CA 02229238 1998-02-11
`
`-7-
`
`station via an uplink, information representative of the trigger event and
`
`recording response information generated by the control station.
`
`In accordance with yet another aspect of the present invention, the
`
`method comprises steps of generating calculated data elements and derived data
`
`elements from the raw data elements, and accumulating the calculated and
`
`derived data elements in a recording device.
`
`The present invention will use information acquired from the
`
`vehicle to more accurately assess vehicle usage and thereby derive insurance
`
`costs more precisely and fairly. Examples of possible actuarial classes
`
`IO
`
`developed from vehicle provided data include:
`
`Driver:
`
`Total driving time in minutes by each driver of the insured vehicle;
`
`number of minutes driving in high/low risk locations (high/low accident
`
`15
`
`areas);
`
`number of minutes of driving at high/low risk times (rush hour or
`
`Sunday afternoon);
`
`safe driving behavior,
`
`20
`
`using seat belts,
`
`use of tum signals,
`
`observance of speed limits, and
`
`observance of traffic control devices;
`
`number of sudden braking situations; and
`
`number of sudden acceleration situations.
`
`25
`
`Vehicle:
`
`Location vehicle is parked at night (in garage, in driveway, on street);
`
`and
`
`location vehicle is parked at work (high theft locations, etc.).
`
`.4»
`
`Page 001183
`
`

`
`CA 02229238 1998-02-11
`
`-3-
`
`These new and more precise actuarial classes are considered to be
`
`better predictors of loss because they are based on actual use of the vehicle and _
`the behaviors demonstrated by the driver. This will allow the consumers
`
`unprecedented control over the ultimate cost of their vehicle insurance.
`
`In accordance with the present invention, additional discounts and
`
`surcharges based on data provided by the insured vehicle will be available.
`
`Examples of surcharges and discounts based on vehicle provided data include:
`
`Surcharges:
`
`Excessive hard braking situations occurring in high risk locations; and
`
`intermittent use of a safety device, such as seat belts.
`Discounts:
`
`Regular selection of low/high risk routes of travel;
`
`regular travel at low/high risk times;
`
`significant changes in driving behavior that results in a lower risk;
`
`vacation discount when the vehicle is not used;
`
`regular use of safety devices; and
`
`unfailing observance of speed limits.
`
`There is some overlap between the use of actuarial classes and
`
`discounts and surcharges. Until data has been gathered and analyzed it is not
`
`possible to determine which vehicle provided data will be used to determine
`
`actuarial classes and which will be used for surcharges or discounts.
`
`One benefit obtained by use of the present invention is a system
`
`that will provide precise and timely information about the current operation of
`
`an insured motor vehicle that will enable an accurate determination of operating
`
`characteristics, including such features as miles driven, time of use and speed of
`
`the vehicle. This information can be used to establish actual usage based
`
`insurance charges, eliminating rating errors that are prevalent in traditional
`
`10
`
`15
`
`20
`
`25
`
`Page 001184
`
`

`
`CA 02229238 1998-02-11
`
`-9-
`
`systems and will result in vehicle insurance charges that can be directly
`controlled by individual operators.
`
`It is another benefit of the subject invention that conventional
`
`motor vehicle electronics are easily supplemented by system components
`
`comprising a data recording, a navigation system and a communications device
`
`to extract selected insurance relevant data from the motor vehicle.
`
`It is yet another object of the present invention to generate
`
`actuarial classes and operator profiles relative thereto based upon actual driving
`characteristics of the vehicle and driver, as represented by the monitored and
`
`recorded data elements for providing a more knowledgeable, enhanced insurance
`
`rating precision.
`
`The subject new insurance rating system retrospectively adjusts
`
`and prospectively sets premiums based on data derived from motor vehicle
`
`operational characteristics and driver behavior through the generation of new
`
`actuarial classes determined from such characteristics and behavior, which
`
`classes heretofore have been unknown in the insurance industry. The invention
`
`comprises an integrated system to extract via multiple sensors, screen, aggregate
`and apply for insurance rating purposes, data generated by the actual operation
`of the specific vehicle and the insured user/driver.
`
`Other benefits and advantages of the subject new vehicle insurance
`
`cost determination process will become apparent to those skilled in the art upon
`a reading and understanding of the specification.
`
`Brief Egrjptign of the Drawings
`
`The invention may take physical fonn in certain parts and steps
`and arrangements of parts and steps, the preferred embodiments of which will be
`
`described in detail in this specification and illustrated in the accompanying
`drawings which form a part hereof and wherein:
`
`10
`
`15
`
`20
`
`25
`
`
`
`-.'-5lb’:-..-;’-_‘-‘L
`
`Page 001185
`
`

`
`CA 02229238 1998-02-11
`
`-10-
`
`FIGURE 1 is a flowchart generally describing a data gathering
`process from a vehicle;
`
`FIGURE 2 is a flowchart detailing the gathering and consolidating
`of appropriate information for determining a cost of insurance and the resulting
`insurance billing process;
`
`FIGURE 3 is a suggestive perspective drawing of I Vehicle
`including certain data element monitoring, recording and communicating
`devices;
`
`with a central control center and a global positioning navigation system;
`FIGURE 5 is a flowchart generally illustrating a method for
`acquiring and recording vehicle insurance related data; and
`
`FIGURE 6 is a tabular illustmtion of various sources of
`insuruuzeqelated data. a necessary interface for acquiring the dam and an
`exemplary sample rate therefor.
`
`.1
`
`.
`
`.
`
`lb
`
`V
`
`.
`
`Referring now to the drawings, wherein the showings are for
`
`10
`
`15
`
`20
`
`25
`
`Page 001186
`
`

`
`CA 02229238 1998'02'11
`
`-11-
`
`his/her insurance costs by operating the vehicle in a manner which he/she will
`
`know will evidence superior safety of operation and a minimal risk of generation
`of an insurance claim. Examples of data which can be monitored and recorded
`include:
`
`1.
`
`2.
`
`3.
`
`Actual miles driven;
`
`Types of roads driven on (high risk vs. low risk); and,
`
`Safe operation of the vehicle by the vehicle user through:
`A.
`speeds driven,
`
`B.
`
`safety equipment used, such as seat belt and turn
`
`signals,
`
`C.
`
`time of day driven (high congestion vs. low
`
`congestion),
`
`rate of acceleration,
`
`rate of braking,
`
`observation of traffic signs.
`
`D.
`
`E.
`
`F.
`
`With reference to FIGURE 3, an exemplary motor vehicle is
`shown in which the necessary apparatus for implementing the subject invention
`is included. An on—board computer 300 monitors and records various sensors
`
`and operator actions to acquire the desired data for determining a fair cost of
`insurance. Although not shown therein, a plurality of operating sensors are
`associated with the motor vehicle to monitor a wide variety of raw data
`elements. Such data elements are communicated to the computer through a
`connections cable which is opeiatively connected to the vehicle data bus 304
`
`through an SA.E—J1978 connector, or OBD—II connector or other vehicle sensors
`306. A driver input device 308 is also operatively connected to the computer
`300 through connector 307 and cable 302. The computer is powered through
`the car battery 310 or a conventional generator system (not shown). Tracking of
`
`10
`
`15
`
`20
`
`25
`
`Page 001187
`
`

`
`CA 02229238 1998-02-11
`
`-12-
`
`the vehicle for location identification can be implemented by the computer 300
`through navigation signals obtained from a GPS (global positioning system)
`
`antenna or other locating system 312. The communications Link to a central
`
`control station is accomplished through the cellular telephone, radio, satellite or
`
`other wireless communication system 314.
`
`FIGURE 4 provides the block diagram of the in-vehicle computer
`
`system. The computer 300 is comprised of four principal components, an on-
`
`board data storage device 402, an input/output subsystem 404 for communicating
`
`to a variety of external devices, a central processing unit and memory device
`
`406 and a real time operating kemel 408 for controlling the various processing
`
`steps of the computer 300. The computer 300 essentially communicates with
`
`three on-board vehicle devices for acquisition of information representative of
`
`various actual vehicle operating characteristics. A driver input console 410
`
`allows the driver to input data representative of a need for assistance or for
`
`satisfaction of various threshold factors which need to be satisfied before the
`
`vehicle can be operated. The physical operation of the vehicle is monitored
`
`through various sensors 412 in operative connection with the vehicle data bus,
`
`while additional sensors 414 not normally connected to the data bus can be in
`
`direct communication with the computer 300 as will hereinafter be more fully
`
`10
`
`15
`
`20
`
`explained .
`
`The vehicle is linked to an operation control center 416 by a
`
`communications link 418, preferably comprising a conventional cellular
`
`telephone interconnection. A navigation sub-system 420 receives radio
`
`navigation signals from a GPS 422.
`
`25
`
`The type of elements monitored and recorded by the subject
`
`invention comprise raw data elements, calculated data elements and derived data
`
`elements. These can be broken down as follows:
`
`Page 001188
`
`

`
`CA 02229238 1998-02-11
`
`-13-
`
`Raw Data Elements:
`
`Power train sensors
`
`RPM,
`
`1
`
`transmission setting (Park, Drive, Gear, Neutral),
`
`10
`
`15
`
`20
`
`25
`
`throttle position,
`
`engine coolant temperature,
`
`intake air temperature,
`
`barometric pressure;
`
`Electrical sensors
`
`brake light on,
`
`turn signal indicator,
`
`headlamps on,
`
`hazard lights on,
`
`back-up lights on,
`
`parking lights on,
`
`wipers on,
`
`doors locked,
`
`key in ignition,
`
`key in door lock,
`
`horn applied;
`
`Body sensors
`
`airbag deployment,
`
`ABS application,
`
`level of fuel in tank,
`
`brakes applied,
`
`radio station tuned in,
`
`seat belt on,
`
`door open,
`
`tail gate open,
`
`Page 001189
`
`

`
`CA 02229238 1998-02-11
`
`-14-
`
`odometer reading,
`
`cruise control engaged,
`
`anti—theft disable;
`
`Other sensors
`
`vehicle speed,
`
`vehicle location,
`
`date,
`
`time,
`
`vehicle direction,
`
`IVHS data sources.
`
`Calculated Data Elements:
`
`rapid deceleration;
`
`rapid acceleration;
`
`vehicle in skid;
`
`wheels in spin;
`
`closing speed on vehicle in front;
`
`closing speed of vehicle in rear;
`
`closing speed of vehicle to side (right or left);
`
`space to side of vehicle occupied;
`
`space to rear of vehicle occupied;
`
`space to front of vehicle occupied;
`
`lateral acceleration;
`
`sudden rotation of vehicle;
`
`sudden loss of tire pressure;
`
`driver identification (through voice recognition or code or fingerprint
`
`recognition);
`
`distance travelled; and
`
`environmental hazard conditions (e. g. icing, etc.).
`
`10
`
`15
`
`20
`
`25
`
`Page 001190
`
`

`
`CA 02229238 1998-02-11
`
`-15-
`
`Derived Data Elements:
`
`vehicle speed in excess of speed limit;
`
`observation of traffic signals and signs;
`
`road conditions;
`
`5
`
`traffic conditions; and
`
`vehicle position.
`
`This list includes many, but not all, potential data elements.
`
`With particular reference to FIGURE 1, a flowchart generally
`
`illustrating the data gathering process of the subject invention is illustrated.
`
`10
`
`Such a process can be implemented with conventional computer programming in
`
`the real time operating kernel 408 of the computer 300. The process is
`
`identified with initially a begin step 100 (key in ignition?) and a check of
`
`whether the vehicle is operating at step 102.
`
`If the vehicle is not operating a
`
`reverification occurs every two (2) minutes as shown at step 104.
`
`It should be
`
`15
`
`noted that the computer is continually powered by at least the vehicle battery
`
`310 (FIGURE 3), but it can be appreciated that during operation the generator
`
`(not shown) will supply the energy.
`
`If the vehicle is operating, then there is a
`
`step of recording sensor information 106. The recording comprises monitoring
`
`a plurality of raw data elements, calculated data elements and derived data
`
`20
`
`elements as identified above. Each of these is representative of an operating
`
`state of the vehicle or an action of the operator. Select ones of the plurality of
`data elements are recorded when the ones are determined to have an identified
`
`relationship to the safety standards. For example, vehicle speed in excess of a
`
`predetermined speed limit will need to be recorded but speeds below the limit
`
`25
`
`need only be monitored and stored on a periodic basis. The recording may be
`
`made in combination with date, time and location. Other examples of data
`
`needed to be recorded are excessive rates of acceleration or frequent hard
`
`braking.
`
`Page 001191
`
`

`
`CA 02229238 1998-02-11
`
`-16-
`
`The recording process would be practically implemented by
`monitoring and storing the data in a buffer for a selected period of time, e.g.,
`
`thirty seconds. Periodically, such as every two minutes, the status of all
`
`monitored sensors for the data elements is written to a file which is stored in the
`
`vehicle data storage 402. The raw, calculated and derived data elements listed
`
`above comprise some of the data elements to be so stored.
`
`Certain of the recorded sensor infonnation may comprise a trigger
`
`event of which inquiry is identified at step 108.
`
`"Trigger events" are defined as
`
`a combination of sensor data requiring additional action or which may result in a
`
`surcharge or discount during the insurance billing process. Certain trigger
`
`events may require immediate upload 110 to a central control which will then be
`
`required to take appropriate action. For example, a trigger event would be rapid
`
`deceleration in combination with airbag deployment indicating a collision, in
`
`which case the system could notify the central control of the vehicle location.
`
`Alternatively, if the operator were to trigger on an emergency light, similarly
`
`the system could notify the central control of the vehicle location indicating that
`
`an emergency is occurring. The trigger information is recorded, as at step 116,
`
`and whatever response is taken by the central control is also recorded at step
`
`118. The trigger information recording step 116 and the recording sensor
`
`information step 106 may impart recording of information in the on-board data
`
`storage device 402 or memory 406. The event response information recording
`
`at step 118 will usually occur in the central control station. Such response
`information could be the dispatch of an emergency vehicle, or the telephoning of
`
`police or an EMS unit.
`
`Trigger events are divided into two groups:
`
`those requiring
`
`immediate action and those not requiring immediate action, but necessary for
`
`proper billing of insurance. Those required for proper billing of insurance will
`
`be recorded in the same file with all the other recorded vehicle sensor
`
`information. Those trigger events requiring action will be uploaded to a central
`
`10
`
`15
`
`20
`
`25
`
`
`
`«:4-'."".7:‘g"-4'5"’;
`
`Page 001192
`
`

`
`CA 02229238 1998-02-11
`
`-17-
`
`control center which can take action depending on the trigger event. Some
`
`trigger events will require dispatch of emergency services, such as police or
`
`EMS, and others will require the dispatch of claims representatives from the
`
`insurance company.
`
`The following comprises an exemplary of some, but not all,
`
`trigger events:
`
`Need for Assistance:
`
`These events would require immediate notification of the central control center.
`
`1.
`
`Accident Occurrence. An accident could be determined through
`
`the use of a single sensor, such as the deployment of an airbag.
`
`It could also be determined through the combination of sensors,
`
`such as a sudden deceleration of the vehicle without the
`
`application of the brakes.
`
`2.
`
`Roadside assistance needed. This could be through the pressing
`
`of a "panic button" in the vehicle or through the reading of a
`
`sensor, such as the level of fuel in the tank. Another example
`
`would be loss of tire pressure, signifying a flat tire.
`
`3.
`
`Lock—out assistance needed. The reading of a combination of
`
`sensors would indicate that the doors are locked but the keys are
`
`in the ignition and the driver has exited the vehicle.
`
`4.
`
`Driving restrictions. The insured can identify circumstances in
`
`which he/she wants to be notified of driving within restricted
`
`areas, and warned when he! she is entering a dangerous area. This
`
`could be applied to youthful drivers where the parent wants to
`
`restrict time or place of driving, and have a record thereof.
`
`Unsafe Operation of the Vehicle
`
`These events would be recorded in the in-vehicle recording device for future
`
`upload. Constant trigger events would result in notification of the driver of the
`
`exceptions.
`
`10
`
`15
`
`20
`
`25
`
`Page 001193
`
`

`
`CA 02229238 1998-02-11
`
`-18..
`
`1.
`
`Excessive speed. The reading of the vehicle speed sensors would
`indicate the vehicle is exceeding the speed limit. Time would also
`
`be measured to determine if the behavior is prolonged.
`
`2.
`
`Presence of alcohol. Using an air content analyzer or breath
`
`analyzer, the level of alcohol and its use by the driver could be
`determined.
`
`3.
`
`4.
`
`5.
`
`Non~use of seatbelt. Percent of sample of this sensor could result
`
`in additional discount for high use or surcharge for low or no use.
`
`Non-use of turn signals. Low use could result in surcharge.
`
`ABS application without an accident. High use could indicate
`
`unsafe driving and be subject to a surcharge.
`
`with particular reference to FIGURE 2, a general flowchart
`
`describing the steps of the gathering of appropriate information for billing
`
`insurance on a periodic basis is illustrated.
`
`At the initiation of the vehicle insurance billing process, the
`
`central billing system of the insurer will acquire 202 the vehicle sensor record
`
`file from the sensor record file 204 from each vehicle to be billed. This process
`
`of data acquisition will involve a periodic uploading of the vehicle file 204.
`
`This file will be uploaded to the central system when the storage device 402 in
`
`the vehicle approaches capacity, on command, or when the billing process starts.
`
`All the information from the combination of files stored in the vehicle will be
`
`used to determine the bill for the insurance on the vehicle for the prior insurance
`
`period. Data acquisition is also made from the trigger event response file 206 in
`
`the acquisition step 208. This data is stored in the central control center, and
`
`includes information for response activities listed above which require additional
`billing for services rendered to the insured.
`
`At step 210, the vehicle sensor record file and the trigger event
`
`response file are consolidated. Such files will include all the activity for which
`
`the insured is to be billed for the prior period. At step 212, all the information
`
`10
`
`15
`
`20
`
`25
`
`...."‘-'-it-'-"‘
`
`Page 001194
`
`

`
`CA 02229238 1998-02-11
`
`-19-
`
`comprising the insured profile, which is already maintained and stored in other
`
`insurance files, is applied to the consolidated activity files for the immediately
`prior period.
`'I'lris insured profile includes the information about coverages
`
`including limits and deductibles, which are necessary for establishing the
`
`appropriate cost of insurance for the subject insured. At step 214, the acquired
`
`consolidated file information from step 210 and the overall insured profile
`
`acquired at step 212 are combined and processed against a surcharge or discount
`
`algorithm file, which include the specific factors for the various usage patterns
`
`and trigger events. The surcharges and discounts are continuously adjusted
`
`based on the loss results associated with driving behaviors demonstrated.
`
`Finally at step 216, the appropriate billing is produced showing the charges for
`
`insurance and other services for the prior period. The billing can be sent
`
`electronically or in printed form to the insured for payment.
`
`With particular reference to FIGURE 5, a general diagram of the
`
`process for acquiring and recording vehicle insurance related data is illustrated.
`
`At step 502, the raw data elements are collected from the vehicle sensors that
`
`provide the raw data elements identified above. Calculated data elements are
`
`generated in step 504 and derived data elements are generated at step 508. As
`
`noted, it is necessary to collect certain database information elements at step 506
`
`prior to generating the derived data elements. A sample of all the data elements
`
`is stored in the vehicle at step 510. The sample rate or the recording of the
`
`information is controlled based upon the particular insurance billing recording
`
`needs predetermined by an algorithm developed by the insurance company. The
`
`algorithm will change depending on the particular type of insurance related
`
`requirements for the information. At step 512, if a certain incident, for example
`
`collision, occurs then a snapshot is generated of all the relevant data elements at
`
`the time of the incident, 514.
`
`With reference to FIGURE 6, various examples of sources of
`
`insurance related data, the interface required to acquire the data and an example
`
`10
`
`15
`
`20
`
`25
`
`Page 001195
`
`

`
`CA 02229238 1998-02-11
`
`-20..
`
`of the sample rate are illustrated for a preferred embodiment of the subject
`
`invention. Accordingly, it can be seen that for a certain information database
`comprised of maps, speed limits, traffic signs, and highway conditions is stored
`
`_
`
`in the data storage device of the computer and can be obtained on demand
`
`therefrom. Acquiring data from vehicle sources such as engine data, body data
`
`and electrical data is obtained through a conventional SAEJ 1978 connector with
`
`an exemplary sample rate of 10-15 Hz. The other sources of relevant data, such
`
`as IVHs, GPS, security system or any additional systems are obtained through
`
`various [/0 ports and the sample rate can be varied in accordance with the
`
`10
`
`desired goals of the insurer.
`
`One of the useful consequences of the subject invention is that
`
`other products could be marketed to a particular vehicle operator based on
`
`information provided from the subject invention from the operator’s motor
`
`vehicle. Since the invention includes processes for gathering, extracting and
`
`analyzing information provided by the vehicle, a more informed judgment can
`
`be made about a determination of when and which products could be marketed
`
`to that motor vehicle operator. For example, by knowing that a vehicle operator
`
`travels on vacation in that vehicle to a certain resort location may give rise to a
`
`marketing of a package of products particular to the type of travel or the
`
`location. Another example would relate to the knowledge that the vehicle
`
`operator attends particular types of sporting events which may give rise to
`
`certain types of products catered to fans of that sporting event.
`
`The invention has been described with reference to preferred
`
`embodiments. Obviously, modifications and alterations will occur to others
`
`upon a reading and understanding of the specification.
`
`It is our intention to
`
`include all such modifications and alterations insofar as they come within the
`
`scope of the appended claims or the equivalents thereof.
`
`15
`
`20
`
`25
`
`Page 001196
`
`

`
`CA 02229238 1998-02-11
`
`_ 21 .
`
`Having thus described our invention, we claim:
`
`L
`
`A method of determining a cost of automobile insurance based
`
`upon monitoring, recording and communicating data representative of operator
`
`and vehicle driving characteristics, whereby the cost is adjustable by relating the
`
`driving characteristics to predetermined safety standards, the method comprising:
`
`monitoring a plurality of raw data elements representative of an
`
`operating state of a vehicle or an action of the operator;
`
`recording selected ones of the plurality of raw data. elements when
`
`said ones are determined to have a preselected relationship to the safety
`
`standards;
`
`.
`
`-
`
`10
`
`consolidating said selected ones for processing against an insured
`
`profile and for identifying a surcharge or discount to be applied to a base cost of
`
`automobile i.nsura.nce; a.n.d,
`
`producing a final cost from the base cost and the surcharge or
`
`discount.
`
`2.
`
`The method as described in claim I wherein said recording
`
`comprises identifying a trigger event associated with a one of the raw data
`
`elements having the preselected relationship and recording both the one raw data
`
`element and trigger information representative of the trigger event.
`
`3.
`
`The method as described in claim 1 further including immediately
`
`communicating to a central control station via an uplink information
`
`representative of a trigger event associated with a one of the raw data elements.
`
`4.
`
`The method as described in claim 3 further Including recording
`
`trigger event response info:-n1ation generated by said control station.
`
`Page 001197
`
`

`
`CA 02229238 1998-02-11
`
`-22-
`
`The method as described in claim 1 further including generating
`5.
`calculated data elements from said raw data elements.
`
`The method as described in claim 5 further including generating
`6.
`derived data elements from said raw data elements.
`
`7.
`
`' The method as described in claim 6 wherein said consolidating
`
`comprises accumulating said calculated and derived data elements.
`
`8.
`
`The method as described in claim 1 wherein at least a portion of
`
`the plurality of raw data elements are within an awareness and selected control
`
`of the operator and wherein the method further comprises adjusting by the
`
`operator of operator driving behavior thereby causing a change in the portion of
`
`raw data elements to obtain the surcharge or discount in the final cost.
`
`9.
`
`The method as described in claim 8 wherein the base cost is for a
`
`predetermined period of time and wherein the adjusting by the operator is set to
`
`occur at predetermined intervals within the predetermined period.
`
`10.
`
`The method as described in claim 9 wherein the predetermined
`
`period of time comprises two years and the predetermined intervals comprise
`monthly intervals.
`
`11.
`
`A process for acquiring and recording vehicle insurance related
`
`data via an on—board computer and recording system comprising steps of:
`
`monitoring a plurality of raw data elements representative of
`
`vehicle operating states and driver actions;
`
`Page 001198
`
`

`
`CA 02229238 1998-02-11
`
`-23-
`
`recording selected ones of the raw data elements in a vehicle
`
`record file of an on—board data storage device when said ones are identified as
`
`having a relationship material to determination of a cost of insurance;
`
`identifying whether said selected ones comprise a trigger event,
`
`and if so identified, communicating information representative of the trigger
`
`10
`
`event to a central control station for storage in a trigger event file; and,
`
`consolidating said vehicle record file and said trigger event file in
`
`a form for determining a vehicle cost of insurance.
`
`12.
`
`The process as defined in claim 11 further including
`
`communicating from the central control station an order for dispatch of an
`
`emergency or assist vehicle in response to the identifying of a special trigger
`
`event determined to require driver assistance.
`
`13.
`
`A system of determining a cost of automobile insurance based
`
`upon monitoring, recording and communicating data representative of operator
`
`and vehicle driving characteristics, whereby the cost is adjustable by relating the
`
`driving characteristics to predetermined safety standards, the system comprising:
`
`means for monitoring a plurality of raw data elements
`
`representative of an operating state of a vehicle or an action of the operator;
`
`means for recording selected ones of the plurality of raw data
`
`elements when said ones are determined to have a preselected relationship to the
`
`safety standards;
`
`10
`
`means for consolidating said selected ones for processing against
`
`an insured profile and for identifying a surcharge or discount to be applied to a
`
`base cost of automobile insurance; and,
`
`means for producing a final cost from the base cost and the
`
`surcharge or discount.
`
`Page 001199
`
`

`
`CA 02229238 1998-02-11
`
`_24_
`
`14.
`The system as described in claim 13 further including means for
`immediately communicating to the central control station via an uplink
`I
`
`information representative of a trigger event associated with the run of the raw
`
`data elements‘
`
`15.
`
`The system as described in claim 13 further including means for
`
`generating calculated data elements from said raw data elements.
`
`The system as described in claim 15 further including generating
`16.
`derived data elements from said raw data elements.
`
`17.
`
`A method of generating an actuarial class system for determining
`
`vehicle insurance costs for retrospectively adjusting and prospectively setting
`
`premiums based on data derived from motor vehicle operational characteristics
`
`and driver behavior, comprising:
`
`monitoring a plurality of raw data elements representing vehicle
`
`operating states and driver actions;
`
`recording selected ones of the raw data elements in a vehicle
`
`record files when said ones are identified as having a relationship material to
`
`determination of a cost of insurance;
`
`setting a plurality of actuarial classes associated with
`
`corresponding degrees of safety of operation of the vehicle wherein said
`
`actuarial classes are derived from aggregating selected ones of the raw data
`
`elements; and,
`
`consolidating said vehicle record files with selected actuaiial
`
`classes for determining a corresponding cost of insurance for the vehicle in
`
`correspondence with a one of the actuarial classes.
`
`10
`
`15
`
`Page 001200
`
`

`
`CA 02229238 1998-02-11
`
`-25-
`
`18.
`
`The process for determining a cost of insurance as defined in
`
`claim 17 wherein said monitoring and recording steps occur concurrently with
`
`actual vehicle operation for acquiring the raw data elements during actual
`vehicle use.
`
`19.
`
`The process for determining a cost of insurance as defined in
`
`claim 18 wherein at least a portion of the plurality of raw data elements are
`
`within an awareness and selective control of a driver, the process further
`
`comprising adjusting by the driver of driving behavior to changesaid portion of
`
`raw data elements for consolidating said vehicle record with an other one of the
`
`actuarial classes.
`
`20.
`
`An integrated system for extracting from multiple sensors,
`
`screening, aggregating and applying for insurance rating purposes, data
`
`generated by an actual operation of a specific motor vehicle comprising:
`
`means for extracting a plurality of raw data elements from the
`
`multiple sensors wherein the elements are representative of vehicle operating
`states and driver actions;
`
`means for screening the raw data elements and aggregating
`
`selected ones of the raw data elements in a vehicle record file of an on—board
`
`storage device when said selected ones are identified as having a relationship
`
`material to determination of a cost of insurance for the vehicle;
`
`means for associating the aggregated selected raw data elements
`
`with predetermined actuarial classes indicative of a degree of safety of operation
`of the vehicle; and
`
`means producing a cost of insurance for the vehicle associated
`
`with selected ones of the actuarial classes.
`
`10
`
`15
`
`-‘*::.-:.'w._.-.«;-2
`
`Page 001201
`
`

`
`CA 02229238 1998-02-11
`
`-26-
`
`data elements, said calculated and derived data elements being further
`
`aggregated for association with the selected one of the actuarial classes.
`
`Page 001202
`
`

`
`CA 02229238 1998-02-11
`
`IOO
`
`’uo4_
`
`REVERIFY
`IN TWO
`
`MINUTES
`
`RECORD SENSOR
`IN FORMATION
`
`IMMEDIATE
`UPLOAD
`?
`
`
`
`
`
`
`
`
`RECORD TRIGGER
`INFORMATION
`
`YES / H2
`
`NOTIFY
`CENTRAL common.
`
`II4
`
`|I8
`
`CENTRAL CONTROL
`
`TAKE APPROPRIATE
`ACTION
`
`INFORMATION
`
`RECORD TRIGGER
`EVENT RESPONSE
`
`F|G.|
`
`Page 001203
`
`
`
`
`VEHICLE
`OPERATING
`
`?
`
`
`
`

`
`CA 02229238 1998-02-11
`
`202
`
`
`ACQUIRE
`VEHICLE SENSOR
`
`VEHICLE
`RECORD FILE
`
`
`RECORD FILE
`
`208
`
`
`
`ACQUIRE TRIGGER
`TRIGGER EVENT
`EVENT RESPONSE
`RESPONSE FILE
`
`
`FILE
`
`
`
`2|O
`
`
`
`CON SOLI DATE
`FILES
`ACQUIRED
`
`
`
`2I2
`
`
`PROCESS FILE
`AGAINST INSURED
`PROFILE
`
`2|-4
`
`
`
` PROCESS FILE
`AGAINST SURCHARGE
`ALGORITHM FILE
`
`
`
`
`216
`
`
`BILLS TO BE MAILED TO
`
`INSURED
`
`PRODUCE PERIODIC
`
`
`
`ACCOUNT
`STATE MENTS
`
`Page 001204
`
`

`
`CA 02229238 1998-02-11
`
`Page 001205
`
`

`
`CA 02229238 1998-02-11
`
`4|8
`
`//'
`
`4l6
`
`
`
`
`OPERATIONS
`CONTROL
`CENTER
`
`COMMUNICATIONS LINK
`
`(eg CELLULAR
`TELEPHONE }
`
`300
`
`402
`
`404
`
`4K3
`
`ON'BOARD
`DATA
`STORAGE
`
`|/Q
`SUBSYSTEM
`
`CONSOLE
`
`DR|VER
`INPUT
`
`KERNEL
`
`ON - BOARD COMPUTER
`AND RECORDING SYSTEM
`
`4,4
`
`CPU AND
`MEMORY
`
`'B‘;33i‘E';AT'|“gg _ ADDITIONAL
`T
`SENSORS
`
`406
`
`408
`
`SU BSYSTEM 42 2
`
`VEWCLE
`DATABUS AND
`SENSORS
`
`NAVIGATION
`
`412
`
`420
`
`F|G.4
`
`Page001206
`
`

`
`CA 02229238 1998-02-11
`
`F|G