Patent ID: 8285568

Claim:
A system for providing a Home Resale Price Protection Plan price quote to a given client who is a prospective buyer wherein said price quote comprises a fee for said Home Resale Price Protection Plan and wherein said system comprises: a. a Transactional System which comprises a first computer for accepting applicant information and for providing said price quote based on a pricing model; and wherein said first computer is specifically modified to calculate said fee for said Home Resale Price Protection Plan for said given client purchasing a house to be protected and wherein said specific modification comprises computer readable instructions for calculating said fee according to the relationship: Fee i >= ∫ t = termbegin - δ 1 termend + δ 2 ⁢ M i ⁡ ( t ) ⁢ P i ⁡ ( t ) ⁢ V ⁡ ( t ) ⁢ ⁢ ⅆ t where: Fee i is said fee to be charged for said given client i normalized by the cost of said house being protected; i is an index number of said given client; termbegin is when the coverage of said Home Resale Protection Plan begins; termend is when said coverage of said Home Resale Price Protection Plan ends; δ 1 is a first end effect adjustment period; δ 2 is a second end effect adjustment period; M i (t) is a forecasted magnitude of a future claim made at time t; P i (t) is a forecasted probability density function of said future claim being made at time t; and V(t) is a discount factor to give the present value of said future claim in present day dollars.