MONITORING SYSTEM FOR DETERMINING AND
`COMMUNICATING A COST OF INSURANCE
`
`5
`
`This application is a continuation-in-part application of U.S. Serial No.
`
`09/571,650 filed May 15, 2000, which is a continuation-in-part of U.S. Serial No.
`
`09/135,034, filed August 17, 1998, now U.S. Patent No. 6,064,970, which is a continuation of
`
`U.S. Serial No. 08/592,958, filed January 29, 1996, now U.S. Patent No. 5,797,134. A
`
`related application is U.S. Serial No. 09/364,803 filed July 30, 1999.
`
`10
`
`Field of the Invention
`
`The present
`
`invention
`
`relates
`
`to data acquisition, processing and
`
`communicating systems, and particularly to a system for acquiring and processing relevant
`
`data for an insured unit of risk, such as a vehicle or other machine, for purposes of providing
`
`15
`
`a more accurate determination of the cost of insurance for the unit of risk and for
`
`communicating or quoting the so determined cost to an owner of the unit of risk. Although
`
`the invention has its principal applicability to motor vehicles such as automobiles, the
`
`invention is equally applicable to other units of risk such as, without limitation, factory
`
`machines, farm machines, motorcycles, motor homes, trucks, tractors, vans, buses, boats and
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`20
`
`other water craft and aircraft. The inven~ion especially relates to a system for monitoring and
`
`communicating operational characteristics and operator actions relating to a unit of risk, to
`
`obtain increased amounts of data relating to the safety or risk of use of a subject unit, for
`
`purposes of providing a more accurate or customized determination of the cost of insurance
`
`corresponding to the usage of the risk unit, and for making such data and computed costs
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`25
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`accessible to a non-customer, customer or insured or others on a personal computer, in
`
`hardcopy, over the Internet or by other electronic means for convenient communication. The
`
`invention relates
`
`to electronic commerce, particularly where
`
`insurance and related
`
`information is marketed, sold or communicated via the telephone, Internet or other interactive
`
`network.
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`30
`
`Background of the Invention
`
`Conventional methods for determining costs of motor vehicle insurance
`
`involve gathering relevant historical data from a personal interview with, or a written
`
`application completed by, the applicant for the insurance and by referencing the applicant's
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`35
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`public motor vehicle driving record that is maintained by a governmental agency, such as a
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`

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`Bureau of Motor Vehicles. Such data results in a classification of the applicant to a broad
`
`actuarial class for which insurance rates are assigned based upon the empirical experience of
`
`the insurer. Many factors are deemed relevant to such classification in a particular actuarial
`
`class or risk level, such as age, sex, marital status, location of residence and driving record.
`
`The current system of insurance creates groupings of vehicles and drivers
`
`(actuarial classes) based on the following types of classifications.
`
`Vehicle:
`
`Driver:
`
`Age;
`
`manufacturer, model; and
`
`value.
`
`Age;
`
`sex;
`
`marital status;
`
`5
`
`10
`
`15
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`20
`
`Coverage:
`
`25
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`driving record (based on government reports),
`
`violations (citations);
`
`at fault accidents; and
`
`place of residence.
`
`Types of losses covered,
`
`liability,
`
`uninsured or underinsured motorist,
`
`comprehensive, and
`
`collision;
`
`liability limits; and
`
`deductibles.
`
`The classifications, such as age, are further broken into actuarial classes, such
`
`30
`
`as 21 to 24, to develop a unique vehicle insurance cost based on the specific combination of
`
`attributes for a particular risk. For example, the following information would produce a
`
`unique vehicle insurance cost:
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`2
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`

`

`Vehicle:
`
`Age
`
`5
`
`manufacturer, model
`
`Driver:
`
`value
`
`Age
`
`sex
`
`10
`
`marital status
`
`1997 (seven years old)
`
`Ford, Explorer XLT
`
`$ 18,000
`
`38 years old
`
`male
`
`single
`
`driving record (based on government reports)
`
`violations
`
`at fault accidents
`
`place of residence
`
`1 point (speeding)
`
`3 points (one at fault accident)
`
`33619 (zip code)
`
`15 Coverage:
`
`Types of losses covered
`
`20
`
`liability
`uninsured or underinsured
`motorist
`
`comprehensive
`
`collision
`
`yes
`
`no
`
`yes
`
`yes
`
`liability limits
`
`deductibles
`
`$100,000/$300,000/$50,000
`
`$500/$500
`
`25
`
`A change to any of this information might result in a different premium being
`
`charged, if the change resulted in a different actuarial class or risk level for that variable. For
`
`instance, a change in the drivers' age from 38 to 39 may not result in a different actuarial
`
`class, because 38 and 39 year old people may be in the same actuarial class. However, a
`
`change in driver age from 38 to 45 may result in a different premium because the records of
`the insurer indicate a difference in risk associated with those ages and, therefore, the age
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`30
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`difference results in a change in actuarial class or assigned risk leveL
`
`Current insurance rating systems also provide discounts and surcharges for
`
`some types of use of the vehicle, equipment on the vehicle and type of driver. Common
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`

`surcharges and discounts include:
`Surcharges:
`
`Business use.
`
`Discounts:
`
`5
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`Safety equipment on the vehicle
`
`airbags, and
`
`antilock brakes;
`
`theft control devices
`
`passive systems (e.g. "The Club"), and
`
`alarm system; and
`
`driver type
`
`good student, and
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`safe driver (accident free).
`
`group
`
`senior drivers
`
`fleet drivers
`
`10
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`15
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`A principal problem with such conventional insurance determination systems
`
`is that much of the data gathered from the applicant in the interview or from the written
`
`application is not verifiable, and even existing public records contain only minimal
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`20
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`information, much of which has little relevance towards an assessment of the likelihood of a
`
`claim subsequently occurring. In other words, current rating systems are primarily based on
`
`past realized losses and the past record of other drivers with similar characteristics. None of
`
`the data obtained through conventional systems necessarily reliably predicts the manner or
`
`safety of future operation of the vehicle by the driver/applicant. Accordingly, the limited
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`25
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`amount of accumulated relevant data and its minimal evidential value towards computation of
`
`a fair cost of insurance has generated a long-felt need for an improved system for more
`
`reliably and accurately accumulating data having a highly relevant evidential value towards
`
`predicting the actual manner of a vehicle's future operation by a specific driver or group of
`
`drivers.
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`30
`
`Many types of vehicle operating data recording systems have heretofore been
`
`suggested for purposes of obtaining an accurate record of certain elements of vehicle
`
`operation. Some are suggested for identifying the cause for an accident; others are for more
`
`accurately assessing the efficiency of operation and/or environmental emissions of a vehicle.
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`4
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`

`

`Such systems disclose a variety of conventional techniques for recording vehicle operation
`data elements in a variety of data recording systems. It has even been suggested to detect and
`
`record seatbelt usage to assist in determination of the vehicle insurance costs (U.S. Patent No.
`
`4,667,336).
`
`5
`
`The various forms and types of vehicle operating data acquisition and recordal
`
`systems that have heretofore been suggested and employed have met with varying degrees of
`
`success for their express limited purposes. All possess substantial defects such that they have
`
`only limited economic and practical value for a system· intended to provide an enhanced
`
`acquisition, recordal and/or communication system of data which would be both
`
`1 0
`
`comprehensive and reliable in predicting an accurate and adequate cost of insurance for the
`
`vehicle. Since the type of operating information acquired and recorded in prior art systems
`
`was generally never intended to be used for determining the cost of vehicle insurance, the
`
`data elements that were monitored and recorded therein were not directly related to
`
`predetermined safety standards or the determining of an actuarial class or risk level for the
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`15
`
`vehicle operator. For example, recording data characteristics relevant to the vehicle's exhaust
`
`emissions may be completely unrelated to the safety of operation of the vehicle. Further,
`
`there is the problem of recording and subsequently compiling the relevant data for an
`
`accurate determination of an actuarial profile and an appropriate insurance cost therefor.
`
`Current motor vehicle control and operating systems comprise electronic
`
`20
`
`systems readily adaptable for modification to obtain the desired types of information relevant
`
`to determination of the cost of insurance. Vehicle tracking systems have been suggested
`
`which use communication links with satellite navigation systems for providing information
`
`describing a vehicle's location based upon navigation signals. When such positioning
`
`information is combined with maps or geographic information in an expert system, vehicle
`
`25
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`location is ascertainable. Mere vehicle location, though, will not provide data particularly
`
`relevant to safety of operation unless the data is combined with other relevant data in an
`
`expert system which is capable of assessing whether the roads being driven are high-risk or
`
`low-risk with regard to vehicle safety.
`
`On-line Web sites for marketing and selling goods have become common
`
`30
`
`place. Many insurers offer communication services to customers via Web sites relevant to an
`
`insured profile and account status. Commonly assigned pending application U.S. Serial No.
`
`09/135,034, filed August 17, 1998, now U.S. Patent No. 6,064,970, discloses one such
`
`system. Customer comfort with such Web site communication has generated the need for
`
`5
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`

`

`systems which can provide even more useful information to customers relative to a
`
`customer's contract with the insurer. Such enhanced communications can be particularly
`
`useful to an insured when the subject of the communications relates to cost determination, or
`
`when the subject relates to prospective reoccurring insurable events wherein the system can
`
`5
`
`relate in the existing insured's profile with some insurer-provided estimates to the effect that
`
`a future event or method of operating a unit of risk would have on an estimated cost of
`
`insuring the unit of risk.
`
`The present invention contemplates a new and improved monitoring,
`
`recording, processing and communicating system for an insured unit of risk, such as a
`1 0 machine, which primarily overcomes the problem of accurately determining cost of insurance
`
`based upon data which does not take into consideration how a specific unit of risk or machine
`
`is operated or decisions made by a particular unit of risk owner or operator. The subject
`
`invention will base insurance charges with regard to current material data representative of
`
`actual decisions made by the operator and/or operating characteristics to provide a more
`
`15
`
`precise classification rating of an operator or the unit in an actuarial class which has a vastly
`
`reduced rating error over conventional insurance cost systems. Additionally, . the present
`
`invention allows for frequent (e.g., monthly, quarterly, semiannually, etc.) adjustment to the
`
`cost of insurance because of the changes in operating behavior patterns. This can result in
`
`insurance charges that are readily controllable by individual operators. The system is
`
`20
`
`adaptable to current electronic operating systems, tracking systems and communicating
`
`systems for the improved extraction of selected insurance related data.
`
`In addition, the
`
`system provides for enhanced and improved communication and analysis of the relevant
`
`acquired data, cost estimates of insuring events and customer insured profiles through a
`
`personal computer and/or Internet/Web site.
`
`25
`
`Another deficiency in prior art systems is that such systems were never
`
`intended to allow the operator to control whether to submit to the insurer the data elements
`
`monitored and recorded from the vehicle or machine. The system solves this problem by
`
`providing the means for the operator to control the submission of information to the insurer
`
`and by allowing the operator to understand how modifying operational behavior affects the
`
`30
`
`cost of insurance.
`
`Brief Summary of the Invention
`
`A system for monitoring, recording, storing and communicating operational
`
`6
`
`

`

`characteristics and operator actions relating to a unit of risk in order to obtain data which
`
`reflects the level of safety or risk applicable to the operation of that unit of risk, for the
`
`purpose of obtaining a more accurate or customized determination of the cost of insuring that
`
`unit of risk, and for making such data and the resulting computed insurance costs accessible
`
`5
`
`to a customer or insured, a non-customer or others on a personal computer, in hardcopy, over
`
`the Internet or by other electronic means for convenient review, comparison and analysis,
`
`such system being comprised of: 1) a data logger or other data recording device, 2) a means
`
`to transfer the data to a computer, if the operator so determines, 3) a means to compare the
`
`data to data obtained with respect to the operation of other similar machines or applicable risk
`
`10
`
`factors, 4) a means to compute a resulting insurance cost and 5) a means to display and
`
`manipulate the data on a computer, Web site or other display medium to illustrate the effect
`
`of various operating characteristics and operator actions, and changes therein, on the cost of
`
`insurance.
`
`15
`
`20
`
`25
`
`Brief Description of the Drawings
`
`The invention may take form in various components and arrangements of
`
`components, and/or in various procedures and arrangements of procedures. The drawings are
`
`only for purposes of illustrating preferred embodiments. They are not to scale, and are not to
`
`be construed as limiting the invention.
`
`FIGURE 1 is a block diagram/flowchart generally describing data capture
`
`methods within a unit of risk for insurance in claims processing.
`
`FIGURE 2 is a block diagram generally illustrated in the communication
`
`network design the unit of risk including a response center of the insurer and a data handling
`center.
`
`FIGURE 3 is a suggestive perspective drawing of a vehicle including certain
`
`data elements monitoring, recording and communication devices.
`
`FIGURE 4 is a block diagram of a vehicle onboard computer and recording
`
`system implementing the subject invention for selective communication with a central
`
`operations control center and a global positioning navigation system.
`
`30
`
`FIGURE 5 is a block diagram illustrating use of acquired data including
`
`communication through Internet access.
`
`FIGURE 6 is a block diagram/flowchart illustrating an underwriting and rating
`
`method for determining a cost of insurance in conjunction, with the system of FIG. 4.
`
`7
`
`

`

`FIGURE 7 is a flow chart outlining a method of insurance underwriting and
`
`rating related to the operation of a machine associated with a party.
`
`FIGURE 8 is first display screen summarizing data received from a device for
`
`recording data regarding operational aspects of a motor vehicle in conjunction with
`
`5
`
`information related to a cost of insurance and operational aspects of the operation of other
`
`motor vehicles.
`
`FIGURE 9 is second display screen summarizing the data received from the
`
`device for recording data regarding one or more operational aspects of the motor vehicle in
`
`conjunction with information related to a cost of insurance and operational aspects of the
`
`1 0
`
`operation of other motor vehicles.
`
`FIGURE 10 is third display screen summarizing data received from the device
`
`for recording data regarding one or more operational aspects of the motor vehicle in
`
`conjunction with information related to a cost of insurance and operational aspects of the
`
`operation of other motor vehicles.
`
`15
`
`20
`
`FIGURE 11 is display screen associated with a Web site displaying data
`
`received from the device for recording data regarding operational aspects of the motor
`
`vehicle in conjunction with information related to a cost of insurance and operational aspects
`
`of the operation of other motor vehicle and providing means for exploring how changing the
`
`operational aspects would affect a cost of insurance.
`
`FIGURE 12 is a display screen associated with the Web site displaying trip
`
`time information summarizing data received from the device for recording data regarding one
`
`or more operational aspects of the motor vehicle in conjunction with average trip time
`
`summary information associated with other vehicles.
`
`FIGURE 13 is a display screen associated with the Web site displaying speed
`
`25
`
`information summarizing data received from the device for recording data regarding one or
`
`more operational aspects of the motor vehicle.
`
`FIGURE 14 is a display screen associated with a Web site displaying trip date
`
`information summarizing data received from the device for recording data regarding one or
`
`more operational aspects of the motor vehicle in conjunction with trip date summary
`
`30
`
`information associated with other vehicles.
`
`FIGURE 15 is a display screen associated with a Web site displaying trip log
`
`information summarizing data received from the device for recording data regarding one or
`
`more operational aspects of the motor vehicle on a day-by-day basis.
`
`8
`
`

`

`FIGURE 16 is a display screen associated with a Web site displaying trip log
`
`information summarizing data received from the device for recording data regarding one or
`
`more operational aspects of the motor vehicle on a trip-by-trip basis hand highlighting
`
`insurance cost or risk increasing events.
`
`5
`
`FIGURE 17 is a display screen associated with a Web site displaying
`
`information summarizing installation, disconnection and data transfer events related to the
`
`use of the device for recording data regarding one or more operational aspects of the motor
`
`vehicle.
`
`FIGURE 18 is a block diagram of an exemplary embodiment of a device for
`recording data regarding one or more operational aspects of a machine.
`
`1 0
`
`Detailed Description of the Preferred Embodiments
`
`The folloWing terms and acronyms are used throughout the detailed
`
`description:
`
`15
`
`20
`
`Internet. A collection of interconnected (public and/or private) networks that
`
`are linked together by a set of standard protocols (such as TCPIIP and HTTP) to form a
`
`global, distributed network. While this term is intended to refer to what is now commonly
`
`known as the Internet, it is also intended to encompass variations which may be made in the
`
`future, including changes and additions to existing standard protocoJs.
`
`World Wide Web ("Web"). Used herein to refer generally to both (i) a
`
`distributed collection of interlined, user-viewable hypertext documents (commonly referred
`
`to as Web documents or Web pages) that are accessible via the Internet, and (ii) the client and
`
`server software components which provide user access to such documents using standardized
`
`Internet protocols. Currently, the primary standard protocol for allowing applications to
`
`25
`
`locate and acquire Web documents is HTTP, and the Web pages are encoded using HTML.
`
`However, the terms "Web" and "World Wide Web" are intended to encompass future markup
`
`languages and transport protocols which may be used in place of (or in addition to) HTML
`and HTTP.
`
`Web Site. A computer system that serves informational content over a
`
`30
`
`network using the standard protocols of the World Wide Web. Typically, a Web site
`
`corresponds to a particular Internet domain name, such as "progressive.com" and includes the
`
`content associated with a particular organization. As used herein, the term is generally
`
`intended to encompass both (i) the hardware/software server components that serve the
`
`9
`
`

`

`informational content over the network, and (ii) the "back end" hardware/software
`
`components including any non-standard or specialized components, that interact with the
`
`server components to perform services for Web site users.
`
`Referring now to the drawings, wherein the showings are for purposes of
`
`5
`
`illustrating the preferred embodiments of the invention only and not for purposes of limiting
`
`same, the FIGURES show an apparatus and method for monitoring; recording and
`
`communicating insurance-related data for determination of an accurate cost of insurance
`
`based upon evidence relevant to the actual operation and location of a machine in particular,
`
`and the relative safety of that operation. Generally, a unit of risk, e.g., a vehicle or other
`1 0 machine, user or owner is charged for insurance based upon statistical averages related to the
`
`safety of operation based upon the insurer's experience with other users who drive similar
`
`vehicles in a similar geographic area or use similar machines.
`
`For example, based on this information, the insurer makes assumptions about
`
`how and where the machine will be operated. The invention allows for the measure of the
`
`15
`
`actual operational machine data while the machine is being operated. Where the machine is a
`
`vehicle, such data measurement will allow the vehicle user to directly control 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:
`
`20
`
`25
`
`30
`
`1.
`
`2.
`
`3.
`
`4.
`
`Actual miles driven;
`
`Types of roads driven on (high risk vs. low risk); and,
`
`speeds driven,
`
`safety equipment used, such as seat belt and turn signals,
`
`time of day driven (high congestion vs. low congestion),
`
`Safe operation of the vehicle by the vehicle user through:
`A.
`B.
`c.
`D.
`E.
`F.
`Driver identification
`
`rate of acceleration,
`
`rate ofbraking (deceleration),
`
`observation of traffic signs.
`
`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
`device 300 monitors and records various sensors and operator actions to acquire the desired
`
`10
`
`

`

`data for determining an accurate 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 device 300 through a connections
`cable which is operatively connected to a vehicle data bus 304 through physical connector,
`
`5
`
`such as, for example, an industry standard connector known as an SAE-1962 or On Board
`
`10
`
`Diagnostic connector (e.g., ODBI, ODBII or in the near future ODBIII). Additionally,
`
`communications connections such as these may be made wirelessly, such as, for example,
`
`with the wireless technology currently known as Bluetooth® (The Bluetooth word mark and
`logos are owned by the Bluetooth SIG, Inc). A driver input device 308 may also be
`operatively connected to the device 300 through connector 307 and cable 302. The device
`300 is powered through the car battery 310, a conventional generator system, a device battery
`or a solar based system (not shown). A device battery may be included in the device 300
`even where main device power is drawn from the machine (motor vehicle). For instance, a
`
`device battery may provide power for a device clock, device memory and/or allow the device
`
`15
`
`to record connection and disconnection events. Tracking of the vehicle for location
`identification can be implemented by the device 300 through navigation signals obtained
`
`from a GPS (global positioning system) antenna, a differential GPS or other locating system
`312. The communications link to a central control station may be accomplished through the
`cellular telephone, radio, satellite or other wireless communication system 314. However, the
`20 wireless communications system 314 is not required.
`
`FIGURE 4 provides the block diagram of the in-vehicle computer system.
`The device 300 is comprised of several principal components, such as an on-board data
`storage device, an input/output subsystem for communicating to a variety of external devices,
`
`25
`
`a central processing unit and memory device and a real time operating kernel for controlling
`the various processing steps of the device 300. It is known that all of these functions can be
`included in a single dedicated microprocessor circuit. One embodiment of the device 300 is
`discussed in greater detail with reference to FIGURE 18. The device 300 essentially
`communicates with one or more machine or vehicle components for acquisition of
`
`information representative of various actual vehicle operating aspects or characteristics. A
`driver input console 410 may allow the driver to input data for satisfaction of various
`
`30
`
`threshold factors which need to be satisfied. For instance, the console may allow the machine
`
`operator to enter an identification number so that operational characteristics can be recorded
`
`in association with a particular machine operator. Alternatively, the console may include a
`
`11
`
`

`

`biometric sensor, such as, for example, a finger print or retinal scanner for positively
`
`identifying the operator.
`
`For instance, a driver authentication system is intended, such as where several
`
`individual drivers (same family, etc.) may properly use the vehicle, but each may have
`
`5
`
`different ratings for insurance computations.
`
`The physical operation of the vehicle is monitored through various sensors
`412 in operative connection with the vehicle or machine data bus, while additional sensors
`414 not normally connected to the data bus can be in direct communication with the device
`300 as will hereinafter be more fully explained.
`
`10
`
`communications
`
`The vehicle may be linked to an operation control center 416 by a
`link 418, preferably comprising a conventional cellular
`
`telephone
`
`interconnection, but also comprising satellite transmission, magnetic or optical media, radio
`frequency or other known communication technology. A navigation sub-system 420 may
`receive radio navigation signals from a positioning device 422 which may include, but is not
`
`15
`
`limited to GPS, radio frequency tags, or other known locating technology. If these elements
`are included, they may communicate with the device 300 directly or via the data bus.
`
`The type of elements monitored and recorded by the subject invention may
`
`include raw data elements, calculated data elements and derived data elements. For example,
`
`these can be broken down as follows:
`
`20
`
`25
`
`Raw Data Elements:
`
`Information from power train sensors
`RPM,
`
`transmission setting (Park, Drive, Gear, Neutral),
`
`throttle position,
`
`engine coolant temperature,
`
`intake air temperature,
`
`barometric pressure;
`
`30
`
`Information from electrical sensors
`
`brake light on,
`
`turn signal indicator,
`
`headlamps on,
`
`12
`
`

`

`hazard lights on,
`
`back -up lights on,
`
`parking lights on,
`
`wipers on,
`
`doors locked,
`
`key in ignition,
`
`key in door lock,
`
`hom applied;
`
`Information from 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,
`
`odometer reading,
`
`cruise control engaged,
`
`anti-theft disable,
`
`occupant in seat,
`
`occupant weight;
`
`Information from other elements
`
`vehicle speed,
`
`vehicle location,
`
`date,
`
`time,
`
`vehicle direction,
`
`IVHS data sources
`
`pitch and roll,
`
`5
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`10
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`15
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`20
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`25
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`30
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`relative distance to other objects.
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`Calculated Information:
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`13
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`

`

`deceleration;
`
`acceleration;
`
`vehicle in skid;
`
`wheels in spin;
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`5
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`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;·
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`10
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`space to front of vehicle occupied;
`
`lateral acceleration;
`
`sudden rotation of vehicle;
`
`sudden loss of tire pressure;
`
`driver identification (e.g., through voice recognition, code, fingerprint or
`
`15
`
`retinal recognition);
`
`distance traveled; and
`
`environmental hazard conditions (e.g. icing, etc.).
`Derived Data Elements:
`
`vehicle speed in excess of speed limit;
`
`20
`
`observation of traffic signals and signs;
`
`road conditions;
`
`traffic conditions; and
`
`vehicle position.
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`25
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`This list includes many, but not all, potential data elements.
`
`With particular reference to FIG. 1, a flowchart generally illustrating a data
`
`capture process within the vehicle for insurance and claims processing is illustrated. Such a
`
`process can be implemented with conventional computer programming in the real time
`operating kernel of the device 300. Although it is within the scope of the invention that each
`
`30
`
`consumer could employ a unique logic associated with that consumer's machine or unit of
`
`risk, based on the underwriting and rating determination (FIG. 6), as will be more fully
`
`explained later, FIG. 1 illustrates how the data capture within a particular consumer logic is
`
`accomplished. After the system is started 100, data capture is initiated by a trigger event 102
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`14
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`5
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`10
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`15
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`20
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`25
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`30
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`which can include, but is not limited to:
`
`Ignition On/Off
`
`Airbag Deployment
`
`Acceleration Threshold
`
`Velocity Threshold
`
`Elapsed Time
`
`Battery Voltage Level
`
`System Health
`
`Date
`
`Time
`
`User Activation/Panic Button
`
`Traction
`
`Location/Geofencing
`
`Driver Identification
`
`Remote Activation
`
`Trigger event processing 104 can comprise three elements: a flow process for
`contacting a central control106, contacting a claims dispatch, and/or recording trigger event
`data 110. Trigger event processing can include, but is not limited to:
`
`Contact External Entities
`
`EMT (Emergency Medical Transport), Claims Dispatch, Other
`External Entity Takes Appropriate Action
`
`Record Sensor Information
`
`Transmission of Data
`
`Recalibration
`
`Load Software
`
`If trigger event processing comprises contact central control, the inquiry is
`made, and if affirmative, the central control is contacted 112, the central control can take
`
`appropriate action 114, and a record is made of the action taken by the central control 116.
`For the process of claims dispatch 108, the system first contacts 120 the clair~l.S dispatch
`service department of the insurer, the claims dispatch takes appropriate action 122 and a
`recording 124 of the claims dispatch action information is made.
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`15
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`

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`5
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`10
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`The recording of trigger event data can include, but is not limited to:
`
`The Trigger
`
`Location information such as latitude and longitude
`
`Time, such as, Greenwich Mean Time
`
`Velocity
`
`Acceleration
`
`Direction
`
`Deceleration
`
`Vehicle Orientation
`
`Seatbelt Status
`Data capture processing concludes with end step 130.
`The recording may include monitoring a plurality of raw data elements,
`
`calculated data elements and derived data elements as identified above. Each of these is
`
`representative of an operating state of the vehicle or an action of the operator and therefore,
`
`15
`
`represents an operational aspect of the machine. Select ones of the plurality of data elements
`
`are recorded when the ones are determined or believed to have an identified relationship to
`
`the safety standards. For example, vehicle speed is likely to be related to safety. Therefore,
`
`speed may be recorded on a regular basis (e.g. every 10 seconds). Alternatively, where
`
`20
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`memory or storage space is a factor, speed may be recorded less often when it is below a
`threshold. The recording may be made hi combination with date, time and/or location
`information. Other examples of data that may be recorded are excessive rates of acceleration
`
`or hard braking (deceleration) events. These may be calculated data elements determined, for
`
`example, from speed measurements made every second or can be measured data elements
`
`received directly or indirectly from one or more accelerometer of the vehicle.
`
`25
`
`The recording process is 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 within the device 300. The raw, calculated and
`
`derived data elemen