen months, two years, five years, ten years, twenty years, twenty-five years, thirty years, fifty years, some time period in between any one of these examples, or some other duration that may or may not be calculated in terms of months and years). Pursuant to some grouplife insurance policies 102, for example,sponsor 106 may pay initialaggregate payment 158 toissuer 104 as a single cash outlay at the inception of grouplife insurance policy 102; andissuer 104 may, for example, automatically and periodically deduct a respective portion of initialaggregate payment 158 and/or the interest accrued byinitial aggregate payment 158 to satisfy costs and/or premiums associated with eachcertificate 152. - The value of initial
aggregate payment 158 may be determined in any of a variety of ways. For example,initial aggregate payment 158 may have a value contractually agreed to byissuer 104 andsponsor 106. The agreed upon value may or may not depend on any of a variety of sponsor-based and/or issuer-based calculations. In particular embodiments, however, some initialaggregate payments 158 may be calculated at least in part by factoring one or more of the following: the total number ofdesignators 108; the amount of coverage provided under eachcertificate 152; any of a variety of tax considerations, (e.g., possible limitations related to modified endowment contracts (“MEC”), as discussed below); the interest initialaggregate payment 158 is expected to accrue over time; the anticipated duration of grouplife insurance policy 102, which may last for multiple years; and/or the effect of each designator's 108 age on the cost of providing insurance. In a particular embodiment,initial aggregate payment 158 may be calculated with reference to a total sum of aggregate costs expected to occur for each certificate 152 (e.g.,initial aggregate payment 158 may be less than, substantially equal to, or greater than the total sum of aggregate costs expected to occur for each certificate 152). - In some embodiments of group
life insurance policy 102 that includefinancial account 160,financial account 160 may represent a principal balance including any amounts deposited bysponsor 106 toissuer 104 together with accrued growth due to a return on one or more investments. At least some of the value offinancial account 160 may be distributed among one ormore investments 162. In some embodiments, eachinvestment 162 may provide a fixed and/or variable return. The value offinancial account 160 may be distributed among any combination ofinvestments 162. For example, someinvestments 162 may represent a municipal bond, a bond fund, a money market account, a corporate security, an index fund, a mutual fund, a real estate investment trust, hedges, swaps, derivatives, or any other appropriate type of investment. In certain embodiments,financial account 160 may include one ormore investments 162 associated with multiple financial entities. In various embodiments, grouplife insurance policy 102 may be structured and managed such thatinvestments 162 may grow in a tax-preferred manner, as explained further below. - In some embodiments of group
life insurance policy 102 that includeasset transfer agreement 164,asset transfer agreement 164 may include provisions allowing for all or a portion of the value offinancial account 160 to be transferred between sub-accounts or categories ofinvestments 162. In certain embodiments, the transfer may be implemented byissuer 104 at the direction ofsponsor 106. That is, in certain embodiments, the use ofasset transfer agreement 164 may serve to allowsponsor 106 to exercise some direction over the distribution of assets withinfinancial account 160. In some embodiments,issuer 104 may manage and/or maintainfinancial account 160 and any associatedinvestments 162, at least in part, using an automated or semi-automated computer system, as explained further below. - In certain embodiments, different or additional elements of group
life insurance policy 102 may be purchased, elected, or issued at different times. For example, varyingcertificates 152, elements of interest,investments 162, and/orasset transfer agreements 162 may be purchased, elected, and/or exchanged at the inception of grouplife insurance policy 102 or at anytime thereafter. - Thus, a particular embodiment of group
life insurance policy 102 may be structured such thatsponsor 106 may make aninitial aggregate payment 158 toissuer 104 in the form of a single cash outlay at the inception of grouplife insurance policy 102. Theinitial aggregate payment 158 may have a value calculated to fully or partially fund the obligations ofsponsor 106 toissuer 104 throughout a time period that may last multiple days, months, and/or years. In various embodiments,initial aggregate payment 158 may be used in establishingfinancial account 160. In some embodiments,sponsor 106 may deposit or otherwise transfer additional funds intofinancial account 160 from time to time as needed.Issuer 104 may automatically and/or periodically withdraw fromfinancial account 160 any premium payments, fees, taxes, etc. associated with maintaining, managing, exchanging, surrendering, etc. thevarious certificates 152 issued pursuant to grouplife insurance policy 102. Various embodiments may automatically manage the receivedinitial aggregate payment 158 such that a cash surrender value associated with the group life insurance policy is less than or equal to a total of a remainder of periodic costs yet to be paid for eachcertificate 152. The use of initialaggregate payment 158 and/orfinancial account 160 to fund grouplife insurance policy 102 for multiple years may be explained further with reference toFIG. 2 . -
FIG. 2 is a table illustrating an example of the change in value of a particularfinancial account 160 associated with a particular embodiment of grouplife insurance policy 102. In this example,financial account 160 initially has an approximate value of $155 million, which may be paid, for example, bysponsor 106 toissuer 104 at the inception of grouplife insurance policy 102. After a period of one year,financial account 160 reduces in value to approximately $153 million. The reduction in value offinancial account 160 during the first year of its existence may be caused by any of a variety of factors including, for example, the satisfaction of one ormore death benefit 154 claims; fees associated with setting up, maintaining, and/or managingfinancial account 160; and/or any premium payments, taxes, fees etc. associated with issuing, exchanging, maintaining, and/or surrenderingcertificates 152. - In the illustrated example,
financial account 160 continues to decline in value until sometime during the eighth or ninth year, at which pointfinancial account 160 begins to increase in value. Although the illustrated embodiment includes an inflection point in the changing value offinancial account 160 that occurs sometime during the eighth or ninth year, various embodiments may include one or more inflection points that occur at different times or may include no inflection points at all (e.g.,financial account 160 may continually decline). The illustrated increase in value offinancial account 160 may be due to any variety of reasons. For example, the increase in value may be due to interest accrued byfinancial account 160 and/or due to the performance ofinvestments 162. - By the end of the twentieth year, in the illustrated example,
financial account 160 has a value of approximately $153 million. In this example, therefore,financial account 160 has approximately the same value at the end of a twenty-year time period that it did at the end of the first year, though at least some of the various parties associated with grouplife insurance policy 102 may have derived any of a variety of various benefits from grouplife insurance policy 102 throughout this entire time period. - Thus, one advantage of the particular embodiment illustrated in
FIG. 2 may be explained with reference to an alternative grouplife insurance policy 102 that is instead funded bysponsor 106 in multiple payments that cover the expenses, fees, taxes, premiums, etc. as they arise or at periodic intervals. Some alternative arrangements may be thought of as having nofinancial account 160 or one that is substantially empty. In other words, instead of providingfinancial account 160 with funds that may be used for a multi-year period,sponsor 106 may instead agree to pay expenses as they incur and otherwise maintain any additional cash on hand, which cash may be used bysponsor 106 at least temporarily for purposes other than funding grouplife insurance policy 102. Although such an alternative arrangement may provide substantially similar insurance coverage over time as the illustrated embodiment ofFIG. 2 , at the end of a twenty year period such an alternative arrangement may ultimately consume approximately the same $155 million expenditure without necessarily renderingsponsor 106 one or more assets at the end of a twenty-year period that is equivalent to the one illustrated inFIG. 2 . - In some embodiments substantially similar to the one described above with reference to
FIG. 2 , the growth offinancial account 160 may be maximized at least partially by minimizing the deductions made to its principle balance over time. - Some deductions may arise, for example, from administrative costs, human labor, maintenance fees, premiums, taxes, etc. associated with group
life insurance policy 102. Any of a variety of techniques may be used to minimize these and other deductions made over time tofinancial account 160. For example, in some embodiments,financial account 160 may be managed such thatinvestments 162 maintain optimized and potentially tax-preferredinvestment 162 growth by applying a system of rules that may, for example, be configured to: allocate portions offinancial account 160 amongmultiple certificates 152; optimize the issuance, exchange, surrender etc. ofcertificates 152; and/or ensure grouplife insurance policy 102 is adequately funded. Various embodiments may provide all, some, or none, of the above functions and features, and/or other functions and features, using an automated or semi-automated system, as explained further with reference toFIGS. 3 through 6 . -
FIG. 3 is a high level diagram of anexample system 300 that may be used to provide services pursuant to a particular embodiment of grouplife insurance policy 102. In the embodiment illustrated,system 300 includes one ormore clients 302,investment systems 304,servers 306, anddata storage 308, all coupled together through one ormore networks 303. As used throughout this document, the term “couple” and/or “coupled” refers to any direct or indirect communication between two or more elements, whether or not those elements are in physical contact with one another. Although the illustrated embodiment includes various example components, in alternative embodiments one or more ofclients 302,investment systems 304,servers 306, anddata storage 308 can be excluded fromsystem 300 and/or one or more of these elements may be combined. - Each
client 302 may comprise any computing and/or communication device capable of enabling the communication of information to and/or fromnetwork 303 or another component insystem 300. In some embodiments, the communication between aparticular client 302 and one or more of theservers 306 may be performed internally, such as, for example, via a system bus, and/or the communication between aparticular client 302 and one or more of theservers 306 may be throughnetwork 303. For example,clients 302 may each be capable of communicating one or more requests throughnetwork 303, which request(s) may be received and processed, for example, byserver 306 usingManager Application 310. -
Network 303 may comprise any combination of wireless and/or wireline networks capable of supporting communication between network elements. For example,network 303 may comprise a data network, a public switched telephone network (PSTN), an integrated services digital network (ISDN), a local area network (LAN), a wide area network (WAN), a metropolitan area network (MAN), all or a portion of the global computer network known as the Internet, and/or other communication systems or combination of communication systems at one or more locations. - Each
investment system 304 generally refers to any system capable of enabling the provision of financial services. In a particular embodiment,investment system 304 is capable of communicating information toserver 306 and/or interpreting communications received fromserver 306. Some interpreted communications may be used to trigger any of a variety of financial transactions. For example, some financial transactions may include modifying, buying, and/or selling any of a variety of investments 162 (e.g., a municipal bond, a bond fund, a money market account, a corporate security, an index fund, a mutual fund, a real estate investment trust, hedges, swaps, derivatives, or any other appropriate type of investment). In various embodiments,investment system 304 may include one or more clients substantially similar in structure and function toclients 302 and/or one or more servers substantially similar to structure and function asserver 306. In a particular embodiment,issuer 104 may own, maintain, and/or control one ormore investment systems 304; however, in alternative embodiments, one ormore investment systems 304 may be owned, maintained, and/or controlled by an entity other thanissuer 104, such as, for example, a bank that provides services to anissuer 104 acting on behalf ofsponsor 106. - Server(s) 306 may include any hardware, software, firmware, or combination thereof capable of receiving communication from client(s) 302. In various embodiments,
servers 306 may include, for example, one or more directory servers, client servers, file servers, domain name servers, proxy servers, web servers, application servers, computer workstations, data repositories, any combination of the preceding, or any other machine(s) or apparatus capable of receiving communication from client(s) 302. In the illustrated embodiment,server 306 includesmemory 312,interface 314, input/output device 316, and one ormore processors 318. -
Memory 312 may comprise any suitable volatile or nonvolatile storage and retrieval device or combination of devices. In various embodiments,memory 312 may comprise any combination of storage media. Additionally, all or part ofmemory 312 may reside locally withinserver 306 or could reside remotely from and accessible toserver 306. -
Manager Application 310, discussed further below, resides withinmemory 312 ofserver 306.Manager Application 310 may comprise software, firmware, data compilations, and/or a combination thereof. -
Interface 314 may comprise any device(s) that may be used (e.g., by a person, or by another device or system) to communicate withserver 306. For example, one or more keyboards or a mouse may be considered input interfaces ofserver 306 while monitors and printers may be considered output interfaces ofserver 306. Input/output device 316 may refer to one or more devices capable of implementing the communication betweenserver 306 and one or more other devices (e.g., one or more ofclients 302, one ormore investment systems 304, a display, or another information processing system). -
Data storage 308 may represent one or more databases, computer components, devices, and/or recording media capable of retaining digital data. For example,data storage 308 may be capable of retaining at least a portion of the parameters related to eachcertificate 152 issued pursuant to particular embodiments of grouplife insurance policy 102.Data storage 308 may comprise a magnetic data storage device (e.g., a diskette or a hard disk drive), an optical disc storage medium (e.g., a Laserdisc), a magneto-optical device (e.g., a MiniDisc), random access memory (RAM), or any other suitable volatile or nonvolatile storage and retrieval device or combination of devices. - In operation,
system 300 may be used to provide services pursuant to particular embodiments of grouplife insurance policy 102. For example,system 300 be used to maintain and/or manage group life insurance policies that provide sponsor-owned insurance coverage formultiple designators 108 employed byrespective sponsors 106; optimize financial account(s) 160 such that investment(s) 162 have a higher probability of maximizedinvestment 162 growth; perform administrative functions pursuant to particular embodiments of grouplife insurance policy 102; determine values associated with the various elements 150-164 of particular embodiments of grouplife insurance policy 102; monitor whether financial account(s) 160 are adequately funded; generate reports; communicate reports; withdraw from financial account(s) 160 any premium payments, fees, taxes, etc. associated with particular embodiments of grouplife insurance policy 102; maintain, manage, exchange, surrender, etc. thevarious certificates 152 issued pursuant to particular embodiments of grouplife insurance policy 102; ensurecertificates 152 comply with various rules; and/or request, receive, interpret, and/or respond to information received from client(s) 302, investment system(s) 304, and/or data storage(s) 308. In some embodiments,Manager Application 310 may be operable, when executed by processor(s) 318, to autonomously or semi-autonomously provide all, some, or none of these services. -
FIG. 4 is aflowchart 400 illustrating example steps for providing a plurality ofexchangeable certificates 152 pursuant to a particular embodiment of grouplife insurance policy 102. In this particular example, grouplife insurance policy 102 includes a variable universal life contract that is substantially funded at the inception of grouplife insurance policy 102 and structured to provide basic life insurance benefits formultiple designators 108 employed bysponsor 106. At the outset of grouplife insurance policy 102, acertificate 152 is issued for each designator 108 that represents parameters associated with the designator's 108 basic life insurance benefits, including, for example, the portion of initialaggregate payment 158 and/orfinancial account 160 allocated to thecertificate 152. Any of a variety of steps may be used to determine these various parameters. In this particular example, the steps generally include calculating an allocation factor, calculating an individual allocation percentage, calculating an optimum cell value (“OCV”), and creating deposits. - Allocation factors are calculated in
step 402 for eachcertificate 152. For example, a number may be provided for eachcertificate 152 indicative of a value allocated to eachcertificate 152 relative toother certificates 152. Various factors may be used as inputs in calculating the allocation factor. For example, factors may include the age, gender, health, salary, years of employment, job code, lifestyle, etc. of arespective designator 108. In a particular embodiment, the allocation factor may be calculated using various industry standards, rules and/or tests, such as, for example, the seven-pay limit. One example of results that may be returned by the calculations performed instep 402 is illustrated in the table ofFIG. 5A in the right-most column labeled “ALLOC FACTOR.” - Thus, in some embodiments, the cost of providing a given amount of life insurance pursuant to
particular certificates 152 may be lower foryounger designators 108 than it is forolder designators 108. In some cases, therefore, the periodic premiums that may be deducted from the cash value of any given certificate 152 (as discussed below) may be higher for anolder designator 108 as compared to acomparable certificate 152 for ayounger designator 108. As a result, the initial premium allocated or otherwise paid for a particular certificate 152 (which may generate any cash value used to fund the insurance protection thereunder) may be lower foryounger designators 108 and higher forolder designators 108, assuming, for example, at least some, if not all, of the other pertinent variables (e.g., salary, health, lifestyle, job grade, etc.) of the younger andolder designators 108 are substantially comparable. - Allocation percentages are calculated in
step 404 for eachcertificate 152. For example, each allocation percentage may be calculated by dividing the sum total of all of the allocation factors calculated instep 402 by a respective allocation factor. In other words, the allocation percentages may have a collective sum of one-hundred percent. One example of results that may be returned by the calculations performed instep 404 is illustrated in the table ofFIG. 5A in the column labeled “ALLOC %.” More specifically, a summation of the allocation factors inFIG. 5A totals 28281.53; and the first allocation percentage may thus be calculated by dividing 1512.32 by this summation, which returns approximately 5.35% (i.e. 5.34737% rounded to the nearest hundredth). - Each OCV is calculated in
step 406. The OCVs may be calculated, for example, by multiplying values associated with initialaggregate payment 150 and/orfinancial account 160 by the allocation percentages calculated instep 404. One example of results that may be returned by the calculations performed instep 406 is illustrated in the table ofFIG. 5A in the column labeled “OCV.” In the illustrated example,financial account 160 has a total value of $25,000; and the first OCV may thus be calculated by multiplying this value by the allocation percentage of 5.34737%, which returns a value of approximately 1336.84. In various embodiments, an OCV may represent the optimum value of an initial deposit associated with aparticular certificate 152. Thus, OCV may be used to optimize exchanges of certificates, as explained further below. - Deposits are created for each
certificate 152 instep 408. For example, the creation of deposits may involve allocating and/or reallocating all or a portion of the funds associated with initialaggregate payment 158 and/orfinancial account 160 amongmultiple certificates 152. According to a particular embodiment, the allocation offinancial account 160 may be initialized by creating deposits for eachcertificate 152 that are substantially equal to a respective OCV calculated for thecertificate 152; however, in certain embodiments, the reallocation offinancial account 160 may change the deposits and/or the OCV calculations from their initial values. In certain cases, reallocation offinancial account 160 may involve issuingnew certificates 152 sometime after a prior allocation offinancial account 160. - Although various example calculations are disclosed herein, various embodiments may use any of a variety of additional or alternative calculations without departing from the scope of the present disclosure. For example, particular embodiments may calculate a cost of insurance value (“COI”). The calculation(s) used to determine each COI may indicate, for example, a minimum amount of money that may be allocated to a
certificate 152 without causing thecertificate 152 to lapse. In various embodiments, the COI calculations may use a number representing the duration of time grouplife insurance policy 102 is expected to endure. That is, each COI may indicate the amount of money expected to be withdrawn from the cash value allocated to a respective certificate over the life of grouplife insurance policy 102; and each COI calculation may thus involve, for example, multiplying an annual premium associated with arespective certificate 152 by the number of years group life insurance policy is expected to endure. One example of results that may be returned by some COI calculations is illustrated in the table ofFIG. 5A in the column labeled “COI.” - In some embodiments, a summary of the data associated with group
life insurance policy 102 may be created using at least some of the values calculated in one or more of the above steps 402-406. The summary may be reviewed by one or more persons and/or may be subject to further processing. Referring to the table ofFIG. 5A , for example, a user may review the illustrated table and optionally decide to increase the face amount of acertificate 152 associated with Insured E while decreasing the face amount of another certificate associated with Insured C; and/or a user may, for example, choose to increase the face amount of bothcertificates 152 associated with Insured A and Insured B. Some changes may immediately or eventually incur one or more charges, which in some cases may be automatically deducted fromaccount 160 accordingly. Thus, various embodiments may provide the flexibility of modifying, customizing, and/or optimizing any previously calculated parameters forfinancial certificate 152. These parameters may then be reloaded intosystem 300. - In various embodiments, at least portions of steps 402-406 may be performed by processor(s) 318 executing logic embodied in computer-readable media. For example, a particular embodiment of
Manager Application 310 may be operable, when executed by processor(s) 318, to provide grouplife insurance policy 102 withmultiple certificates 152. In addition,Manager Application 310 may be further operable, when executed by processor(s) 318, to maintain, manage, exchange, surrender, etc. thevarious certificates 152 issued pursuant to grouplife insurance policy 102. In a particular embodiment, for example,Manager Application 310 may monitor for one or more events, notices, and/or data inputs indicating one or more designated beneficiaries are entitled to proceeds from respective death benefits 154. - In addition to monitoring for death-related events,
Manager Application 310 may be further operable to monitor for any of a variety of non-death-related events and reallocatefinancial account 160 among at least some ofcertificates 152 accordingly. For example,Manager Application 310 may monitor for data indicating a change in a respective relationship between one ormore designators 108 andsponsor 106. In a particular embodiment,Manager Application 310 may determine that one ormore designators 108 are no longer employed bysponsor 106. In response,Manager Application 310 may reallocatefinancial account 160 in a manner that no longer reflects the surrendered certificate(s) 152; or, in alternative embodiments,Manager Application 310 may respond by maintaining at least some of thecertificates 152 corresponding to the ex-employee(s) while optionally making one or more adjustments to their respective parameters (e.g., the face amount coverage, the COI, the OCV, etc.), which may ultimately affect the allocation offinancial account 160 amongcertificates 152. - In another example of monitoring for non-death-related events,
Manager Application 310 may determine thatsponsor 106 no longer employs one or more previously employeddesignators 108 and thatsponsor 106 has hired one or morenew designators 108. In response,Manager Application 310 may exchange the certificate(s) 152 surrendered by the employment termination(s) with one or morenew certificates 152 that may be issued for the newly hired designator(s) 108. - In yet another example of monitoring for non-death-related events,
Manager Application 310 may determine one or more events have occurred (e.g., the change in salary, duties, job grade, health, selectable options, etc. of one or more designators 108) that may affect the parameters of one ormore certificates 152. In response,Manager Application 310 may adjustfinancial account 160 accordingly and/or generate a report that indicatessponsor 106 needs to supplementfinancial account 160 with additional funds. -
FIGS. 5A though 5C illustrate example contents of respective data files that may be used to allocatefinancial account 160 amongvarious certificates 152 issued pursuant to grouplife insurance policy 102 according to a particular embodiment. According to this particular embodiment, grouplife insurance policy 102 comprises a variable universal life contract that may be substantially funded at its inception and structured to provide basic life insurance benefits formultiple designators 108 while they are employed bysponsor 106. That is, the termination of employment of one ormore designators 108 may also result, at some point, in the termination of life insurance coverage for thosedesignators 108 and the surrender of theircertificates 152. - In a particular embodiment, the management of
certificates 152 byManager Application 310 may be implemented at least partially in accordance with input received from client(s) 302. For example,sponsor 106 may use client(s) 302 to communicate one or more data files 350 toserver 306. The data files 350 may include, for example, information pertaining to one or more of the following: the hiring of one oremployee designators 108 bysponsor 106; the termination of employment of one ormore designators 108 previously employed bysponsor 106; a change in salary, health, job grade, lifestyle, selectable options etc. of one ormore employee designators 108; the issuance of one ormore certificates 152; the modification of one ormore certificates 152; the surrender of one ormore certificates 152; asset transfers offinancial account 160; and/or any of a variety of other item(s) of information pertaining to managing and/or maintainingfinancial account 160. - In some embodiments, the input(s) received from client(s) 302 may be transformed, parsed, formatted, mapped, etc. into a form that may be interpreted by
Manager Application 310. For example, one or more human resources and/or one or more automated programs may be used to generate a data table with information extracted and/or derived from the communicated data file(s) 350. In some embodiments,Manager Application 310 may perform at least a portion of the data transformation, parsing, formatting, etc. In various embodiments, the processes associated with receiving, interpreting, and/or responding to information communicated by sponsor(s) 106 tosystem 300 via client(s) 302 may occur, for example, at any suitable periodic interval(s) (e.g., weekly, bi-monthly, monthly, semi-annually, annually, etc.), and/or upon receipt of data file(s) 350 from client(s) 302. One particular example of input that may be communicated bysponsor 106 via client(s) 302 is described further with reference toFIG. 5B . -
FIG. 5B illustrates example contents of a portion of adata file 350 that may be used to allocate and/or reallocate at least a portion offinancial account 160 amongmultiple certificates 152. In this example, the illustrated portion of data file 350 includes information indicating the termination of employment of adesignator 108 represented as “INS A” and the hiring of anew employee designator 108 represented as “INS F.” This information, and/or a modified representation thereof, may be interpreted by particular embodiments ofManager Application 310 to determine one or more optimal reallocations offinancial account 160 that may be used to accommodate at least some of the changes indicated indata file 350. More specifically,Manager Application 310 may at least partially interpret the portion of data file 350 illustrated inFIG. 5B , or a modified representation thereof, as a request to reallocate the portion offinancial account 160 previously allocated among themultiple designators 108 represented inFIG. 5A (INSURED A-E), to the different set ofdesignators 108 represented inFIG. 5C (INSURED B-F). - Any of a variety of processes may be used to reallocate all or a portion of
financial account 160 to accommodate at least some of the input received from client(s) 302. In some embodiments,Manager Application 310 may store (e.g., in data storage 308) an interpretation of input received from client(s) 302 in outgoing and incoming queues. In the illustrated embodiment, for example, data related to thedesignator 108 represented inFIG. 5A as INSURED A may be stored in an outgoing queue; and data related to thedesignator 108 represented inFIG. 5C as INSURED F may be stored in an incoming queue. In various embodiments, the input and output queues may be updated to populate a batch request comprised of multiple inputs that may be received serially at different times or in parallel at substantially coincident times. - In various embodiments, the reallocation of
financial account 160 may be performed in accordance with one or more processes configured to increase the likelihood that eachcertificate 152 is optimally funded. For example, a particular embodiment ofManager Application 310 may exchange one certificate 152 (the “surrendering” certificate 152) for another certificate 152 (the “pending” certificate) ifManager Application 310 determines one or more of the following rules applies: the OCV calculated for the pendingcertificate 152 is within a predetermined reallocation tolerance of the OCV for the surrendering certificate 152 (“Rule A”); the surrenderingcertificate 152 has a lower calculated OCV than the pending certificate, though the calculated COI of the surrenderingcertificate 152 may be greater than the calculated COI of the pending certificate 152 (“Rule B”); and/or the calculated OCV of the surrenderingcertificate 152 is greater than the calculated OCV of the pendingcertificate 152 and an optional timer associated with the pendingcertificate 152 has expired (“Rule C”). In some cases,Manager Application 310 may determine a particular update comprises no surrenderedcertificate 152 and that an optional timer associated with a pendingcertificate 152 has expired (“Rule D”), and in response perform a suitable exchange or reallocation accordingly. Although some of the processes that may be used byManager Application 310 are described in the context of four distinct rules (i.e., Rule A, Rule B, Rule C, and Rule D), alternative embodiments may include all, some, or none of the above rules and/or may include any of a variety of alternative rules and/or processes. -
FIG. 6 is a flowchart 600 illustrating example steps for managing the exchanges ofcertificates 152 pursuant to a particular embodiment of grouplife insurance policy 102. Atstep 602,Manager Application 310 accesses the incoming and outgoing queues. Referring again to the illustrated example ofFIG. 5C , for example, a particular embodiment ofManager Application 310 may access incoming and outgoing queues and determine that a pendingcertificate 152 for anew designator 108 represented as INSURED F lacks one or more parameters. - At
step 604,Manager Application 310 may calculate any missing parameters (e.g., OCV and COI parameters) for pending certificate(s) 152 using steps substantially similar to at least some of the example steps 402-406 described previously with reference toflowchart 400 ofFIG. 4 . For example, an allocation factor may be initialized by recalculating all the allocation factors of a hypothetical data set that includes at least some or all of the active certificates, INSURED F and any other pending entries of the incoming cue, but that omits INSURED A and any the entries of the outgoing queue. The allocation factors calculated for the incoming queue may then be used, for example, to calculate respective OCVs and COIs in a manner substantially similar to that described previously. - In the illustrated embodiment of
FIG. 5C , for example, INSURED F has a calculated OCV of 1390 while the OCVs for INSURED B-E remain unchanged. Thus, in this particular example, the sum of the illustrated OCVs inFIG. 5C is slightly greater than that ofFIG. 5A . In other words, the value offinancial account 160 may be insufficient to fund each of the optimal cell values (“OCV”); and thus at least one of the issuedcertificates 152 may have a corresponding deposit, or a respective allocated portion offinancial account 160, that is less than its calculated OCV. In various embodiments, if the discrepancy between a total of the deposits and a total of the OCVs is larger than a predetermined threshold and/or lasts longer than a predetermined time period,Manager Application 310 may, for example, generate a report prompting for an additional charge that may be applied tofinancial account 160. - According to a particular application of an embodiment using Rule A, at
step 606,Manager Application 310 may determine whether the OCV of 1390 for the pendingcertificate 152 of INSURED F is within a predetermined reallocation tolerance of any of the OCVs for the surrendering certificate(s) 152 in the outgoing queue. Any suitable predetermined tolerance level(s) may be used. For example, certain embodiments may use a tolerance level within the range of 1% to 50% or 2% to 15%, including any fractional decimal in between. In a particular embodiment, an approximately 5% tolerance level may be used. A lower reallocation tolerance may, for example, decrease the number of candidate OCVs in the outgoing queue that satisfy Rule A; however, in certain cases, a lower reallocation tolerance may also increase the likelihood that a particular exchange satisfies rules applicable to a tax-preferred status. For example, in some embodiments, a higher reallocation tolerance that enables the exchange of a surrenderingcertificate 152 with relatively high face amount coverage (i.e., a higher OCV) for a pendingcertificate 152 with relatively low face amount coverage may risk classification of the pendingcertificate 152 for tax purposes as a modified endowment contract (“MEC”), which may have consequences that are less desirable than some alternative classifications. - Using a reallocation tolerance of approximately 5.0%, for example,
Manager Application 310 may determine that an exchange of the surrenderingcertificate 152 of INSURED A for the pendingcertificate 152 of INSURED F satisfies the requirements of Rule A and is optimal in light of at least some other possible exchange scenarios that may be implemented. In response,Manager Application 310 may perform, instep 614, a reallocation of grouplife insurance policy 160 that includes at least this optimized exchange; and substantially similar procedures may be performed to exchange any remainingcertificates 152 in the incoming and outgoing queues that likewise satisfy Rule A. - According to a particular application of an embodiment using Rule B, at
step 608,Manager Application 310 may determine whether the OCV of a surrendering certificate in the outgoing queue is less than an OCV of a pending certificate in the incoming queue and whether the COI of the surrendering certificate is greater than or equal to the COI of the pending certificate. For example, a pendingcertificate 152 for a newly hireddesignator 108 represented as INSURED G may be placed in the incoming queue for a newly hireddesignator 108 aged 34. The pendingcertificate 152 may, for example, have a face amount coverage of $89,000 and calculated OCV and COI values of 750 and 1845, respectively. Although an exchange in compliance with Rule A may not be available at a given point in time, Instep 608,Manager Application 310 may determine that an exchange of such a pendingcertificate 152 with aparticular surrendering certificate 152 substantially similar to that of INSURED B may comply with Rule B; andManager Application 310 may perform an exchange accordingly instep 614. In various embodiments,Manager Application 310 may later reallocatefinancial account 160 in a manner that better optimizes the portion allocated to the INSURED G certificate. - In some embodiments,
Manager Application 310 may select a particular set of processes from among multiple options in accordance with a predetermined hierarchy. In a particular embodiment, for example,Manager Application 310 may implement exchanges that maximize compliance with Rule A as a highest priority, Rule B as a second highest priority, and so forth. Various embodiments that preferentially apply exchange scenarios that maximize compliance with rules substantially similar to Rules A and B over alternative exchange scenarios having less of a compliance with such rules may have the advantage of minimizing taxes associated with such exchanges. For example, some exchange scenarios that maximize compliance with Rules A and/or B may minimize the reapplication of premium taxes that may have already been paid on the surrendering certificate(s) 152. At various points in time, however, it may not be possible to exchange aparticular surrendering certificate 152 in the outgoing queue for a pendingcertificate 152 in the incoming queue in a manner that complies with Rules A and/or B. - According to a particular application of an embodiment using Rule C, in
step 610,Manager Application 310 may determine that the OCV of a surrendering certificate in the outgoing queue is greater than the OCV of a pending certificate in the incoming queue; andManager Application 310 may further determine that the surrendering and pendingcertificates 152 could not be exchanged with each other or withother certificates 152 in accordance with more optimal rules (e.g., Rule A or Rule B) during a predetermined time period. Under such conditions,Manager Application 310 may determine the pending and surrenderingcertificates 152 may be exchanged in compliance with Rule C and perform the exchange accordingly instep 614. As part of the reallocation offinancial account 160 associated with the exchange,Manager Application 310 may apply the surplus in the actual deposit of the surrenderedcertificate 152 in a manner that better optimizes another exchange. For example, a pendingcertificate 152 having an OCV of 3972 and a COI of 993 may be exchanged, in compliance with Rule C, with a surrenderingcertificate 152 having an OCV of 4390; and the surplus of $418, in this case, may optionally be applied to one or more other exchanges and/or among some other existing certificate(s) 152, instep 616, in order to more fully optimize howfinancial account 160 is allocated amongcertificates 152. - According to a particular application of an embodiment using Rule D, in
step 612,Manager Application 310 may determine that the deposit for one or more active certificates 152 (i.e. not in the incoming or outgoing queues) is greater than the active certificate(s) 152 respective OCV; andManager Application 310 may further determine that one or more pending and/or surrenderingcertificates 152 in the incoming/outgoing queues could not be exchanged in accordance with more optimal rules (e.g., Rules A, Rule B, or Rule C) during a predetermined time period. If the time period expires and one or moreactive certificates 152 satisfy the conditions of Rule D,Manager Application 310 may withdraw, instep 616, at least some of this surplus to fund one or more of thecertificates 152 that have remained in the incoming queue for at least the predetermined time period. Otherwise, instep 613,Manager Application 310 may wait for an event (e.g., the toll of a time period, the addition ofcertificate 152 to the incoming queue, and/or some other event) and then loop back to step 602 to determine if any change to the incoming/outgoing queues enables more a moreoptimal certificate 152 exchange (e.g., an exchange per Rule A, Rule B, or Rule C). - Thus, particular embodiments of a group life insurance policy may be autonomously or semi-autonomously managed at least in part by providing a group life insurance policy with
multiple certificates 152 funded bysponsor 106. Eachcertificate 152 may provide a death benefit to at least one beneficiary designated by arespective designator 108 who is insured under thecertificate 152.Sponsor 106 may agree to payissuer 104 aninitial aggregate payment 158 as a lump sum in exchange forcertificates 152. At least a respective portion of the determinedinitial aggregate payment 158 may be allocated to eachcertificate 152. Particular embodiments may monitor for events that may affectcertificates 152. In response to a detection of a particular non-death related event, anaffected certificate 152 may be exchanged for anew certificate 152 that provides a death benefit to at least one beneficiary designated by arespective designator 108. The exchange ofcertificates 152 may include reallocating to thenew certificate 152 at least a portion of the portion of initialaggregate payment 160 initially allocated to the affectedcertificate 152. - In accordance with various embodiments, at least a portion of initial
aggregate payment 158 may be used to establish afinancial account 160.Financial account 160 may contains fund allocable tomultiple certificates 152 issued pursuant to particular embodiments of grouplife insurance policy 102.Manager Application 310 may optimize the allocation offinancial account 160 amongcertificates 152 in a manner that may increase the potential for eventual growth offinancial account 160 and the magnitude of such growth. In some embodiments, at least some of the allocation may be performed byManger Application 310 automatically and in response to input received fromsponsor 106 viaclients 302. The input may be used to create incoming and outgoing queues for pending and surrenderingcertificates 152, respectfully. Various rules may be applied to determine if one ormore surrendering certificates 152 may be exchanged for one or more pending certificates in a manner that optimizes the allocation offinancial account 160 among theactive certificates 152. - In addition to the advantages described above, certain embodiments may provide any of a variety of additional advantages. For example, some embodiments may enable tax-preferred growth of
various investments 162 related to grouplife insurance policy 102. In addition, some embodiments may ensure eachcertificate 152 is adequately funded, but not over-funded, so as to be classified for tax purposes as a life insurance contract that is not a modified endowment contract (“MEC”). In various embodiments, the value and/or services provided byissuer 104 to sponsor 106 pursuant to grouplife insurance policy 102 may be at least partially implemented by logic embodied in computer-readable media. Some logic may be operable, when executed by processor(s) 318, to automatically and/or semi-automatically reallocate at least portions offinancial account 160 amongmultiple certificates 152 in accordance with one or more inputs and in a manner that optimizes the allocation offinancial account 160. The reallocation may, for example, be configured to increase the likelihood thatinvestments 162 associated with grouplife insurance policy 102 may grow in a tax-preferred manner. - Although various embodiments of the present disclosure have been explained in the context of group life insurance policies, the teachings of the present disclosure may apply to any of a variety of other types of financial instruments. For example, in various alternative embodiments at least some of the teachings of the present disclosure may be used to fund post-employment obligations, such as, for example, retirement health policies.
- It should also be noted that where a flowchart is used to demonstrate various aspects of particular embodiments, it should not be construed to be limited to any particular logic flow or logic implementation. The described logic may be partitioned into different logic blocks (e.g., programs, modules, functions, or subroutines) without changing the overall results. Often, logic elements may be added, modified, omitted, performed in a different order, or implemented using different logic constructs (e.g., logic gates, looping primitives, conditional logic, and other logic constructs).
- Computer program logic implementing all or part of the functionality where described herein may be embodied in various forms, including a source code form, a computer executable form, and various intermediate forms (e.g., forms generated by an assembler, compiler, linker, or locator). Source code may include a series of computer program instructions implemented in any of various programming languages (e.g., an object code, an assembly language, or a high-level language such as Fortran, C, C++, JAVA, or HTML) for use with various operating systems or operating environments, including future operating systems or environments. The source code may define and use various data structures and communication messages. The source code may be in a computer executable form (e.g., via an interpreter), or the source code may be converted (e.g., via a translator, assembler, or compiler) into a computer executable form.
- The computer program may be fixed in any form (e.g., source code form, computer executable form, or an intermediate form) either permanently or transitorily in a tangible storage medium, such as a semiconductor memory device (e.g, a RAM, ROM, PROM, EEPROM, or Flash-Programmable RAM), a magnetic memory device (e.g., a diskette or fixed disk), an optical memory device (e.g., a CD-ROM or DVD-ROM), a PC card (e.g., PCMCIA card), or other memory device. The computer program may be fixed in any form in a signal that is transmittable to a computer using any of various communication technologies, including, but in no way limited to, analog technologies, digital technologies, optical technologies, wireless technologies (e.g., Bluetooth), networking technologies, and inter-networking technologies. The computer program may be distributed in any form as a removable storage medium with accompanying printed or electronic documentation (e.g., shrink wrapped software), preloaded with a computer system (e.g., on system ROM or fixed disk), or distributed from a server or electronic bulletin board over the communication system (e.g., the Internet or World Wide Web). In a particular embodiment, all or a portion of
Manager Application 310 may be embodied in any of a variety of other suitable computer-readable medium, such as, for example, removable media. - Although various embodiments have been described herein, a myriad of changes, variations, alterations, transformations, and modifications may be suggested to one skilled in the art, and it is intended that the present disclosure encompass such changes, variations, alterations, transformations, and modifications as fall within the scope of the appended claims.
Claims (25)
Priority Applications (1)
Application Number | Priority Date | Filing Date | Title |
---|---|---|---|
US12/718,556 US20100228572A1 (en) | 2009-03-05 | 2010-03-05 | System and Method for Managing a Group Insurance Policy |
Applications Claiming Priority (3)
Application Number | Priority Date | Filing Date | Title |
---|---|---|---|
US15783209P | 2009-03-05 | 2009-03-05 | |
US22383709P | 2009-07-08 | 2009-07-08 | |
US12/718,556 US20100228572A1 (en) | 2009-03-05 | 2010-03-05 | System and Method for Managing a Group Insurance Policy |
Publications (1)
Publication Number | Publication Date |
---|---|
US20100228572A1 true US20100228572A1 (en) | 2010-09-09 |
Family
ID=42679026
Family Applications (2)
Application Number | Title | Priority Date | Filing Date |
---|---|---|---|
US12/718,119 Active 2030-11-09 US8175952B2 (en) | 2009-03-05 | 2010-03-05 | System and method for managing a group insurance policy |
US12/718,556 Abandoned US20100228572A1 (en) | 2009-03-05 | 2010-03-05 | System and Method for Managing a Group Insurance Policy |
Family Applications Before (1)
Application Number | Title | Priority Date | Filing Date |
---|---|---|---|
US12/718,119 Active 2030-11-09 US8175952B2 (en) | 2009-03-05 | 2010-03-05 | System and method for managing a group insurance policy |
Country Status (1)
Country | Link |
---|---|
US (2) | US8175952B2 (en) |
Cited By (4)
Publication number | Priority date | Publication date | Assignee | Title |
---|---|---|---|---|
US20090198525A1 (en) * | 2006-06-07 | 2009-08-06 | Discovery Holdings Limited | Method of managing a life insurance plan and a system therefor |
US20100023354A1 (en) * | 2006-06-07 | 2010-01-28 | Adrian Gore | System and method of managing an insurance scheme |
US20100228571A1 (en) * | 2009-03-05 | 2010-09-09 | The Prudential Insurance Company Of America | System and Method for Managing a Group Insurance Policy |
US10157267B2 (en) | 2012-12-21 | 2018-12-18 | Vitality Group International, Inc. | Method of determining the attendance of an individual at a location and a system therefor |
Families Citing this family (8)
Publication number | Priority date | Publication date | Assignee | Title |
---|---|---|---|---|
US8024248B2 (en) | 2001-06-08 | 2011-09-20 | Genworth Financial, Inc. | System and method for imbedding a defined benefit in a defined contribution plan |
US8781929B2 (en) | 2001-06-08 | 2014-07-15 | Genworth Holdings, Inc. | System and method for guaranteeing minimum periodic retirement income payments using an adjustment account |
US8433634B1 (en) | 2001-06-08 | 2013-04-30 | Genworth Financial, Inc. | Systems and methods for providing a benefit product with periodic guaranteed income |
US7398241B2 (en) * | 2001-06-08 | 2008-07-08 | Genworth Financial, Inc. | Method and system for portable retirement investment |
US8370242B2 (en) | 2001-06-08 | 2013-02-05 | Genworth Financial, Inc. | Systems and methods for providing a benefit product with periodic guaranteed minimum income |
US8412545B2 (en) | 2003-09-15 | 2013-04-02 | Genworth Financial, Inc. | System and process for providing multiple income start dates for annuities |
US8612263B1 (en) | 2007-12-21 | 2013-12-17 | Genworth Holdings, Inc. | Systems and methods for providing a cash value adjustment to a life insurance policy |
JP6898384B2 (en) * | 2019-06-06 | 2021-07-07 | 東京海上日動火災保険株式会社 | Insurance contract management system, insurance contract management method, and program |
Citations (7)
Publication number | Priority date | Publication date | Assignee | Title |
---|---|---|---|---|
US20020052765A1 (en) * | 2000-01-03 | 2002-05-02 | Don Taylor | Method and apparatus for insuring multiple unit dwellings |
US20030078815A1 (en) * | 1999-05-17 | 2003-04-24 | Parsons David W. | Method for generating a study of a benefit plan for international employees of an outsourced client |
US20050137913A1 (en) * | 2003-10-08 | 2005-06-23 | Kurt Laning | System and method for insuring against tax liabilities |
US20060116915A1 (en) * | 2000-01-03 | 2006-06-01 | Renters Legal Liability, Llc | Blanket insurance method and policy for insuring multiple unit dwellings |
US20080319900A1 (en) * | 2001-03-13 | 2008-12-25 | Schiminovich Gabriel R | Life insurance products under a single approved form |
US20100010837A1 (en) * | 2008-07-09 | 2010-01-14 | Hartford Fire Insurance Company | System and method for use in billing for group benefit insurance |
US20100228571A1 (en) * | 2009-03-05 | 2010-09-09 | The Prudential Insurance Company Of America | System and Method for Managing a Group Insurance Policy |
Family Cites Families (2)
Publication number | Priority date | Publication date | Assignee | Title |
---|---|---|---|---|
US4837693A (en) * | 1987-02-27 | 1989-06-06 | Schotz Barry R | Method and apparatus for facilitating operation of an insurance plan |
US5191522A (en) * | 1990-01-18 | 1993-03-02 | Itt Corporation | Integrated group insurance information processing and reporting system based upon an enterprise-wide data structure |
-
2010
- 2010-03-05 US US12/718,119 patent/US8175952B2/en active Active
- 2010-03-05 US US12/718,556 patent/US20100228572A1/en not_active Abandoned
Patent Citations (7)
Publication number | Priority date | Publication date | Assignee | Title |
---|---|---|---|---|
US20030078815A1 (en) * | 1999-05-17 | 2003-04-24 | Parsons David W. | Method for generating a study of a benefit plan for international employees of an outsourced client |
US20020052765A1 (en) * | 2000-01-03 | 2002-05-02 | Don Taylor | Method and apparatus for insuring multiple unit dwellings |
US20060116915A1 (en) * | 2000-01-03 | 2006-06-01 | Renters Legal Liability, Llc | Blanket insurance method and policy for insuring multiple unit dwellings |
US20080319900A1 (en) * | 2001-03-13 | 2008-12-25 | Schiminovich Gabriel R | Life insurance products under a single approved form |
US20050137913A1 (en) * | 2003-10-08 | 2005-06-23 | Kurt Laning | System and method for insuring against tax liabilities |
US20100010837A1 (en) * | 2008-07-09 | 2010-01-14 | Hartford Fire Insurance Company | System and method for use in billing for group benefit insurance |
US20100228571A1 (en) * | 2009-03-05 | 2010-09-09 | The Prudential Insurance Company Of America | System and Method for Managing a Group Insurance Policy |
Non-Patent Citations (6)
Title |
---|
Accord Corporation, Attachment IV, Sample Certificate of Insurance, 1993, http://pinebluffscm.wgint.com/procurement/Certificate_of_insurance.pdf (SampleCOI). * |
Big I, Virtual University, Certificates of Insurance, Issues and Answers, January 2007, http://www.iiaba.net/eprise/main/VU/NonMember/IIABACOIES.pdf (Independent) * |
Business Dictionary - http://www.businessdictionary.com/definition/insurance-premium.html (Premium). * |
Condo Insurance 101, myurbancity.com, March 3, 2009 (Master). * |
Condominium (Condo) Insurance Insurance Information Network of California, http://www.iinc.org, 12/29/2006 (CondoAssoc). * |
George Coppolo, Our Research Report - Condominium Associations Duty to Provide, Oct. 2, 2006 (Certificate) * |
Cited By (6)
Publication number | Priority date | Publication date | Assignee | Title |
---|---|---|---|---|
US20090198525A1 (en) * | 2006-06-07 | 2009-08-06 | Discovery Holdings Limited | Method of managing a life insurance plan and a system therefor |
US20100023354A1 (en) * | 2006-06-07 | 2010-01-28 | Adrian Gore | System and method of managing an insurance scheme |
US8768732B2 (en) | 2006-06-07 | 2014-07-01 | Discovery Holdings Limited | System and method of managing an insurance scheme |
US20100228571A1 (en) * | 2009-03-05 | 2010-09-09 | The Prudential Insurance Company Of America | System and Method for Managing a Group Insurance Policy |
US8175952B2 (en) | 2009-03-05 | 2012-05-08 | The Prudential Insurance Company Of America | System and method for managing a group insurance policy |
US10157267B2 (en) | 2012-12-21 | 2018-12-18 | Vitality Group International, Inc. | Method of determining the attendance of an individual at a location and a system therefor |
Also Published As
Publication number | Publication date |
---|---|
US8175952B2 (en) | 2012-05-08 |
US20100228571A1 (en) | 2010-09-09 |
Similar Documents
Publication | Publication Date | Title |
---|---|---|
US8175952B2 (en) | System and method for managing a group insurance policy | |
US20190244297A1 (en) | Method and system for administering the hedging of an employee deferred compensation plan using swaps | |
US7797214B2 (en) | Financing and securitization structure for a portfolio of loans | |
US7797217B2 (en) | System for managing the total risk exposure for a portfolio of loans | |
US7689491B2 (en) | Systems and methods for portable alpha-plus fixed income products | |
US20070100726A1 (en) | Equity-indexed annuity for group savings programs | |
US20120284205A1 (en) | System, method, and computer program product for allocating assets among a plurality of investments to guarantee a predetermined value at the end of a predetermined period | |
US20080133280A1 (en) | Asset pool withdrawal guarantee | |
US20030105652A1 (en) | System, method, and computer program product for managing an investment to increase the after-tax death benefit of the investment | |
US20090299915A1 (en) | Method and system for reconciling equity hedge funds | |
US20210201421A1 (en) | Method and system for administering life insurance products through classifying insured lives to allocate costs | |
US20150134370A1 (en) | Decision support system and method for providing a cash value life insurance policy using reduced risk premium finance | |
US20030204462A1 (en) | Method and system for administering the hedging of an employee deferred compensation plan using swaps and options | |
US20240046369A1 (en) | Method and system for creating and tracking life insurance policies in separate accounts including modified stable value protected funds | |
US20110202454A1 (en) | Method and system for managing resources | |
US20040230505A1 (en) | Method and system for managing a non-qualified deferred compensation program using hedging | |
US20080208766A1 (en) | System and method for an indexed debt instrument with deposit insurance pass through in a qualified program administered by an institutional investor | |
KR20220082356A (en) | System and method for annuity management | |
AU2007100595A4 (en) | Method for providing financial risk pooling investment options within a unit-priced investment system | |
US20110106568A1 (en) | System and method for calculating and applying insurance product distribution fees | |
Hein et al. | Two birds with one stone: how to reduce dependence on letters of credit and accelerate tax deductibility | |
Guaranty | CBO |
Legal Events
Date | Code | Title | Description |
---|---|---|---|
AS | Assignment |
Owner name: THE PRUDENTIAL INSURANCE COMPANY OF AMERICA, NEW J Free format text: ASSIGNMENT OF ASSIGNORS INTEREST;ASSIGNORS:BROOKER, DAVID E.;BURTT, CARLETON D.;SCHOTT, CHRISTOPHER D.;AND OTHERS;SIGNING DATES FROM 20100302 TO 20100308;REEL/FRAME:024245/0857 |
|
STCV | Information on status: appeal procedure |
Free format text: ON APPEAL -- AWAITING DECISION BY THE BOARD OF APPEALS |
|
STCV | Information on status: appeal procedure |
Free format text: BOARD OF APPEALS DECISION RENDERED |
|
STPP | Information on status: patent application and granting procedure in general |
Free format text: DOCKETED NEW CASE - READY FOR EXAMINATION |
|
STPP | Information on status: patent application and granting procedure in general |
Free format text: NON FINAL ACTION MAILED |
|
STPP | Information on status: patent application and granting procedure in general |
Free format text: FINAL REJECTION MAILED |
|
STCV | Information on status: appeal procedure |
Free format text: NOTICE OF APPEAL FILED |
|
STCV | Information on status: appeal procedure |
Free format text: EXAMINER'S ANSWER TO APPEAL BRIEF MAILED |
|
STCV | Information on status: appeal procedure |
Free format text: APPEAL READY FOR REVIEW |
|
STCV | Information on status: appeal procedure |
Free format text: ON APPEAL -- AWAITING DECISION BY THE BOARD OF APPEALS |
|
STCV | Information on status: appeal procedure |
Free format text: BOARD OF APPEALS DECISION RENDERED |
|
STCB | Information on status: application discontinuation |
Free format text: ABANDONED -- AFTER EXAMINER'S ANSWER OR BOARD OF APPEALS DECISION |