Patent ID: 7818186

Claim:
A system that determines a confidence factor for an insurance application underwriting decision based on a comparison of at least one previous underwritten insurance application, the system implemented on a computer processing system including a computer readable medium, the system comprising: an identification application, tangibly embodied in the computer readable medium, that identifies a plurality of internal parameters that are identified as potentially affecting the probability of misclassification of a risk category of the insurance application; an estimation module, tangibly embodied in the computer readable medium, that estimates the conditional probability of misclassification of a risk category for each of the identified parameters; a translation module, tangibly embodied in the computer readable medium, that translates the conditional probability of misclassification of a risk category into a soft constraint for each of the identified parameters; and a definition module, tangibly embodied in the computer readable medium, to determine a confidence factor based on the plurality of soft constraints, the confidence factor pertaining to the insurance application underwriting decision; and the system comparing the confidence factor to a confidence threshold to determine a confidence level in the insurance application underwriting decision.