Patent ID: 7747518

Claim:
Apparatus comprising: a computer system comprising a digital computer operably associated with an input device and with an output device, the computer programmed to carry out operations including: receiving, at the input device, input data corresponding to lives of individuals or a group of individuals, statistical risk assumptions associated with the lives of individuals or the group of lives, and specification of time periods associated with the lives of individuals or the group of lives for each of the time periods corresponding to the transaction; calculating, from the input data, the statistical assumptions, and the specification of time periods, expected cash flow corresponding to said risks for the time periods of a transaction which comprises a financial derivative; receiving, at the input device, actual cash flow information from occurrence of events corresponding to said time periods, said cash flows arising from at least one event of death, disability, and survivorship; producing a first accounting of a first party to the transaction owing the expected cash flow to a second party to the transaction, and producing a second accounting of the second party to the transaction owing the actual cash flow to the first party to the transaction; and outputting at least one of said first accounting, said second accounting, and a settlement, based on the expected cash flow and the actual cash flow for at least one of said time periods, so as to produce the output for the transaction at the output device.