Patent ID: 8271306

Claim:
A system for incorporating a contractual provision into a standardized contract wording for a Collateral Damage Coverage agreement, comprising: a data storage device; and a computer linked to the data storage device configured to: receive and store in the data storage device a standardized contract wording for a Collateral Damage Coverage agreement that includes contractual terms that are acceptable to a coverage seller and will be offered to coverage buyers, where the contractual terms define the conditions for making a payment under the Collateral Damage Coverage agreement and include and at least one acceptable payment function that when applied to losses paid under a referenced insurance policy results in a payment that increases as losses paid under the referenced policy increase; offer the Collateral Damage Coverage agreement that includes the contractual terms that are acceptable to the coverage seller to coverage buyers; receive and store in the data storage device the contractual terms for a Collateral Damage Coverage agreement that are acceptable to the coverage seller received from one of said coverage buyers in response to the Collateral Damage Coverage agreement offered, where the contractual terms include a specified referenced insurance policy associated with said one of said coverage buyers; generate a contractual provision for the Collateral Damage Coverage agreement that specifies the acceptable payment function that will be applied to the losses paid by the specified referenced insurance policy; and incorporate the contractual provision into the standardized contract wording.