David H Fields

US Patent:

20020156658, Oct 24, 2002

Filed:

Feb 14, 2002

Appl. No.:

10/076205

Inventors:

Steven Selesny - West Hempstead NY, US
David Fields - New York NY, US

International Classification:

G06F017/60

US Classification:

705/004000

Abstract:

An insurance product and insurance method for providing financial assurance, against an occurrence of at least one specified event, are described. In one embodiment, an insurer provides an insurance policy having a risk limit, in exchange for a predetermined first premium from the insured entity, where the risk limit is the maximum monetary risk. The insurer then transfers a variable portion of the risk limit to a reinsurer in exchange for a predetermined second premium. Note that the reinsurer is preferably a captive of the insured. As a feature of the invention, the variable portion of the risk limit decreases over time, and equals a predetermined retainment point less a variable attachment point. For example, the retainment point is a monetary amount less than the risk limit, and the variable attachment point varies over time based on a predetermined investment growth. In a further embodiment, the reinsurer transfers its risk to a third party reinsurer for a premium, where the third party reinsurer acts as a pool administrator for an insurance pool.