Patent ID: 6182048
Filing Date: 2001-01-30
Classification: G06Q

Abstract:
A system for performing risk-based pricing of a vehicle warranty insurance policy, comprising:a vehicle warranty policy request input source for receiving a request for a vehicle warranty policy;a historical database containing a plurality of historical vehicle warranty policies;a plurality of databases each containing vehicle warranty related information;a processor, coupled to the vehicle warranty policy request input source, the historical database, and the plurality of databases, for servicing the request for a vehicle warranty policy, the processor comprising means for risk-based pricing the request and means for suggesting terms and conditions for the risk-based policy, wherein the risk-based pricing means partitions the vehicle listed in the request into a plurality of components, determines a correlation between failure rates of each of the plurality of components and costs to effect repair of the failed component with the vehicle warranty related information contained in the plurality of databases, derives an expected cost of policy claims from the correlations and sets a policy proffer price covering the expected cost of policy claims plus a predetermined profit margin; anda vehicle warranty policy output source, coupled to the processor, for outputting the serviced request for a vehicle warranty policy.