Exhibit 1020
`
`US008090598B2
`
`(12) United States Patent
`Bauer et al.
`
`(10) Patent No.:
`(45) Date of Patent:
`
`US 8,090,598 B2
`Jan. 3, 2012
`
`(54) MONITORING SYSTEM FOR DETERMINING
`AND COMMUNICATING A COST OF
`INSURANCE
`
`(75)
`
`Inventors: Alan Rex Bauer, Mill Valley, CA (US);
`Kurtis Tavis Burns, Lakewood, OH
`(US); Michael Vincent Esposito,
`Aurora, OH (US); David Charles
`Huber, Jr., Hudson, OH (US); Patrick
`Lawrence 0’Malley, Avon, OH (US)
`
`(73) Assignee: Progressive Casualty Insurance
`Company, Mayfield Village, OH (US)
`
`( * ) Notice:
`
`Subject to any disclaimer, the term of this
`patent is extended or adjusted under 35
`U.S.C. 154(b) by 2257 days.
`
`(21) Appl.No.: 10/764,076
`
`(22)
`
`Filed:
`
`Jan. 23, 2004
`
`(65)
`
`(63)
`
`Prior Publication Data
`
`US 2004/0153362 A1
`
`Aug. 5, 2004
`
`Related U.S. Application Data
`
`Continuation-in-part of application No. 09/571,650,
`filed on May 15, 2000, now Pat. No. 6,868,386, which
`is
`a
`continuation—in—part
`of
`application No.
`09/135,034, filed on Aug. 17, 1998, now Pat. No.
`6,064,970, which is a continuation of application No.
`08/592,958, filed on Jan. 29, 1996, now Pat. No.
`5,797,134.
`
`(51)
`
`(52)
`(58)
`
`Int. Cl.
`(2006.01)
`G06Q 40/00
`U.S. Cl.
`............................... .. 705/4; 701/1; 701/117
`Field of Classification Search ................ .. 702/188,
`702/2, 3; 701/29,1,5,117; 705/400
`See application file for complete search history.
`
`(56)
`
`References Cited
`
`U.S. PATENT DOCUMENTS
`3,388,404 A
`6/1968 Bush
`(Continued)
`
`CA
`
`FOREIGN PATENT DOCUMENTS
`2151458
`6/1994
`
`(Continued)
`OTHER PUBLICATIONS
`
`OBD
`http://www.obd-onboarddiagno stics.con1/AutoWatch.htm,
`Vehicle Usage Monitor-Autowatch,
`“AutoWatc11TM”, Copyright
`1999-2004-Software for Cars.
`
`(Continued)
`
`Primary Examiner — Lena Naj arian
`Assistant Examiner — Teresa Woods
`(74) Attomg/, Agent, or Firm —Brinks Hofer Gilson &
`Lione
`
`ABSTRACT
`(57)
`Means are provided for recording, storing, calculating, com-
`mumcating and reviewing one or more operational aspects of
`a machine. Insurance costs are based, in part, on activities of
`the machine operator. A discount may be provided in
`exchange for recording the operational aspects and providing
`the recorded information to the insurer. The party may review
`information and decide whether to provide it to the insurer.
`The means for reviewing may present comparative infonna-
`tion. Information that causes insurance costs to vary may be
`highlighted. Provided data may be used to verify insurance
`application information, generate actuarial information or
`determine insurance rates. Operating data may be reviewed
`on a computer, a Web site or other display medium so a party
`can observe how his operating behavior compares to that of
`other operators of similar machines and may be manipulated
`so a party can understand how changes in operating behavior
`can affect his insurance rates.
`
`78 Claims, 18 Drawing Sheets
`
`1003/ sumLoop
`
`102
`
`TRIGGER
`EVENI
`
`TRIGGER
`svsur
`""°°E“'”°
`
`Liberty Mutual
`Exhibit 1020
`
`
`
`Page 000001
`
`was
`EVE
`1
`
`we
`
`we
`
`112
`
`counm
`czumu.
`coumot
`
`
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`
`
`
`m
`APPROPRIATE
`ACTION
`Hfiw
`RECORD
`owrmt
`comma.
`Acmou
`mrommnw
`l_
`
`110
`
`ccwn
`
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`ms>=;m:u
`120
`
`commcums
`DISPATCH
`1cums
`122
`msmrcnmes
`APPROPRIATE
`ACTION
`124
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`/«anon
`wrnnwxnou
`
`
`
`
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`1 *
`
`R322"
`
`

`
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`
`fi>>3>3>>>>3>>>>>3>>J>>>3>>J>>3>>>>>3>>J>>>3>fi>J>>3>3>fi>>>3>>3>>D>3>3>3>>>3>fi>D>D>3>>3>D>>3>3>J>D>D>3>fi>J>D>3>3>fi>>>3>3>3>>>
`
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`5,303,163
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`5,355,855
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`5,365,451
`5,373,346
`5,379,219
`5,394,136
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`5,412,570
`5,430,432
`5,442,553
`5,445,347
`5,446,659
`5,459,660
`5,463,567
`5,465,079
`5,471,193
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`5,497,329
`5,499,182
`5,500,806
`5,546,305
`5,548,273
`5,550,551
`5,550,738
`
`US 8,090,598 B2
`Page 2
`
`D>D>CI>D>>D>>D>D>i1>D>>D>>i1>D>CI>D>>iI>i>3>D>>D>D>>>D>D>fi>>>D>il>3>D>>D>fi>D>D>>
`
`5,570,087
`5,581,464
`5,608,629
`5,638,273
`5,654,501
`5,680,140
`5,693,876
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`5,694,322
`5,726,893
`5,732,074
`5,737,711
`5,758,299
`5,758,300
`5,790,427
`5,797,134
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`6,246,934
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`
`10/1996
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`

`
`US 8,090,598 B2
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`Jan. 3, 2012
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`Sheet 1 of 18
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`100
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`Page 000006
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`U.S. Patent
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`Jan. 3, 2012
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`Sheet 2 of 18
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`U.S. Patent
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`Sheet 3 of 18
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`Page 000008
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`U.S. Patent
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`Jan. 3, 2012
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`Sheet 4 of 18
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`U.S. Patent
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`Jan. 3, 2012
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`Sheet 5 of 18
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`Gfimozosn
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`
`m.O_u_
`
`Page 000010
`
`
`
`
`
`
`
`

`
`U.S. Patent
`
`Jan. 3, 2012
`
`Sheet 6 of 18
`
`US 8,090,598 B2
`
`
`
`EXTERNAL
`DATABASE WITH
`CUSTOMER
`INFORMATION
`
`COLLECT UNDERWRITING
`AND RATING INFORMATION
`FROM CUSTOMER AND
`EXTERNAL SOURCES,
`FOR EXAMPLE: AGE,
`SEX, DRIVING RECORD,
`TYPE OF TELEMATIC
`
`UNIT, ETC.
`
`CUSTOMERS
`
`206
`
`200
`
`BASED ON THE
`
`COLLECTED INFORMATION,
`DEVELOP AND RECORD
`THE RATING ALGORITHM
`
`524
`
` UNIT OF RISK
`DOWNLOAD RATING
`ALGORITHM TO
`ON-BOARD DATA
`LOGGING AND /OR
`COMMUNICATION
`DEVICE
`
`
`
`TO DATA
`LOGGING AND
`COMMUNICATION
`
`
`
`
`
`
`
`FIG. 6
`
`Page 000011
`
`

`
`U.S. Patent
`
`Jan. 3, 2012
`
`Sheet 7 of 18
`
`US 8,090,598 B2
`
`DETERMINE A LEVEL OF
`
`WILLINGNESS OF A PARTY
`TO ALLOW AT LEAST ONE
`ASPECT OF MACHINE
`oPERATIoN TO BE
`RECORDED
`
`PROVIDE A DEVICE FOR
`
`RECORDING THE AT LEAST
`ONE ASPECT IF THE PARTY
`IS WILLING TO ALLOW THE
`
`ASPECT TO BE RECORDED
`
`ASSIGN A LEVEL RISK TO
`THE OPERATION OF THE
`MACHINE BASED AT LEAST
`IN PART ON THE INDICATED
`LEVEL OF WILLINGNESS TO
`ALLOW THE AT LEAST ONE
`ASPECT TO BE RECORDED
`
`DETERMINE WHETHER oR
`
`NOT TO OFFER INSURANCE
`FOR THE MACHINE TO THE
`PARTY BASED ON THE
`ASSIGNED LEVEL OF RISK
`
`SET A PRICE FOR
`
`INSURANCE BASED ON THE
`ASSIGNED LEVEL OF RISK IF
`THE DETERMINATION IS
`MADE TO OFFER INSURANCE
`
`FIG. 7
`
`713
`
`722
`
`/714
`
`726
`
`730
`
`734
`
`Page 000012
`
`

`
`U.S. Patent
`
`8
`
`2B0095,