Gordon C Boronow

US Patent:

7974898, Jul 5, 2011

Filed:

Jul 9, 2008

Appl. No.:

12/170174

Inventors:

Robert Arena - Farmington CT, US
Robert Schwartz - West Granby CT, US
N. David Kuperstock - Woodbridge CT, US
Robert O'Donnell - Harwinton CT, US
Gordon Boronow - Trumbull CT, US

Assignee:

The Prudential Insurance Company of America - Newark NJ

International Classification:

G06Q 40/00
G06Q 10/00

US Classification:

705 35, 705 4, 705 36 R

Abstract:

A system for providing stabilized annuity payments, the system comprising a processor, a memory, and a computer program stored in the memory. The computer program allocates the risks associated with an investment to the potential beneficiaries of the annuitant by controlling the allocation of assets between two investment pools. The annuitant pool is the pool on which annuity payments are based and the beneficiary pool contains assets that are provided to the beneficiaries upon the death of the annuitant. The beneficiary pool is used as a cushion to isolate the contents of the annuitant pool from fluctuations in value. If the underlying investments perform poorly, assets from the beneficiary pool are reallocated to the annuity pool in order to maintain the existing annuity payment. If the underlying investments perform favorably, increasing in value, excess amounts above a set trigger level amount will be periodically transferred to the annuitant pool.

US Patent:

20020184129, Dec 5, 2002

Filed:

Feb 20, 2002

Appl. No.:

10/079795

Inventors:

Robert Arena - Farmington CT, US
Robert Schwartz - West Granby CT, US
N. Kuperstock - Woodbridge CT, US
Robert O'Donnell - Harwinton CT, US
Gordon Boronow - Trumbull CT, US

International Classification:

G06F017/60

US Classification:

705/035000

Abstract:

A system, method, and computer program product for providing stabilized annuity payments and control of investments in a variable annuity, the system comprising a processor, a memory, and a computer program stored in the memory. The computer program allocates the short and long term risks associated with an investment to the potential beneficiaries of the annuitant by controlling the allocation of assets between two investment pools. The annuitant pool is the pool on which annuity payments are based and the beneficiary pool contains assets that are provided to the beneficiaries upon the death of the annuitant. The beneficiary pool is used as a cushion to isolate the contents of the annuitant pool from fluctuations in value. The beneficiary pool is initially funded with sufficient assets to minimize the likelihood of its depletion under fairly conservative estimates of market conditions. If the underlying investments perform poorly, assets from the beneficiary pool are reallocated to the annuity pool in order to maintain the existing annuity payment. Thus, for as long as the beneficiary pool is not depleted, the annuity payment is stabilized and will not decrease. If the underlying investments perform favorably, increasing in value, excess amounts above a set trigger level amount will be periodically transferred to the annuitant pool. As these gains are transferred to the annuity pool, the annuity payment amounts will be increased accordingly.