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United States Patent | 4,752,877 |
Roberts , et al. | June 21, 1988 |
A method and apparatus are provided to fund a certain future liability of uncertain value and thereby defease fully its future cost. The method is an insurance investment plan which can be implemented using a floating rate zero coupon note obligation the interest rate on which varies automatically with the rate of inflation or the cost of some specified service or commodity which gives rise to the future liability, and the interest payments on which are automatically reinvested. The system projects the expected future cost of the liability based on a projected escalation rate associated with a certain specified index and based also on when the liability is expected to come due. It then calculates the present value sale price on the floating rate zero coupon note by discounting the expected cost at maturity at a rate that represents the insurer's projected reinvestment yield net of an insurance risk premium.
Inventors: | Roberts; Peter A. (New York, NY), Finnerty; John D. (New York, NY) |
Assignee: |
College Savings Bank
(Princeton,
NJ)
|
Appl. No.: | 06/849,779 |
Filed: | April 9, 1986 |
Application Number | Filing Date | Patent Number | Issue Date | ||
587568 | Mar., 1984 | 4642768 | |||
Current U.S. Class: | 705/36R ; 235/379 |
Current International Class: | G06Q 40/00 (20060101); G06F 015/30 () |
Field of Search: | 364/400,401,402,406,408,200,900,300,715,716,735 235/379,380,383 |
4055757 | October 1977 | Tillman et al. |
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4346442 | August 1982 | Musmanno |
4376978 | October 1980 | Musmanno |
4412287 | October 1983 | Braddock, III |
4486849 | December 1984 | Harigaya et al. |
4642768 | February 1987 | Roberts |
4648038 | March 1987 | Roberts |
4674044 | June 1987 | Kalmins |
0182450 | May., 1986 | EP | |||
1390397 | Apr., 1975 | GB | |||