Patent ID: 7451097

Claim:
A method of generating an insurance policy, comprising: determining a policy framework comprising a framework rating plan including at least one discount for a selection of a plurality of modular coverages, said policy framework and modular coverages each being previously approved by at least one state, and the policy framework comprising the plurality of modular coverages that are independent from each other with respect to approval by the at least one state; providing a set of the independent and previously approved modular coverages corresponding to a plurality of insurable liabilities, wherein each modular coverage includes a respective modular rating plan; receiving a selection of a subset of the modular coverages from a customer; determining an initial premium for each modular coverage responsive to the selection from the customer based at least on the subset of the modular coverages selected by the customer and the modular rating plan of each modular coverage in the subset of the plurality of modular coverages selected by the customer; modifying the subset of the modular coverages selected by the customer and the initial premium based on the policy framework and the framework rating plan with respect to the plurality of modular coverages without having to subject each of the modular coverages in the modified subset to another rating process when the policy framework indicates that a modification is to be performed to the subset of the modular coverages; estimating a multi-coverage premium using the initial premium and at least one of: liability limits shared across the subset of modular coverages and the discount associated with the combination of the selected subset of modular coverages based on the framework rating plan; and combining the selected subset of the modular coverages to generate at least one multi-coverage insurance policy from a plurality of insurance policies each associated with a selected one of the modular coverages and including the multi-coverage premium.