Patent ID: 8175940
Filing Date: 2012-05-08
Classification: G06Q

Abstract:
1. A computer-implemented method for use with a computer of the type used to administer a variable universal life insurance product having a volatility reduction feature, said computer having a memory for storing data relating to a life insurance policy and a calculation engine for performing calculations necessary to the administration of a life insurance policy, comprising the steps of: a. providing a life insurance policy having a cash surrender value; and using the computer: b. creating a plurality of variable subaccounts associated with said policy, at least one of said subaccounts being an unsmoothed variable subaccount and at least one other of said subaccounts being a smoothed variable subaccount; c. for each unsmoothed variable subaccount; d. for each smoothed variable subaccount; using the calculation engine; e. using the calculation engine and the account value of the unsmoothed variable subaccount and the surrender value of the smoothed variable subaccount, periodically determining the cash surrender value of the insurance policy.