Patent ID: 8768733

Claim:
A method for implementing an insurance program for quantifying and transferring non-economic risk between a first party and a second party, said method comprising: receiving data representing an asset belonging to the first party, wherein the data includes a market value of the asset and expected principal payments of the asset; generating an economic value of the asset based on the data representing the asset; calculating a policy attachment value for the program based on the economic value; calculating a policy limit based on the market value of the asset and the policy attachment value, wherein the second party provides an insurance policy to the first party under which the asset is insured against losses from the policy attachment value up to the policy limit; calculating a policy security based on the policy limit, wherein the second party provides the policy security to the first party as collateral for its obligation to insure the asset; determining aggregate principal payments (APP) of the asset upon termination of the insurance policy; calculating a claim amount based on the APP, the policy attachment value, and the policy limit, wherein the first party is entitled under the program to make a claim for the claim amount, up to the policy limit, when the APP is less than the policy attachment value, and wherein the first party is entitled under the program to retain a portion of the policy security necessary to fulfill its claim and is obliged under the program to return any remaining portion of the policy security to the second party; and displaying the claim amount; wherein the step of generating an economic value is performed by a computer.