Abstract:
Various embodiments of the present disclosure are directed to systems and methods for providing a reduced initial payment option. The systems and methods provide for the determination of a plurality of payment options including a reduced initial payment option.

Description:
This application is related to 1) U.S. application Ser. No. 11/321,240 filed on Dec. 29, 2005, and 2) U.S. application Ser. No. 11/321,912 filed Dec. 29, 2005, which are incorporated herein by reference in their entirety. 
     TECHNICAL FIELD 
     Various embodiments of the present disclosure pertain to payment plans and options and, more particularly, to a system and method for reduced initial payment options. 
     BACKGROUND 
     An insurance policy can be a very wise purchase, but it can also be expensive or out of reach for certain segments of consumers. In order to make insurance policies more affordable, some insurance companies have introduced an insurance premium payment plan that requires an initial down payment of a certain percentage, such as 30% of the full period premium rather than a full payment of the premium up front. However, this may still present an insurmountable financial obstacle for some consumers. 
     SUMMARY 
     Various embodiments of the present disclosure are directed to systems and methods for providing a reduced initial payment option. The systems and methods provide for the determination of a plurality of payment options including a reduced initial payment option. 
    
    
     
       BRIEF DESCRIPTION OF THE DRAWING 
         FIG. 1  is a block diagram of a system according to an illustrative embodiment. 
         FIG. 2  is a block diagram of a representative information handling system (“IHS”) of  FIG. 1 . 
         FIG. 3  is a block diagram of an embodiment of an application server used in the provider of  FIG. 2 . 
         FIG. 4  is a simplified block diagram of an embodiment of a reduced initial payment option system. 
         FIG. 5  is a flowchart of a process for reduced initial payment option. 
     
    
    
     DETAILED DESCRIPTION 
       FIG. 1  is a block diagram of a system, indicated generally at  100  according to the illustrative embodiment. The system  100  includes a computer network  105  such as, for example, a Transport Control Protocol/Internet Protocol (“TCP/IP”) network (e.g., the Internet or an intranet). A provider  110  is operably coupled to the network  105 . A plurality of users (or customers or consumers)  115 ,  120 , and  125  are also operably coupled to the network  105  in order to allow communication between the users  115 ,  120 , and  125  and the provider  110 . 
     Each of the provider  110  and the users  115 ,  120 , and  125  includes a respective network interface for communicating with the network  105  (e.g., outputting information to, and receiving information from, the network  105 ), such as by transferring information (e.g., instructions, data, signals) between such users and the network  105 . Accordingly, through the network  105 , the provider  110  communicates with the users  115 ,  120 , and  125 , and the users  115 ,  120 , and  125  communicate with the provider  110 . 
     For clarity,  FIG. 1  depicts only one provider  110 . However, the system  100  may include a plurality of providers which are substantially identical to the provider  110  and each other. Likewise, for clarity,  FIG. 1  depicts only three users  115 ,  120 , and  125 . However, the system  100  may include a plurality of users which are substantially identical to the users  115 ,  120 , and  125  and each other. In the discussion below, the user  115  is a representative one of the users  115 ,  120 , and  125 . 
     Each of the provider  110  and the users  115 ,  120 , and  125  includes a respective information handling system (IHS), a subsystem, or a part of a subsystem for executing processes and performing operations (e.g., processing or communicating information) in response thereto, as discussed further below. Each such IHS is formed by various electronic circuitry components (hardware) and/or software. Moreover, as illustrated in  FIG. 1 , such IHSs may be coupled to each other. Accordingly, the provider  110  and the users  115 ,  120 , and  125  operate within the network  105 . 
     An IHS is an electronic device capable of processing, executing or otherwise handling information. Examples of an IHS include a server computer, a personal computer (e.g., a desktop computer or a portable computer such as, for example, a laptop computer), or a handheld computer. Examples of an IHS also include a router, a switch and other devices coupled to a network (e.g. the network  105 ). 
     Referring now to  FIG. 2 , an IHS  130  which is representative of one of the IHS&#39;s described above, is illustrated. The IHS  130  may include any or all of the following: (a) a processor  130   a  for executing and otherwise processing instructions, (b) a plurality of input devices  130   b , which are operably coupled to the processor  130   a , for inputting information, (c) a display device  130   c  (e.g., a conventional electronic cathode ray tub (CRT) device or a conventional liquid crystal display (LCD)), which is operably coupled to the processor  130   a , for displaying information, (d) a print device  130   d  (e.g. a conventional electronic printer or plotter), which is operably coupled to the processor  130   a , for printing visual images (e.g., textual or graphic information on paper), (e) a computer readable medium  130   e , which is operably coupled to the processor  130   a , for storing information, as discussed further below, and (f) various other electronic circuitry for performing other operations of the IHS  130  known in the art. 
     For example, the IHS  130  includes (a) a network interface (e.g., circuitry) for communicating between the processor  130   a  and the network  105  and (b) a memory device (e.g., random access memory (RAM) device or read-only memory (ROM) device for storing information (e.g., instructions executed by processor  130   a  and data operated upon by processor  130   a  in response to such instructions)). Accordingly the processor  130   a  is operably coupled to the network  105 , the input devices  130   b , the display device  130   c , the print device  130   d , and the computer readable medium  130   e , as illustrated in  FIG. 2 . 
     For example, in response to signals from the processor  130   a , the display device  130   c  displays visual images. Information may be input to the processor  130   a  from the input devices  130   b , and the processor  130   a  may receive such information from the input devices  130   b . Also, in response to signals from the processor  130   a , the print device  130   d  prints visual images on paper. 
     The input devices include a variety of input devices known in the art such as, for example, a conventional electronic keyboard and a pointing device such as, for example, a conventional electronic “mouse”, rollerball, or light pen. The keyboard may be operated to input alphanumeric text information to the processor  130   a , and the processor  130   a  may receive such alphanumeric text information from the keyboard. The pointing device may be operated to input cursor-control information to the processor  130   a , and the processor  130   a  may receive such cursor control information from the pointing device. 
     The computer readable medium  130   e  and the processor  130   a  are structurally and functionally interrelated with one another as described below in further detail. Each IHS of the illustrative embodiment is structurally and functionally interrelated with a respective computer-readable medium, similar to the manner in which the processor  130   a  is structurally and functionally interrelated with the computer-readable medium  130   e . In that regard, the computer-readable medium  130   e  is a representative one of such computer-readable media including, for example, but not limited to, a hard disk drive. 
     The computer-readable medium  130   e  stores (e.g., encodes, records, or embodies) functional descriptive material (e.g., including but not limited to software (also referred to as computer programs or applications) or data structures). Such functional descriptive material imparts functionality when encoded on the computer-readable medium  130   e . Also, such functional descriptive material is structurally and functionally interrelated to the computer-readable medium  130   e.    
     With such functional descriptive material, data structures define structural and functional interrelationships between such data structures and the computer-readable medium  130   e  (and other aspects of the system  100 ). Such interrelationships permit the data structures&#39; functionality to be realized. Also, within such functional descriptive material, computer programs define structural and functional interrelationships between such computer programs and the computer readable medium  130   e  (and other aspects of the system  100 ). Such interrelationships permit the computer programs&#39; functionality to be realized. 
     For example, the processor  130   a  reads (e.g., accesses or copies) such functional descriptive material from the computer readable medium  130   e  onto the memory device of the IHS  130 , and the IHS  130  (more particularly, the processor  130   a ) performs its operations (as described elsewhere herein) in response to such material which is stored in the memory device of the IHS  130 . More particularly, the processor  130   a  performs the operation of processing a computer application (that is stored, encoded, recorded, or embodied on a computer-readable medium) for causing the processor  130   a  to perform additional operations (as described elsewhere herein). Accordingly, such functional descriptive material exhibits a functional interrelationship with the way in which processor  130   a  executes its processes and performs its operations. 
     Further, the computer-readable medium  130   e  is an apparatus from which the computer application is accessible by the processor  130   a , and the computer application is processable by the processor  130   a  for causing the processor  130   a  to perform such additional operations. In addition to reading such functional descriptive material from the computer-readable medium  130   e , the processor  130   a  is capable of reading such functional descriptive material from (or through) the network  105  which is also a computer-readable medium (or apparatus). Moreover, the memory device of the IHS  130  is itself a computer-readable medium (or apparatus). 
     Referring now to  FIG. 3 , the provider  110  is shown in more detail. A web server  110   a  such as, for example, a HyperText Transfer Protocol (HTTP) server, is included in the provider  110  and is operably coupled to the network  105 , described above with reference to  FIG. 1 . An application server  110   b , which may be the IHS  130  or which may include some or all of the components of the IHS  130 , described above with reference to  FIG. 2 , is included in the provider  110  and is operably coupled to the web server  110   a . A remote system  110   c  such as, for example, a data source, a java database connectivity (JDBC) or a Java connector architecture (J2C), is included in the provider  110  and is operably coupled to the application server  110   b . In an embodiment, the remote system  110   c  may be located outside of the provider  110  but still operably coupled to the provider  110  and the application server  110   b.    
     In operation, the provider  110  provides a reduced initial payment option to one or more consumers or customers  115 - 125 . Examples of the provider  110  include an insurance company, a credit card issuer, a bank, a credit union, a financial institution, a financial services entity, a mortgage company, a retail store, an airline, a car rental business, a hotel, a motel, an Internet service provider, a software manufacturer, a computer hardware manufacturer, a food-service business, an automobile manufacturer, an automobile retailer, and any other provider who may advantageously extend an offer of a reduced initial payment to its consumers or customers. Examples of the customer includes a person, a business legal entity, and a non-business legal entity. As a condition of the reduced initial payment option, the provider  110  requires the customer to agree to an automatic payment plan whereby subsequent installment payments are automatically withdrawn from the customer&#39;s bank account or against a bank card. In this manner, the provider receives up-front payment prior to activating the insurance policy. If the customer is unwilling or unable to make a 30% initial payment, the provider is still able to offer the service to the customer while having the added protection of the automatic payment plan for subsequent payments on the premium. 
       FIG. 4  is a simplified block diagram of an embodiment of a reduced initial payment option system  200 . The system  200  comprises a quoting module  202  that includes two components—an underwriting engine  204  and a rata base  206 . The underwriting engine  204  is operable to generate premium rate data based on the data related to the specific user making the purchase. This type of data may include the location, number of vehicles, insurance score, driving and claim record, age of operators, tenure with the insurance provider, time in the current job class, payment record, prior insurance, eligibility, license status (active or suspended), and years licensed, etc. The rata base  206  is operable to generate premium rate data based on information not specific to the user such as location, usage, limits of coverage, age of operators, marital status, number of vehicles, type of vehicle (age, make, model), discounts (good driving, driver training, etc.), driving and claims records, for example. Combined, the underwriting engine  204  and the rata base  206  generate a premium rate for the purchase. The quoting module  202  is communicably coupled to a policy information database  208 , which stores and maintains data related to insurance premium policies offered by provider  110 . The quoting module  202  is also communicably coupled to an agreement database  210 , which stores and maintains data related to users who have existing or past transactions with the provider. The quoting module  202  is also communicably coupled to a billing module  212 , which primarily performs the function of calculating payment schedules and generating invoices. The billing module  212  is communicably coupled to a rules database  214 , which stores and maintains rules used to make payment calculations. The quoting module  202  is further communicably coupled to a graphical user interface (GUI) module  216  that is operable to display user menus, user options, and other information to the user in a easy-to-read format. The GUI module may be operable with a web browser application to display data and information in HTML or other suitable web browser formats. 
       FIG. 5  is a flowchart of a process  400  for reduced initial payment option. In step  402 , a request is received at a provider for a purchase. The purchase may be for an insurance policy, a piece of merchandise, real estate, or some other property or instrument. The purchase request may be transmitted to the provider from a customer over the network or it may be a face-to-face request received from a customer. The purchase request may be accompanied with the user&#39;s data such as name, sex, age, the type of policy desired, the item to be insured (such as the year, make and model of the automobile). The user&#39;s data may alternatively be an account number if the user is an existing customer. The provider&#39;s quoting module  202  receives this user information in step  404 . 
     The quoting module  202  then sends or transmits quote requests to the billing module  212  in step  406 . The billing module  212  may iteratively perform calculations to provide one or more payment options to the quoting module  202 . In response, the provider provides or displays a list of the payment options with the associated information received from the billing module  212  in step  408 . The information displayed may include the amount of the initial payment and the amount and number of subsequent payments. The options includes a standard payment option that requires the customer to pay an initial payment of a predetermined percentage, usually 30%. An additional payment option is a reduced initial payment option that requires the customer to pay a reduced percentage of the premium if the customer agrees that the provider may make automatic periodic withdrawals for subsequent payments. For example, the reduced initial payment may be a first monthly or 30-day payment amount or a percentage much less than 30%. For example, if the purchase is for an insurance policy for a six month period, the initial reduced payment may be the premium for the first month (30 days) or 16% of the total premium for the policy. 
     The customer may then select the desired payment option for the purchase. The customer may indicate his/her selection by clicking on or touching the desired payment option on the screen. If the customer selects the standard payment option in step  412 , then the purchase is processed normally in step  414 . In this instance, the customer is asked to make an initial payment of 30% of the insurance premium to activate the insurance policy. Data related to this transaction are stored properly in the databases such as the agreement database  210 . The process thus ends in step  416 . 
     The customer may instead choose the reduced initial payment option in step  418 . The quoting module  202  may then consult the agreement database  210  to determine whether the customer is an existing customer that already has an automatic payment agreement plan in place in step  420 . If the customer does have an existing automatic payment agreement plan in place, then process  400  proceeds to step  426  and the purchase is processed. If the customer does not have an existing automatic payment plan, then process  400  requests the customer to agree to such a payment arrangement by displaying information about the automatic payment plan on the screen display in step  422 . The GUI further provides a clickable button or some other form of user feedback for the customer to indicate agreement to the automatic payment plan. Once the customer gives his/her authorization, the provider requests bank account and/or bank card information that the automatic payments will be made from in step  424 . Thereafter in step  426 , the purchase may be processed to completion. Data related to this transaction are stored properly in the databases such as the agreement database  210 . 
     While the detailed description above has been provided in the context of purchasing an automobile insurance policy, the system and method described herein are applicable to other purchases as well. 
     Although illustrative embodiments have been shown and described, a wide range of modification, change and substitution is contemplated in the foregoing disclosure and, in some instances, some features of the embodiments may be employed without a corresponding use of other features. Accordingly, it is appropriate that the appended claims be constructed broadly and in manner consistent with the scope of the embodiments disclosed herein.