Patent ID: 6584446
Filing Date: 2003-06-24
Classification: G06Q

Abstract:
A computerized system for underwriting a combined, joint life and long term care insurance policy which is actuarially responsive to the long term care expectations and life expectancies of the individuals being insured, said system comprising:means for generating a set of future risk expectation strings for long term care for an individual insured, categorized by age, sex, and smoking status, and for generating a set of future risk expectation strings for life expectancy for an individual insured, categorized by age, sex, and smoking status; means for processing said set of future risk expectation strings for long term care and said set of future expectation strings for life expectancy by applying risk exposure sequencing and present risk value analysis to said long term care and life expectancy risk expectation string values for joint equal age to generate joint equal age present risk values; means for processing said joint equal age present risk values to generate a Joint Equal Age Risk data matrix; means for categorizing said sets of future risk expectation strings for long term care and for life expectancy into a plurality of Age Differential Classifications; means for processing each of said Age Differential Classifications (ADC) over a range of possible age differentials (W) between joint insureds, including: a) means for applying risk exposure sequencing and present risk value analysis to generate temporary joint equal age present risk values (JEA) over a range of possible issue ages (i); b) for each older issue age (x): 1) means for applying risk exposure sequencing to generate a temporary differential present risk value (ADF[x,xâˆ’W]); 2) means for comparing said temporary differential present risk value ADF[x,xâˆ’W] with said temporary joint equal age present risk values (JEA), and selecting the crossover point where ADF[x,xâˆ’W]JEA[i]; and 3) means for storing the crossover point differential (xâˆ’i) into a temporary age equivalence matrix; c) means for analyzing a completed temporary age equivalence matrix for a given ADC and W to select an age differential adjustment factor for said ADC and W, and d) means for storing said selected age differential adjustment factor into an Age Differential Adjustment data matrix; and means for generating Joint Equal Age and Age Differential Adjustment Charts from said Joint Equal Age and Age Differential Adjustment data matrices for use in rate structuring an insurance product covering joint long term care and life benefits.