Patent ID: 7720699

Claim:
A method for determining insurance premiums using a computer system coupled to a database, the computer system configured to perform the method, the insurance premiums payable by a responsible party to an insurer for defined monetary benefits payable to one or more asymptomatic claimants upon future emergence of at least one critical injury, wherein the responsible party, the insurer, and the one or more asymptomatic claimants are different parties, each of the one or more asymptomatic claimants being a party who has been exposed to an injurious condition or substance that increases a likelihood of the future emergence of the at least one critical injury, the method comprising the steps of: A) receiving predefined critical injury data predefining the at least one critical injury by the responsible party, the responsible party agreeing to be responsible for the future emergence of the at least one predefined critical injury suffered by any of the one or more asymptomatic claimants, the responsible party responsible for exposing each of the one or more asymptomatic claimants to the injurious condition or substance; B) receiving asymptomatic claimant risk classification data for the one or more asymptomatic claimants, the asymptomatic claimant risk classification data including, for each asymptomatic claimant, a duration of exposure and severity of exposure to the injurious condition or substance; C) determining a mortality table associated with the at least one predefined critical injury based on the asymptomatic claimant risk classification data; D) determining mortality rates from the mortality table; E) determining a critical injury table associated with the at least one predefined critical injury based on the asymptomatic claimant risk classification data; F) determining critical injury incidence rates from the critical injury table; G) determining first durational probabilities of surviving without emergence of the predefined critical injury from a present date to each future insurance coverage year end; H) multiplying the first durational probabilities by the critical injury incidence rates to determine second durational probabilities of predefined critical injury emergence in future insurance coverage years; I) multiplying the defined monetary benefits by the second durational probabilities to determine expected payments of the defined monetary benefits; J) discounting the expected payments for interest to determine net insurance cost on a present value basis; and K) generating an insurance product for the responsible party based on the determined net insurance cost, the insurance product provided by the insurer and including the defined monetary benefits payable to the one or more asymptomatic claimants upon future emergence of the at least one predefined critical injury.