Patent ID: 7716073

Claim:
A computer-implemented method for administering claims, the method comprising the steps of: establishing a pension debt coverage policy of a pension insurance plan, wherein the pension debt coverage policy covers a balance of a loan to a plan participant from a retirement account of the plan participant in the pension insurance plan, wherein the loan is collateralized by assets in a retirement account held by the plan participant, wherein the pension debt coverage policy is underwritten by an insurer, and wherein the debt coverage policy is provided in response to a requirement for life insurance covering a balance of the loan, imposed as a pre-condition to making the loan; receiving notification, by a computer, of occurrence of a risk event subjecting the loan to potential non-payment default and triggering payment of a benefit under the policy; upon receipt of the notification, causing, by a computer, a claim to be presented to the insurer; receiving value equal to the balance of the loan in response to the claim, wherein pension debt coverage policy restores the value of the retirement account; and updating a record in a database on a computer to reflect the received value.