Patent ID: 8265962
Filing Date: 2012-09-11
Classification: G06Q

Abstract:
1. A system for administration of a variable annuity account issued to a customer by an insurance company and having a premium invested in funds selected by the customer, comprising: a processor; a memory in communication with the processor; the processor being configured to: receive data including a net asset value of the account at a commencement of an annual period; receive data including an amount of a performance-independent management fee for payment to advisors of the customer-selected funds applicable to the account and based on a fraction of the net asset value of the account; on a daily basis throughout the annual period: calculate a fractional daily charge based on the net asset value of the account on each day during the period, the amount of the management fee and the number of days in the annual period; on a daily basis, update the net asset value by decrementing the net asset value in the amount of the daily charge; store the daily updated net asset value in memory; and store each of the daily charges in memory; at the end of the annual period: calculate an annual charge based on the net asset value of the account on one day during the annual period and the amount of the management fee; calculate a sum of the daily charges for the annual period; calculate a difference between the annual charge and the sum of the daily charges; if the annual charge is less than the sum of the daily charges, calculate an annually updated net asset value equal to the sum of the daily updated net asset value for the day of calculation and the difference between the annual charge and the sum of the daily charges; if the annual charge is equal to or greater than the sum of the daily charges, make no change to the net asset value; and provide an output signal having data indicative of the annually updated net asset value and the difference between the annual charge and the sum of the daily charges.