Patent ID: 8271299

Claim:
A method for offering a multi-term insurance product with a return-of-premium benefit utilizing a computer, comprising the steps of: (a) computing with the computer an initial premium amount for an initial policy term for the insurance product, wherein the insurance product comprises one of non-commercial homeowners' insurance and non-commercial automobile insurance, based upon one of an input value of an insured property or a computerized risk assessment for an insured casualty risk; (b) computing with the computer a cost for a return-of-premium benefit utilizing a return-of-premium algorithm, wherein said return-of-premium computation receives as input the initial premium amount, a return-of-premium term, and a plurality of return-of-premium fractions, wherein each return-of-premium fraction corresponds to an insured period that is not greater than the return-of-premium term, and wherein the return-of-premium fractions increase exponentially as the corresponding insured period increases; (c) computing with the computer a total initial premium amount by adding the initial premium amount to the cost for a return-of-premium benefit; (d) outputting from the computer an initial insurance product offering comprising the total initial premium amount for the initial policy term; (e) receiving a change in a condition related to the one of an input value of an insured property or a computerized risk assessment for an insured casualty risk; (f) computing with the computer a subsequent premium amount for a first subsequent policy term; (g) re-computing with the computer the cost for the return-of-premium benefit utilizing the return-of-premium algorithm, wherein said return-of-premium re-computation receives as input the subsequent premium amount, the return-of-premium term, and the plurality of return-of-premium fractions; (h) computing with the computer a total subsequent premium amount by adding the subsequent premium amount to the cost for a return-of-premium benefit; (i) outputting from the computer a revised insurance product offering comprising the total subsequent premium amount for the first subsequent policy term; (j) during or after the first subsequent policy term, receiving a request to cancel the insurance product; (k) calculating with the computer the return-of-premium benefit by multiplying the total of all premiums paid during the insured period by the corresponding return of premium fraction, and then subtracting a total amount of all claims paid during the insured period; and (l) when the calculated return-of-premium benefit is greater than zero, providing the return-of-premium benefit to the insured.